Title: The "Fiscal Cliff" Should Happen. It's Only 1/10th of What's Needed, but It's a Start, and Better than More Obama Debt.
Author: Andrew M Molchan
Date: Thu December 6th, 2012
Dec 6th 2012. ANDY'S UNPOPULAR INSIGHTS. Let the "Cliff" Happen. It's Only 1/10th of What's Needed, But It's a Start.
It seems like nobody in Washington DC can do 4th grade Math, and nobody can think more than a few months into the future. Everything is kick the cans down the road.
The SOCIAL and Financial demographic reality for the USA is THIS. For the last 65+ years America culture, and economics has been DOMINATED, and for many years Driven, by the Baby Boomers. First as babies, then children in school, then young adults, then workers/savers/ spenders in their prime, and now as old people consuming so-called "entitlements."
The Baby Boomers are about 70 million adults out of a total population of 315 million. 25 years ago (during Clinton's time) they were an even BIGGER percentage of the population
Some Demographers figure the START of the Baby Boomers from 1945, some from 1941, whatever. It's about 70 billion adults give or take a few million.
The oldest Baby Booms, using 1945 as the Start, are now 67 years old. The YOUNGEST, using 1962 as the End of the Baby Boomers, the youngest are now 50 years old.
Age 46 is the average TOP of a person's spending and "growth" Bell Curve. So almost ALL of the Baby Boomers are now on the DOWN SIDE of the spending and growth 70 Million Bell Curve.
Why is the above FACT important? Because America's DO NOT understand the many factors that really drive GROWTH. For example, there is always much propaganda about the so-called "Clinton Economic Miracle," and the "Democratic Economic Super Management of the late 1990s." IT'S ALL BULL SHIT. The US economy WAS GOOD because 100% of the 70 million Baby Boomers were Adults, in their prime working ages, and Expanding their spending & saving. A monkey could have been President and the economy would have been good.
Bill and Hillary understand this, and they Lie. The Republicans need to play by the same rules.
The Baby Booms are NOW entering Social Security and Medicare BY THE MILLIONS every year. Most important, they will be Entering Social Security and Medicare BY THE MILLIONS for the NEXT 15 years. AMERICA HAS A MAJOR PROBLEM THAT IS NOT GOING AWAY. This is the REVERSE of the "Clinton Economic Miracle."
It's 4th Grade Math, Social Security, and Medicare are on the Doorstep of being OVERWHELMED.
Mr. Chris Cox, former Chairman of the Congressional Policy Committee, and the Security & Exchange Commission. And Mr. Bill Archer former chairman of the Congressional Ways and Means Committee; THEY DID THE MATH and their results were published in the Nov 27th 2012 issue of the Wall Street Journal.
Messrs Cox and Archer did the Math: America's LIABILITY for Social Security and Medicare payments are INCREASING by Seven (7) Trillion dollars (with a T) EVERY YEAR!
Messrs Cox & Archer in the Wall Street Journal article point out that the Medicare Trustees and Social Security Trustee AGREE with those numbers.
In the WSJ article Messrs Cox & Archer say that Buried DEEP inside of the fine print IN the Medicare Trustees Official Report is the admission that Medicare is UNFUNDED by $42.8 Trillion Dollars. ALSO, the Social Security Trustees admit in the fine print, of the Official Social Security Trustees Report, that Social Security is UNFUNDED by $20.5 Trillion dollars.
Keep in mind that a Trillion dollars is 1,000 Billion dollars, and a Billion dollars in 1,000 Million Dollars. Messrs Cox & Archer state in the WSJ article that taking all of the Federal Government's unfunded liabilities, the TRUE DEBT of the Federal Government is $87 Trillion Dollars, or 550% of America's Total GDP. THIS IS A FINANCIAL DISASTER.
I total AGREE with the numbers from Messre Cox & Archer because I have also run the numbers and they basically agree with the Cox & Archer findings. Their WSJ article was published Nov 27th 2012 (1,600,000 US circulation) and NOBODY has proven their numbers are wrong.
The World Bank has said that the World's Gross Product in 2011 was a little under $70 Trillion Dollars. That's ALL of the Money spent in the Total World for every product and service in the Total World. So the US Federal Government along ALREADY HAS DEBT equal to 120% of the World's Gross Product. THIS IS A FINANCIAL DISASTER.
Total US taxes collected by the Federal Government last year were $2.3 Trillion dollars. Mr. Obama's proposal to collect 1.6 Trillion additional tax OVER THE NEXT TEN YEARS (160 Billion per year) IS A TOTAL JOKE. To make the joke WORSE, Obama wants $50 Billion RIGHT NOW to Buy Votes for the 2014 election. Obama also wants unemployment benefits extended for another years SO WE CAN KEEP PRETENDING THAT WE HAVE A RECOVERY.
The extended unemployment benefits will be PAID FOR in the SAME WAY as the current welfare - with Bernank's Queer Money and MORE DEBT. To make the Joke Super-Bad, Obama wants Dictator Powers to raise the DEBT to whatever amounts HE wants, whenever HE wants MORE money to buy more votes for the Democrats.
Mr. Obama is trying to become Egyptian president Morsi - a Dictator wannabe. Why aren't Americans, like the young Egyptians, out in the street fighting for freedom? Old people like me will soon be dead, why are we fighting while the young Americans who will have to live in a bankrupt, has been, NO employment, Nation for 30 to 50 years wasting their time?
We should also keep in mind that the TRUE DEBT of America's 50 States and thousands of cities, towns and counties is an ADDITIONAL $15 Trillion Dollars. THIS IS A FINANCIAL DISASTER.
In the real world this means that LONG TERM America's Government Bonds are Ass Wipe. US Federal Bonds, State Bonds, City Bonds Can long term NEVER POSSIBLY be paid back in values equal to their value today.
What this means is that the "Cliff" should happen. WHY? Because the SOONER the pain starts the LESS DISASTEROUS will be the Ultimate Crash. The ultimate crash IS ONLY a question of When, and NOT if. The more the can is kicked down the road the WORSE will be the ultimate Crash.
YES, all of the lazy mooches who are dreaming of living off of the money of the "Rich" forever WILL BE MAD when the Cliff starts and their FREE MONEY does not arrive. But they voted for Pres Obama, and will be MORE MAD at Obama than at the Republicans. The left-wing press will, and IS, spinnig it the other way, the Republicans need to remember they can't LOSE the votes of the mooches they never had.
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If you like the above ideas, and especially if you're a voter in Ohio, forward the above to Mr. Boehner: boehner.house.gov.
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If you like the above ideas, send a copy to your local newspaper, and/or local talk radio program.