Economic Growth Prospects For The United States

5 06 2011

Prospects for Economic Growth in the USEconomic growth for the next few years are not good.  The tools to game the growth are gone.  The Republicans, Democrats and Independents are in a pickle for the next elections.  The typical methods of “Juicing” the economy will not be available.  Taxes can’t be lowered to seduce anyone paying taxes.  Increasing spending is out of the question to seduce those with their hands out.

The national deficit and debt are astronomical.  Unemployment is high.  The economy is sluggish with large and small businesses gun-shy with a potential double dip recession looming.  Real estate foreclosures are not letting up and could increase.  Commodity prices are not coming down.  Uncertainty perpetuates a lack of investment.

As Ronald Regan said, “Government isn’t the solution to the problem, Government IS the problem!”

Until our government spending is under control and the national debt stops growing, the dollar will continue to suffer internationally which helps keep the price of oil and other goods higher.  Domestic energy production has been and is being hampered.  Inflation is real and the cost of borrowing may be going up.

According to CNS News China has now divested itself of 97 percent of its short-term US Treasury Bonds.  The next step for China is to cease buying any long-term Treasury Bonds and stop buying any new long term bonds.  Who wants to be left holding the bag if the US defaults?  Think it can’t happen?

Besides the bond problems with Greece, Portugal, Spain, Iceland and Ireland, here is a list of countries that have defaulted recently on their bond obligations:

Venezuela, July 1998

Russia, August 1998

Ukraine, September 1998

Pakistan, July 1999

Ecuador, August 1999

Ukraine, January 2000

Peru, September 2000

Argentina, November 2001

Moldova, June 2002

Uruguay, May 2003

Dominican Republic, April 2005

Belize, December 2006

Ecuador, December 2008

Some of the situations were cleared up or restructured quickly and others were not.

Is the US too big to fail?  What caused this potential failure?

The big ideas in the US Constitution of limited and separated powers have been altered or ignored.  The beginning of the end was when the Supreme Court allowed Congress to spend on anything is wants for “the general welfare” of the country instead of following Article I, Section 8 of the Constitution.

The tipping point is soon approaching where the US will not have the luxury of honoring all the obligations it has made to taxpayers and bond holders.  The interest rates of the bonds will be going up drastically when the buyers dry up which will further cut into Congressional ability to balance a budget.

If Congressional spending were under control, the lack of bond buyers would not be an issue.  They could simply retire the debt.

Congress and the Executive seem still to have little or no will to do the hard thing.  Both branches fear being voted out of office for making hard choices that will be bitter medicine for the voters to swallow.  Honesty in politics hasn’t been the policy for some time.  Is honesty really the best policy to get re-elected?  The general population has been seduced with unrealistic promises for so long that they are not prepared for what is about to hit them.

What are the solutions?  Cut spending.  Phase out all welfare programs and any activity not listed in Article 1 Section 8 of the Constitution.  Keep taxes basically where they are until the debt is substantially reduced.  Make it favorable for corporations to stay and move to the US.  Foster pro-business policy and regulation in general.   Easy to say.  Tough to do.





So You Want To Be A Socialist.

2 05 2011

Maxine Waters wants you to be a Socialist.

Maxine Waters, the self proclaimed Liberal (aka Socialist or Progressive) accidentally spoke her truth and tried to cover it up.  See her long uncomfortable pause while trying to rephrase her real intent into something more palatable to the American public was pathetic.  After realizing that there was no realistic way to re-phase her comments without looking more foolish, she continued on her train of thought of her Socialistic dream to take over the oil companies.

Are you shocked?  I am shocked that she felt politically safe enough that when she slipped up she eventually spoke her mind.  What a terrible job we have done at educating our Americans that would allow such a person to be and stay in office.

Maxine Waters and her friends planned and succeeded to take over the mortgage industry to provide loans to those who didn’t deserve it.   She helped perpetuate the corruption before the housing bubble burst.  Let’s look at Maxine Waters and friends wisdom in the housing crisis.  This video is from 2004 was long before the housing bubble burst.  There were certain regulators that saw what was going on and tried to raise the alarm and make corrections.  See what crooks are running our country still.

Will she get kicked out of Congress for her pending ethics violations investigations?

There are plenty of her types in the federal government right now so she may get a pass.

Do you really want Socialists running the company you work for or if you own your own business?  There has been no successful model of Socialism EVER!  If you want to see the model she prefers, look no further than Hugo Chavez of Venezuela.  Contracts and property rights are not well respected.  Government spending is on the rise. The government has taken over many private enterprises. Private investment has decreased drastically.

Yes, Venezuela’s gasoline is artificially cheap but not for long.  Despite cheap gas, their economy is dwindling.

Maxine’s still trying to wreak havoc this month.  Maxine reintroduced H.R. 1567, the Foreclosure Prevention and Sound Mortgage Servicing Act of 2011.  Hasn’t she done enough already?  She said in April, “This bill is the first in a series of legislative proposals that I plan to introduce to further regulate the servicing industry and to protect homeowners.”

She’s done such a fine job already in housing and she wants to take over the oil industry too?  Who keeps voting these clowns into office?








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