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alstry (36.32)

The Most Important Issue...EVER!!!!

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August 10, 2009 – Comments (19)

The Administration has a bit of a problem. The cap on the national debt, which must be approved by  Congress, is $12.1 trillion. The Treasury is borrowing money so fast to fund the stimulus and budget deficits, that it will push up against the level in about two months.

With many members of Congress against the rising federal red ink, the battle lines are likely to be drawn with the stakes being how much higher the limits on federal borrowing will be allowed to go.

According to Reuters, Treasury chief Timothy Geithner sent Senate Majority Leader Harry Reid a letter saying, “It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations.”

http://247wallst.com/2009/08/08/administration-wants-to-raise-12-1-trillion-national-debt-ceiling/

The recession seems to be coming to the end, but high unemployment could be a negative factor in IRS collections for years.The current request to raise the debt ceiling won’t be the last.

Remember, we are all collectively liable for this debt....up until now, we as a nation were able to service it comfortably.  For the first time in recent memory, the revenues to our country is evaporating as its expenses and debt are exploding.  As incomes crash and more and more get fired, fewer and fewer of us can afford to pay as more and more declare bankruptcy.

When our nation goes to war, if necessary, it takes our children.  What happens when it needs our money to pay back creditors...ALL OF OUR MONEY?  In the end, if your nation needs all of your money, you are in the same position of the citizens that declared bankruptcy before you....no matter how much you think you saved or how "conservative" your behavior, you have nothing left when the government takes it all.

This issue should be the central issue Americans are discussing.....basically the equitable resolution in dealing with our nation'sexpenses and debt...right now we are simply giving our last dimes to Wall Street bankers. 

Without money, there is NO HEALTHCARE.  How can you have healthcare reform without any ability to pay for health care, or social security, or medicare, or medicaid, or welfare, or food stamps, or unemployment benefits, or defense?

If we don't restructure debt soon, soon there will be little to restrcture. 

Remember, as a citizen of the United States, we are JOINTLY liable for the debts of our nation.  It is collectively all of our debt and expenses.  If the government is borrowing it, we are borrowing it.  At some point, the bankers want to be paid, so far they have taken a lot to keep this game going, soon they will run out of patience,  my guess is sooner than many of you think.

19 Comments – Post Your Own

#1) On August 10, 2009 at 9:05 AM, Rebkong1 (< 20) wrote:

alstry...the government is only entitled to take from the people what it can tax...how can they retroactively take money or even take money they are not entitled to regradless of its situation??

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#2) On August 10, 2009 at 9:16 AM, alstry (36.32) wrote:

Government can tax whatever it needs to, just look how much property tax has increased over the past ten years even though incomes have gone down..... if government doesn't doesn't tax enough to cover what is needed, eventually money is worthless and the effect is the same.

Either way we are broke....why do you think I developed Alstrynomics...in the end, we all are broke unless we restructure debt soon.

Now, the only one's we are bailing out is the bankers and politicians, the one's who permitted the mess to occur.  Small businesspersons who built this nation and employed our citizens are going broke everyday to deafening silence.

This train to total Zombulation left the station a while ago, more and more Americans are being Zombulated everyday, and now we have pushed the throttle to fuul speed to get the rest. 

The funny part is, most Americans can't even realize what is going on even though the evidence is smacking them in the face everyday.

Based on current policies, the Zombulator will get over 90% of America.

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#3) On August 10, 2009 at 9:35 AM, Rebkong1 (< 20) wrote:

how do you best protect assets?? under this scenario...off shore banks?

 

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#4) On August 10, 2009 at 9:39 AM, Rebkong1 (< 20) wrote:

sell house all property and rent? lol

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#5) On August 10, 2009 at 9:45 AM, bullnada (< 20) wrote:

Ive been renting for 4 years. Sold it all in 2005. (gold,silver,guns,

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#6) On August 10, 2009 at 9:50 AM, angusthermopylae (40.00) wrote:

Government can tax whatever it needs to

I've always kept in mind that line from an early Supreme Court case over taxes:  "The power to tax is the power to destroy."

I doubt if this attitude will ever get enforced again, but the idea certainly shows a basic concept behind what is supposed to happen, as opposed to what really happens.

Taxes are not supposed to be used for controlling behavior (unless you want to eliminate it altogether), are not supposed to punish groups over others (unless you desire to destroy those groups), and are not supposed to be used for anything except raising money for the common good (defense, basic services, etc.)

Social engineering and the like are the last things that taxes are to be used for...but they are...and very commonly.

No, I'm not a run-for-my-mountain-stronghold type, and I don't advocate any revolutions....just a sad, sad observation about the state of government funding over the last 20+ years.

 

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#7) On August 10, 2009 at 9:52 AM, Rebkong1 (< 20) wrote:

well i have been buying plenty of gold silver and trying to sell my house as we speak

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#8) On August 10, 2009 at 10:03 AM, bullnada (< 20) wrote:

Well said angus.

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#9) On August 10, 2009 at 10:07 AM, alstry (36.32) wrote:

Angus,

I am not a run for the mountain type either......it is simply a math problem that must be restructured.   

If not, everyone who doesn't have direct access to the Zombulator loses everything they have....either through being taxed to death to feed the Zombulator or running out of cash before the Zombulator can get you.

Now the question is how do the politicians deal with their citizens who have no clue what is going on?

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#10) On August 10, 2009 at 10:09 AM, Rebkong1 (< 20) wrote:

stick them in fema camps ??? that are sitting vacant all around the country??

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#11) On August 10, 2009 at 10:12 AM, JerseyShoreGirl (< 20) wrote:

I may have missed this rally ..... mostly because my husband works for a firm that requires a 60-day hold on equities ... wasn't willing to be locked in for 60 days in this environment .. hind sight 20/20 .. I heard Mobius predicts stocks to fall 30% this year .. we'll see ...

 Anyway, we sold our home 2 yrs ago and have been renting .. it was challenging to find a single family home to rent in a desireable area but we managed .. we've lowered all of our monthly expenses .. paid off all debt except 12 mos left on a car payment .. we even relocated back near family .. just sitting on the sidelines, saving and being patient.

Sure, I miss owning a home .. but you know what? There's a certain sense of freedom and peace for being debt-free, except for what the govt is saddling us and our children with, of course!

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#12) On August 10, 2009 at 10:26 AM, JerseyShoreGirl (< 20) wrote:

Is there an actual upcoming bank holiday scheduled ... or is it just speculation at this point?  Couldn't find anything definitive on it ... only that it triggered panic during the Depression.

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#13) On August 10, 2009 at 12:18 PM, AdviceDog (28.54) wrote:

increase debt

 

solve economic problems

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#14) On August 10, 2009 at 12:31 PM, chk999 (99.97) wrote:

The most important issue ever was whether to come down out of the trees or not. Everything since is just commentary. This too shall pass.

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#15) On August 10, 2009 at 2:00 PM, JerseyShoreGirl (< 20) wrote:

Vote Chris Dodd OUT!

 http://www.schiffforsenate.com

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#16) On August 10, 2009 at 3:30 PM, angusthermopylae (40.00) wrote:

The most important issue ever was whether to come down out of the trees or not.

Sssshhhhh!  I'm trying to get ahead of the next housing bubble, and you're giving it away.

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#17) On August 10, 2009 at 4:16 PM, gldnlvr64 (< 20) wrote:

JerseyGirl, vote all of the incumbent bums out !

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#18) On August 10, 2009 at 9:06 PM, leo744 (< 20) wrote:

I second gldnvr64!!!

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#19) On August 11, 2009 at 1:23 AM, angusthermopylae (40.00) wrote:

JerseyGirl, vote all of the incumbent bums out !

er...didn't we do that in 2006?  Or, at least, enough bums to flip control from one party to another.

My voting strategy is always this:

--If I know the candidates, I vote for the one I like better.

--If I only know the incumbent, and don't like him, I vote for the other guy.

--If I know neither candidate, I vote against the incumbent.

That way, even if the incumbent wins, his/her margin is usually smaller by my single vote...hopefully giving a signal to stick their nose to the grindstone a little harder next time.

If the incumbent loses...at least the new guy will take a few years to figure out how to graft the system efficiently.

"Vote the bums out" is a nice idea, but when people are actually in the booth, it's always the other bums...their guy is one of the "Good Ones."

Just like the song says...

Meet the new boss
Same as the old boss

 

Why bring this up on a financial site?  Because, as we're all tacitly agreeing, politics and economics are very closely tied.  You can vote with your dollars and vote with your ballot, but until the underlying rules and procedures change, you're not going to see more than cosmetic changes.

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