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alstry (35.28)

Time to take RESPONSIBILITY America!!!!

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June 04, 2009 – Comments (5)

From Mish's Blog: 

One in nine Americans are using federal food stamps to help buy groceries as the country's deep recession forced another 591,000 people onto the federal anti-hunger program at latest count.

Enrollment jumped 2 percent to 33.2 million people in March, the fourth consecutive month that rolls hit a record, said the Agriculture Department. The average monthly benefit was $113.87 per person.

(Can you imagine on an annual basis what percentage of WalMart's revenues comes from food stamps....and how much the trucking industry benefits from food stamps.....and the manufacturers of food????)
 

In all, government spending on benefits will top $2 trillion in 2009 — an average of $17,000 provided to each U.S. household, federal data show. Benefits rose at a 19% annual rate in the first quarter compared to the last three months of 2008.

Here is the problem folks....we are spending two trillion on benefits and our deficit is now running two trillion.  Government TODAY simply doesn't have the money to support our elderly and less fortunate.  And the numbers are growing rapidly increasing the burden WHILE the tax receipt are evaporating.  If you think the deficit is big this year....just wait until next year...

In other words, we are basically asking foreign nations to support our welfare systems while their populations get little or no benefits.  WHO IS KIDDING WHO????  How long do you think this will last before people start catching on?????

We simply cannot afford to continue this GOVERNMENTAL spend...we Americans must take responsiblity for our own elderly and less fortunate and not depend on foreigners to subsidize our welfare system.

Yes sacrifices will have to be made.....but we are up to the task.....we can handle it and we are ready for change......if not......our deficits will explode and no one will lend us a dime....interest rates will skyrocket into double digits and beyond.....

Would you loan America money right now at single digit interest rates if you knew Benny B was printing like there was no tommorrow.....and if he keeps printing......there may be no tommorw.  With the debt load out there right now...double digit interest rates would bring our economy to a grinding halt.....

It is time to step up to the plate.....we must become competitive......yes our economy is going to shrink significantly.....probably 25-50%....maybe more as we deleverage.....IN THE LAST TEN YEARS...we have built an economy PRIMARILY on levarage and government spending......THIS IS NOT SUSTAINABLE....we must restructure NOW.....BEFORE IT GETS WORSE...it will be painful.......but we will deal with it.....we can't continue borrowing to sustain a lifestyle we can't afford or we will have no lifestyle left........the time is NOW!!!!  We are ready to take responsiblity!!!!  We are ready for CHANGE!!!!!

 

5 Comments – Post Your Own

#1) On June 04, 2009 at 11:54 PM, russiangambit (29.29) wrote:

Also, did you see that Treasury indefinitely suspended the program that was supposed to buy bad loans from the banks? Banks refuse to sell their bad assets because then they will have to markdown the remaining assets accordingly and recognize losses.

I think that may be I should buy me some banks. Soon the "too big too fail" banks will be the only profitable industry in the US because theyt will never recognize the losses and they got enough money from government and secondaries to kieep them afloat fot a while. It is a circus.

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#2) On June 04, 2009 at 11:55 PM, angusthermopylae (39.24) wrote:

*sigh*  I'll take a stab at this:  Alstry, I absolutely agree with you in principle:  Between octomoms and dozens of people I know who are on their third or fourth generation of welfare income (grandpappy got onto a great thing), it's easy to see you are completely correct.

On the other hand, the only real, practical solution out on the streets is to force those people off the System in a Malthusian way--sink or swim without any government help.  That way, the debt load can be drastically reduced, the productivity per capita would go up, and the entire economy would come out of it streamlined, pretty damn efficient, and ready to take on anyone and anything...

...in the meantime, "the rain falls on the just and unjust alike."  Much higher unemployment (by about the 11% that one-in-nine would comprise).  Perfectly valid recipients of welfare (families in the midst or aftermath of a sudden tragedy or disaster) would be forced to suffer.  The decrease in cash in the economy would cause a severe deflation for everyone (something I'm not completely opposed to--too much cash floating around is a Bad Thing, imho).  And without a public support system, basically a lot of people would either die or suffer considerably.

I'm all for it...as long as the Peoples, both in government and in the populace, realize what they are buying into.  We've got too da*n many people living off of too few resources, and our economy is not structured to handle the load indefinitely...but there would be a heavy price to pay.

It may be the only way to get it done...and I've always believed that economics force the hand of history a lot more than is generally acknowledged.  Didn't the feudal system collapse pretty much right after the plague?

(Sorry for the touchy-feely post...dwot got me into a "what happens to the little guy" mood...comment #10)

 

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#3) On June 05, 2009 at 3:36 AM, checklist34 (99.71) wrote:

you know, on the welfare issue, Alstry, we basically agree.

the bank bailout will ultimately cost the government only a tiny fraction of whats spent on welfare in this country every year. 

The truth is a banking crisis or a real estate crash won't be the downfall of the US or its economy, we've done this before, just 20 years ago, if anybody cares to recall.  There were differences certainly and all of that, but we've done this before. 

But welfare, socialism, and a society thats run basically by "vote for me and i'll give you some handouts" principles absolutely will fail someday, absolutely, no question.  And our last president, hated by the left wingers, was a failure to me not for his right-wingedness, but for the deficits and the INCREASE in socialism/welfare.

Our last two presidents (before Obama) both touted the virtues of getting every american into home ownership. 

Our whole society seems to feel like its criminal that all people don't have the same, and socialism seems to be on the rise, and politicians cater not to talented or hard working people who can create jobs and help society get its feet moving, but to the lowest common denominator. 

Why, if youre running for office, should you care about entreprenuers or business owners?  They just invest stuff and make money and employ people and sometimes export things.  Big deal, they are only 1 vote.  Their 10 employees are 10 votes, lets cater to them and get them a union and higher wages, who cares if we hurt the business, stop its job growth and ability to export, WE JUST GOT 10 VOTES!!!!!

It is quite possibly true that democracy is born invigorated, darwinistic, by breaking feudal systems that held back human potential and unleashed the talents of the most talented on the masses.  Democracies early years are glorious as poor peasant boys rise up to be kings of industry and anyone with talent and amibition may be able to find a way to thrive.

And democracy may die a slow sloppy very un-darwinistic death at the hands of "just vote for me, i'll give you free stuff".

I almost puke when I watch political campaigns and debates.  "vote for me, i'll redistribute wealth to you".  More to be redistributed to that taken from, so the pitch works.  "and its tragic that 5 million americans don't have health care".

Never do they say anything thats actually beneficial to the greater good, like "we need to do what it takes to build a stronger manufacturing base in this country than ever before.  we need to find ways to tap the vast natural resources of this country and make us an export nation once again, not reliant on blah blah blah".

Just welfare, tahts the campaign pitch, at least when I watched Hilary debate Obama one time.  Just handouts and freebies and more for you, just vote for me and i'll give you some free stuff.

 

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#4) On June 05, 2009 at 3:37 AM, checklist34 (99.71) wrote:

its not my expectation that you care at all, or that it matters to you in th eleast, but I just gave you your 12,593rd rec, the first one i've ever given one of your blogs.

:)

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#5) On June 05, 2009 at 7:18 AM, alstry (35.28) wrote:

Here is the problem....Alstry is not making a political stance on Welfare/entitlements...that is a seperate issue...

This is simply a financial issue and one of survival.

At this point, due to the fact that we have a RAPIDLY shrinking higher income base of taxpayers...the tax receipts to government have contracted to the point that our country no longer generates enough income to support out government system.

It is one thing to have a $100 Billion dollar deficit against a growing ecnomy....or even a one time $500 Billion dollar deficit...but this year our deficit is $2 TRILLION AGAINST A CONTRACTING ECONOMY.

We basically have to go out now and borrow from foreigners whose populations live modestly to pay for our welfare system.....how long do you think that will last before THEIR press picks up on that story????

Once we can't find an outlet to finance out bonds.....interest rates will skyrocket...yes we will have inflation...actually hyperinflation...and every corporation and citizen in America will go broke and go hungry because costs will rise much faster than incomes.

Now think about the prospect of $1000 loaf of bread or $5000 gallon of milk or $1,000,000 to heat your house...how long will your savings last....even if your income doubled.

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