I made a trillion dollar mistake

Ok so I said the US debt would be 19 trillion in under 10 years a year ago. Whoops. Should have guessed we are dealing with the government. So 20 trillion it is over the next 10 years. This is just the 9 trillion dollar shortfall (deficit) to be made up by borrowing. I assure you all this number will be much higher and a much steeper slope - the numbers don't add up.

I think we can all agree that the government numbers released late yesterday affect or culture, sovereignty and way of life. At this time in history this government has abandoned all sensible stewardship of this 300+ year old capitalist experiment. And history will call it just that. If you and I can't see the massive brick wall we are barreling up to we are dead for sure. And I know for certain, 100 percent, that our government leaders and I mean all of them have ruined, are ruining and absolutely devastating our nation.

Well thank God I was watching Glen Beck the other night. Man what a show. Looking at the pseudo US balance sheet and the few HUNDRED TRILLION DOLLARS we need is appalling. But I was ready to jump through the tv a give Glen and big hug. Finally- finally - finally the cavalry in the media is swooping in all over now to expose the outright vile, disgusting, irresponsible, God awful behavior that got us here. The national debt will double in a short time and it took 40 years to get here in the first place. We all have much better words to use than what I said above. Then sitting in an airport I see the new whoops numbers off by a few trillion.

Can someone tell me what the heck we are going to do? I am dead serious this is going to bring our nation to its knees. I just can't believe this is actually happening and in my lifetime and probably yours we will see the collapse of America. How sad and pitiful is that.

Hey Did Warren Buffet Just Agree With Me

I’m in Good Company Finally on Debt and Deficit

Ok I am not a national economic brand like Warren Buffet but very proud to be “On The Money”. With that I must say I do have a pretty large voice across the country and I have been ranting about the deficit and debt for 2 years. Finally, the big boys are going public with their vision of a catastrophe just waiting to happen to the entire US economy that will be much worse than the financial crisis.

Yes I am frustrated and bit red in the face that I don’t have an Op Ed in the NY Times. But my book IOUSA NOT – is coming out in the next few months. I do feel a great deal of pride in the “On The Money” track record I have built. The debt and deficit as have been shouting about at the top of my lungs are cancer, brain trauma, suicide or any other form of death. It is simply not sustainable and with everything done over the past 2 years and foreseeable future we are sunk. During the time of World War II the nation had a deficit of 4% of GDP. We have triple that this year of 13% or $1.8 trillion. Here is the catch – what do you think the GDP back then was compared to today. These comparison figure are apples and oranges and astronomically different.

This will come home to roost and be devastating – MARK MY WORDS! Dare say again.

Can you or me stop this free fall of our capitalist nation. NO! No one really cares or will listen to our opinion without some national news exposure. Just look at the activist in the Town Hall meeting on healthcare. The only way to bring light to this nationally and to enrage a populous is to broadcast and broadcast what is downright wrong about the direction of the country. That is what we are here for and it is our responsibility to air daily or weekly briefings and the state of the economy – and all the backroom accounting and deals – so everyone is highly educated on the appealing and mismanagement of the country.

Back Peddling on Peddling Government Insurance

Read Some Great Solutions and Ideas

Weill it seems the people have some voice out there and the outrage has bubbled to the top. It is clear now that in its current state nationalized healthcare won’t become a reality. Whew! That will wind up being a call too close for comfort. I have 8 great and some radical ideas to really solve this issue. Read on.

Here is my ninety nine cents. I think having healthcare for every American is something we should strive for but at what cost? Massive cost. Overhauling the systems of care in the country, making us more like Canada, France and Cuba is so unruly that the system itself will be torn apart. We have the best healthcare in the world because we have a free market medical system. In fact, many people from all over the world come here for the best care they can get.

Using pooled insurance programs that are for profit is a good way to spread the risk among a large universe of people. Statistically the population in the pool would result in insurance benefit payouts that will allow insurance program managers to invest the money collected and make money on the money. Therefore being able to afford the massive payouts for benefits. That is how insurance companies operate. It’s a capitalist system and works for insurance companies as well as Wall Street.

However, the main issue in healthcare today is the cost of care. Pharmaceutical giants make billions peddling their drugs and supplying them to every class of citizen from babies to the elderly. The insurance companies make billions in liability insurance premiums having to be paid by the very people trying to save your life. It is so astronomical and ridiculous that we should be living in the Land of Misfit Toys!

Solutions

1. Why hasn’t anyone thought about a tax break for pharmaceutical companies to donate large amounts of drugs into the system for those on Medicaid and Medicare and others who need them most.

2. We can donate billions to Aids in Africa – what about using that money for aids in America. We spend so much around the world to promote and offer care – we should redirect it all into the US. You want to win hearts and minds – how about American minds.

3. The MI Bill. Yes like a GI bill. Those who want to earn money for medical school and nursing programs etc.. Can work for the system to benefit everyone and provide the massive care resources needed to help everyone.

4. Open up all military, VA and related hospitals and care centers to Americans. We have to figure out a way to service all these people so why don’t we use the resources already made available to our military.

5. Peace Corp. Why not a Health Core. Instead of sending all of people across the world under these non profit programs why don’t we redirect or create programs that put those people into our system to ease the brunt of the large increase in care.

6. Welfare, Medicaid, Medicare etc.. if you are receiving government benefits you will have to perform civic duties not just in healthcare but other projects necessary to rebuild America. We pay them anyway so lets out them to work.

7. TORT REFORM. Liability Insurance is the greatest barrier to providing care and quality of care. You cut a finger on a neighbor’s fence and someone will sue them. Cut a finger in the doctor’s office and someone will sue them for millions. Although the lawyer’s lobbyists will spend hundreds of millions to thwart this – and are large contributors to political parties – this one issue is a major cancer in the healthcare economy.

8. Faith based programs. How many tens of thousands of trips and millions of people are taken by Church groups annually to foreign nations and the Third World. Well our citizens are living in the Third World in many areas of the US. Why don’t we incent the Faith community to redirect those resources and massive volunteer work force right back here at home.

How’s that for just ninety nine cents.

Federal Deficit Numbers are WRONG

$1.8 Trillion in 2009 - $1.3 Trillion 2010

We can add! $11.7 trillion debt + projected $3.1 trillion (2 yr deficit) + a trillion of newly printed currency. Taxes projected to be down another $500 billion this year. Whoops I forgot the other $1 trillion (sure to be much higher) for healthcare. The fact is this is too rosy a picture.

As bad and fiscally irresponsible as this is I am calling the shot now that this will be much worse. Let’s not forget the interest on the debt. We are fast approaching $750 billion in interest annually alone. This will be at $1 trillion in just a few years. Projecting a 2 year $3.1 trillion deficit, far beyond anything ever seen, won’t be the number. I expect we will be closer to $4 trillion than $3 trillion. Why? Well we all know numbers from our government are always much lower than they tell us for one. Second recovery will be slow and painful so tax revenue will be less and less. And does someone think taxing the $250k + earners will make up for it. Not in a million years – it will make matters worse.

Unemployment will rise if the “rich” get taxed more. Corporations will do more business overseas and lay off people. Government is growing bigger than ever and we haven’t even seen all the liberal programs getting baked in the backroom. Of course everyone should be aware of the other $111 trillion of unfunded liabilities the US has for social programs and other benefits for its citizens.

This is just the 2 year outlook. 2 YEAR! We have one chance this election cycle to reign this in – but I doubt it will ever be reined in. I think our national debt will be at least $15 trillion if not $16 or $17 by the time Obama is done with his first 4 years. The we will definitely be paying a trillion in interest on our debt – annually. It is so crucial that everyone in this country becomes an armchair economist with at least the knowledge of how out of control Congress is. This is chronic and will not end until it ends us or we stand up and do something about it.

American sovereignty is held by foreign governments, we are a bankrupt nation, decay from within on every level and that is just a start. We are the few with a voice. We can make a difference but over the next 12 months it is absolutely critical – everyday – every week to educate audiences around the country of the peril our nation is in.

Churches & Non Profits Get Hammered

Christians Are Not Exempt From Financial Woes

Churches and all non profits are severely wounded by the financial crisis that has really hit home. Dependant on donations both are struggling to keep the lights on in some cases and significantly reducing programs for those that need it most especially now. This is a time in history where more and more people are looking for help and turning to the Church for guidance while the coffers are running dry. Non profits across the nation are also being tapped out so people can’t turn there either.

Add to this the Administration’s proposal to pay for healthcare reform by eliminating the Non Profit tax exemption for people over $250k. Who the heck do you think gives the money to non profits! Yes financial discrimination again but this is the bread and butter that keeps these institutions alive. People that tithe at churches definitely write their donations. Those that can afford to tithe are mostly higher income families. So inflow of money is down severely and now you want to eliminate the deduction too.

Mark my word! The storm has already hit the Church even harder than the Non profits. The Non Profits are feeling pain already and many are certain to fold up their tents as will churches at an alarming rate. The Church is a fundamental – no crucial – part of holding our society and families together. “Families that pray together stay together”. What do you think of the social, moral and spiritual decay of our nation already? Add to that violence, unemployment and underemployment, hip hop, gangs, wanna bee gangsters, divorce, killing babies – on and on. Yes this foundation and support as well as community building will be shattered. Is this what a socialist and liberal plan is designed to do?

Frankly we are all aware of this problem. My Father in Law is a pastor, wife a Christian Romance writer, me an advisor to the Christian Entertainment Industry’s leaders and so on. It is really bad – I mean really bad. I don’t hear headlines about this at all and it is crucial that something happen and now to help incentivize people to give to these right and just causes. Why doesn’t someone in DC turn around and help people to give and help others. Instead it is Liberalism squashing conservatism and the foot of our faith and families.

AND GUES WHAT? We didn’t show up in force as with George Bush at this election. Without a united Christian front in the next election these policies will get enacted – abortions paid by healthcare and further decay of America from within that many historical figures and very smart people have predicted for two centuries.

Disgusted! Disenchanted! Down Right Mad.

An Economic Play Book 2009

Economy May be Bottoming but Main Street will Remain Under Water

Economists are being conservative in a quarter by quarter analysis of how and when the US economy and housing market will recover.  Based on manufacturing output, exports and a host of variables everyone is eyeing GDP growth – especially when compared to last year.  I am of the opinion that a lemonade stand would look positive against the last year.  Expect that US “Big Business” begins to revive themselves it will take some time – not the expected big bounce but a slow, painful and gradual increase.  The key will be you and me getting back to buying products, goods and services.  It has always been the key.  Without consumption no economy can survive.

Credit addicted consumers will remain in rehab and locked out of the spending game for quite a while.  The unemployed and under employed will be a huge factor in recovery given that they are hobbled and scared.  Those consumers are likely to have curbed their spending or stopped all non essentials purchases already.  These consumers will most likely be withdrawn from spending and focus on re building their lives – that is if they can ever get a job or a comparable one.  Expect this to further impact domestic growth.  The credit addicted can’t get more credit and the credit worthy aren’t going to spend enough to make up for all that.  It is the credit spending that artificially boosted the economy for so long.

I have been hand waiving for some time that the heart of recovery will be consumption.  Even with home sales spiking in some areas overall it is a mess.  Also, the higher end homes are stagnant and many people can’t qualify for loans to buy them and certainly those wanting to sell are having their equity eaten away just to unload them if at all.  This will be a problem.  I understand the “Clunker” program to artificially move the auto market but that is another dangerous game.  Getting consumers on a different hook with new bait may look good on paper but is a future credit problem too.

As you can see I am sour on the recovery however modest it will be.  The psychology of Americans may be lifted by public relations around consumer spending and recovery but this go around I think “Joe Plumber” is hurt so bad that the underpinnings of the US and the world’s economy will suffer as will main street.  Expect chest pounding and pandering of all the great things done to “stimulate” the economy but remember that is mostly big business artificially driven by blow out sales of inventory and products just to get more stuff on the shelf that people can’t or won’t buy.

You want answers here are few:

Adjust FICA scores.  An immediate psychological boost and open door for consumers to consume when they do recover.  It is simple in fact – have the credit bureaus adjust scores – just during the last 18 months and next 18 months so 30,60,90,120 days lates – foreclosures and bankruptcy (rates we don’t like to talk about) won’t be as devastating.  This period would not hold the same weight as other times in history and not assure tens of millions of families are locked out.

Use Stimulus Money for businesses hiring workers.  Unleashed money quickly and provided to small business, midsized and even large businesses in the form of a tax credit, access to capital and a shot in the arm ONLY IF THEY HIRE MORE PEOPLE.  Now that sounds like a reasonable way to better invest the recovery dollars than to just bail out big companies.

Eliminate Capital Gains.  So you invest and make money for your retirement or other things and the government gets 15% off the top of your returns when you sell.  And now the proposal is to raise that.  So I make $5 dollars per share investing in Microsoft.  I took the risk and supported the stock market and Microsoft.  I invested $75 dollars and sold at $80.  A great return.  Well I forfeit $.75 for having done the right thing.  This would put huge dollars in the markets and more money in the pockets of consumers who would be incented to save huge amounts of money and YES SPEND MORE.  It would make up ground for a lot of the losses and of course a huge market surge.

Instead of Tax Cuts – Give Economy Bonds.  Japan only survived its banking meltdown because it was a savings nation and it took almost 10 years to recover.  They were a savings nation not credit addicted.  If 5% of the income tax you pay was to be given back in the form of economy bonds we would have a huge upsurge in savings and help people pay for their retirement.  Social Security isn’t a sure retirement anymore.

Oh I have a lot more than this but doesn’t this make sense to help get consumers on their feet so the stagnant recovery can happen and be sustained.  If we don’t solve unemployment, consumers access to cheap capital, unemployment and psychology beyond pandering this is going to take a long time.