Tag Archives: US national debt

Why the U.S. national debt is past the point of no return

Simon Black, a financial analyst and founder of Sovereign Man, puts it bluntly:

The hard reality that most people don’t seem to get is that the U.S. government is bankrupt. This isn’t some wild assertion or conspiracy theory; their own financial statements show that the government’s ‘net worth’ is NEGATIVE $17.7 trillion. And yes, the U.S. is already borrowing money just to pay interest.

The U.S.’s debtees:

  1. $2.4 trillion owed to the Federal Reserve.
  2. $1.2 trillion owed to China, in U.S. treasury bonds.
  3. The biggest debts that are owed by the US government are the obligations they owe to us — Social Security and Medicare. The government’s own numbers estimate these obligations at nearly $42 trillion, completely dwarfing the debts owed to China or anyone else.

In fact, the combined expenses of interest on the national debt plus mandatory entitlements like Social Security nearly exceed the government’s entire tax revenue. In other words, you could eliminate nearly everything we think of as government– the EPA, the IRS, Homeland Security, etc. — and it wouldn’t make a dent in the national debt.

Black concludes:

When things get this dire, it doesn’t matter who sits in the chair. You might as well elect a chimpanzee in the hopes that Mister Bubbles might accelerate the decline. Donald Trump may very well be that chimpanzee. Especially given his unparalleled experience in declaring bankruptcy [4 times].

Nations that pass the economic point of no return can’t rebuild until they hit rock bottom. And the U.S. is way past that point. So let’s get on with it already and hit the reset button.

Instead of Bubbles the chimp, who is now 32 years old, living in an animal sanctuary in Florida and described by the sanctuary’s keepers as “huge and ugly,” how about my cat Gabe? He’s a lot cuter.

Gabe for Prez!


Many on Social Security Disability can but don’t want to work

Why are we demonized for speaking the truth?

truthH/t FOTM’s Trail Dust

More than a year ago, in May 2012, Lance Roberts wrote that Without government largesse many individuals would literally be living on the street.” As much as 1/5 or 22.5% of the average American’s income is dependent on “government transfers.” 

One of those “government transfers” are Social Security Disability benefits.

There are two types of Social Security Disability benefits:

  1. Social Security Disability Insurance (SSDI): Earned disability benefits for those who have held jobs for significant periods of time and paid at least partially into Social Security before becoming disabled.
  2. Social Security Disability (SSI): Unearned disability benefits for individuals who have petitioned to be classified as disabled, although many of them have never worked and have never paid into Social Security.

Under Obama, the number of Americans claiming disability has surged to the highest levels on record since the beginning of the last recession. What is most notable, however, is when the surge of disability claims began – exactly two years from the beginning of the financial crisis. This was when the 2 years of extended unemployment insurance began to run out.

Unlike welfare, disability isn’t term-limited, and in some cases it’s become permanent unemployment insurance for the unemployable or those who simply refuse to work.

Today, more than 28 million Americans who are of working age have a disability – a level higher than at any other time in recorded history. There are approximately 11 million SSDI or earned recipients and approximately 7 million SSI or unearned recipients.

But how many of those on disability are actually disabled?

Luke Rosiak reports for the Washington Examiner, July 30, 2013, that a study by the Social Security Administration found some disturbing, but unsurprising, attributes of disability recipients:

  • Recipients of federal disability checks often admit that they are capable of working but cannot or will not find a job.
  • Returning to work is not a goal for 71% of the SSDI recipients, and 60% of the SSI recipients.
  • Most have never received significant medical treatment and not seen a doctor about their condition in the last year, even though medical problems are the official reason they don’t work.
  •  Those who acknowledge they’re on disability because they can’t find a job say they make little effort to find one.
  • Of those who say they’re actually looking for a job, most say they’re looking only for part-time jobs that will allow them to keep their disability benefits.
  • The unearned disability recipients are in less pain than their counterparts who had paid into the system. In other words, they are using SSD as a substitute for welfare. These individuals are typically overweight, uneducated and from broken homes.
  • There are practical barriers to weaning recipients off the disability rolls. The jobs they’d be candidates for often don’t provide health insurance, which is essential for those with medical problems, and they’d rather receive the SSD benefits. Many also say they don’t have transportation to work.
  •  72% of the small number of SSDI recipients who started a job while on disability got cash under the table, as did 70% of the small number of SSI recipients who started a job while on disability.
  • 24% of the SSDI recipients lack even GEDs, as do 43% of the SSI recipients.
  • Only 18% of SSDI and 15% of SSI recipients said, during the past 4 weeks, they could not do social activities with family or friends because of their physical health or emotional problems.
  • As many as 96% of SSDI and 91% of SSD recipients admit whatever physical health or mental problems they have do not hinder or limit them from the kind or amount of work or other daily activities they do. In other words, they are not really so disabled they can’t work.
  • 47% of SSDI and 41% of SSD recipients are obese; 30% of both groups are overweight; only 21% of SSDI and 25% of SSD recipients are of normal weight.
  • 28% of SSD recipients had never worked for pay, i.e., they never had a job!
  • Most SSD recipients don’t bother to educate themselves about or avail themselves of government programs to wean them off disability, such as the Plan for Achieving Self-Support, Earned Income Exclusion, and Continued Medicaid Eligibility after they get off disability benefits.
  • Many disability recipients also receive other government welfare benefits: 28% of SSDI and 81% of SSD recipients are on Medicaid; 80% of SSDI and 42% of SSD recipients are on Medicare; 18% of SSDI and 52% of SSD recipients are on food stamps.
  • The lack of a spouse is a significant factor: 54% of SSDI and 88% of SSD recipients are not married.
  • 11% of SSDI and 21% of SSD recipients have been receiving disability benefits for 20 years or more.

Source: Public use file round 4

America’s national debt now exceeds our GDP and is closing in on $17 trillion. It doesn’t take an Albert Einstein to know that our super-extended welfare state cannot continue as it is. Indeed the danger signs are already visible.

In three years, by 2016, the first of the Social Security funds — Social Security Disability — will be in full collapse.

Brian Faler reports for The Washington Post, May 30, 2012:

The disability program pays benefits averaging $1,111 a month, with the money coming from the Social Security payroll tax. The program cost $132 billion last year, more than the combined annual budgets of the departments of Agriculture, Homeland Security, Commerce, Labor, Interior and Justice. That doesn’t include an additional $80 billion spent because disability beneficiaries become eligible for Medicare, regardless of their age, after a two-year waiting period. The disability program is projected to exhaust its trust fund in 2016, according to a Social Security trustees report released last month. Once it runs through its reserve, incoming payroll-tax revenue will cover only 79% of benefits, according to the trustees. Because the plan is barred from running a deficit, aid would have to be cut to match revenue.”

Lastly, since the American Medical Association recently declared obesity to be a “disease,” expect even more Americans to apply for and receive Social Security Disability benefits.


Best 1 min. video on U.S. debt

“PowerLineBlog” recently held a competition for $100,000 for whoever could most effectively and creatively dramatize the significance of the federal debt crisis. Several entries have gotten a lot of attention, but the one that has gone most viral so far is ‘The Doorbell.’ If you haven’t yet seen it, you may watch it here. It’s 59 seconds long:

The U.S. national debt is now $16.859 TRILLION, and counting. That debt is more than 106% of our GDP (gross domestic product) and $188,324 per person.

Thus far in 2013, we’d already paid over $2.9 BILLION in interest on that debt. That’s $9,288 per person in interest payment.

H/t FOTM’s Ken L.


Where did your tax dollar go?


Yesterday was T-Day – Tax Day.

If you hadn’t already sent in your tax returns, yesterday was the deadline to turn them in to the IRS (except for residents of Boston who’ve been given an extension for filing their taxes because of the horrible bombings at the marathon).

For the 49% of Americans who actually pay income taxes, you should know where and how your taxes are spent.

Romina Boccia and Curtis Dubay write for The Heritage Foundation, April 15, 2013:

TaxdayClick image to enlarge

As the above infographic shows, 45% or almost half of all spending went toward paying for Social Security and health care entitlements. Without reforming these massive and growing programs, Washington will have to borrow increasing amounts of money, piling debt onto younger generations and putting the nation on a dangerous economic course.

Some other things to know about taxes:

  • Not only must we pay confiscatory taxes, we also pay to prepare our tax returns! According to the federal Taxpayer Advocate in its 2012 report, Americans’ cost of complying with today’s complex tax code totaled $168 billion in 2010. That’s almost as large as the impact of the Obama tax hikes in fiscal year 2013, and twice the size of sequestration this year [see chart].
  • It takes taxpayers 6.1 billion hours—or 51 hours per household—to complete all the required filings. That’s more than 6 full 8-hour working days per household!
  • Federal govt spends way more than it takes in. In 2012, Washington collected $20,000 in taxes for every household in America. But Washington spent nearly $30,000 per household.
  • Government overspending, in turn, means an ever-increasing national debt, now $16.629 TRILLION and increasing with every ticking second. That, in turn, means 6% of every tax dollar goes to pay just the interest on our national debt.
  • Americans pay high taxes as it is, and with the 13 tax increases that hit this year, tax revenue is growing beyond its historical average as a share of the economy. But Washington’s deficits continue, because spending keeps going up.

Growing government spending threatens current and future taxpayers with higher taxes. Congress should reduce spending and prevent any more tax increases. Congress also needs to reform the tax code so it is less of a burden on the American people.

Learn more at savingthedream.org.

See also “US taxpayers spent 2422% more on Obama than Brits on the royal family,” Sept. 28, 2012.


Govt spends $1.5M to study why lesbians are fat

Our national debt is now $16.686 trillion — and increasing by the second. But the POS will not agree with House Republicans on much needed spending cuts, which means “sequestration” — automatic spending cuts to the federal budget will soon kick into effect.

Anticipating painful cuts to the U.S. military budget, Marine Corps Commandant James Amos is urging our Marines to preserve ammunition and gasoline: “Save every round, every gallon of gas.”

At the same time, the POS and the White House behave like they don’t have a care in the world, with 20 WH staffers making the maximum $172,200 a year salary. Underneath them are dozens of “deputy” assistants and “special”  assistants to the president, including “climate change” advisers, who also draw six-figure salaries of $100,000 or more.

Having the White House as a role model, the bureaucracies in the Executive Branch also throw taxpayers’ money around like there is no tomorrow. The National Institutes of Health (NIH) just awarded $1.5 million of taxpayers’ hard earned dollars to a Boston hospital to find out why lesbians are fat.

rosieodonnell$1.5 million to find out why Rosie O’Donnell is fat

Elizabeth Harrington reports for CNSNews, March 11, 2013, that Brigham and Women’s Hospital (BWH), a teaching hospital of Harvard Medical School, has received two grants administered by NIH’s Eunice Kennedy Shriver National Institute of Child Health and Human Development (NICHD) to study the biological and social factors for why “three-quarters” of lesbians are obese and why gay males are not.”

The grant reads:

“Obesity is one of the most critical public health issues affecting the U.S. today. Racial and socioeconomic disparities in the determinants, distribution, and consequences of obesity are receiving increasing attention. [H]owever, one area that is only beginning to be recognized is the striking interplay of gender and sexual orientation in obesity disparities. It is now well-established that women of minority sexual orientation are disproportionately affected by the obesity epidemic. In stark contrast, among men, heterosexual males have nearly double the risk of obesity compared to gay males.”

The investigators say there has been “almost no” research devoted to this disparity, and they have set out to find the biological, psychological, and social factors behind it. The researchers claim the subject is one of “high public-health significance.”

The project is being led by S. Bryn Austin, Director of Fellowship Research Training in the Division of Adolescent and Young Adult Medicine at Boston Children’s Hospital. Austin is also an Associate Professor in the Department of Social and Behavioral Sciences at the Harvard School of Public Health, and an Associate Epidemiologist at BWH.

BWH first received a $778,622 grant for the study in 2011, followed by a $741,378 grant in 2012, totaling $1,520,000. The project has the potential to be a five-year study. The grants list a “project end date” and a “budget end date” of June 30, 2016.

Without a research budget of $1.5 million, I can tell the NIH why lesbians (or anyone) is fat:

They eat too much!!!


Why do they not see?

3 monkeys

A recent essay by a blogger who calls himself Monty Pelerin struck a chord in me. Monty Pelerin is the pseudonym of a former CFO in the corporate finance field, with a Ph.D. in economics.

Pelerin’s essay “Why Don’t People See?” asks a question I and many of us also have asked: Why is it that so many seem blind to the problems that we see so clearly?

Here’s Pelerin’s essay of Feb. 18, 2013:

I meet people that still believe that the world is fine. They believe things like:

  • The US government has plenty of money.
  • Government cares for its citizens.
  • The economy cannot crash.
  • We are not in a recession (Depression).
  • The lives of their children will be better than their own.
  • The government can continue to print money to fund promises they cannot afford.

Despite these untenable beliefs, these are not stupid people. Many are professionals who do quite well — doctors, lawyers, dentists, college professors, etc. They are not  zombies, our walking dead, who have no idea about what is happening around them no less  the way things work in an economy, society or the world. It is our educated who should care yet seem to be oblivious to what lies ahead.

The ignorance and/or lack of concern of this group is perplexing and maddening. They are certainly capable of understanding. It is also in their interests to comprehend, as they are the ones who will lose the most. How doe one open their eyes? What can they be shown to arouse them from their ignorance?

Sadly, I don’t have answers to these frustrating questions. It is not that others have not presented the information as much as these people refuse to acknowledge the implications. Are they all too busy? Are they idiot savants who are geniuses in their fields but not very smart away from it? Warnings come from many sources and from many different perspectives, yet they do not seem to penetrate the minds of those most capable of effecting change.

From a self-interest standpoint, this productive group should be the most concerned. After all, they are ground zero for the Socialist schemes that are destroying society. They are the ones that will be crushed in the redistribution dreams of our political class. Will they awaken too late? Or, will many of them just withdraw their productivity by retiring early, emigrating, etc.?

I don’t have answers to these questions, but I do know that this professional class is about to become prey for our predatory State. And, when that happens, they will hurt be but not nearly as much as the rest of us.

Indeed, why are so many oblivious to and in denial about America’s stark economic realities? — those of:

The only difference between Pelerin and me is his question is narrower in scope than mine. Pelerin’s concerns are mainly about America’s economic problems, whereas in my view, our country’s problems transcend the economic to include the political and especially the cultural.

Politically, the federal government under Obama has become one where, instead of a division of powers among three branches, the Executive is dominant, with Obama ruling by executive orders, like kings and emperors once ruled through edicts.

Congress, the legislative branch, seems unable to address our economic problems but only exacerbates them with the passage of Obamacare (that leads to higher insurance premiums, fewer doctors, death panels, and a greater burden for small businesses) and the reprehensible National Defense Authorization Act (that authorizes the arrest without charge and indefinite detention of U.S. citizens).

The Supreme Court is also adrift, too timid to even hear cases that concern Obama’s eligibility and his strange Connecticut-issued Social Security number. That is, assuming the Supreme Court justices even saw the documents concerning those cases to begin with.

Did you know that clerks of the Supreme Court never forwarded to the justices the pleadings and documents submitted by plaintiffs and attorneys? The faceless clerks also removed cases from the electronic docket, as well as reported conferences of justices which never took place.

French philosopher and statesman Count Joseph Marie Maistre (1763-1821) once said, “Every nation has the government it deserves.” Subtending the economy and government is America’s culture, now thoroughly corrupted from decades of moral relativism do-as-you-will narcissistic amorality. Patriotism has become a dirty word: As many as 33% in a 2010 poll said they wanted the American flag banned.

John Adams wrote that “The foundation of national morality must be laid in private families.” By that yardstick, the American family is in trouble.

Although every evidence we have points to marriage being good for not just the married, but for children and society as well, the percentage of married Americans is at a lowest recorded level. Between 2000 and 2009, the share of young adults ages 25 to 34 who are married dropped 10 percentage points, from 55% to 45%.

There is an epidemic of fatherless children — 30% of U.S. children live apart from their fathers. That 30% will account for 63% of teen suicides, 70% of juveniles in state-operated institutions, 71% of high-school dropouts, 75% of children in chemical-abuse centers, 80% of rapists, 85% of youths in prison, 85% of children who exhibit behavioral disorders, and 90% of homeless and runaway children.

So, how do we account for the blindness of so many? Why do they not see what you and I so clearly see?

Is it willful ignorance? Have they been brainwashed by the Establishment Media? (but how do we account for the media’s blindness?) Is it stupidity? Is it a narrow and short-sighted selfishness? Or is it the terrible darkness of spiritual blindness?

“…you are living among a rebellious people. They have eyes to see but do not see and ears to hear but do not hear, for they are a rebellious people.” -Ezekiel 12:2

“…because they received not the love of the truth, that they might be saved. And for this cause God shall send them strong delusion, that they should believe a lie.” -2 Thessalonians 2:10b-11


U.S. Budget Cuts For Dummies

toilet paper (2)

Here’s a simple but brilliant explanation to bring home how deceptive are the fiscal cliff deal and all talk by the Obama regime of cutting  government deficit.

Lesson #1:

* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $16,428,000,000,000 (and increasing by each second)
* Recent budget cuts: $ 38,500,000,000

Let’s now remove 8 zeros and pretend it’s a household budget:

* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $164,280
* Total budget cuts so far: $385

Got It ?????

Lesson #2:

Here’s another way to look at the Debt Ceiling:

Let’s say, you come home from work and find there has been a sewer backup in your neighborhood, and your home has sewage all the way up to your ceilings.

What do you think you should do?

Raise the ceilings, or remove the shit?

H/t FOTM’s Stephanie O.