Dec 03 2012

Where’s AJStrata?

So, AJStrata is not posting as much as he used to. Why? What’s he up to? What’s happened to the Strata Sphere?

Where’s AJStrata?

To be honest, he is (I am) very busy with Holiday activities with the family (preparation & celebration), end of year activities for the business, a new phase on an ongoing project, etc.  So many real world activities politics is now very low on the priority list.

Besides – the big issue before us is Sequestration and the supposed “cliff” facing the country. And until we see which path we are on, not much can be said about anything. One thing is for sure, the President is busy trying on different fig leaves in terms of vacuous and stupid proposals that don’t deal with the cancer destroying our economy:

Out Of Control Federal $pending

We are racking up $1.3-1.4 Trillion dollars in deficits each and every year (looks like this “$1,350,000,000,000″ in real numbers). If we tax the economy to pay for this, it will falter.  But if we continue to add $4,500 in debt to each person in the country each year, the current~$50,000 owed per person with expand to $68,000 per person after 4 more years of liberal spending. That means each family of four will owe the government $272,000.

We cannot sustain this kind of spending. The $200,000 owed per family right now is unbearable, foolish and short sighted. There is no chance a family of four can pay this debt off in a life time and pay on a house, cars, durable goods, college education(s), etc. It is like owning two homes, neither of which is generating income.

So let’s be clear about another reality:  the poor won’t pay, the rich will hide their wealth from taxes, which will leave the burden on the middle class to pay all this off. And as we remove people from the requirement to pay back their safety-net handouts, we double or triple the per person debt on those stuck with the bill.

Therefore, I still say it is better to go through Sequestration now, with funding cuts and tax increases, than pretend even one more year there is a painless way out of our current mess. I think this nation, its leaders and its wealthy need a wake up call. I think the middle class needs a huge tax increase, so they understand what they are doing to their own children.

I think we need to hit the cliff, so we wake up out of this mindless, socialist stupor we are still in.

Until we decide to (a) slowly spend ourselves to death or (b) start taking our fiscal medicine, there really is nothing to discuss. I can only hope the GOP House holds the line and doesn’t wimp out again, as they did in 2011. Of course, if they do, that will be the end of the GOP Party as we know it.

8 responses so far

8 Responses to “Where’s AJStrata?”

  1. OFg8r says:

    I have no doubt that your assessment is correct that we must face the stark reality soon; i.e., now. I also have no confidence whatsoever in our political leadership. Therefore, even though I have no idea what the “cliff” might entail, I have a gut feeling that you are right that it is better than any alternative that will be cobbled together and sold as a solution.

    The Electorate has already proven that it is unworthy of confidence, and the political Powers are aware that any flim-flam that seems to spare it pain will be welcomed. So, we will get flim-flam.

    I am an old Codger. Over the course of my life, I have seen the country go through various bits of trauma, from the depression to WWII, etc. If anyone had told me twenty years ago that this country would be in the shape that it is in now; fiscally, economically and morally, I would have called them crazy.

  2. Phil-351 says:

    Obama must keep the economy anemic. Why? Because if the economy recovers significantly, interest rates go up. Then, we’ll be faced with the ‘Service of Debt’ budget bomb that has been laid in front of us like an IED. Currently, short-term Treasury notes are earning less than 1% interest, and long term notes are under 3%, essentially free money. That will all change if the economy recovers and the rates go up.

    Consider this: 5-yr treasury notes were trading at 2% in 2009, with the service of the debt at $389B, one of the largest federal expenditures. Today, 5-yr notes are trading at 0.62%, which is why you don’t hear too much about the service of the debt affecting the budget as much, even after adding $4+T. But, when the economy recovers, and the rates go back up, BOOM!!!!!!!

    PS. in 2006, when the economy was truly rolling, 5-yr T-notes were earning 4-5%. Think about it.

  3. patrioticduo says:

    Thanks Phil, it cannot be repeated often enough how the treasury is intentionally twisting the interest rates in order to keep them low so that the Government debt looks far less than it really is. The fact that the Federal Government under Obama and the Democratic Party are willing and intend to keep the spending at this level tells you that they simply do not believe in the free market and private ownership of capital. And therefore they do not believe in property rights and justice for those that build personal wealth. The only conclusion is that this country is heading into true socialism where the central government will use police powers to coerce the population. Sad.

  4. Phil-351 says:

    PPS. In Sept, 2009, the debt was $11.9T when the service was $389B. The debt is now above $16T, a 35% increase.

  5. oneal lane says:

    AJ,

    Glad your back. I’m not sure anythng will ever wake up the progessive/socalists. If history is any indicator, as the socalist solution for problems with socalism, is to institute more evem more socialism.

    The United States is late to the table, but with the 2012 elections we have fully arrived. Are their any nations left in the world that are not socalist? Its a world of socalism and its only going to get worse. As what is left of the “West” is robbed of its wealth and routed to the 3rd world.

    If I recall my American History correctly only about 30% of the population of the American Colonies supported the American Revolution. The remainder were loyal to England and the throne. Currently I think only about 30% of Americans believe in the traditions of our nation. The Royals have won the counter revolution. a political class is back in power.

  6. kathie says:

    It is quite unbelievable that over 50% of Americans are this stupid. They voted for a man who consults with talking heads at MSNBC?

    President Barack Obama met with several MSNBC hosts this afternoon at the White House to discuss tax rates, according to Huffington Post reporter Jennifer Bendery. The reporter wondered if an “MSNBC love fest” was going on at the White House

  7. Frogg1 says:

    If all else fails, and the Repubs can’t get Obama to go along with real solution, I think they should fall back on Plan B……Glenn Reynolds suggestion:

    Column: GOP should force Obama’s hand
    http://www.usatoday.com/story/opinion/2012/12/03/fiscal-cliff-obama-debt/1741339/

    excerpt:

    Adopt the Bowles-Simpson Plan. The plan was the product of a bipartisan commission, chaired by Democrat Erskine Bowles and Republican Alan Simpson, appointed by President Obama to address America’s ballooning deficits and national debt. Most experts agree that it’s a pretty good plan. President Obama didn’t like it because it shrinks government too much.

    Tough. It’s a plan, which is more than President Obama has offered, and from a bipartisan commission he appointed. Can Obama get away with vetoing that? Can Senate Democrats get away with rejecting it and bringing on the automatic cuts and tax increases of the sequester? Doubtful. Plus, though the press tends to cover for Obama and blame Republicans, media types love Bipartisan Commissions.

  8. oneal lane says:

    For what its worth, here is one opinion about the lackluster turnout.

    http://www.dickmorris.com/whites-stayed-home-and-re-elected-obama/#more-10310

    Also I think Romney’s Mormonism had more impact than what has been estimated.