Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: National Debt

Michel Temer, Brazil’s New President, Faces Massive Challenges

This article appeared online at TheNewAmerican.com on Thursday, September 1, 2016:  

English: The newly elected president of the Ch...

Brazil’s new president, Michel Temer

Just after being sworn in as Brazil’s new president, and just before jetting off to the G-20 meeting in China to hobnob with the global elites, Michel Temer took time on Wednesday to make a promise to Brazilians: “From today on, the expectations are much higher for the [new] government. I hope that in these two years and four months [when his term ends in 2018], we do what we have declared: put Brazil back on track.”

That’s an expression more of hope than reality: Little is likely to change except the name of Brazil’s president. Temer faces challenges that would stagger Godzilla:

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Latest CBO Report “Grim”; Offers No Solutions to National Debt

This article appeared online at TheNewAmerican.com on Friday, July 15, 2016:  

Ida May Fuller, the first recipient

Ida May Fuller, holding the first check from the Social Security Administration

On Tuesday, the Congressional Budget Office (CBO) published its annual report on the country’s long-term budgetary and financial outlook. One need only to see the chart on Page One of the report to see why CBO’s Justin Bogle said the outlook was “grim”: It shows government spending growing so much more quickly than anticipated revenues that annual deficits will likely triple in the next 30 years, if not sooner. Bogle called this scenario unsustainable.

For the first time, the CBO built into its assumptions the projected impact of ObamaCare, the country’s declining birth rate, the explosion of Baby Boomers demanding benefits from Social Security and Medicare over that period, plus Boomers’ increasing life expectancies and the increasing costs of providing them healthcare along the way.

It also assumed that government debt will

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Edict From Venezuela’s President Maduro: Grow Your Own Food

This article appeared online at TheNewAmerican.com on Friday, May 27, 2016:  

                            No Hay Comida is translated: There is no food

Word got out that there would be chicken for sale at the Central Madeirense supermarket in Guarenas, Venezuela, on Friday, so Kattya Alonzo got there at 4 a.m. The line of others already snaked around the block, waiting for the delivery trucks to arrive.

But when the trucks arrived at 6:30, the national guardsmen monitoring the crowd sensed the possibility of a riot and ordered the trucks to move on. The people waiting in line turned ugly and

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Brazil’s Interim President Says “Trust Me,” Installs Corrupt Bureaucrats

This article appeared online at TheNewAmerican.com on Monday, May 16, 2016:  

Upon taking over Brazil’s presidency from disgraced former President Dilma Rousseff on Thursday, interim president Michel Temer asked his skeptical citizenry to “trust” him, saying that his new administration would be Brazil’s “salvation”:

Trust me. Trust the values of our people and our ability to recuperate the economy…. It is essential to rebuild the credibility of the country abroad to attract new investments and get the economy growing again…. It is urgent to restore peace and unite Brazil. We must form a government that will save the nation…. It’s urgent to seek the unity of Brazil. We urgently need a government of national salivation.

Even if he truly intended to do any of that, the challenges he faces almost defy description.

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Trump Suggests National Debt “Deal,” Media Calls It “Fanciful” and “Dangerous”

This article appeared online at TheNewAmerican.com on Monday, May 9, 2016:  

A snippet from Donald Trump’s conversation with CNBC on Thursday raised the ire of numerous media commentators, who called Trump’s plan “unprecedented” (CNBC), “fanciful” and a “threat” (New York Times), and “tantamount to a debt default” (Yahoo Finance). Others called his remarks “reckless,” while Tony Fratto, a former Treasury official in the George W. Bush administration said, “This isn’t a serious idea — it’s an insane idea.”

What sparked the ire? The initial impetus was when Trump said, “[The U.S. Treasury is] paying a very low interest rate. What happens if that interest goes up two, three, four points? We don’t have a country. I mean, if you look at the numbers, they’re staggering.”

Indeed they are. The U.S. Debt Clock shows the national debt closing in on $20 trillion, while the economy is slumping along, with a GDP at just over $18 trillion. Put another way,

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How the Establishment Does Business in Washington

This article was published at The McAlvany Intelligence Advisor on Wednesday, October 28, 2015: 

English: U.S. President Barack Obama meets wit...

Just a visit between old friends

In Washington, it is said that laws are like sausages: no one wants to know exactly how they are made. Washington, controlled as it has been by the Establishment for decades, makes laws like sausages, keeping everyone in the dark and happy, except the taxpayer.

Just who is this ephemeral, invisible, ever-present establishment? In three minutes, a caller to Rush Limbaugh’s radio show on September 15, nailed it:

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Boehner Cuts Deal With White House; National Debt to Reach $20 Trillion

This article appeared online at TheNewAmerican.com on Tuesday, October 27, 2015:

After working privately over the past several weeks with members of the White House staff, as well as with Nancy Pelosi (D-Calif.), Mitch McConnell (R-Ky.), and Harry Reid (D-Nev.), House Speaker John Boehner succeeded late Monday night in cobbling together a deal that gives everyone in Washington what they want but leaves the bill for the taxpayer. By the time the dust settles, the deal will cause the country’s national debt to reach $20 trillion within the next 18 months, if not sooner.

Doing an end run around usual House procedures, Boehner

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Federal Deficit at Eight-year Low; Don’t Celebrate Yet

This article appeared online at TheNewAmerican.com on Friday, October 16, 2015:  

On Thursday the Treasury Department announced that the federal deficit for the 2015 fiscal year, which ended September 30, fell to an eight-year low — $439 billion — thanks to tax revenues that grew at a rate faster than government spending. Revenues, according to the department, grew by eight percent over last year while government spending grew by five percent.

Treasury Secretary Jacob Lew celebrated:

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Tracking Freedom’s Decline in America

This article appeared online at TheNewAmerican.com on Thursday, September 17, 2015:  

Fraser Institute

A recent spate of reports, analyses, and indexes continue to confirm the decline of personal and economic freedom in the United States. The Fifth Annual report from the Fraser Institute, “The Human Freedom Index” published last month shows the U.S. falling from 17th place worldwide to 20th in the areas of personal, civil, and economic freedom.

Ian Vasquez, one of the report’s authors, wrote:

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The Ripple Effect of Rising Interest Rates

This article appeared online at TheNewAmerican.com on Wednesday, September 9, 2015:  

With financial talking heads now convinced that the Federal Reserve will finally increase interest rates as a result of the record-setting job openings report, few are asking about the “ripple effect” those increases might mean for individuals, for the auto and the housing industry, for companies and corporations, and, most importantly, for the debt-laden federal government.

If and when the fed announces upcoming interest-rate increases, in the short run, individuals might be tempted to accelerate their buying decision on cars and houses to take advantage of low rates before increases start flowing through to lenders in those sectors. In the longer run,

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Greece-EU Standoff Increases Chances of “Grexit”

This article appeared online at TheNewAmerican.com on Tuesday, July 7, 2015:  

UK Independence Party

Writing in London’s Telegraph on Monday, Nigel Farage, the leader of the anti-EU, pro-sovereignty UK Independence Party (UKIP), called Sunday’s referendum in Greece “a crushing defeat for those Eurocrats who believe that you can simply bulldoze public opinion.” Threats by those Eurocrats to shut off emergency financing unless the country agreed to its terms fell on deaf ears, especially among those under age 35: Eighty percent of them voted no on Sunday.

That cohort is the one least likely to remember the songs that were sung by those promoting the European Union decades ago:

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Greece: Capital Controls Threat Increases as Deadline Approaches

This article first appeared online at TheNewAmerican.com on Monday, June 22, 2015:

The announcement last week by Greece’s central bank that it may be forced to start implementing capital controls — eliminating the ability of Greeks who still have any money in the bank to withdraw it or send it to another country for safekeeping — may just be a ploy to bring more pressure on the Troika (European Central Bank, IMF, and eurozone countries) to release the last batch of funds from Bailout Number Three.

Withdrawals by nervous Greeks began last fall as Bailouts Number One, Two, and Three were only pushing the country further into recession. Withdrawal from the eurozone itself became increasingly likely, with the result that the euro would be replaced in Greece with a new currency with much less purchasing power.

Ever since Greece joined the European Community, later to be called the European Union, it has enjoyed far better credit ratings than it deserved. Assured that default was now no longer an option, central banks and other international financial institutions were more than willing to

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U.S. Financial Outlook has “Worsened Dramatically”

This article first appeared online at TheNewAmerican.com on Wednesday, June 17, 2015: 

English:

This graph is outdated but revealing

 

In its just-released report “The 2015 Long-Term Budget Outlook,” the Congressional Budget Office stated bluntly:

The long-term outlook for the federal budget has worsened dramatically over the past several years, in the wake of the 2007-2009 recession and slow recovery…. If current law remained generally unchanged in the future … growing budget deficits … would push [the national] debt above its current high level.

It’s all about government spending that’s baked into the cake:

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Tuition-Free Community College? Yea or Nay?

This article was published by The McAlvany Intelligence Advisor on Monday, June 8, 2015: 

Students at a table in Muscatine Community Col...

Students at a table in Muscatine Community College courtyard

 

In 2008 the city council of Knoxville, Tennessee created “Knoxville Achieves”, a philanthropically-funded free tuition program for lower income families who couldn’t afford college. It blended private funds with requirements that students receiving “last dollar” benefits (tuition expenses remaining after grants, scholarships and personal resources were used up) would be guided by volunteer mentors through regular consultations and planning sessions. If the students didn’t meet certain minimum performance standards, the mentoring stopped and so did the money.

This was a local response to the pitiful results, in general, that community college students were obtaining. Barely 20 percent of them obtain their associate’s degree after three years. It’s supposed to take two.

The first year 496 students received tuition assistance, with good results appearing almost immediately. It wasn’t the money – it was the mentoring and the tracking, following, and monitoring that made the difference. Students were, some for the first time, being held personally accountable to a friendly volunteer, along with receiving a financial incentive.

It worked so well that

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Boston University Economist Calls Out Congress on Enormous Fiscal Gap

This article first appeared online at TheNewAmerican.com on Thursday, March 12, 2015:

Logo of the United States Government Accountab...

Logo of the United States Government Accountability Office

During his annual trek to Washington, D.C., to lecture Congress on its spendthrift habits, Boston University economist Laurence Kotlikoff took the gloves off this year. He dressed down Senator Mike Enzi, chairman of the Senate Budget Committee, along with the committee’s members:

Let me get right to the point. Our country is broke. It’s not broke in 75 years or 50 years or 25 years or 10 years.

 

It’s broke today.

 

Indeed, it may well be in worse fiscal shape than any development country, including Greece.

It isn’t just Enzi, or his committee, or the present Congress, that’s responsible for a fiscal gap that’s vastly larger than that projected by the Congressional Budget Office (CBO). It’s the idea that the country can borrow without limit because

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Latest CBO Report shows Deficits Approaching $1 Trillion

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, February 4, 2015: 

English:

When the Congressional Budget Office issued its Budget and Economic Outlook 2015 to 2025 in January, few could be bothered to do a serious review of it as it seemed to contradict the present meme of the Goldilocks economy: job growth accelerating, interest rates low, consumer confidence improving, deficits shrinking, and so forth. Even those taking the time to look at it, scoffed at its conclusions. Said the CBO:

The federal budget deficit, which has fallen sharply during the past few years, is projected to hold steady relative to the size of the economy through 2018.

Beyond that point, however, the gap between spending and revenues is expected to grow, further increasing federal debt … which is already historically high.

The CBO explained why:

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GOP Folds, Helps Democrats to Pass the CRomnibus bill

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, December 17, 2014: 

 

 

If the Guinness Book of Records had a category for “political taradiddles,” this from Barbara Mikulski, a Democrat from Maryland and the Senate’s Appropriations Committee Chairman, would certainly qualify for its top ten. After all was said and done, after all the back-room deals had been completed, after Senator Ted Cruz’s last minute attempt to stall the vote by claiming that the CRomnibus bill would unconstitutionally fund Obama’s immigration executive order without debate was quashed 74-22, Mikulski exulted:

It is remarkable in today’s era of slam-down politics that we, working on this committee, have been able to set aside our differences, work across the aisle, work across the Dome, to find a way to compromise without capitulation on principles.

The only word with validity that she used was “capitulation” – total and complete surrender – by the Republicans, the party still perceived by many to be the party of small government, fiscal responsibility, and personal liberty. The sell-out was nearly complete,

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Voters Finally Learn What’s in the CRomnibus Bill Passed by the Senate

This article first appeared online at TheNewAmerican.com on Tuesday, December 16, 2014:

Official portrait of United States Senator (R-KY)

Kentucky Senator Mitch McConnell, the leader of the Republican sellout

The so-called CRomnibus bill (a combination of a Continuing Resolution and an omnibus spending bill covering dozens of federal agencies) was passed by the Senate late Saturday night, 56-40, approving government spending through next September.

Passage, although delayed slightly by complaints from Senator Ted Cruz (R-Texas) that it funded President Obama’s illegal immigration executive order without debate, was guaranteed when 24 Republicans, including every GOP leader, voted for it. This allowed some Democrats the opportunity to vote against it as a sop to constituents or to build their resumes in contemplated runs for the White House in 2016. They included newly inducted Senator Cory Booker (D-N.J.), along with Senators Elizabeth Warren (D-Mass.), Amy Klobucher (D-Minn.), and Kirsten Gillibrand (D-N.Y.).

Others whom Republicans bailed out with their “yea” votes included naysayers

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GOP Midterm Victories: The GOP’s Plan and Path

This article first appeared at TheNewAmerican.com on Wednesday, November 5, 2014:

Thanks to a groundswell of unhappiness over the economy, healthcare, a porous southern border, and increasing distrust of government in general, Republicans who were swept into office run the risk of thinking that Tuesday’s nearly complete sweep was a vote for them and their policies. As the Wall Street Journal noted, “Many voters said they cast [their] ballots more in opposition to one candidate than [in] support for the other.” New Jersey Governor Chris Christie, chairman of the Republican Governors Association, got it right: “The president took a beating last night!”

Republicans used the president’s increasing unpopularity to connect their opponents’ support for his policies like a millstone, dragging them down to defeat. This marks two mid-term defeats that, according to the Journal, “rank among the

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CBO’s Funny Math

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, October 22, 2014:

National debt clock

National debt clock

The Congressional Budget Office’s August update to the federal budget and outlook for the next 10 years released last week was so filled with questionable assumptions as to make their conclusions completely unrealistic. As expected, the mainstream media focused only on the parts of the report that fed and supported their worldview. For instance, the CBO said that revenues were expected to increase by about 8% over last year to a world record $3 trillion, thanks to increases in individual income taxes, payroll taxes, and corporate income taxes.

This was understood by the White House and establishment economists to

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.