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: Social Security

Sharron Angle vs. Harry Reid and the GOP

Senator Harry Reid, Senate Majority Leader

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Sharron Angle is going to have to learn how to fight with both hands in Nevada’s general election battle against Senate Majority Leader Harry Reid, as Manu Raju explains in two articles appearing at Politico.com here and here. With her left hand she will be busy fending off attack ads from the Reid camp for her “extremism,” and with her right hand soothing sitting Senators with whom she might well be working after the election.

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National Debt at Tipping Point?

Tea Party

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The Wall Street Journal took another look at the $13 trillion national debt written about here last week and announced that, according to a study by economists Carmen Reinhart and Kenneth Rogoff, the economy has now reached the tipping point, the Reinhart-Rogoff Line, better known as the point of no return.

“Once a developed nation’s debt crosses it, its annual growth [tends to be much] lower.” The best estimate is that, once that point is reached, the GDP will be reduced by one-third, with little chance of regaining normal economic output for the foreseeable future.

In their book, This Time Is Different, Reinhart and Rogoff state:

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$13 Trillion and Counting

Tax Day Debt Protest 2009

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When former Comptroller General Bill Walker, who headed the U.S. Government Accountability Office, said two years ago that the “official” debt of the United States “is only around $10 trillion,” he wryly suggested that since this number was produced by “government accounting, which…allows one to ignore Social Security, Medicare and the new prescription drug benefit [it was like] ignoring rent, food and utilities in your household budget [and] it will lead to a few bounced checks.” However, he added, “Our real debt is about ten times higher,” or about $100 trillion.

At the time this was a breath-taking number, but Walker was just repeating what Richard Fisher, President of the Dallas Federal Reserve, had said just a couple of months earlier.

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47 Percent Pay No Taxes? Actually, No.

Seal of the Internal Revenue Service

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In a recent article here about the VAT (Value-Added Tax) being floated as another way to raise taxes, the author stated that a VAT “would force the 50 percent of people in the poor and middle classes who pay no income taxes at present to start to contribute to the ever-increasing costs of the nanny state.” Fortunately, the New York Times published a correction and a clarification.

According to the Times, which took a closer look at the data from the Tax Policy Center, “The stimulus programs of the last two years [under the Bush and Obama administrations] have increased the number of households that receive enough of a tax credit to wipe out their federal income tax liability…but income taxes aren’t the only kind of federal taxes that people pay.”

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Will America Get a Value Added Tax (VAT)?

President's Advisory Panel for Federal Tax Reform

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Former Federal Reserve Chairman Paul Volcker sent up a trial balloon at the New York Historical Society April 6 when he said that a Value-Added Tax (VAT) needed to be considered in light of the huge deficits facing the country. According to Volcker, the VAT is “not as toxic an idea” as many have considered it to be in the past, and “if at the end of the day we need to raise taxes, we should raise taxes.”

He wasn’t the first one to float this recently. Charles Krauthammer wrote late last month that “as the night follows the day, the VAT cometh” and that “a national sales tax near-universal in Europe is inevitable.” Because of the huge deficits facing the nation, exacerbated by the newly passed ObamaCare bill, there is no way out except to raise taxes, according to Krauthammer.

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Can ObamaCare Be Repealed, Nullified?

Repeal ObamaCare

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U.S. Representative Michele Bachmann (R-Minn.), who has earned a “Freedom Index” rating of 90 percent in the current Congress to date, has introduced a bill in the House to repeal ObamaCare. In her press release, Bachmann reminded her constituents that “the government already owns or controls about one-third of U.S. economic activity through the takeover of General Motors, the bankruptcy reorganizations of Chrysler, the partial ownership of two of the country’s largest banks in Bank of America and Citigroup, and the seizure of mortgage giants Fannie Mae and Freddie Mac as well as AIG. Taken all together, [with ObamaCare] we’re looking at half of the American economy in the grip of the federal government.” Bachmann said that it “will do nothing to spur economic growth … [but] will serve only as an obstacle to actual recovery and smother the spirit of innovation and freedoms that made this country great.”

Her bill is simplicity itself:

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Jobs Bill: The Law of Intended Consequences

London | 2009

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With great fanfare, the Obama administration celebrated its first policy victory of the year—the $17.6 billion jobs bill. Eleven Republican Senators helped push the bill through the Senate, 68-29.

The economically flawed and unconstitutional law provides employers an exemption from Social Security tax withholding through the end of the year on any employees added to the payroll who have been unemployed for at least 60 days. And if the employees stay on that payroll for at least a year, the employers would receive an additional $1,000 tax credit. In addition, the law spends $20 billion on federal highway construction and other public improvement projects.

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Social Security’s Nest Egg is Officially Cracked

Broken Egg

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In a misleading article by Associated Press that IOUs “stashed away” in an investment account in Parkersburg, West Virginia, were going to have to be sold to meet Social Security shortfalls, all the attention was on the location of the account instead of what was in it.

Analyzed here and elsewhere, Social Security is now suffering in the open as a result of unconstitutional and unsound financial assumptions starting in 1935. First of all, the gigantic welfare program, the largest government transfer program in the world, was sold to the American people during the Great Depression as an annuity guaranteed by the federal government. In fact, it still retains the early efforts to link Social Security to the insurance industry (which, at that time, still retained a high degree of public trust) by calling it the Federal Insurance Contributions Act, or FICA.

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Obama Healthcare II is Financial Lunacy

Selling Obamacare - July 22, 2009

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Even if the Obama administration is able to persuade (or bludgeon) enough Democrats into passing his latest version of healthcare, it would still be financial lunacy.

Last summer CNS News reported on the Congressional Budget Office’s analysis of President Obama’s initial public offering for healthcare, which they called “fairly blistering…concerning the ability of the…plans to save money and control health care costs for the long term.” According to CBS, the Director of the CBO, Doug Elmendorf, told the Senate Budget Committee that none of the bills he has seen would reduce health care costs: “In the legislation that has been [analyzed so far] we do not see the sort of fundamental changes that would be necessary to reduce the trajectory of…health care spending by a significant amount…On the contrary, the legislation significantly expands the federal responsibility for health care costs.”

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TSA and the Fourth Amendment: Take another Look

Transportation Security Administration officer...

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When Homeland Security Secretary Janet Napolitano announced that Major General Robert Harding was President Obama’s latest nominee for the Transportation Security Agency (TSA), she said, “Mr. Harding has the experience and perspective [emphasis added] to make a real difference in carrying out the mission of the agency. If there was ever a nominee that warranted expedited…consideration in the Senate, this is it.”

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Will the U.S. Be Able to Pay its Debts?

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An Associated Press writer says “the crushing weight of its debt threatens to overwhelm everything the federal government does,” even under the best-case scenario. This theme of unsustainable debts and deep holes has been reviewed elsewhere on this site, and it’s small comfort that it is now making headlines in the controlled mainstream media:

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U.S. Debt Level Unsustainable, Report Says

Graffiti: Debt

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“The debt level of the United States is unsustainable, something has to give,” said the co-author of a new joint report released last week by the National Research Council and the National Academy of Public Administration. The committee that prepared the 268-page study, entitled Choosing the Nation’s Fiscal Future, included three former heads of the Congressional Budget Office.

A WorldNetDaily article by Jerome Corsi, entitled “Forecast: Debt to Dwarf GDP,” provided key quotes from the study as well as from Rudolph Penner, one of the former CBO heads. “The fundamental problem is that we have these three very large programs—Medicare, Medicaid and Social Security— that…are growing faster than tax revenues and faster than the economy,” Penner told WorldNetDaily. This is creating an “unsustainable federal budget deficit [that continues to grow] ever onward and upward.”

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Is Social Security a Ponzi Scheme?

Mug shot of Charles Ponzi (March 3, 1882 – Jan...

More than $16 billion of investors’ money evaporated in Ponzi schemes in 2009, according to the Associated Press. Although the names Bernie Madoff and Allen Stanford were in the headlines in 2009, many other Ponzi schemes were uncovered as the economy declined, making continued payouts to investors impossible.

As Warren Buffet said, “Only when the tide goes out do you discover who’s been swimming naked.”

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Economic Reality vs. Cheerleaders

Timothy Franz Geithner, President of the Feder...

When MSNBC headlined the report that existing home sales surged by 7.4 percent in November (according to the National Association of Realtors), it suggested that such an improvement boosted “recovery hopes.” Others jumped on the recovery bandwagon, including Treasury Secretary Timothy Geithner, and former Vice Chairman of the Federal Reserve Board Alan Blinder.

According to Geithner, it’s now reasonable to expect “positive job growth” by spring and correct to assert that people should have confidence in an improving economy.  “I think most people would say the economy actually is strengthening now,” he added.

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Jobs Summit: More talk? Yes. More jobs? No.

unemployment

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When ABC News asked if the “jobs summit” would make real progress or would just be “simply a glorified public-relations stunt,” it studiously avoided asking the real question: How can the prime movers that created the current economic “Great Recession” be expected to fix it?

For starters, where is the constitutional authority for the government to get involved in creating jobs, even if it could?

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The National Debt: How Soon Before Uncle Sam Cries “Uncle?”

 

Uncle Sam with empty treasury, 1920, by James ...

When Bob Schieffer of NBC News asked the rhetorical question: “…has going a trillion dollars in hock to one country [China] made us more secure?”, he was reminded of Everett Dirksen (Illinois Senator for nearly 20 years) and his famous comment: “…a billion here and a billion there and pretty soon you’re talking about real money!”.

The current account deficit, at the present moment, is over $12 trillion and climbing. About half of that debt is owned by foreign countries, most notably China (about $800 billion) and India (about $300 billion), with the balance owned by Japan, Germany, and others.

So what’s the big deal?

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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.