Rangel Wants To Overcome Some S. States' Attitudes

   Chuck Rangel of New York said that they need to overcome the attitudes current in some of the Southern states. He's trying to deliberately provoke us into  reacting in a stereotypically Southern,  angry way. I hope we don't do that. I just called him a douche bag and suggested that he could do better than that.
   So we have been through the "close call" cliff, which, in retrospect might not have been such a bad idea. Kicked it down the road. It may be the only way Obama and the democrats will consider addressing spending cuts.
   The House republicans have kicked the other can down the road...the debt ceiling can. Another can. Can't make a decision but they can kick the hell out of cans!
    I don't want to see them raise the eligibility for Medicare. Boehner wants it to go from 65 to 67. That's like putting a gun to our heads. Is the guy stupid? Does he WANT to lose the House in the next election? What's wrong with using vouchers for that group? Try them out. It's a HELL OF A LOT BETTER THAN DENYING it, for Christ's sake!
   It's true what they say about how people may be living longer but that doesn't mean they are healthy enough to continue in the working population. Boehner needs to think about that. I'll save my comments about him for another morning.
   I wonder if the democrats don't want to talk about vouchers because vouchers could work...and they don't want that. They want the budget and deficit big so they can raise taxes. They will blame it on conservatives...fire up the liberal mob and win the next election. They don't care if my tax rate goes to 50%. It's winning that counts. Scary.
   Young people have a lot to lose. The interest on the current debt is 320 billion...twice the annual payroll for the US Military. Young people don't want to wake up in five years and say ,"What did you old guys do to us?" NOW is the time to get involved. It's looking like we older folks can't get a responsible government elected and may not ever be able to do it again.
  

    I don't blame the Republicans. I cannot trust Mr. Obama to do what he says he will do. Budget writing is a matter of spending and revenue. I want to see the spending cuts AND the revenue picture. This is not unreasonable to ask. We haven't had a budget in this administration in almost 4 years now. Tell me why we should trust you to do what you have refused to do in your first 4 years.
    In the words of Ronald Reagan..."trust, but verify". Revenue AND spending, Mr. Obama. At the same time. A budget. 

May 2012 Recession May Be Here

   I mentioned a while back that we will probably have another contraction/recession. Many , like myself, believe it is here. Currently we are in the downtrend. Note the Dow Jones Industrials and S&P over the last ten ays. It isn't looking good. Other indicators are showing recession. The trouble with recession is that it isn't acknowledged for some time after the money people know it for certain...maybe 6-9 months.  That gives the big money people...banks and hedge fund guys...a chance to get OUT slowly...without showing their hand and bringing the prices of stock crashing down. It comes down slowly and the media people who are supposed to know just fumble and scratch their heads. Meanwhile we have lost 30 or 40 % of our 401 K's that we have invested in stock funds.
   The state has a "Stable" fund that has been giving around 4%. It's guaranteed. THAT is where mine is. At least what is left of it after the 2007 drop. DON't think you are going to make money in stocks right now. Nobody is. You won't either. Greedy equals Stupid. Be smart. Protect yourself.

Putin Who? and the US Debt

   I just want to go record about a few things.
   Judging from President Obama's "private" comment to Putin about how he would have more flexibility after the election...concerning nuclear weapons treaties and agreements... Obama wants to engage Mr. Putin concerning certain things like anti-ballistic missile systems and such. That is, he will be more able to give away some of our strength for something. Liberals call Conseratives "mean", and Conservatives call Liberals "stupid". This is a good example of how our president is a liberal. I am comfortable knowing that we have some sort of capability of shooting down an incoming ballistic missile...even if it IS headed for Washington...mixed emotions about that one...but yes...comfortable. I am also comfortable knowing that we have our missile submarines off cruising and hidden...able to make a country disappear should they try to do the same thing to us. That, ladies and gentlemen, is a good thing which makes us safer. We need to keep those things.
   I am not comfortable with our government's debt of 1.2 trillion dollars for this year. That's about three times what George Bush's record was. I don't think most people understand the problem with this. Well, read all about it. It is happening in Greece right now. Smaller scale...it is a perfect example of what happens when China and the rest of those governments who buy our bonds which, in turn, pays for our government and the entitlements, become unenamored with a country that is spending way too much more than it takes in. Can't pay salaries, social security checks stop...or are necessarily cut in amount...those sort of things. When China slows it'sbuying of our bonds where do you think the money will come from? We can't just print it.
   The House and Senate need to consider Bowles-Simpson that is a neat framework for fixing some of the biggest problems we have.
   The democrats want to raise taxes on the wealthy. It is too little, too late...a non-starter. Republicans won't let that happen. So, while we are debating this mouse of an issue, the horses have left the barn.
   1.2 trillion dollars this year. Next year the expensive parts of Obama's health care thing start kicking in.
   Part of Bowles-Simpson is the idea that our government needs to stop being a health care company and pay for vouchers that help seniors buy health insurance. It is the only way to fix the problem. Remember the $60 billion in Medicare fraud two years ago?  We make a truely lousy health care company.
   I'll get to the pharmacy mismanagement at another time. Meanwhile, read about  Bowles Simpson. at the following url. http://en.wikipedia.org/wiki/National_Commission_on_Fiscal_Responsibility_and_Reform

   I read today that they now are selling Narcan as a nasal spray...a drug that reverses the effects of heroin and other opiate derivatives...to addicts and families of addicts.  Heroin overdoses unfortunately knock out your biological ability to breathe.  I have saved a bunch of lives with the stuff. Hopefully those people went on to live productive and happy lives...yea...well...at least they get the chance to continue. Some 10,000 lives have been saved  since the program started in 1996. This is a wonderful thing.
   The article, written by Denise Lavoie with the Associated Press, included the notion that opponents say the program makes it less likely that addicts will seek treatment. Those opponents are not the sharpest knives in the drawer.
  
    

Debt and the GNP

   As the President signed the new ceiling for Federal Borrowing our National debt passed the total GDP for the country...now 15.67 Trillion dollars in debt. That is...15.7 thousand billion dollar bills. A billion is a thousand million. A pile of money, for sure.
  Gross domestic product (GDP), the featured measure of U.S. output, is the entire market value of the goods and services produced by labor and property located in the United States for one year.
  The reason this is important is that when a country has borrowed so much money that it equals it's GDP, that is a signal to investors...other countries, big US and foriegn banks, pension funds, etc...that they can expect to demand higher interest rates on future bond auctions...because our credit worthiness is damaged when we are seen to be in poor financial control.
  Just another little side note about this...When our Bond interest rates go up, so will mortgage rates...and so will all of those Adjustable Rate Mortgages so many of us own. That will be very bad news for the entire country...just when we are trying to come out of recession.
  President Obama and company have said that the reason our country is having to finance our government by borrowing approximately half of all spending by selling bonds...in other words...going broke... because the wealthy aren't paying their fair share. According to Timothy Geithner, Treasury Secretary...who has a political reason to paint an untrue, rosy picture...if he could get away with it but can't...said the Buffet Rule...which would raise the taxes on millionaires to 30%...said that would only bring in an additional 5 billion dollars a year. It is a drop in the bucket.  Insignificant. The President has since backed off from the statement. Is he really a "Pie in the Sky" type of guy?  Can he really say anything...and what's not true we will forgive him for it?  Is that really his attitude when he is talking? 
   The other end of this thing is that when we raise the taxes on Capital Gains...which is what he is really talking about...we will see an instant reduction in investment in the market. How much is a guess but it will come down...not go up...which is what drives job growth. The Republicans are correct in voting this down...even if you hate them...they are correct. We need jobs...not "Pie in the Sky" fantasies about fairness. Do we want to give a man a check or a job? There you go.
   Geithner's political angle...what the President wanted him to say so he isn't shown to be weak or in failure mode prior to the election...was that the Buffet Rule is a "part of a very comprehensive, detailed, long term fiscal program that would bring our deficits down to  sustainable levels". His words.  Two months ago he told House Budget Committee Chairman Paul Ryan..."You are right to say we're not coming before you today to say that we have a definitive solution to the long term problem." He then said, "What we do know is we don't like yours."  What happened to all of the detailed, comprehensive, long term program stuff?
   After four years we aren't any closer to fixing the debt problem than this?
   Is this Buffet Rule an attempt to make the Republicans look bad in the eyes of voters who don't understand how insignificant it really is?  Well, of course it is. The Democrats need to cultivate mistrust of  the "Rich" by those who aren't rich. It's political. It's meant to garner votes by a man who has a "Pie in the Sky" mouth and nothing but our amazing ability to forgive a lie...or a "mistake"... to back him up.
   I have no reason to hate President Obama but we need a Fix It guy. He is not fixing the problem.
   He is in re-election mode and I'm afraid he thinks we are stupid. 

Solution to Medicare?

   A wonderful idea...Medicare...but who knew it would lead to this?  Uncle Sam shouldn't be a provider in the health care insurance business.  Why not move all Medicare recipients to Health Care Insurance Companies? The Government could pay some or all of the premiums. It could provide policies with the same co-payments. I haven't done the math but I instinctively feel with certainty it would be much, much cheaper. Let them handle it and I bet they wouldn't see 60 billion dollars of fraud drain their bottom lines in a year like Medicare did.
   They haven't made a deal with the drug companies about getting our seniors reduced rates. What about that?
   If they are going to do so crappy a job as to have seniors forced to buy supplemental insurance to cover what Medicare doesn't, it's just a step from allowing seniors to opt out and buy their own insurance...using what the supplemental insurance costs them plus a tax credit. If anyone deserves a break in the form of a tax credit it is the seniors.
   Instead they are giving dumbasses who build families without the ability to support them the tax credit. That's the Earned Income Tax Credit...Check it out if you don't already know. Be informed. You'll still be broke, but it may help you feel better about it.