Bad Policies and Bad Decisions

I have not posted in some time, as I have just been completely disgusted with the whole 2012 election.  Now that the election is over, I would like to weigh in on why Romney lost the election.

Several of the talking heads have eluded to the fact that the liberal media is to blame for Obama's re-election.  I might be a bit weird here, but, this sounds an awful lot like blaming Bush.  It's clearly finger pointing.  In these cases, I like to do a root cause analysis.  So, here goes.

First, we need to look at the voting margins in the "swing states" for the 2004 election:

• New Mexico: ~6k votes
• Nevada: ~20k votes
• Iowa: ~10k votes
• Colorado: ~100k votes
• Ohio: ~100k votes
• Virginia: ~300k votes
• Florida: ~400k votes
• North Carolina: ~500k votes

This gives a total margin of around 1.5m votes.  Since Bush won that year by more than 3 million votes, this is the number that indicates the real margin; the remainder of the 3 million votes can be discounted because they are in states that are already politically polarized.  This might not sound good, but, the facts are the facts.  This is not to encourage people not to vote, I am simply doing the analysis.  The key point here is that Bush was able to get about 1.5 million votes from these states (listed above) in 2004 to win.  And, that he really needed every one of these votes to win, because Kerry only needed 19 more electoral votes to win.  This means that had Kerry managed to get either Ohio or Florida, he would have won the election.  The margin in Ohio was only 200k votes.  Kerry could have also won if he managed to get Colorado, Nevada and New Mexico.  And, that was a margin of only 126k votes.  Are you starting to get the picture here?  To be clear, less than 200k votes decided this election.

Next, we need to look at the voting margins in the "swing states" for the 2008 election:

• New Mexico: ~125k votes
• Nevada: ~120k votes
  
• Iowa: ~150k votes
• Colorado: ~200k votes
• Ohio: ~200k votes
• Virginia: ~300k votes
• Florida: ~300k votes
• North Carolina: ~20k votes

Unlike 2004, I want to look at some more variances in the data first.  One key thing to note is that the Republican numbers were almost identical; except for Ohio.  In Ohio, there were 200k less votes than in 2004.  Coincidentally, there were 200k more Democrat votes than in 2004.  So, 200k people appear to have changed their mind.  Obama's margin in these states was around 1.4 million votes.  This means that nearly 2.7 million more people voted in the 2008 election in these states, than in the 2004 election.  And, they all voted for Obama.  Let me be clear here: the Republican vote was essentially the same.  The Democrat vote is what changed.  And, this is what determined the election results.

Finally, we need to look at the voting margins in the "swing states" for the 2012 election:

• New Mexico: ~50k votes
• Nevada: ~50k votes
  
• Iowa: ~100k votes
• Colorado: ~100k votes
• Ohio: ~100k votes
• Virginia: ~100k votes
• Florida: ~100k votes
• North Carolina: ~(100k) votes

Clearly, in 2012 the margin was smaller, in terms of the number of votes that decided the election.  Or was it?  Remember, in 2004 less than 200k votes in a few key states decided the election.  In 2008, the Democrat organization must have figured this out, and, they focused all their efforts on those key states.  Obama essentially won by around 500k votes in these same few states.  The key point here, is that Obama only need to beat Bush's number from 2004 to win (a bit ironic, given the Bush bashing done by the Obama campaign).

Given the horrible job Obama has done in the last four years, any rational person has to be asking themselves how he could win.  And, it is easy to blame the liberal media (as the right-wing talking heads are doing).  It is also easy to try to make those who voted for Obama appear as stupid (also, as the right-wing talking heads are doing).  Please forgive my candor, but, this sounds like a bunch of white males whining over the fact that they cannot get their way any more.  One thing is for sure, you are not going to bully the people who voted for Obama into voting Republican, by calling them stupid.  Wise up.

What we need to be asking ourselves is who were the deciding votes, and, why did they vote the way they voted?  Well, based on the numbers, I think the answer is clear: Hispanics.  And, thus, to the point of this post.  The Republican policy on immigration is flawed (as I have said repeatedly on this blog).  And, unless this is addressed, the Republicans can kiss any chance of winning the presidency goodby forever.  In addition, given the really poor job Obama has done, one key decision I believe sealed the fate of the Romney campaign.  Instead of choosing Marco Rubio, Romney chose Paul Ryan (yet another rich white male republican).  The choice of Paul Ryan sent a clear message to Hispanics: we don't need you.  And, they did what anyone would do in that situation, they voted for the other guy.

It's time to put Marco Rubio in charge of the Republican Party.  If we are lucky, we can have a Hispanic Republican Candidate for 2016.  I suspect this is the only way a Republican president will ever be elected again.

Full Disclosure:  I grew up in Florida, and, most of my family still lives in Florida.  I am not related to Marco Rubio (as far as I know).  I admit I might be a bit biased on Marco Rubio, however, I think my logic is sound. 

Blaming the Tea Party?

I don't know about you, but I am getting tired of all the finger pointing.

During the 2008 election, I wish I had a nickle for every time I heard "Four More Years of Bush's Failed Policies", and all of the other attacks on the then sitting President. Now, I am not a Bush fan. But, he was the President.

It's ironic, because I just heard a Congresswoman from Texas claiming that Obama is the most abused President of all time. Hmm. Really? I will never forget a bumper sticker on a car in Virginia that read "Buck Fush". Other than talk radio, I have not heard near the criticism of President Obama that President Bush had to put up with. Even today, Bush is being blamed for the economy.

I could not believe my ears this morning. I heard a couple of the talking heads saying that the Democrats were blaming the downgrade of the US credit rating on the Tea Party. Wow. How does that make sense?

A credit rating is based on the ability of the borrower to be able to repay the amount borrowed. You have a credit card right? Well, what happens if you just keep spending and spending? Is your credit rating going up or down? Perhaps we could use some common sense here. Continued deficit spending is the real financial crisis.

It looks to me like the government elitists want us average working class Americans to believe that the Tea Party caused the downgrade. Are you serious? The Tea Party are the ones that were advocating fiscal responsibility - the only ones. So, how is it possible that the Tea Party is responsible for the downgrade? This is like blaming the person who is telling you to stop getting credit cards, or you will be in bankruptcy.

This is the ultimate and most despicable spin by the government elitists I have seen to date. This is why I say that our elected officials are either corrupt or incompetent. How can any rational person claim that the Tea Party is responsible for the downgrade, when all they were doing was advocating fiscal responsibility?

The fact is that this latest debt ceiling legislation does not reduce real spending one bit. It reduces the automatic budget increases for the next ten years, assuming the future Congresses agree to the proposed spending. In short, it is politics as usual. It was the Tea Party that forced the inclusion of the Balanced Budget Amendment in the legislation. It was the Tea Party that wanted to reduce spending, and to balance the budget. These are things that make fiscal sense. So, how can you blame the Tea Party for the downgrade?

I mentioned earlier that blaming the Tea Party for the downgrade is the most despicable thing I have ever heard. I was wrong. I heard that the Vice President of the United States called the Tea Party a bunch of Terrorists. Now, I heard this from one of the talk radio shows this past week; I have not heard the actual statement by the Vice President. So, I do not know if this is a "sound bite" from the talk radio crowd trying to get a reaction. Let me say this, if the Vice President did call the Tea Party a bunch of Terrorist, he should resign. This is not the kind of attitude I want from my Vice President. This is despicable behavior. And, if any of us working class Americans did this, we would probably be fired. Mr. Vice President, if you called the Tea Party a bunch of Terrorists, you need to do the right thing and resign.

From my point of view, the Tea Party are the ones that are fighting for fiscal responsibility. To blame them for the downgrade is just plain idiotic.

God Bless the Tea Party.

Incompetent Elected Representatives

I thought that raising the debt ceiling would fix the financial crisis. That's what the media and all the politicians in Washington told us. Event though it is counter-intuitive that we could borrow our way out of the financial crisis, that is what we were told.

Well, the S & P just downgraded the US credit rating. There are only two ways to look at this (in my opinion). Either we the American people were lied to, or, our elected representatives are incompetent. I'd certainly hope that the our elected representatives would not lie to the American people - ignore them maybe - but not lie to them. Therefore, we have to conclude that our elected representatives are incompetent. Notice: I did not say Democrats or Republicans; Congress, Senate or the President. I said our elected representatives (collectively) are incompetent.

Incompetent might sound like a strong word. But, I think it is appropriate. After all, these elitist in Washington live by a different set of rules than the rest of us average working class Americans. I don't know anyone (except the congress) that gets an automatic pay increase every year. Can you imagine? How can anyone with a conscience vote for legislation that gives automatic pay increases; knowing full well the number of unemployed people we have in this country. And, yet, I have not seen one of them stand up and offer to reduce their salary and benefits until unemployment is below 5%. Shocking.

The majority of Americans want a Balanced Budget Amendment. Why? Because they recognize that without a Balanced Budget Amendment, it is going to be politics as usual in Washington. For example, this latest legislation is supposed to cut spending. But, it does not cut real spending; it cuts the automatic increases that are planned for future years. This is like a gambler or drug user promising to stop gambling or taking drugs. Let me go out on a limb here, and say there is no way we are ever going to get a balanced budget without a Balanced Budget Amendment.

How can we trust our elected representatives? They were wrong about the financial crisis. And, this has not been the first time they have been wrong. They vote themselves automatic pay increases. They ignore the will of the American people time after time. I don't know about you, but, I have had enough of this! Unless we see some drastic changes very soon, I say we throw them all out and start over.

The need for a Balanced Budget Amendment is extremely obvious. And, even though there is supposed to be a vote for the Balanced Budget Amendment, as a condition for raising the debt ceiling, I believe this is a rouse. If they (Democrats and Republicans) were serious about a Balanced Budget Amendment, they would have made the debt ceiling increase dependent on the "passage" of a Balanced Budget Amendment - not just a vote. You see, its too easy for the Congress to block the passage of the Amendment; then it is back to politics as usual.

How do I know the vote for the Balanced Budget Amendment will be a token effort? Have you noticed the latest code words from the Administration: "Balanced Approach". This is innuendo intended to make us think that the government elitists are able to do a balanced budget without being bound by a Balanced Budget Amendment. I don't know about you, but I am done with believing that these government elitists are working on behalf of the average working class Americans.

Let me ask you: what happens if you get into too much debt? Does your credit score go down? You bet it does! So, using this logic, what do you think is the logical reaction to raising the debt ceiling? Well, raising the debt ceiling is a clear indicator that deficit spending is still not under control. And, I think it indicates that the government elitists have no intention of making the tough decisions in order to get the deficit spending under control. I also suspect that this is why our debt rating has been downgraded. Isn't that logical?

As I mentioned in my post on The Real Financial Crisis, we need a Balanced Budget Amendment. These government elitists cannot be trusted to balance the budget. So, we the people of the United States of America need to put something in place to protect our Country and our way of life.

Join me in making sure we get a Balanced Budget Amendment!

It's not hard at all. Here's what you need to do:

1. Go to your local office supply store and purchase blank postcards; you can get the kind that you can print in your printer, or, you can get the kind that you can write out by hand.
2. Write (or print) the following message on one side of the postcard: " We the People of the United States of America want a Balanced Budget Amendment. If you vote against the Balanced Budget Amendment, I will vote against you in the next election; and forever."
3. Make enough postcards for every voting member of your family, and, for your Congressional Representative, your two Senators and the President.
4. Address your four postcards for every voting member of your family to your: Congressional Representative, both of your Senators and the President.
5. Apply stamps and mail

I fully expect these government elitists to try to ignore this attempt to get their attention. They think they can wait us out. We have to be persistent. That is why I am asking you to do this once a month until the vote for the Balanced Budget Amendment is conducted. Please, your country needs you. Take a little time to make your voice heard. Let's flood the Congress and White House with your voice.

We the American People want a Balanced Budget Amendment, and we are not taking "NO" for an answer. It's time to take back our country! Make your voices heard!

Obfuscating the Truth

The President wants us average working class Americans to believe that the "sky is falling".

Isn't the government still collecting taxes? That money must be going somewhere. Perhaps we should be directing that money to the most important things. That's what us average working class Americans have to do every day, or we end up in bankruptcy.

If I understand default, that means we do not pay the principal or interest on our debt. I don't think we would default for something like ... not paying the President or the rest of those Government Elitists in Washington. In fact, if they (the elitists) truly cared about the American People, every last one of them would be volunteering to forgo their salaries until this "crisis" is over. At a minimum, these elitists should repeal their automatic pay increases and Cadillac Benefits programs. If I were the President or a member of Congress, that is what I would be doing. My point is: it looks to me like the "crisis" is manufactured, in order to push through a political agenda.

The President's position is that the Congress has already approved a budget. And, that this approval should include any borrowing necessary to meet those obligations. I agree that when a budget is approved for a particular year, the permission to borrow the money for that year is implicit. However, we are only getting half of the story.

The problem is the budget increases that are built into the future years. It would be one thing to base next year's budget on this year's budget - without any increase. But, for some reason, the budgets for future years are set to automatically increase year on year. What idiot did that?! Our deficits are already out of control. How can anyone in good conscience put in automatic spending increases under these circumstances? This is the other half of the story.

The Democrats are calling for the Republicans to compromise. Seriously? It looks to me like the Republicans are trying to control spending for a change. The majority of Americans want to cut spending, and, they want a Balanced Budget Amendment. It seems to me that this is precisely what the Republicans are trying to do. So, why should they compromise? To compromise is to ignore the will of the American People. The amazing thing is that the Democrats are ignoring the will of the American people again, and, they are getting away with it!

The Democrats know full well that there are lots of spending increases built into future budget years. And, they are blocking every attempt by the Republicans to rein in that spending. They have the media putting out fear-mongering stories to support their talking points. The Democrats want the American People to believe we will default, and, it will be the Republican's fault, because they will not compromise.

The Democrats say they want compromise. But, it looks to me like they are trying to manipulate public opinion by obfuscating the truth; in order to push through their agenda. It seems to me that the Republicans had better not compromise, because if they do, spending will continue to spiral out of control.

I am particularly disappointed in Senator Reid. How can you claim that a piece of legislation that is trying to get our deficit spending under control is "irresponsible"? Do you (Senator Reid) recognize the real finance crisis that this country is facing? Let me help you out: it's deficit spending. You want the Republicans to compromise; how about you? What are you doing to get the deficit spending under control? And I mean really under control? Are you in favor of a Balanced Budget Amendment? If not, then I would like to know why. If so, then why aren't you working with Republicans to get it passed? It would be so easy to say that we are putting a Balanced Budget Amendment in place, and we are going to cap and reduce spending over the next 5 to ten years until we are where we need to be. Perhaps instead of trying to make legislation so complex, you should try to keep it simple. Senator Reid, why don't you try following the will of the American People for a change?

The American People had better wake up. It looks to me like the Republicans are trying to rein in spending. But, I think they are still weak. We the People need to continue to encourage (remind) the Republicans to do the will of the American People. If we don't keep up the pressure, we are going to be back to politics as usual. The Real Financial Crisis is the deficit spending.

The Real Financial Crisis

Time for some good old fashioned logical thinking. This debt ceiling debate is all the rage. But, it's time to take the politics out of the discussion, and stick to logic.

We have a national debt. We pay interest on that national debt. The bigger the national debt, the more interest that has to be paid on the national debt. So, logically speaking, allowing the national debt to grow is a bad thing; because eventually the interest will exceed the potential amount of taxes that can pay it. I don't think any rationale person can argue with this logic.

The rational thing to do is to ensure that the interest payments on the national debt do not exceed a certain percentages of "revenues" (as the Democrats call them) or taxes (as the Republicans call them). This means we need to keep our debt rating, so the rate does not go up. It also means that we need to stop increasing the debt; as the more debt, the higher the interest. Again, I don't think any rational person can argue with this logic either.

So, what's the real problem???

Clearly - anything that increases the national debt is a problem. This means that any deficit spending of any kind is a problem.

Here is where the political parties diverge based on their philosophies. Democrats believe the spending is important to "balance society". That is, they want social programs for those who are less fortunate. Republicans, on the other hand, do not want social programs. They like to spend (just like the Democrats); they just like to spend on things like the military.

Over the last forty or fifty years, both parties have been doing significant deficit spending; for all sorts of reasons. As a tax payer, it looks to me like both parties have been having a fifty year orgy with our tax dollars. Well, my fellow Americans, it's time to bring that spending orgy to a close.

Democrats claim that tax cuts are to blame for deficit spending. And, I believe they are right. Cutting taxes without cutting spending is irresponsible and stupid.

Republicans claim that spending is too high. Well, yeah. Then why didn't you cut spending when you cut taxes? Republicans believe that cutting taxes helps the economy. Well, yeah. Putting more cash into any economy will help. The problem is that this cash was "borrowed cash". You can't grow an economy on borrowed cash, just like you can't spend yourself out of a recession; particularly if you are spending borrowed money.

The Democrats know that if the American people were asked to support some (or any) of their social programs via tax increases, the answer would be "absolutely not". So, they don't ask - they just spend.

You can see the problem. The issue of how much taxes, and how much to spend on social programs has completely polarized both parties; to the point where the government is broken.

Now, I am absolutely not saying we should have one party in power. That has been a complete disaster in the past. I am saying that we need to solve the real problem: deficit spending. And, that tax and social program discussions need to be taken out of the debate.

The real financial crisis IS the deficit spending. It must stop, or America is going to be bankrupt. Both parties (Democrats and Republicans) have proven themselves untrustworthy when it comes to managing a budget. Therefore, the only solution to this crisis IS a Balanced Budget Amendment.

It's time to do your part, my fellow Americans. It's time to contact your Congressional representative, your Senators and the President to let them know that deficit spending is not going to be tolerated any longer. And, that We the People expect a Balanced Budget Amendment. We also expect both parties to put aside tax and social program spending discussions until a Balanced Budget Amendment is put in place. Let's go America - Call and Write now!!

Still not listening!

The majority of Americans want both spending cuts and a Balanced Budget Amendment.

Notice, I said spending cuts. This does not mean that Americans want spending cuts and tax increases to deal with the deficit issue - they want spending cuts - they do not want tax increases.

I do not want any tax increases on anyone other than those in the very top tax bracket. And, since this administration likes to parse every word, I define a tax increase as anything that increases the amount of taxes that I am required to pay. So, those thoughts of getting rid of the mortgage interest tax deduction had better be reconsidered. If my taxes go up, I will be sure to vote against anyone who was party to raising those taxes. I don't have an issue with raising the top tax rate from 33% to 38%, if that is what the Democrats want in exchange for the spending cuts and Balanced Budget Amendment. But, I am absolutely not in favor of anything else that will result in increased taxes.

Mr. President, how can you ignore the American people once again? The polling data is very clear: Americans want spending cuts and a Balanced Budget Amendment. Yet, you go onto national television telling the American people that you are trying very hard to get the Republicans to agree to a solution. Huh? The congress has already passed what the American people want. Are you not listening! Did you not learn anything from the 2010 election?

If the American people ever needed better evidence that this President is putting his own agenda above the will of the American people, you now have it. Let's look at the events for the last couple of months.

In May, the US hit its debt ceiling. Did the administration make any attempt to cut spending? No - there is no evidence that spending has been reduced. When you are at your debt limit, should you continue to borrow? Well, I don't think so. And, it is obvious the American people think that spending cuts and a Balanced Budget Amendment are the key to solving the debt ceiling crisis.

What have the Democrats done? Well, the Senate put together the "gang of six", as a compromise approach. And, as expected, the Conservatives were all over this plan as not being a good plan. In the mean time, Congress passes Cut, Cap and Balance. And, what do the Democrats do - nothing? Reid calls this irresponsible legislation, and refused to allow a vote. Then, the President goes on television to tell the American people that he is upset because Boehner will not compromise. The President claims that he has offered a compromise that is much better than the "gang of six" plan, and, that he does not understand why the Republicans will not compromise. Seriously? Mr. Boehner, don't you dare blink!

You have to look closely at the President's tactics here. First, the senate puts together the "gang of six", and, Reid blocks the vote. Then, the President comes up with a plan that is "better" than the plan from the "gang of six". This is a classic bait and switch. And, I suspect this administration thought they would get away with it.

Congress has already passed the Cut, Cap and Balance. This is what the American people want. So, if the President and Mr. Reid were really listening to the American people, they would get behind this plan. But, once again the Democrats are ignoring the will of the American people. After all, the American people are stupid, and, its up to the Democrats to save them from themselves. Getting the picture here?

It's time for action. Everyone needs to contact their Senators, and let them know that you will not tolerate ignoring the will of the American people any longer. We have a real opportunity for spending cuts and a Balanced Budget Amendment. Please, take a few moments to call and write your Senator. We need to put pressure on these folks, to ensure they do what they are supposed to do: represent the will of the American people.

Call and write now! Make them listen!

Don't you dare blink!

This message is to the Republicans in the House and Senate: Don't you dare blink!

When I say "Don't you dare blink!", I am talking about the Balanced Budget Amendment. I am not talking about the change in the very top tax bracket. I don't agree with changing any of the other tax brackets. But, if the only thing the Democrats are asking for is an increase in the very top tax bracket from 33% to 38%, then this is something that I think should be done. The key must be spending cuts and a Balanced Budget Amendment. If the Democrats want both a debt ceiling increase and an increase in the very top tax bracket, then I think that is a fair compromise.

By the way, this amendment had better be so obvious, that anyone can read it and understand it. No more of this cryptic crap that is intended to facilitate more pork-barrel spending. No more politics as usual. This is your chance to re-establish the fiscal conservative reputation that was destroyed by both of the Bush administrations. This is your chance to do the right thing for the American people.

I believe the only way to get spending under control is to have a Balanced Budget Amendment. And, I don't think the debt ceiling should be raised unless we get a Balanced Budget Amendment.

I have been following the media stories that are all intended to get the public worried about an economic collapse because of the Republican strategy to force a Balanced Budget Amendment in exchange for raising the debt ceiling. The media (and I suspect this administration) would have you believe that the crisis is so bad that only an increase in the debt ceiling will solve the problem. Well, I have a very simple question for both the media and this administration: why did this administration wait so long to act?

This administration has known that the Republicans were going to take a position to reduce spending; this was the obvious mandate from the American people in the 2010 elections. Of course, I also recognize that this administration believes they are operating on some kind of higher moral ground, and, thus, does not have to listen to the will of the American people; but, the signs were all there. The American people are very concerned about the excessive government spending and the size of the debt. And, no amount of media spin is going to change this.

The Democrats want us to believe that the people in the top tax bracket are some how benefiting more than the rest of us. Well, what about the people in Congress who get automatic pay increases every year? To me, I would rather have our government elitists reminded who they work for, and have all of their "perks" stripped away. I am sure that would save the government more than we can get by raising taxes on those in the top tax bracket.

I know I sound like a broken record on this point, but, the American people are not stupid. They are balancing their checkbooks every day, and they are seeing the impact on the price of goods that they have to consume. They understand that endless debt is not the answer. And, they are willing to make the hard choices in order to avoid bankruptcy. This is fundamentally different from the approach being used by this administration. Despite the evidence that you cannot spend your way out of a recession (because it just causes hyper inflation), this administration has continued to spend like there is no limit to the money that can come off the printing presses. This is the kind of arrogance that the American people wanted to be stopped when they gave control of Congress to the Republicans.

So, here we are: both parties nose to nose on the issue of the debt ceiling. Yes, the Republicans can give in. But, they should not. It's time for this administration to do the right thing. In fact, it was time for this administration to do the right thing months ago.

When the average American realizes that they are not going to have the money to do what they want to do, they adjust their spending to match their income. Sure, some can go and get a better job to increase their income, and, thus, keep spending. But, at some point, the credit card limits are reached, and, they have to make some hard choices.

This administration knew that they were going to hit their borrowing limit months ago. Did they stop or even curtail their spending? Not from what I can tell. It looks to me like they have just been jamming through as much spending as they could, on every entitlement program they could.

So, not only does this administration not stop spending, they try to spin this as the rich versus the poor. Despicable. Don't get me wrong: I think the very top tax rate should be increased from 33% to 38%. The problem is that this will not balance the budget. It's just not enough money. But, it looks good in the media, and, its an effective diversionary tactic; which is why this administration is taking this approach.

The Democrats have taken to running commercials showing Republicans pushing Grandma off a cliff because they want to curtail spending. Yet, when President Obama comes out saying that the Medicare age should be raised from 62 to 65, the media praises the administration for its innovative thinking. Who is really pushing Grandma off the cliff? All of these half-truths are just causing more problems. And, both the Democrats and Republicans are guilty of trying to manipulate public opinion with half-truths. Shame on you both!

So, back to my question: why did the Obama Administration wait this long to act? Why didn't the Obama Administration do what we as average Americans would have to do once we reach our credit card limit? Why did this administration continue to spend? Imagine what would happen if all the American people just continued to spend? Oh wait, we don't have to imagine; we can just look at what caused all the foreclosures in the last three years.

It seems very logical to me that reductions in spending by consumers will adversely effect the economy. That said, what happens when a population spends money it really does not have? Well, they go into debt, and, their financial burden is increased by something called interest.

Interest is income for the banking industry, so they are not about to do anything that will interrupt their income stream. In fact, its obvious to me that greed in this industry is what caused consumers to be loaned more money than they could ever be expected to pay back. Yet, the government let the banks loan this money anyway; because they wanted the money to go into the economy. This artificial growth is nothing more than a temporary "high". And, when the money is gone and the bills are due, that is where the real pain starts. It's an addiction - plain and simple.

The sad thing is that the government wants us to be addicted to spending; because it makes us dependent on them. But, in fact, I believe it goes deeper than that. If a person being loaned money can be influenced by the person that is lending that money, then the person loaning the money has considerable power over the person borrowing the money. I think the same is true for governments, as well as the people elected into government positions. Is this what democracy has come down to?

I have a theory.

Once you subscribe to the "spend yourself out of a recession" theory, you would also have to subscribe to the "cutting spending will cause a recession" theory. It's one thing to spend money you have, but another all together to spend money you do not have.

I suspect that there would be some impact on the economy, if the government were to cut spending too drastically. This would be an impetus for this administration to resist spending cuts. If the spending cuts lead to another recession, this administration would most certainly get blamed, and they would lose the election. For me, I find it despicable that these government elitists are playing games with the lives of the average American.

I suspect that this administration was counting on their ability to manipulate public opinion through the media. The media has certainly been doing their part. I just read an article in USA Today indicating that raising the debt ceiling was not a big deal. I will take this article apart piece-by-piece in my next post. For now, I want to focus on the administration's attempt to manipulate public opinion, rather than dealing with the real problem. The real problem is spending.

Mr. President, you made a mistake. You cannot spend your way out of a recession. As a student of history, and, as smart as you are supposed to be, you should have known that. Now, its time to do the right thing. Yes, you might lose the election. But, are you willing to sacrifice the country so you can be President for another term? Wake up man! The spending is killing this country. Your policies are not working. You want to be a great leader, then try listening to a different set of people. I am an idealist too. But, I am also a pragmatist. You have to know that the spending is going to come back to haunt us. You ran on a platform of change, well, this is your chance. Start listening to the American people. Start listening to those who want to put our spending under control. Start supporting and helping the working class. Stop the pork-barrel spending. Stop the entitlements. Support a Balanced Budget Amendment. Now that would be change I can believe in.

Mr. President, you should have addressed the spending head-on, instead of trying to talk your way out of this. It looks to me like you wanted to pick a fight with the Republicans on this issue. I suspect you even thought you could use this issue to catapult yourself into another term in office. Well, I can tell you that your message is resonating with the left; as I am hearing it from all my liberal friends. But, I can also tell you that your message is not resonating with those in the middle; and, that is who you need to convince to get re-elected. You claim to be a centrist - now it's time to prove it. It's time to get behind the spending cuts. It's time to endorse a Balanced Budget Amendment.

I reiterate my challenge to the Republicans in the House and the Senate: Don't you dare blink!

In exchange for the Balanced Budget Amendment and immediate spending cuts, the Republicans should agree to raise the debt ceiling and to increase the very top tax rate from 33% to 38%.