The American Dream is Dead

[rtconstant]

My first obligation is to try to do what I can to save myself and my family. The government now has more in common with Communist countries than with the ideals of the founding fathers.

My first business decision, with the reality of Obama Care, will be to close my perfectly good business and let all of my employees go. (I had 45 employees at one time.) I will be moving to a new city and for the first time in my life** I will not hire any employees! ** I refuse to pay the federal government in money and hassle for the privilege of hiring employees! This is a sound business decision, in my opinion. I will enjoy my work more and my firm will become more profitable since I will be 100% in production instead of being only a manager.

So let me get this strait instead of accepting the assistance from the government as a business with under 50 employees, you’re just going to can everyone so you don’t have to give them health coverage? I have to be honest, I’m finding it hard to be sympathetic…

 

[Ridgerunner]

So let me get this strait instead of accepting the assistance from the government as a business with under 50 employees, you’re just going to can everyone so you don’t have to give them health coverage? I have to be honest, I’m finding it hard to be sympathetic…

It seems to me his problem is not with giving people health coverage. He has done that. His problem seems to be with being dictated to by the government regarding a matter in which he does have but one alternative choice.

 

[Insight]

So let me get this strait instead of accepting the assistance from the government as a business with under 50 employees, you’re just going to can everyone so you don’t have to give them health coverage? I have to be honest, I’m finding it hard to be sympathetic…

Maybe he just doesn’t want to be dragged on the carpet with all his personal emails by Senator Harry Reid to be made public, like AT&T, Caterpillar & Deere for complaining about how steep of a financial hit he would be taking. Maybe they will be persecuting small business next. Maybe he doesn’t want to drink the Kool-Aid.

God Bless

 

[CPA2]

It seems to me his problem is not with giving people health coverage. He has done that. His problem seems to be with being dictated to by the government regarding a matter in which he does have but one alternative choice.

You are correct. My employees do have health insurance and I pay them well. However, in some years I work for my employees, instead of my employees working for me.

The regulatory burden has been growing at a steady rate. I resent beign told what I can ask in an interview, not being able to give a lie detector test, not being able to test for drugs, etc. ObamaCare is the last straw. People can go to work for the government. The IRS will be hiring 17,000 new employees because of the new regulations.

I will make more money with less hassle from the government wlhen I become a one man band! I started my business with no employees and I am going to end my career with no employees. My employees have four months notice, and they will have government unemployment “insurance” that I have been paying to the government.

 

[hitched]

The American Dream belongs to the dreamers. Personal property is a burden, an anvil around the neck, heavier every day for those of us growing older. Does anyone know how much a white picket fence costs, and then weighs, when surrounding a 2,500 square foot behemoth of a house?

Times have changed. There is no entitlement, only the illusion of entitlement.

hitched

 

[NEWCATHOLICJEFF]

Make no mistake: We are facing a debt crisis and future currency meltdown of biblical proportions. This is the crisis that will impact every major asset class — driving some sky-high in value and crushing other

I agree with you that finance wizards knew this, did this, and will be held responsible for this when the fall comes. If you think the money lenders and accountants are disliked now, wait until our citizenry has to go through what the old USSR went through during the devaluation. I can only imagine what the payback will be like for anybody even closely associated with money. I think they will be finally held ACCOUNTable.

Could be wrong I am one of those non-CPA’s that probably don’t know much about money…

 

[CPA2]

I agree with you that finance wizards knew this, did this, and will be held responsible for this when the fall comes. If you think the money lenders and accountants are disliked now, wait until our citizenry has to go through what the old USSR went through during the devaluation. I can only imagine what the payback will be like for anybody even closely associated with money. I think they will be finally held ACCOUNTable.

Could be wrong I am one of those non-CPA’s that probably don’t know much about money…

I have found that people of faith understand more than the “experts.” Do you remember my favorite parable, the story of the blind man?

The following is from Larry Edelson:

The U.S. government is
the most indebted government
on the planet. It’s in worse
shape than Greece, Portugal,
Spain, or any other fiscally
troubled country.
The U.S. is now in debt to the
tune of …
$12.5 TRILLION of
national debt, or more than
$40,000 per citizen.

A whopping $107.8
TRILLION of unfunded
liabilities in Social Security,
Medicare, and Prescription
Drug benefits; that’s more
than $349,000 for every man
woman and child in the U.S.

$1.6 TRILLION U.S.
Federal deficit.

$3.5 TRILLION owed to
foreign investors.

Another $9 TRILLION in
cumulative deficits projected
over the next 10 years.

At least another
TRILLION needed for health
care reform, no matter what
bill finally makes it through
Congress.
Total debts in the country:
$135 TRILLION.

Total ASSETS in this
country, including all personal
assets, corporate assets, small
business assets, real estate, and
non-profit organizations:
$72.3 trillion.
THE DEFICIT, EVEN IF WE
LIQUIDATED EVERY PENNY
OF ASSETS IN THIS
COUNTRY:

We’d still be IN THE
HOLE BY $62.7 TRILLION,
or $202,992.38 for every man,
woman and child in this
country.

In other words, if we sold
every penny of assets in this
country, every piece of land,
equipment, property, every
park, tree, road, highway,
national landmark — you
name it — every man, woman
and child would still be in debt
to the tune of just over
$200,000 per person!

Does that sound like a
healthy situation? Hardly!
Does it sound like something
we can escape from this time, or
even kick the can down the
road?

I don’t think so. Not this
time.

That’s why, just recently,
both Moody’s and S&P warned
that the U.S. amongst other
countries, is in jeopardy of
losing its AAA credit rating.
And it’s also why, all over the
world …

Investors everywhere
are waking up to emperors
with no clothes. It started in
Greece, Portugal, Spain and
Italy. In smaller countries that
more quickly reach the end of
the road when it comes to
borrowing money to fund their
profligate ways. It is now
commonly understood that the
emperors of these countries are
not only broke, but that they
have no clothes.

Hence, the riots in the
streets, the shutdowns of
government services, the giant
steps back in time, almost to
barter economies.

 

[hitched]

I have found that people of faith understand more than the “experts.” Do you remember my favorite parable, the story of the blind man?

The following is from Larry Edelson:

The U.S. government is
the most indebted government
on the planet. It’s in worse
shape than Greece, Portugal,
Spain, or any other fiscally
troubled country.
The U.S. is now in debt to the
tune of …
$12.5 TRILLION of
national debt, or more than
$40,000 per citizen.

A whopping $107.8
TRILLION of unfunded
liabilities in Social Security,
Medicare, and Prescription
Drug benefits; that’s more
than $349,000 for every man
woman and child in the U.S.

$1.6 TRILLION U.S.
Federal deficit.

$3.5 TRILLION owed to
foreign investors.

Another $9 TRILLION in
cumulative deficits projected
over the next 10 years.

At least another
TRILLION needed for health
care reform, no matter what
bill finally makes it through
Congress.
Total debts in the country:
$135 TRILLION.

Total ASSETS in this
country, including all personal
assets, corporate assets, small
business assets, real estate, and
non-profit organizations:
$72.3 trillion.
THE DEFICIT, EVEN IF WE
LIQUIDATED EVERY PENNY
OF ASSETS IN THIS
COUNTRY:

We’d still be IN THE
HOLE BY $62.7 TRILLION,
or $202,992.38 for every man,
woman and child in this
country.

In other words, if we sold
every penny of assets in this
country, every piece of land,
equipment, property, every
park, tree, road, highway,
national landmark — you
name it — every man, woman
and child would still be in debt
to the tune of just over
$200,000 per person!

Does that sound like a
healthy situation? Hardly!
Does it sound like something
we can escape from this time, or
even kick the can down the
road?

I don’t think so. Not this
time.

That’s why, just recently,
both Moody’s and S&P warned
that the U.S. amongst other
countries, is in jeopardy of
losing its AAA credit rating.
And it’s also why, all over the
world …

Investors everywhere
are waking up to emperors
with no clothes. It started in
Greece, Portugal, Spain and
Italy. In smaller countries that
more quickly reach the end of
the road when it comes to
borrowing money to fund their
profligate ways. It is now
commonly understood that the
emperors of these countries are
not only broke, but that they
have no clothes.

Hence, the riots in the
streets, the shutdowns of
government services, the giant
steps back in time, almost to
barter economies.

I’m confused: I thought we weren’t supposed to address politics on this forum. What gives?

hitched

 

[CPA2]

I’m confused: I thought we weren’t supposed to address politics on this forum. What gives?

hitched

Let us talk about theft, government theft. Government debt, government counterfeiting of money and government induced inflation is disguised theft.

Government Theft
By David Servant

Perhaps the grandest example of government theft is the government’s borrowing trillions of dollars, a debt that will either be repaid with dollars that are worth less because so many more have been “printed”—which amounts to stealing from the government’s creditors—or a debt that will be passed on to future generations, which amounts to stealing from our children and grandchildren. That enormous debt is the ultimate “spreading of the wealth,” as the future earnings of our unborn grandchildren are spread to us. It illustrates the worst form of greed imaginable—to knowingly borrow money which benefits one generation with the full knowledge that the debts incurred will be paid by future generations. Currently, every U.S. taxpayer’s share of the national debt is $113,000. What are the chances of you paying off, through tax legislation, your share of that debt before you die? Incidentally, as long as we continue to cast our votes to keep thieves in office, we’re complicit in stealing from our grandchildren.

“The boom produces impoverishment. But still more disastrous are its moral ravages. It makes people despondent and dispirited. The more optimistic they were under the illusory prosperity of the boom, the greater is their despair and their feeling of frustration. The individual is always ready to ascribe his good luck to his own efficiency and to take it as a well-deserved reward for his talent, application, and probity. But reverses of fortune he always charges to other people, and most of all to the absurdity of social and political institutions (Von Misses)."

 

[NEWCATHOLICJEFF]

I have found that people of faith understand more than the “experts.” Do you remember my favorite parable, the story of the blind man?

A whopping $107.8
TRILLION of unfunded
liabilities in Social Security,
Medicare, and Prescription
Drug benefits; that’s more
than $349,000 for every man
woman and child in the U.S.

I would have to be Blind to miss the fact that the term unfunded liability is not exactly what it would appear… It is really a promise of a future debt. I think everyone will agree that Government positions constantly change. This number you use either does or does not include future assets (Taxes), that being said both are based on some projected growth in GDP or spending, likely both. Even if everyone grants you that we are projected to spend more then we earn, the key word is PROJECTED. I predict a couple of likely outcomes.

A. Increase in Taxes (Direct) to increase projected assets.
B. Increase in Taxes (Indirect) to increase projected assets.
C. Decrease in PROJECTED entitlements to decrease liabilities.
D. Increase Printing of Fiat currency (Indirect Tax) will decrease current cost and increase future liabilities.
E. Declare bankruptcy lose AAA rating, internalize the economy.

In order to do the last you would have to be willing to increase energy production as well as increase production to domestic sources, in all manufacturing sectors back to domestic sources since only those other countries willing to start over (Planned World Wide Collapse and Set to Zero Event) would want to trade with us. Could you even imagine the left wanting to Drill in protected areas?

In any event all roads eventually lead to a “Set to Zero” event. The question is will it be planed with partner Nations or will it be use going alone?(Waked out Conspiracy Theory)

Just a few meandering thoughts from a Non-Accounting type…

 

[CPA2]

I would have to be Blind to miss the fact that the term unfunded liability is not exactly what it would appear… It is really a promise of a future debt. I think everyone will agree that Government positions constantly change. This number you use either does or does not include future assets (Taxes), that being said both are based on some projected growth in GDP or spending, likely both. Even if everyone grants you that we are projected to spend more then we earn, the key word is PROJECTED. I predict a couple of likely outcomes.

A. Increase in Taxes (Direct) to increase projected assets.
B. Increase in Taxes (Indirect) to increase projected assets.
C. Decrease in PROJECTED entitlements to decrease liabilities.
D. Increase Printing of Fiat currency (Indirect Tax) will decrease current cost and increase future liabilities.
E. Declare bankruptcy lose AAA rating, internalize the economy.

In order to do the last you would have to be willing to increase energy production as well as increase production to domestic sources, in all manufacturing sectors back to domestic sources since only those other countries willing to start over (Planned World Wide Collapse and Set to Zero Event) would want to trade with us. Could you even imagine the left wanting to Drill in protected areas?

In any event all roads eventually lead to a “Set to Zero” event. The question is will it be planed with partner Nations or will it be use going alone?(Waked out Conspiracy Theory)

Just a few meandering thoughts from a Non-Accounting type…

Those are some good thoughts! I bet on A and D, until that game is over. The next game,in my opinion, would be for the G20 nations to devalue all currencies and to eliminate the dollar as the reserve currency of the world.

 

[NEWCATHOLICJEFF]

Those are some good thoughts! I bet on A and D, until that game is over. The next game,in my opinion, would be for the G20 nations to devalue all currencies and to eliminate the dollar as the reserve currency of the world.

I am really not one for conspiracy theories, but I would look at the biggest debtors and if they colluded they could create their own markets and currency… The G6… they would all benefit at the expense of the rest of the world…??

 

[rtconstant]

I have found that people of faith understand more than the “experts.” Do you remember my favorite parable, the story of the blind man?

The following is from Larry Edelson:

The U.S. government is
the most indebted government
on the planet. It’s in worse
shape than Greece, Portugal,
Spain, or any other fiscally
troubled country.
The U.S. is now in debt to the
tune of …
$12.5 TRILLION of
national debt, or more than
$40,000 per citizen.

A whopping $107.8
TRILLION of unfunded
liabilities in Social Security,
Medicare, and Prescription
Drug benefits; that’s more
than $349,000 for every man
woman and child in the U.S.

$1.6 TRILLION U.S.
Federal deficit.

$3.5 TRILLION owed to
foreign investors.

Another $9 TRILLION in
cumulative deficits projected
over the next 10 years.

At least another
TRILLION needed for health
care reform, no matter what
bill finally makes it through
Congress.
Total debts in the country:
$135 TRILLION.

Total ASSETS in this
country, including all personal
assets, corporate assets, small
business assets, real estate, and
non-profit organizations:
$72.3 trillion.
THE DEFICIT, EVEN IF WE
LIQUIDATED EVERY PENNY
OF ASSETS IN THIS
COUNTRY:

We’d still be IN THE
HOLE BY $62.7 TRILLION,
or $202,992.38 for every man,
woman and child in this
country.

In other words, if we sold
every penny of assets in this
country, every piece of land,
equipment, property, every
park, tree, road, highway,
national landmark — you
name it — every man, woman
and child would still be in debt
to the tune of just over
$200,000 per person!

All of which was brought to us by neo-conservative economic policies. When you start with a flawed economic principle you have to take out loans to keep up appearances. De-regulation, and withdrawal of the taxes on ultra-high income, created the mess we’re in.

 

[NEWCATHOLICJEFF]

All of which was brought to us by neo-conservative economic policies. When you start with a flawed economic principle you have to take out loans to keep up appearances. De-regulation, and withdrawal of the taxes on ultra-high income, created the mess we’re in.

“No… 1971, when the Bretton Woods agreements collapsed and we decided to use magic to create value”

 

[CPA2]

“No… 1971, when the Bretton Woods agreements collapsed and we decided to use magic to create value”

Absolutely correct!

 

[CPA2]

All of which was brought to us by neo-conservative economic policies. When you start with a flawed economic principle you have to take out loans to keep up appearances. De-regulation, and withdrawal of the taxes on ultra-high income, created the mess we’re in.

No!

Fiat Money

Welcome to fiat money. A Federal Reserve Note is an IOU nothing. If you were to turn in a Federal Reserve Note, you would get another Federal Reserve Note. What we have is a cookie jar with no gold in the cookie jar!
**
100% Commodity Money**

The process of creating money started innocently enough. Jewelers deal with gold every day. Jewelers would store people’s gold. Jewelers would issue receipts or deposit slips for that gold. People would trade those receipts as if they were gold. Every receipt was backed by 100% gold.

Then lending and banking begins. Depositors wanted interest on their deposits of gold. Others wanted to borrow gold. The jeweler could print some private money and have the borrower sign an IOU.

Fractional Commodity Reserve Money

These new private banks discover something. Not everyone wants to withdraw gold at the same time. The new banker can issue more paper money than gold. This is fractional backing with gold as reserves and the rest with IOU’s.

Then begins the process of changing what a reserve is, and what functions as a reserve. Some jewelers and/or banks get greedy and lend out too much paper money. There is a run on banks, banks fail and people loose their gold. The government steps in and prohibits private bank money. Only the government prints money. The government replaces gold reserves with government money. However, government currency is still redeemable in gold. Reserves still function as “backing” but now government currency is also a reserve along with gold. Next, over time, there is a practice of suspending gold payments in the process of changing what is a reserve. In effect, redeemable currency is replaced with non-redeemable government money. Reserves are then no longer “backing,” and government currency serves as backing. Reserves (government money) no longer have intrinsic value. Government reserves are not intended to give confidence in the sense that gold reserves did.

Fractional Fiat Reserve

Government money and deposits at the central bank act as replacements for gold. The Federal Reserve Act of 1913 creates the structure (cookie jar) of the Fed. By 1931 (off the gold standard) The Federal Reserve Act allows the system to convert completely to fiat reserves. In 1913 the Fed requires the banks to place part of their reserves (fiat money) at the Fed. Then the Fed deposits become reserves. The last step is that the Fed can create reserves out of nothing.

There is nothing in the cookie jar. A Federal Reserve Note is an IOU nothing. Demand determines the price of our money. If demand for the dollar were to evaporate, so would our money. FINI.

 

[CPA2]

Perceptions Have Changed by Claus Vogt

Both currencies, the euro and the dollar, are backed by nothing but politicians’ promises to finally return to some kind of serious fiscal and monetary policy. Both currencies are being inflated in lockstep. And both, the U.S. and Euroland, have mountains of explicit and even larger mountains of implicit sovereign debt.

The former is debt officially issued in the form of treasury notes and bonds. The latter is debt in the form of promises of the social welfare state.

The sovereign debt problem is not contained to some minor countries at Europe’s periphery. Quite to the contrary, all major western countries and Japan have huge debt problems! This trap began many years ago. And now we are getting closer to pay day.

When thinking through this frightening debt situation, you can even find a structural argument in favor of the euro … the Europeans have at least formulated some rules concerning budget deficits and sovereign debts. That tells me they are aware that some monetary and fiscal prudence is necessary to guarantee sound money.

Unfortunately, they don’t obey these rules.

In the U.S., politicians and economists don’t even contemplate having any rules. They just decide as they go … not very assuring, is it?

 

[rtconstant]

“No… 1971, when the Bretton Woods agreements collapsed and we decided to use magic to create value”

Its a lot more complicated than that. Bretton Woods was a temporary solution at best. It was pinned on the US maintaining its industrial supremacy. At this point I’m not sure a Bretton Woods style regime is even desirable. Usually when people talk about that they just assume the US will be the lynchpin like it was before. But that doesn’t seem really doable. Our Industrial base is weaker than the EU and China, but on the other hand, China’s industrial supremacy cannot stand on its own.

In terms of value, basis what would you suggest. The new gold is Oil, so then do we want to place the strength of the world economy within the hands of third world nations ran be extremists, or Russia who is unstable at best? So while I wouldn’t necessarily disagree with a more value based economic regime, the old Bretton Woods regime was going to collapse regardless and a new one bears VERY careful consideration.

Nevertheless, moving our industrial base to foreign soil, lax anti-trust laws, lifting workers rights, are all holy grails of neo-conservative thinking. Since these demented offspring are obviously bad economically (in the long haul) loans must be continuously be drawn to keep the economy moving forward, and to create the illusion of prosperity.

But don’t get me wrong, both political parties were involved, almost the entire corporate world was involved, and even average US citizens are involved if indirectly in getting us hear. I’m not so much concerned about “blame” but really we don’t need to hold on to economic ideas that just don’t work. Something else we’re going to have to accept is that American’s are going to have to tighten their belts to get the country back on track.

 

[CPA2]

Its a lot more complicated than that. Bretton Woods was a temporary solution at best.
In terms of value, basis what would you suggest. The new gold is Oil,ck.

The G-20 nations could devalue currencies. Central banks could raise the price of gold substantially. That would reduce the burden of debts by inflating prices in terms of fiat money. Gold is the only real money, anyway.

 

[NEWCATHOLICJEFF]

In terms of value, basis what would you suggest. The new gold is Oil, so then do we want to place the strength of the world economy within the hands of third world nations ran be extremists, or Russia who is unstable at best? So while I wouldn’t necessarily disagree with a more value based economic regime, the old Bretton Woods regime was going to collapse regardless and a new one bears VERY careful consideration.

I disagree that it had to collapse. I believe the only reason it was doomed was only because in order for a Gold standard/silver standard to work the common man needs to be on it. I also disagree that Oil would be the New Gold… It is too hard to move and it has a shelf life as well as takes too much capital to store it.

Even if we agree on that point the world is already moving to other technologies and soon Oil as fuel will be much less needed then today and we will be back to something of value that is hard to get. If gold were to become the worlds currency it would hold value until traders accepted Fiat currency, which I doubt they will do unless forced to do so for generations AFTER the next collapse. This next one is going to be BIG.