"He shall from time to time give to the Congress information of the state
of the union, and recommend to their consideration such measures as he
shall judge necessary ..."-Article II, Sect. 3 of the United States Constitution.
Essentially what this means, and with help from Kenny Rogers, the President drops in to tell us what condition our condition is in.
In reality it's become an evening of pomp and circumstance with little in the way of substance. Afterwards a representative of the "Loyal Opposition" gives their take on things followed by hours of punditry by Washington Insiders who explain to us folks on Main Street USA what was really said. That crowd long ago forgot we can think for ourselves.
An evening of Hoo-Hah. Ho-Hum.
So with help from some pretty smart folks including a recent presentation by Greg Anton, a nationally recognized CPA, here are the parts the President left out, at least about the deficit. Mr. Anton has even been invited to the White House for his input on our growing financial mess. He said they were polite but didn't pay much attention.
A bit of a preamble is in order. I'll be using the word "Trillion" a lot here as in dollars. So just how much is a Trillion?
When President Obama took office, the National Deficit, at least according to the way the government tracks such things was 11.5 trillion dollars. Now it's about 16.5 trillion dollars. The Republicans make a big deal about this. But a fellow by the name of George Bush helped get us to the 11.5 trillion figure and despite all the blather about Bill Clinton and his "Budget Surplus" he chipped in too. This scam has been going on for decades.
So here we sit with a National Deficit of $16,700,000,000,000. Or so the government tell us. Actually they're fibbing a bit. OK, they're fibbing a lot.
Folks like Greg Anton who understand things like balance and loss sheets put the actual deficit at over SIXTY-SEVEN TRILLION DOLLARS! (All caps for emphasis and assuming you've grasped the earlier bullet points by this time)
You see, the government doesn't do its books like we have to here on Main Street. They get to leave out all sorts of short and long term liabilities and stuff. Like, Social Security and Medicare. Well, they are listed, but as footnotes and in no way reflected as liabilities. So a lot of money is "off the books." If we filed our taxes that way, we'd end up in jail.
Here's where we're really at: (Bullet point alert!!)
I'll be blunt. Our government, both the Executive and Legislative Branches have been misleading us. An irony because they were elected to ...lead us instead. Democrats and Republicans alike.
If you'd really like to dig into all this, check out a non-partisan group of caring Americans at www.FixTheDebt.org.
I urge you to spend some time and do your own research. You might also want to read the findings and solutions of the National Commission on Fiscal Responsibility and Debt Reform. It's about 65 pages long and as they say, a "Real page-turner." Senator Alan K. Simpson (R-Wyoming) and Erskine Bowles (Former Clinton Chief-of-Staff) chaired the bi-partisan group at the request of President Obama. They did their job, presented the report to the President who then stuck it in a drawer after the photo-op.
The report does offer solutions. But there is little if any sugar to help the medicine go down. It's going to take more than Warren Buffett paying more taxes. With around 50% of the population not paying any Federal Income Tax, most will have to start paying something.
Social Security is secure, although retirement ages will have to be raised in the coming years. There will also have to be means testing. Sorry Warren, no Social Security for you or your secretary. As for Medicare and Medicaid, we have simply over-promised far too long. There just is no way to meet coming demands. Defense will have to be cut. Before you get all lathered up over that, we spend more on defense than any country in the world. According to folks like Al Simpson and Erskine Bowles we spend more on defense than the next 15 nations below us combined. And most of them are allies! Also look for stuff like the tax deduction on mortgage interest to be phased out. As a bit of a sidebar, Canada has never had that deduction or anything like Fannie Mae, Freddie Mac or Snoop Snoop Poopy Dog. Yet they have a higher percentage of home ownership than we do.
To be absolutely clear, we have no choice in the matter. Well, unless we want to end up like Greece with 25% unemployment and rioting in the streets. Sadly, it might take something that drastic to really get our attention.
So, all stuff left out last night.
We can get out of this mess if we act now. As in immediately if not sooner. We have a role in all this. If like me, you belong to an organization like the South Metro Denver Chamber of Commerce, you get to meet our elected representatives to Washington. Ask them, politely, to stop lying and start fixing and if they don't you'll work hard to make sure they lose their jobs.
You can also write, phone, e-mail these folks or best of all, show up to their Town Hall Meetings. Be polite, but firm. Tell them to stop lying and to start doing. Don't, I repeat don't count on many of the media to ask the questions. They're too, uh, obtuse to ask. One journalist I do recommend you read is Al Lewis of Dow Jones Newswires. He's done the math.
We're under water. Let's not let this nation drown. Like the Titanic, we're running out of lifeboats.
Brian Olson
Owner/Consultant
Conversation Starters Public Relations
"We start the conversation about you"
Essentially what this means, and with help from Kenny Rogers, the President drops in to tell us what condition our condition is in.
In reality it's become an evening of pomp and circumstance with little in the way of substance. Afterwards a representative of the "Loyal Opposition" gives their take on things followed by hours of punditry by Washington Insiders who explain to us folks on Main Street USA what was really said. That crowd long ago forgot we can think for ourselves.
An evening of Hoo-Hah. Ho-Hum.
So with help from some pretty smart folks including a recent presentation by Greg Anton, a nationally recognized CPA, here are the parts the President left out, at least about the deficit. Mr. Anton has even been invited to the White House for his input on our growing financial mess. He said they were polite but didn't pay much attention.
A bit of a preamble is in order. I'll be using the word "Trillion" a lot here as in dollars. So just how much is a Trillion?
- One Trillion Dollars is $1,000,000,000,000.
- A trillion dollar bills stacked on top of each other would reach 68,000 miles. That's a third of a way to the moon. Ask Gene Cernan, he's been there.
- A trillion seconds is 32,000 (thirty-two thousand) years. That's a long time.
When President Obama took office, the National Deficit, at least according to the way the government tracks such things was 11.5 trillion dollars. Now it's about 16.5 trillion dollars. The Republicans make a big deal about this. But a fellow by the name of George Bush helped get us to the 11.5 trillion figure and despite all the blather about Bill Clinton and his "Budget Surplus" he chipped in too. This scam has been going on for decades.
So here we sit with a National Deficit of $16,700,000,000,000. Or so the government tell us. Actually they're fibbing a bit. OK, they're fibbing a lot.
Folks like Greg Anton who understand things like balance and loss sheets put the actual deficit at over SIXTY-SEVEN TRILLION DOLLARS! (All caps for emphasis and assuming you've grasped the earlier bullet points by this time)
You see, the government doesn't do its books like we have to here on Main Street. They get to leave out all sorts of short and long term liabilities and stuff. Like, Social Security and Medicare. Well, they are listed, but as footnotes and in no way reflected as liabilities. So a lot of money is "off the books." If we filed our taxes that way, we'd end up in jail.
Here's where we're really at: (Bullet point alert!!)
- The net worth of all the households here in the United States, houses, cars, lawnmowers and assorted knick knacks etc is around $65 Trillion.
- Our real debt, including real obligations as a nation is the aforementioned $67.7 Trillion.
I'll be blunt. Our government, both the Executive and Legislative Branches have been misleading us. An irony because they were elected to ...lead us instead. Democrats and Republicans alike.
If you'd really like to dig into all this, check out a non-partisan group of caring Americans at www.FixTheDebt.org.
I urge you to spend some time and do your own research. You might also want to read the findings and solutions of the National Commission on Fiscal Responsibility and Debt Reform. It's about 65 pages long and as they say, a "Real page-turner." Senator Alan K. Simpson (R-Wyoming) and Erskine Bowles (Former Clinton Chief-of-Staff) chaired the bi-partisan group at the request of President Obama. They did their job, presented the report to the President who then stuck it in a drawer after the photo-op.
The report does offer solutions. But there is little if any sugar to help the medicine go down. It's going to take more than Warren Buffett paying more taxes. With around 50% of the population not paying any Federal Income Tax, most will have to start paying something.
Social Security is secure, although retirement ages will have to be raised in the coming years. There will also have to be means testing. Sorry Warren, no Social Security for you or your secretary. As for Medicare and Medicaid, we have simply over-promised far too long. There just is no way to meet coming demands. Defense will have to be cut. Before you get all lathered up over that, we spend more on defense than any country in the world. According to folks like Al Simpson and Erskine Bowles we spend more on defense than the next 15 nations below us combined. And most of them are allies! Also look for stuff like the tax deduction on mortgage interest to be phased out. As a bit of a sidebar, Canada has never had that deduction or anything like Fannie Mae, Freddie Mac or Snoop Snoop Poopy Dog. Yet they have a higher percentage of home ownership than we do.
To be absolutely clear, we have no choice in the matter. Well, unless we want to end up like Greece with 25% unemployment and rioting in the streets. Sadly, it might take something that drastic to really get our attention.
So, all stuff left out last night.
We can get out of this mess if we act now. As in immediately if not sooner. We have a role in all this. If like me, you belong to an organization like the South Metro Denver Chamber of Commerce, you get to meet our elected representatives to Washington. Ask them, politely, to stop lying and start fixing and if they don't you'll work hard to make sure they lose their jobs.
You can also write, phone, e-mail these folks or best of all, show up to their Town Hall Meetings. Be polite, but firm. Tell them to stop lying and to start doing. Don't, I repeat don't count on many of the media to ask the questions. They're too, uh, obtuse to ask. One journalist I do recommend you read is Al Lewis of Dow Jones Newswires. He's done the math.
We're under water. Let's not let this nation drown. Like the Titanic, we're running out of lifeboats.
Brian Olson
Owner/Consultant
Conversation Starters Public Relations
"We start the conversation about you"
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