Stand up for We the People - Coeur d'Alene Press: Local News

Stand up for We the People

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Posted: Tuesday, June 26, 2012 5:57 pm

The following are not RNC or Tea Party views. They come from my economics studies, an MBA and 30 years’ banking experience. They come from seeing people plan properly, succeed and help others; or neglect to plan — and fail, often blaming others.

My views reflect my parents' self-sacrifice and my years of meticulous planning to pay our mortgage early and fund a retirement plan outside of Social Security. Now, though, we have fallen prey to our government's co-sponsored class warfare notions and become, in the view of an unnamed acquaintance, part of the “1 percent.” Based on our modest incomes, how could that come to be?

At my bank a customer continually bounced checks. Finally, tiring of returning their checks, I called, explained the cost to themselves, merchants and our community and told them to stop or we would close the account. The response? “But I’ve got to pay the bills.” Spending money we don't have is exactly what our government does. That spending is supported way beyond taxes by "money" created by debt which is a claim against our future productivity. Where will the money come from to pay that debt when we already borrow to support current programs? People who ignore these basic questions flood our bankruptcy courts.

How does debt create money? The paper we use to buy things is not truly money; Treasury Notes and Bonds issued by the U.S. Treasury Department are. Why? Because they are backed by "the full faith and credit" of the U.S. government. If that becomes questionable, so does our money.

Put simply, notes and bonds become money when the Federal Reserve or foreign governments buy them. The purchases create deposits which are lent out in several cycles to support more loans. Thus, much more "money" is put into the market than the original purchase of treasury instruments. This all started from nothing. The Fed creates deposits electronically. Look that up if you doubt it. The Fed has no reserves and is not even part of our federal government; it is private and independent. Look that up too, if you wish. It is not answerable to us but determines a great deal of what happens to our economy. But taxpayers must repay all that debt and interest which will soar when record low interest rises because of that "full faith and credit" — our future taxes or productivity — yours, mine, our grandchildren's. Remember, a great deal of that claim on our future productivity is held by foreign governments.

As our debt increases, more and more money is created from nothing. The money goes to purchase a limited supply of goods but also to pay for government which produces zero goods. That results in inflation. Who gets hurt the most by inflation? It comes out of the pockets of everyone, but the heaviest burden falls on those with low or fixed incomes. These are the very people whose votes are bought with promises they will be taken care of with all this debt. Inflation is a deliberate and pernicious means of taxation.

When artificial money is created, much more of it enters the market than the original debt amount. Turn that situation around. When creditors who support our country's deficit spending demand payback, every dollar of debt repaid sucks many more out of the economy. Those same countries where we have sent mega dollars to buy cheap goods will also dump those excess dollars into purchase of our assets. It's already happening. We will awaken from our poppy highs of easy money, something-for-nothing and cheap foreign goods and have to go cold turkey.

The colossal calamity ravaging our European neighbors is dangerously close for us and will come very suddenly. Remember, the "full faith and credit" of our government which gives our dollar value as a medium of payment, in turn is represented by taxing power against our future productivity. When that no longer supports repayment of our debt our country is bankrupt. Our days as a prosperous and sovereign nation are over. For many that will lead to desperate search for easy answers. Sadly, while the opiates of entertainment “stars” and fancy toys have replaced God for many, mind-numbing distractions can't help. Thus tranquilized, desperate and unwilling to face hard solutions, taxpayers take the easy way and so become enslaved to government, quite possibly to a despot like Hitler. That same government has been a co-conspirator, along with their own abandonment of responsibility, in their downward spiral. Our government has become a power superior to and aside from all of its constituents. We, The People have to demand that it not sell us out but stand with us in pursuing policies to strengthen our country.

At the outset, I talked about my background. I am not the sharpest tack in the box; there are lots of smarter folks out there to figure this out. And yet, our government's abetting of our decline is reckless and irresponsible and, in my studied view, just plain stupid as to effect; believing that our government cannot be that stupid I seriously question whether those actions aren't deliberately designed to subvert our country. The Federal Reserve and some very wealthy people are in the middle of all this. To whom do they answer? Not you or me. Who is to gain from all of this? I believe if we continue to ignore that question, We The People share blame for our country's decline.

In considering our predicament, I recalled a recent sermon which I felt was a strong and vibrant metaphor for the bind our country is in. The homilist pondered hopelessness such as we might now feel. "However," he continued, "In impossibility, there is always possibility." He emphasized individuals' roles in reviving ourselves as individuals, as a church or as a nation. My question in turn is, are We The People ready to cast aside despair, surmount mere inconvenience, refuse to be a part of our country's decline and instead take part in its revival?

Pat Tebo is a Hayden resident.

  • Discuss

Welcome to the discussion.

16 comments:

  • The Golden Mean posted at 7:38 pm on Wed, Jun 27, 2012.

    The Golden Mean Posts: 4213

    "Obama will run up a total..."

    It nice to see that you took the time to do a little research, but my question was not so much about the spending as it was about the polices that created the spending. I think looking at it that way is a better method of measuring who is really behind this mess.

    Look at it this way, a married man's first wife went crazy with the credit card. Even though they got divorced after 8 years, the man still had to pay for her credit purchases. The man remarried and even though his new wife added little new debt when compared to his first wife, the man's debt reached record heights during his second marriage.

    Get it?

     
  • The Golden Mean posted at 7:27 pm on Wed, Jun 27, 2012.

    The Golden Mean Posts: 4213

    "... Botch 1 Trillion Dollar Porkulus Stimulus"

    Bet you don't know how much of the stimulus was used to make interest payments for the debt created by Right Wing Leaders.

    I don't blame you for not knowing. From what I heard, Faux News is the only news which sends out a signal that can travel through 4ft thick concrete bomb shelter walls.

     
  • max power posted at 6:29 pm on Wed, Jun 27, 2012.

    max power Posts: 559

    *** Obama & Libtards Botch 1 Trillion Dollar Porkulus Stimulus ***

    "I guess those shovel ready jobs weren't as shovel ready as we thought" -- Barack Obama

     
  • Mahiun posted at 6:15 pm on Wed, Jun 27, 2012.

    Mahiun Posts: 4862

    Obama has done it on a grander scale than everybody else prior!

    Done what, exactly?

    Amassed debt? No, not by a loooooooooooong shot! The top contenders in that category within the 20th and 21st centuries have all been on the other side of the aisle.

    Spent? Well, how are you measuring that? If it's not in constant, inflation adjusted dollars, then it's not really a fair, apples-to-apples comparison.

    Added to the budget deficit? No, once again, he's actually been one of the most fiscally frugal Presidents in recent history, in that regard.

    But what he did do was acknowledge and admit to debt that had been "hidden" and 'off the books", even though the debt was not one that his administration had created -- specifically, the astronomical cost of the wars in Iraq and Afghanistan. To be fair, he has incurred war debt of his own, but overwhelming majority of it precedes his taking office, by many years.

    So, just how are you measuring this supposedly "profligate" President?

     
  • Rationale posted at 5:48 pm on Wed, Jun 27, 2012.

    Rationale Posts: 1974

    GM,

    From NPR in January 2011...and it hasn't gotten any better!

    "How do Bush and Obama compare on closer inspection? Just about like they do on an initial glance. According to the White House's Office of Management and Budget, during his eight fiscal years, Bush ran up a total of $3.283 trillion in deficit spending (p. 22). In his first two fiscal years, Obama will run up a total of $2.826 trillion in deficit spending ($1.294 trillion in 2010, an estimated $1.267 trillion in 2011 (p. 23), and the $265 billion in "stimulus" money that was spent in 2009). Thus, Bush ran up an average of $410 billion in deficit spending per year, while Obama is running up an average of $1.413 trillion in deficit spending per year — or $1.003 trillion a year more than Bush.

    Obama, of course, has said the economy made him do it. But the average inflation-adjusted deficits through Obama's first two fiscal years will be more than ten times higher than the average inflation-adjusted deficit during the Great Depression. Even as a percentage of the gross domestic product, the average deficits in Obama's first two fiscal years will more than three times higher the average deficit during the Great Depression. The fact that Obama's deficits have, by any standard, more than tripled those of the Great Depression, cannot convincingly be blamed on the current recession.

    And none of this even takes into account Obamacare, which the Congressional Budget Office says would increase spending by more than $2 trillion in its real first decade (2014 to 2023) — and which, even under very rosy projections, the CBO says would increase the national debt by $341 billion by the end of 2019. It's not often that one gets to hear a call for "responsible" fiscal stewardship from someone whose deficit spending is outpacing President Bush's by more than $1 trillion a year "

     
  • max power posted at 3:29 pm on Wed, Jun 27, 2012.

    max power Posts: 559

    It's Bush's fault that Obama has spent/wasted 5 trillion dollars in just over 3 1/2 years. Got it!

    "Make the lie big, make it simple, keep saying it and eventually they will believe it." -- Adolf Hitler

     
  • The Golden Mean posted at 11:36 am on Wed, Jun 27, 2012.

    The Golden Mean Posts: 4213

    "How can you seriously (and with a straight face) accuse only the Right Wing of spending and borrowing...especially under this regime"

    Let show you how... Just like that.

    Maybe a better way is to do the research, take the time to learn how much of the new debt is from Obama policy and how much belongs to Right Wing leadership.

     
  • max power posted at 10:46 am on Wed, Jun 27, 2012.

    max power Posts: 559

    I can't wait for the Democrap National Convention. Look for lots and lots and lots and lots and lots and lots of "VICTIM" speeches...

    "No one celebrates last place quite like a libtard loser." -- Jack Hammer

     
  • SamuelStanding posted at 10:24 am on Wed, Jun 27, 2012.

    SamuelStanding Posts: 486

    Hmm
    @ "Rationale" I have to agree with lola123, "I have never met 2 economists that agree on anything" but your saying that Obama is holding the record for spending record, is not -In my opinino, all that correct.

    Are you taking the wars entered into by any past administration as "Obama's "grander scale than everybody else prior!"?

    Personally, I am so dissolutioned with ALL Representatives, Congressmen and Senators...Nothing is about getting a job done anymore. It is "how much money can I make on the side?" and "How can I get my name on buildings, highways and landmarks." They ALL have a personal agenda and spending other people's money is just a way of life. TERM LIMITS for ALL. The President is limited to two terms, why not the greedy underlings?

     
  • Jill Heine posted at 10:07 am on Wed, Jun 27, 2012.

    Jill Heine Posts: 408

    'we the people' is a delusion. listening to priests is proof.
    I see no hope for America. Soros will soon gives you three days to fix or fall.
    Friday will reveal if the Euro will stand for another moment.

     
  • Rationale posted at 10:05 am on Wed, Jun 27, 2012.

    Rationale Posts: 1974

    Uh, GM,

    Spend & borrow and steal other (read "rich") people's money=Left Wing Politics

    How can you seriously (and with a straight face) accuse only the Right Wing of spending and borrowing...especially under this regime.

    Sorry, but both sides do the same thing...only Obama has done it on a grander scale than everybody else prior!

     
  • lola123 posted at 5:59 am on Wed, Jun 27, 2012.

    lola123 Posts: 338

    I have never met 2 economists that agree on anything. So much is based on variables and speculation that much of the actual outcome is pure guessing.

     
  • Publius posted at 4:39 am on Wed, Jun 27, 2012.

    Publius Posts: 17

    Well said Pat.

     
  • The Golden Mean posted at 10:50 pm on Tue, Jun 26, 2012.

    The Golden Mean Posts: 4213

    "You ignore both the cash flow ledgers and the balance sheet. In addition, you assume all debt is equal."

    And you assume that a statement of cash flows and/or a balance sheet is a realistic way to measure financial position or stability. At the end of the day, the true measurement is revenues, less money tied up in investments, less operating expense. Debt and interest payments shall be considered operational expense.

    We have a real financial issue in this country and there is no way that we can afford four more years of Right Wing Leadership.

    Spend, borrow and pretend we are rich = Right Wing Politics

     
  • tananger posted at 9:52 pm on Tue, Jun 26, 2012.

    tananger Posts: 1

    justinian, perhaps you're the one warranting more study time. We, the people (read, "saps"), don't owe the debt largely to ourselves, we owe it to the wholly private consortium of banks known as the Federal Reserve. That ain't "ourselves". BIG difference. Oh, they're going to forgive that debt out of the goodness of their heart, right?

     
  • justinian posted at 6:38 pm on Tue, Jun 26, 2012.

    justinian Posts: 318

    " When that no longer supports repayment of our debt our country is bankrupt. "

    Ask for a refund on that MBA Pat. You argue that an income statement imbalance equals bankruptcy. You ignore both the cash flow ledgers and the balance sheet. In addition, you assume all debt is equal. We owe most of our formal debt to ourselves, ditto the unreserved future liabilities. We also own, in fee simple, most of the Western United States.

    We got problems here in River City, yes. We ain't bankrupt, not even close. November we get a new government. Have hope and faith.

    Just sayin'

    Just

     
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