Tuesday, August 9, 2011

The First Step Is The Downgrade

With the United States credit lowered to AA+ status, it is only a matter of time before Americans feel their own sense of credit, or well being, become downgraded. Looking at what has happened in the last few months with the debt, the battle of Washington to pass a budget, and the world holding their breath, it is a wonder we are we are not worse off than we are.

The great divide caused a budget to pass that does nothing to solve the debt problem. When a ten year debt deal cuts the deficit from ten trillion to seven trillion, there still is a serious issue. It is only a matter of time before another credit rating agency steps up to the plate.

Please comment and give some ideas as to what you would do to resolve this debt burden. What can we do about our national debt?

Monday, May 2, 2011

Gasoline Pains

Gas prices are soaring and the government is back at tossing the potato. Gasoline is nearing $4.00 per gallon. Energy economists are saying that if the gas prices increase even further or even remain at the current levels, then it would become unsustainable and lead directly into another recession.

If this happens, there will be no more money for bailouts or handouts. If the United States heads into a deep recession again, it will become worse than the recent one we have just dug ourselves out of.

Oil prices cause concern for the entire economy when they get to a level this high. Yes, some of it is due to natural disasters occurring in the states. Yes, part of it due to the current conflicts going on in the Middle East and North Africa. But the majority of the problem is due to the increased worldwide demand and the lack of supply. With the world wanting more and more oil, that problem is not going to go away unless we get more oil.

We could get more oil if the government would do something for once and start letting our own country drill our own oil. Unless we get our government to do this, then there is nothing that we can do to get ourselves out of this mess. It is a vicious cycle. Maybe the gas prices are going to go down for a while, but everyone knows that sooner or later they will go back up. Why not create a smart government that thinks ahead and develops a program or something to keep prices down.

Keep our money here by drilling our own oil. That is the ultimate stimulus.

Thursday, April 28, 2011

Debt and Security

With the national debt growing with no sign of slowing, will it become a top security threat to this country?

The U.S. is increasingly borrowing more and more money every day to cover its expenses and obligations to the American people. A large portion of that money is being borrowed from other countries whom we do not have the best ties with. China is our largest creditor to date and they are also our largest trading partner.

When your retailer starts lending you money to buy their products, the retailer becomes the dominant one of the two. China holds nearly a trillion dollars of our debt.

Is our debt becoming the single biggest national security threat to our country? Well if you take into consideration of all the money we owe several countries and our own citizens, then the answer is a solid yes. Debt can be a good thing as it can keep a counrty running when in an emergency. But when you dig deeper in debt year after year just to pay the light bill, then red flags should start to wave.

The debt affects everyone. When the debt bubble bursts then all of us will feel the pain. And this pain will last a long time. Being the most powerful nation in the world, there would be no one to bail us out. Our collapse would cause a domino effect to the majority of the world's economies.

Just remember, we can change our course. All it takes is a vote.

Tuesday, April 26, 2011

No more "Pursuit" in the Pursuit of Happiness

Debt is a powerful thing. It can help create the greatest nations in the world, and it can also be the cause of their destruction.

The American way of life went from "the pursuit of happiness" to "I'm not happy unless I have it now." The "pursuit" has been replaced by debt, which is fed by greed. The government begs us to consume anything and everything. It tells us that we can have an endless supply of debt as long as we spend and consume.

When we try to cut back and save our earnings rather than spend them, we are told that it is unpatriotic, and that we are the reason jobs are so low and the economy is still lagging.

When we have a federal deficit of over a trillion dollars, we should be prioritizing what the needs are before the wants. A deficit that large and we are informed that over 50% of taxpayers don't have to pay taxes. Big business is blamed for not doing their part and paying a larger share.

I find it comical that during tax-time, most folks that you talk to can't wait to file because they are going to get a big refund. Yes, because like mentioned before, over 50% dont have to pay taxes. When I wa young I was always under the impression that everyone was scared of tax season in fear of owing. Now, somehow, people are getting upwards of 7, 8, 10 thousand dollars. It's like Chrismas comes twice a year now.

Our government always seems to say they have an answer, but they are not very quick on acting on anything. Will they ever get their eye on the ball. Why does it always have to be about either special interests, re-elections, businesses, or unions? Why can't it just simply be for the country? Or for everyone? Why doesn't the government instill the the act of "pursuit" back into us rather than consume?

The United States is at the edge of the plank, about to fall in an ocean of debt, and there's no life jacket floating nearby. Wake up America.

Monday, April 25, 2011

A penny for your Thoughts

With the national debt in the tens of trillions of dollars, and next to nothing costing under a buck anymore, is there really a need for the penny? Remember the days of saving your pennies to get that candy bar or soda. Anymore, if you see a penny on the ground, the most that you do with it is kick it around for entertainment.

With Pennies costing more to create than they are worth, why keep them around. According to Coin Update News, the material to produce them has cost more than the face value since 2006, and it is now 2011. In January, 2011, the average cost per penny was $0.0179. That is nearly double. And you wonder why the nation is in so much debt. Pennies are costing us money. Don't you just wish that it was the other way around where once you were handed a penny, the value would double? Well keep wishing.

With the widespread and trending use of plastic, the use of coins is diminishing rapidly. It also doesn't help that the amount of goods available for some pocket change is getting even smaller. Getting rid of the penny would save money, and would get rid of the denomination altogether. It would bring everything to increments of 5, which could do a lot of good, and make things less complicated.

How many people tell the cashier at the register to keep the pennies. Or even better, how many cashier have told you not to worry about the extra three or four cents that your trying to find in your pocket or purse. It's seems like it is just a nuisance and not worth the time.

Just think about for a moment, what it would be like without one cent. Would it really be such a culture shock if we did without? Would it even be noticed, or missed? What would the economic consequences be? there are several questions that would arise with discontinuing the penny.

A penny for your thoughts, anyone?

Sunday, April 24, 2011

Why the Fuss Over the Debt Ceiling Increase?

The decision is nearing its deadline of whether or not the debt ceiling should be raised. The republicans say no to raising the debt limit unless there are certain conditions met. These conditions are to cut more spending. The democrats on the other hand are accusing the right of holding the economy hostage by trying to attach strings to the vote.

Either way, the bottom line is that the debt limit is going to have to be increased regardless. Both parties know this and they know that the final days to act are here. In less than a month the U.S. government will reach their limit and if nothing is passed to increase this limit, then the government will have to default on its debt payments, causing damage to the economy that could be irreversable.

Those in office know what they are doing. The right is going to try their hardest to cut the debt, claiming not to vote for an increase, yet they know just as well as everyone else does that in the end they will have to vote for it regardless. The left is trying to mark republicans as holding the country hostage. The blame game continues.

All the while you are having to sit at home and watch as all this goes down. I am quite surprised that the left hasn't used the excuse of the vote "being needed" for "humanitarian reasons" as they do on every other issue. This is just like the healthcare, where if you do nothing then the world is going to end and it is so urgent that you the entire system has to be redone and socialized NOW, in order to survive.

The debt limit has to be increased. There is no other way around it when you have a left president and senate. Spending will rule the debate until atleast, and hopefully, the next election. Maybe then we can get the government under control and have the spending issue resolved. Until then, vote for the increase, and focus more on getting jobs, and work on decreasing regulation for demestic energy. In other words, focus on the economy in ways that don't increase spending. Limit the millions of overlapping regulation and let businesses breathe. Then you will see the full power of capitalism.

Friday, April 22, 2011

The National Debt Clock

Ever wonder how much money the government owes? What about how much of that amount is your responsibility? It's a scary thing to see when you realize that sooner or later, you will have to start making your share of the payments.

Most people don't think anything of our debt, and there are some out there that assume they are not responsible because they didn't spend it. Well if you are one of those then you better sit down for this, because YOU ARE RESPONSIBLE!

If you want to know where to go to see exactly how much debt we are in,  where the debt came from, who owes what, what the state debts are, how much is borrowed from social security, how much interest we are paying for the debt, and more, well then here are a few websites you should look at.

 1. http://www.usdebtclock.org/ This is very detailed, live, and categorized

2. http://www.brillig.com/debt_clock/ This is less detailed and a more basic clock.