It’s a NEW RECORD!

24 Oct

Okay, so we’re having “hard times”…

People ask me why I spend so much time helping families build affordable, sustainable ISBU homes, while they try to navigate the removal of mortgages and excessive utility bills from their household budgets.

The reason is obvious. The ship is sinking.

… but you wouldn’t know it by watching the Federal Government burn through taxpayer dollars as they wrap up the United States biggest spending year, EVER. I won’t mention that it’s also going to go down in history as the second biggest annual budget deficit EVER.

Now, more than ever, American families are building “affordable alternative homes” to combat the “perils and pitfalls” of a system that is falling in on itself.

I call these homes “Aah’s“! As in:

“Aahhhhhhh, what a relief!”

Yet, still… nobody is talking about this. I wonder why?

Here’s the facts (straight from the horse’s mouth):

I’ll paraphrase the Wall Street Journal: (italics are mine)

It’s pretty obvious to anyone with a pulse that… the Obama years have racked up the three largest deficits (both in absolute amounts and as a share of GDP) since Hitler still terrorized Europe. Some increase in deficits was inevitable given the recession, but to have deficits of nearly $1.3 trillion two years into a purported economic recovery simply hasn’t happened in modern U.S. history. Yet President Obama fiercely resisted even the token spending cuts for fiscal 2011 pressed by House Republicans earlier this year.”

The CBO (Congressional Budget Office) recently finished tallying the revenue and spending figures for fiscal 2011, which ended September 30th. 

I’ve yet to see anyone dancing in the street over the results.

The government had its best year ever, spending a cool $3.6 trillion.

That beat the $3.52 trillion posted in 2009, when the feds famously began their attempt to spend America back to prosperity.

So much for limiting spending and even… (gasp!) cutbacks.

The Wall Street Journal also reported today that:

“The table also shows how close the federal budget was to balance as recently as fiscal 2007, with a deficit as low as $161 billion, or 1.2% of GDP. Those are the numbers to point to the next time someone says that the Bush tax rates are the main cause of our current fiscal woes.

Under those same tax rates in 2007, the government raised $2.57 trillion in revenue but it spent only $2.73 trillion. Four years later, the government raised $265 billion less thanks to the tepid recovery, but it spent nearly $900 billion more thanks to the never-ending Washington stimulus.”

“HEY! What happened to all of those spending cuts that Congress squabbled over?”

A “spending cut” isn’t the same as a decrease in the actual amount of spending at all.

It’s simply a DECREASE in the growth rate of spending.

I saw it illustrated like this;

“…if spending during the previous year grew by 6% but only increased by 3% over the current year then that counts as a spending cut even though the actual amount of spending has INCREASED.

What we NEED to DECREASE the actual spending, not its derivative.

It takes a negative spending growth rate to define a TRUE decrease.

Perhaps this administration has trouble differentiating between a function and its derivative.”

I’ve always said that when it comes to MATH, Congress is clueless.

We have a CONGRESSIONAL SPENDING PROBLEM.

Contrary to the “popular misconception” – America’s TRILLION dollar deficits are not a function of the Wars or the Bush Tax Cuts.

The total cost of the Iraq war was $709 billion and was incurred over the years 2003 – 2010 (Source CBO).

Yes… the Tax Cuts were also in affect during this time. The deficits in the 2003 to 2007 years were in a manageable 400 to 200 billion dollar range (2007 Deficit was less than 200 Billion).

(Would that they STILL were…) Oy.

Why did deficits explode in 2008 to 2011?

FACT: It’s because Democrats took over Congress in 2008 and started spending money like water on stimulus programs.

A stimulus bill in 2008 of $814 billion dollars is still $100 billion greater than the cost of the Iraq War, no matter HOW you do the math. The difference is that Congress is using American Taxpayers like their own personal Credit card… and they’ve blown thru their limits, with impunity.

When American families are faced with the a “fiscal deficit” (i.e. financial hardship, unemployment, rampant inflation… pick one… or even ALL of them), they tighten their belts, cut their spending, limit (usually severely) future spending, and work hard to balance their budgets.

They have no other choice! It’s called “fiscal discipline”. The bank doesn’t care if you’re broke. They STILL demand that mortgage payment.

It is imperative that American families INSIST… no… DEMAND that the “empty suits” in Washington figure out what “discipline” means… and then… do the same thing that WE the People do.

Otherwise, THEY get to join the unemployed, ASAP.

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