Commissions, Dime Store Mirrors and Politicians

The Washington Post has been pretty supportive of the current administration. They ran a great article with a wonderful graphical illustration of the current administration's budget for fiscal year 2011 (FY 2011) – October 1, 2010 to September 30, 2011. It is must reading for all Americans who seek to understand facts about the ultimate consequences of America’s 30 year binge of fiscal promiscuity. Make sure to click on the link in the article (see below) entitled “(Graphic: President Obama’s proposed 2011 budget explained.)

The article is sober reading because it is not partisan; not political. TheFundamentals see nothing partisan or political (as in Democrat v. Republican) in the mess we have created for ourselves. Politicians may point fingers at each other but their finger pointing is misdirected. All they need are dime store mirrors held about 6 or 8 inches away from their well photographed visages to see whose fingers and fingerprints are all over the mess. By the way, dime stores were places where many of us, as kids, could go with our pennies, nickels and dimes and buy small treats that brought great joy to a youngsters being. The very thought of a dime store, even today, is a source of joy and pleasure. Dime stores had names like Kresge’s and Woolworth’s.

Back to our reality.

Here are some of the facts about Mr. Obama’s budget. By the way, this is not an inherited budget. Neither were the others but this one is all his and all the party in power (PIP.)

The revenues are projected to total about $2.567 trillion up from $2.165 trillion in FY2010. Let’s hope that it is so. Expenses (for some reason they call them “outlays”) are going to be $3.834 trillion, up from $3.721 trillion in FY2010. You know that will be so.  The resulting deficit is going to be $1.267 trillion, down from $1.556 trillion in FY2010.

You can look at the government’s detail of this budget by clicking on the following link: http://www.whitehouse.gov/omb/budget/fy2011/assets/tables.pdf   We suggest you turn the document 90 degrees in order to view it.

Back to the Washington Post and their article about fiscal promiscuity (TheFundamentals terminology), the “debt commission” designated to examine the consequences or Americas fiscal promiscuity and solutions thereto.  Some excerpts: “…the coming fiscal calamity is staring the country in the face.”This one is as clear as a bell," he said. "This debt is like a cancer." The "he" in this quote is Erskine Bowles, one of the guys heading up the commission.

"We can't grow our way out of this," Bowles said. "We could have decades of double-digit growth and not grow our way out of this enormous debt problem. We can't tax our way out.”

Let’s see now. We can’t grow our way out and we can’t tax our way out and we’ve been diagnosed with cancer which usually means drastic treatments required. So what can we do?  Well, for one thing we probably don't need to budget for a $1.267 trillion deficit in the coming year, huh?  D'oh.

But we've got this commission. TheFundamentals has two comments about the commission. One, if you have to set up a committee to deal with a problem you are not the right person(s) to deal with the problem. Two, we have an election coming up in several months. Wouldn’t it be appropriate to have the commission’s recommendations, given that there is no other leadership available (and they must involve some spending cuts given that growth and taxes cannot solve the problem alone) before the election? That way the debate leading up to the election could involve those politicians with their new dime store mirrors maybe having to take a position on something not too desirable? Makes sense to TheFundamentals. So what is their plan you ask? Deliver the recommendations after the election.  Makes you want to giggle, doesn't it?  Or cry.

This group, Party in Power (PIP) and Party out of Power (POOP) need some mirrors. Cheap, made in China mirrors.  Better yet. They need some time in the unemployment line. A lot of time.

Read the article and take a look at the graph at: http://www.washingtonpost.com/wp-dyn/content/article/2010/07/11/AR2010071101956.html

It’s good stuff.

Dupes

The definition of a dupe is “someone who accepts another’s deception without question, inquiry or skepticism.” A person has been duped when they permit another to deceive them in a situation or situations where a reasonable person would question or object to the deception. A person who dupes another is known as a “dupester.” The other night, on the Public Broadcasting Systems shining hour of news and information, which we have renamed, “the duping hour,” a perfect example of one person duping another person occurred. This example, as we shall see, illustrates two simple fundamentals – one, why there should never be any government funding of any media, broadcast or public information activities and; two, why every American, regardless of political affiliation or leaning should always be skeptical of any words flowing from the mouth on any individual who treats their audience with disdain.

Let us digress momentarily. Has anyone noticed that during any interview involving any person working for the current administration or seeking to work for the administration or the white house or any higher up or apparatchik in the party in power (PIP), that all focus; all answers; all commentaries must be directed to praise PIP’s great leader's accomplishments? The great leader is responsible for successfully dealing with, solving, addressing or otherwise leading in any and all area(s) where the previous leader’s failed policies and administration left the mess that the great leader is now solving. Where else have we seen this form of focus? Where can we go in the world to find such good fortune all wrapped up in one individual; one great leader? What other lands have designated great leaders?

Duping has probably been going on since one humanoid discovered the gullibility of another humanoid. We recently observed one of the great all time dupes in history. This dupe involved the cooperation of many people from many different areas but, as with many dupes, it did end up focusing on one area of interest. In this dupe, the object was to convince the masses that a series of events were occurring that were in the best interest of the very masses who were being duped. Financial interests were at stake. The duping activists not only spoke a common language but they were able to direct the very activities of key elements of power and money to act in a manner consistent with their duping scheme so that for an extended time period they were able to bring an appearance of reality to their efforts. The masses were duped. The media were duped. And, many of the very benefitting participants in the scheme were duped. That dupe is now known as the “housing bubble.” The same group that brought you this bubble is now, today, this very moment, bringing you bubbles in government spending; health care services; public education activities and so-called legal services. Many of the same tactics utilized to promote, support and prolong the "housing bubble" are now supporting bubbles in these other areas of the economy. But, for now, our focus today is to simply ask that you, the reader, observe over the next several weeks the form of duping that is occurring whenever a spokesperson from the current administration opens their mouth and addresses any activity associated with their great leader. Also, we make this one simple suggestion. Each time they refer to the great leader, just think, “great dupester.”

Duping was not invented in Chicago or the state of Illinois. But it is practiced there with the one constant of any committed dupester – total disdain for their audience. Duping goes on in those territories at every level of political activity and it is done with such a heavy hand that the duped – the voters; just keep reelecting the dupesters. Think of that. Think what the dupesters in Chicago and Illinois must say about those they dupe behind their backs when they treat them with such disdain to their faces. The state of the public finances of Chicago and the larger teat it suckles – the state of Illinois, is a dupe of pretty good proportions. What is amazing is that the dupe worked adequately to take a gang of relatively low level and low real life experience  minions from this financial disaster and, using the duping skills of the new “great dupester” coupled with a good “duping” assist from a compliant and complacent media, managed to propel the great dupester into his current status as the great handyman; the great solver; the great “I inherited it” fixer; the great “its best for America” dupester. Stephen King couldn’t imagine stuff like this.

America, you’ve been duped. Let’s start calling and naming things and activities accurate. PBS - it’s the “duping hour.” NYTimes – it’s “all the duping that’s fit to print.” All others, “we report; you’re duped.”

Let us close on an optimistic note. This may just be TheFundamentals hopelessly optimistic outlook speaking without any real evidence or tangible act occurring; but, for a brief moment the other night, we thought we detected a faint suggestion of possible recognition on the part of the “duping hours” long standing correspondent and reader that he was being jacked by this silly minion from Chicago. This boy who keeps saying that all good flows from the new great leader, er, we mean “dupester.” Who tells these minions what to say? Are we paying for dupesters to write these lines so that we can be duped 24/7? Well, the answer, simply, is YES. Go here and you can read a list of dupesters and you can see how much YOU, the Duped, are paying to be duped by them: http://www.whitehouse.gov/assets/documents/July1Report-Draft12.pdf

You Be the Judge

Here is the section references and wording of the USConstitution that are pertinent to the issue of “immigration”:

Article I, Section 8, Powers of Congress:

“The Congress shall have Power To…To establish an uniform Rule of Naturalization.”

“To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.”

Article VI, Supremacy

“This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.”

Amendment 10, Powers of the States and People

“The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

Here is the “Intent” section of the Arizona law (S. B. 1070):

Section 1. Intent

The legislature finds that there is a compelling interest in the
cooperative enforcement of federal immigration laws throughout all of
Arizona. The legislature declares that the intent of this act is to make
attrition through enforcement the public policy of all state and local
government agencies in Arizona. The provisions of this act are intended to
work together to discourage and deter the unlawful entry and presence of
aliens and economic activity by persons unlawfully present in the United
States.

You can access the entire, amended AZ law at http://www.azleg.gov/legtext/49leg/2r/bills/sb1070s.pdf

Here is the opening wording of the national government’s claim filed yesterday against AZ and S.B. 1070

“In this action, the United States seeks to declare invalid and preliminarily and permanently enjoin the enforcement of S.B. 1070, as amended and enacted by the State of Arizona, because S.B. 1070 is preempted by federal law and therefore violates the Supremacy Clause of the United States Constitution. “

You can read the entire lawsuit at http://www.justice.gov/opa/documents/az-complaint.pdf

TheFundamentals does not wish to taint your evaluation of the facts and issues in this action. We would point out, however, that the key factor in the AZ law has to do with the requirement that a person display ID in the event of a police request as the result of a “stop” for a reason(s) other than “immigration” matters.

You be the judge.

Truisms

A truism is defined as a belief or value that is accepted as self evident; it’s obvious. Pretty simple. It is a truism that the sun rises in the east and sets in the west. It is a truism that boys and girls are different. It is a truism that the first job of a politician upon election is to work for reelection.

Truisms are fundamentals. They have to be. They are widely accepts truths and you dare not ignore them except at great peril to your credibility.

So, here we go. Let’s examine the truisms that are now dominating our national situation.

Truism #1. We can spend our way to prosperity. That’s what the economists and politicians are saying. Or, if you want to look at the glass half full – if you don’t keep spending, baby spending, it’s gonna get a lot worse. That is the current truism of the party in power (PIP) and the party out of power (POOP) is afraid to challenge it because if they do, PIP will descend upon them with the biblical strength of an excremental atmospheric event. So, what to do? Well POOP could be courageous, be bold, and propose cutbacks in spending, balance the budget, raise some taxes, and introduce the concept of debt repayment or some combination of the foregoing? But, that approach could backfire on them which lead us to:

Truism #2. Don’t interrupt your enemy while they are engaging in self destruction. There is little doubt but that PIP is doing its best to follow POOP on the route POOP took when they were PIP to get tossed out on their butts. So, POOP is saying to themselves, let’s just lie back in the weeds, avoid saying or doing something that PIP can pick up on and redirect the focus to us and, come November, PIP becomes POOP. Is this a good idea? Well, it does lead to:

Truism #3. Them’s that can, do; the rest teach and the few left over become politicians. Really they first become lawyers or economists and then they become politicians. Now this truism is not challengeable. There is no evidence that any lawyer or economist could have been a brain surgeon, an astronaut, a carpenter or an inventor. Instead they choose law and economics. They are lawyers and economists because they could not be surgeons, astronauts, etc. Which leads us to:

Truism #4. What’s the difference between lawyers and economists? Well, it is best to answer this question with a little story that we heard as young ‘uns at out grandfather’s knee. Grandpa, you see was an explorer and he was with one of the earliest expeditions that ventured into the Borneo jungle to see just what the heck was living/surviving/hanging out in that rather sultry climate. Lo and behold the expedition came upon a tribe of people eaters and they were cooking up their meals – legs sticking out of big pots of boiling water with arms flaying every which way but, the heads were missing. Off to the side was a table set up with big bowls and stick ‘em notes saying something in a strange language. Gramps asked the head people eater what’s going on? The top guy said that the bowls contained the brains of the dinner guests. He explained that bowl #1 had explorer brains and they were priced very low. The next bowl had soldier brains and they were priced slightly higher. There were several others and then came lawyer brains and they cost a lot more and finally, economist brains which were double the price of lawyer brains. Gramps was astounded. He could not believe this situation because it seemed to defy Truism #3 (see above) about both lawyers and economists. So, he asked, “Why do the lawyer brains and the economist brains cost so much more? “ Chief guy said, “Do you know how many lawyers and economists we have to kill to get an ounce of brains?”

Which leads us back to Truism #1. “We can spend our way to prosperity.”

Consider the source.

Spend, Baby Spend

A few weeks ago, TheFundamentals wrote an essay entitled, “The Debt Report.” It was posted on June 9, 2010 and included an active link to the key document that was the basis for the essay. We repeat the link here:

http://camp.house.gov/webreturn/?url=http://republicans.waysandmeans.house.gov/UploadedFiles/Debt_letter_to_Camp.pdf

The Debt Report was issued by the Department of the Treasury and it is actually done because it is required by US law. At TheFundamentals we would liken this report to any one of several important historical documents that have generally been ignored by politicians, bureaucrats and much of the public until it is too late. We don’t know why people behave that way. Why do people who know that something is wrong; something needs to be corrected; actually even get reports and essays describing the problem and outlining remedial action, still not do anything about it? We don’t know. We do know that history is replete with ignored warnings and postponed corrective action. We also know that individual humans can do the same thing. We let our weight rise or we drink too much and we know there are warning signs and we do nothing. Or, we detect some change in our body and we don’t have it checked out. Or we just don’t feel quite up to our regular selves but we adjust and make do and live with it. It goes on in mundane ways and serious ways. We ignore the warning signs of a troubled child or coworker or friend. We know that something in our home needs maintenance and we let it go. The tires on our car have little tread left; we keep on driving.

There are more serious situations. The debt of this country is at the level of the GDP of the country. This is a warning sign. If that level rises much more there can be “dire consequences.” We apparently don’t think there will be any or we just hope there won’t be any or we don’t care. Best to wait and see what happens. No one has the interest, the will, the discipline to take preemptive action. No one knows how to do anything. To balance the budget; to pay down some of the debt.

The source of the rising debt is a voracious appetite for government spending. You name it; the government of the United States is somewhere, somehow and, most likely, for some time, been spending money on “it.” “It” could be almost anything. We would like to say that “it” was well intentioned and for a good purpose or reason but, at this time, after all this spending and debt accumulation and so little to show for “it”, it is pretty difficult to muster the enthusiasm to describe borrowing and spending for the sake of good intentions to have much of a serious motivation or purpose. Our public revenues are inadequate because we don’t follow our “spend, baby spend” policies with “tax, baby tax” funding. Instead, we “borrow, baby borrow” and we need to borrow from outside our country to meet this “spend, baby spend” mission we are on. That combination is destined for trouble. The early troubles are already upon us; the real troubles are about to be.

America’s previous four congresses – the 107th – 110th oversaw the largest growth in debt in the history of the land. The debt increases dwarfed the levels reached during WW II which were pretty terrific debt increases. What did we get for the debt increases of the years 2000 – 2008? Well, we got a meandering stock market so it wasn’t much impressed. We got a lot of military activity in the Middle Eastern Muslim countries which continues to this day. We got social security increases and lots of government programs and record levels of government employment and the highest per capita costs for health care anywhere in the galaxy. At least the part of the galaxy we can observe. Is it worth it? Is it worth losing everything so that we can “spend, baby spend”?

We now have a new president and his answer to that question is a clear and emphatic, YES. He not only thinks we should “spend, baby spend”, he thinks everyone should “spend, baby spend”. He had the audacity to write a letter to the top 19 economic countries in the world prior to meeting with them over the past weekend and tell them exactly that – “spend, baby spend”. Keep on truckin’. We see the Promised Land. Hallelujah. Not many of the 19 are much impressed with this “spend, baby spend” fellow of ours.

His congress, dominated by very patient “spend, baby spend” experts; the current congress; the 111th congress, which ends late this year or early next year, has spent more money in their not quite two years in power than any congress in the history of the galaxy as defined above. What did we get for that? Well, wars in the Muslim countries, lots of government employees earning substantially more than private sector employees and a crappy stock market, no interest earnings on our CD’s and money market accounts and big funding for the Transportation Security Administration to examine your private parts as you go to visit Grandma. Oh, we also have more lawyers per capita than anywhere else.  Now this is progress we can measure.

To be fair, we are getting many other goodies. We are well liked around the globe now because we are treating the world with respect and we have a really good plans for our Muslim country adventures and a lot more people are about to get health insurance but your taxes may go up but, so what, we are no longer on the path of destruction that the congress and past president led us on for the prior eight years. You are getting a lot of jobs according to the president and exports are going to double in five years and we are going to deal with deficits soon. That’s what the "spend, baby spend" experts are saying so it must be true.

But, somewhere in the back of the brain there is this feeling that it is kinda like driving that car with bald tires, no oil change for 7800 miles and a squeaking fan belt under the hood. Drive, baby drive. Us fundamentals folk call this, “Whistlin’ past the graveyard.”

One more time. Here is the link to the debt report. Just in case you’re interested:

http://camp.house.gov/webreturn/?url=http://republicans.waysandmeans.house.gov/UploadedFiles/Debt_letter_to_Camp.pdf

It may be of interest to some of you that we are unable to locate this report on the Treasury Department’s website. We’ve picked it up from Congressman Camp’s website. It may be at Treasury’s but a search by its title does not locate it. Why would they not put this report on the front page, the home page, of the website? Next time you attend a meeting with one of your elected officials, and assuming you have read the report, ask the official a question or two about the numbers in the report. Gee, maybe PBS will even do some reports on it. After all, they only get about $400 million in federal funding plus another big chunk from the states.

What does it all mean? “Delusion, baby delusion!”

Rodney Dangerfield in Toronto

There are no easy ways. No free lunches. No genies ready to pop out of a lamp and grant three wishes. And, no easy way to economic growth and job creation other than constant, dependable support for wealth creation and competition. The enemies of economic growth and job creation are the bureaucrats and protected classes and special interests that burden wealth creation and economic growth. That is our message. The research we do and the essays we write are to document and educate as many voters as possible about these simple truths.

Frequently we find that political leaders do not realize that when they say one thing one day and another thing another day that they are contradicting themselves. Others pick up on these inconsistencies. This is a fundamental failing that seems to be genetically embedded in many politicians. It is indicative of neither having any foundation in basic principles and beliefs nor of understanding the connectivity, the cause and effect, between certain actions and certain results.

Mr. Obama was quite the critic of GWBush and picked up on others in his party who claimed that his predecessor lacked the respect of world leaders. They said Bush II was viewed as a cowboy. Too much with the mouth; not enough with the strategy. Obama may be discovering that it may be better to be viewed as a cowboy than a Rodney Dangerfield imitator.

Obama recently sent a letter (June 16, 2010) to the heads of the so called G-20 nations – the top 20 economic powers in the world. This group meets from time to time, is scheduled to meet this weekend in Toronto, and tries to agree on some financial principles; some fundamentals. Obama’s letter is available for your reading at: http://www.whitehouse.gov/sites/default/files/rss_viewer/president_obama_letter_to_g-20_061610.pdf  There is not much new in the letter but it does reiterate Obama’s gospel to use public monies to keep the claimed recovery going. Bizarre preaching as an increasing number of larger countries are bumping up against their debt servicing levels. Bizarre preaching as debt builds at home and no real recovery is in sight. These times call for sacrifice and frugality. Instead we are getting the advice and strategies of a community organizer. A man who preaches how to work the system; how to get the system to meet your needs. Not how to fix the system. You see, to get respect you must lead; not jack the system.

As you read on in his letter you will also read where he takes to task those countries “with heavy reliance on exports….with already large external surpluses.” Now this is classic Obama getting caught up in his underwear. This statement is going to be viewed as immature and naïve by any export generating power house such as Germany. But it also is completely contradictory with Obama’s own “double US exports in the next five years” commission. Did he forget about that commission and its objectives? Or, as is more likely, did he just create the commission, as TheFundamentals suggested in its essay on March 16, 2010, as pablum nonsense in case someone, someday asks him what he is REALLY doing to support economic growth and jobs creation. Because, if he is asked, there is only one real answer – NOTHING. He has not done one substantive thing; not taken one substantive action to reduce government burden; ease bureaucratic involvement in the wealth creation process; restrict the power and cost of unions in private and public commerce and activities; and reduce taxes, borrowing, debt and their burdens.

His 19 buddies at the G -20 know it. TheFundamentals knows it. Now you know it. Tough to respect someone at this level of silly preaching and inconsistent messaging.

Rodney Dangerfield (1921 – 2004) was good at what he did. We mean no disrespect to him in this essay.

Awareness is Rising

What awareness are we talking about?  Here is what we are talking about:

• Government does not create jobs.

• Too many people do not work in real jobs; they expect others to pay their way

• Public employee unions do not support services provided to the public.

• Teachers unions are not about improving the quality of classroom performance and results

• Government bureaucracies do not promote economic growth

• Lawyers may be needed but they need to be regulated; not writing the regulations

• The way to create jobs is to support wealth creation; not burden it

• Burdens on economic growth and job creation have driven industry and jobs overseas

• Politicians are not public servants; they are self servants

• Lobbyists and lawyers represent their own interests while writing the laws

• Protected classes of people ultimately live for their protections

• Special interest groups are a cancer on wealth creation and economic growth

• Bureaucrats do not take responsibility; they impose it on others

As awareness rises, it becomes obvious that what we’ve been told is the problem is not the problem. It is like solving a crime. Don't listen to the suspects.  Many times the best way to solve a crime is to follow the money trail. We are learning that this same basic concept, this fundamental of following the money trail, also applies to seeking answers to the problems of our country. And so, now, we are beginning to become aware that:

• Government is the problem; not the solution

• Therefore, it is time to stop asking government to solve problems

• Each time government moves to solve a problem the problem gets worse

• Politicians must be controlled and the principal control on them is term limits

• Bureaucrats will spend endlessly; will not quit; cannot be fired and will not be measured

• Therefore, government activities must be finite. They must have an ending date

• Balanced budgets cannot be an option; they must be a requirement

• Government employees cannot be unionized. They and their jobs must be subject to termination

• Every generation is entitled to a clean debt slate

• Debts must be paid down; not rolled over

• Basic wealth creating activities must be promoted in order to attain economic growth

• Economic growth is the source, the only source, of job growth

• Taxes, Laws, Bureaucrats, Lawyers, Rules, Unions, Protected Classes and Special Interests burden economic growth

• Burdened economic growth stops jobs creation

Awareness is rising. Almost everywhere. Regular Americans are understanding the problem. Where is awareness not rising? Not rising in Washington DC. Not rising in places like Albany, NY, Sacramento, CA and Springfield, IL. Not rising in places like SEIU, AFSCME, NEA and AFT. Big time, not rising in the pharmaceutical industry. Not a clue at the American Bar Association and the Trial Lawyers Association. They don’t even get that there is a problem. Big time not rising at the American Medical Association. Nary a clue showing up at America’s colleges and universities. When will they start to develop some awareness? Here’s a simple clue to answering that question. Follow the money. Just start cutting it back. Or, even better, let’s eliminate large portions of their funding and protection. Awareness will follow the money. Stop the money. What will happen? Howling and yelping will rise; problems will decline.