Will the health care reform bill that the Democrats are trying to figure out a way to ram through Congress end up being the biggest tax increase in U.S. history? Unfortunately, a close reading of the bill leads to the inescapable conclusion that it will be. You see, the crafters of this legislation were smart. They realized that if they included one huge tax increase in the health care bill it would make headlines all over the country, so they chopped up the taxes into a bunch of smaller pieces in order to make them easier to swallow. In fact, one review of the Senate version of the health care bill identified at least 19 tax increases. When you put all of the tax increases together they add up to the biggest tax increase in the history of the United States. Considering the fact that the U.S. economy is already on the verge of economic collapse, the last thing that the American people need is a massive tax increase. But that is exactly what they are about to get. (Read More...)
Virginia Hands Out 6996 Traffic Tickets In One Weekend In An Effort To Raise Revenue For The State Government
In the old days, police officers wrote traffic tickers primarily to keep people safe and to prevent citizens from breaking the traffic laws. But in the new Amerika, all of that has changed. Now traffic tickets are primarily viewed as a revenue raising tool for state and local governments. For example, a federally funded ticketing blitz in the state of Virginia resulted in a total of 6996 traffic tickets being handed out this past weekend. This most recent ticketing blitz is part of a campaign code-named “Operation Air, Land & Speed”. Last Saturday and Sunday state troopers were ordered to absolutely saturate Interstate 95 and Interstate 81 and to issue as many traffic tickets as humanly possible during those two days. Why? Well, it turns out that the state of Virginia has a 2.2 billion dollar budget deficit that they are trying to deal with, and so they need to find some quick sources of cash. (Read More...)
The Mayor Of Detroit’s Radical Plan To Bulldoze One Quarter Of The City
How do you save a city that is dramatically declining like Detroit? Well, for the mayor of Detroit the answer is simple – you bulldoze one-fourth of the city. Faced with a 300 million dollar budget deficit and a rapidly dwindling tax base, Detroit finds itself having to make some really hard choices. During the glory days of the 1950s, Detroit was a booming metropolis of approximately 2 million people, but now young people have left in droves and the current population is less than a million. The true unemployment rate for those still living in Detroit is estimated to be somewhere around 45 to 50 percent, and poverty and desperation have become entrenched everywhere. In many areas of the city, only one or two houses remain occupied an an entire city block. In fact, some areas of Detroit have so many vacant, burned-out homes that they literally look like war zones. And yes, it is true that there are actually some houses in Detroit that you can actually buy for just one dollar. According to one recent estimate, Detroit has 33,500 empty houses and 91,000 vacant residential lots. So what can be done when an entire city experiences economic collapse? (Read More...)
The Move Your Money Campaign – Is Taking Our Money Away From The Big Banks The Answer?
Is taking all of our money out of the big banks part of the solution to America’s financial problems? The truth is that people across the United States are angrier about financial and economic issues than they ever have been in modern history. It did not sit well with millions upon millions of hard working Americans to watch their tax dollars being used to fund multi-million dollar bonuses at big financial institutions that were just bailed out by the U.S. government. It made Americans even angrier when these big banks that got the bailouts actually decreased their lending. It has been the big banks who got the massive government-funded bailouts who have been hoarding their cash, while the local community banks and credit unions that have been serving their customers loyally for generations have been left to die by the feds. Now the banking industry in the United States is more centralized than ever. At the end of 2007, the “Big Four” U.S. banks – Citigroup, JPMorgan Chase, Bank of America and Wells Fargo – held 32 percent of all deposits in FDIC-insured institutions. As of June 30th of last year it was 39 percent. (Read More...)
All Money In The United States Comes Into Existence As Debt – So What Will Happen Now That Bank Lending In The U.S. Is Contracting At The Fastest Rate In History?
Most Americans who closely follow economics understand that all money in the United States comes into existence as debt. Either the Federal Reserve creates it when the U.S. government borrows money, or private banks create it when they use fractional reserve banking to make loans to customers. If lending increases, it is going to create new money and increase the money supply. But if lending declines, it is going to take money out of the system and will decrease the money supply. So why is this important? It is important because without sufficient lending, the U.S. economy will seize up and grind to a standstill. Unfortunately, we have created an economic system that is fueled by credit, and without enough credit businesses can’t expand or hire more workers, individuals can’t buy homes and cars and there will not be any hope that the U.S. economy will function at previous levels. (Read More...)
What Happens When You Work As Hard As You Can And It Is Not Enough?
Once upon a time, most of us who live in America were taught that no matter what happens, if you are willing to work hard enough and long enough you can pull yourself up by your bootstraps and be able to live the American Dream. But today that is not reality for millions of Americans. Instead, millions of Americans find themselves working night and day and still not being able to make it. Millions of others have poured their hearts and souls into their jobs and now find themselves out of work and out of luck by no fault of their own. So what do you do when you work as hard as you possibly can and it is just not enough? (Read More...)
The 2009 Financial Report Of The U.S. Government Is Out – America’s Economic Goose Is Cooked
The 2009 Financial Report Of The U.S. Government has finally been released, and the news is not good. It basically confirms much of what we already know – that the United States government is a complete financial mess. The U.S. government budget deficit for 2009 was a record-setting 1.417 trillion dollars. The total liabilities of the U.S. government rose from 12.178 trillion dollars at the end of 2008 to 14.123 trillion dollars by the end of 2009. At their present rates of growth, the interest on the national debt and spending on entitlement programs will gobble up almost every single dollar of federal revenue by the end of the decade. Throughout the report, the word “unsustainable” is repeatedly used. The authors of the report understand that the U.S. government simply cannot keep spending and borrowing like it has been recently. But if the U.S. government slows down this reckless spending even a little bit it could literally plunge the U.S. economy into a deflationary depression. In fact, even with all of the “bailouts” and “stimulus packages” there are many who would argue that we are already in a depression. In any event, the authors of the report make it clear that the United States government is facing a financial crisis of unprecedented magnitude. (Read More...)
Is Moving Out Of The United States A Way To Escape The Coming Economic Collapse?
With the U.S. economy in a death spiral, many Americans have been wondering if moving out of the United States is a way to escape the coming economic collapse. While it is true that the U.S. economy will drag down the rest of the economies around the globe at least to an extent, the reality is that someone living on an island in the middle of nowhere will be able to weather the coming economic storm a whole lot better than someone in New York or Los Angeles. But is moving out of the United States a practical alternative? First of all, it is very important to realize that moving some to another country can cause a massive culture shock. Even a nation that you would think would be somewhat similar such as the U.K. can be radically different from what most Americans are accustomed to. In addition, in some cases there can be huge taxes and fees imposed on those moving to a new country. (Read More...)