Write your senators and congressmen to let them know you oppose any “Fiscal Cliff” deal that doesn’t include substantial entitlement reform and real spending cuts, not dummy out-year cuts that will never happen. Write them now, because they will come under tremendous pressure to cave into big spending, big taxing Democrats desperate to keep that deficit spending heroin flowing.
Deficit spending will destroy our economy. The problem is not that we’re undertaxed, the problem is that the federal government spends insanely more money than we have in order to fund a vast array of crony capitalists, special interest groups, and permanent dole underclass for Democrats to milk for votes. If we continue down the current road, we will end up like Greece. There’s time to avoid going over the falls, but it’s getting shorter all the time.
Without spending reform, there’s a good chance that this nation of the people, by the people and for the people may very well perish from this earth.
I hope you’ve been enjoying your mythical Mayan Apocalypse.
But there’s a real, slow motion apocalypse that’s been going on all around you, and nobody is panicking about it, at least not in the open. I’m not talking specifically about the fiscal cliff, which is only a symptom of the problem rather than the problem itself.
The real apocalypse is out-of-control federal spending, and the tsunami of debt it’s creating. And I don’t feel “apocalypse” is too strong a word. Excessive debt destroys economies. When the money printing presses run unchecked for years on end, hyperinflation is the inevitable result.
The only reason we’re not suffering from hyperinflation right now is that Europe is sucking worse than we are. The Spanish economy is failing. The Greek economy has already failed. Were it not for that, it’s likely our huge budget deficits and the Fed’s printing presses would have already caused the Euro to replace the dollar as the world’s reserve currency. And, as Mark Steyn is fond of pointing out, Germany’s economy is big enough to bail out Greece and Spain. No one’s economy is big enough to bail us out.
Obama and the Democratic Party has wagered our future on the proposition that they can run trillion dollar deficits for years on end without destroying the value of the American dollar. If they’re right, they deserve to win, since everything we know about economics is wrong, and we can just print dollars until we’re all rich.
But the fundamental laws of economics haven’t been repealed. A reckoning is coming, and it’s going to destroy savings, economies and lives. And professional politicians, the Democratic Party, lobbyists and their mainstream media enablers would prefer to talk about anything else but the looming catastrophe. No wonder they want to talk about gun control and “the war on women.” Anything to keep the con game going until they’ve sucked the body politics dry. Just keep that deficit spending heroin coming.
The only question about that reckoning is exactly when it’s coming, and exactly how bad it will be. If we’re lucky, it will only be as bad as Argentina 2001. If we’re not, then we’re talking Weimer Germany 1921-23.
“Why would you leave $25 million on the table?” Oh gee, I don’t know, but maybe because you have to pay back $34 million on your risky $2.5 million loan? Math, liberal! Do you speak it?
Speaking of TPPF, they linked to this Dallas Fed report, which shows that the Texas economy continues to hum along. “Texas added 22,900 jobs in October, lowering its unemployment rate in October to 6.6 percent, down from 6.8 percent in September and 1.3 percent below the national average of 7.9 percent.”
Krauthammer: Republicans would be insane to take the “taxes now with a promise to consider cuts later” non-deal Obama is offering.
Especially since Obama’s tax hike “would have reduced the 2012 deficit from $1.10 trillion to $1.02 trillion.”
The national election was disappointing, but here in Texas Republicans continues to make gains. “Overall we have 796 more Republican elected officials in the State of Texas today than we did in 2008.”
Former Texas Democratic congressman Jack brooks has died.
And in case it got lost in the election night news, Steve Stockman, the Republican who retired Brooks in the 1994 election, is returning to congress representing the 36th district.
Displaying a willingness to perceive reality heretofore unguessed at, the Michigan senate passes right-to work legislation. Tomorrow: David Letterman’s Cold Day in Hell Special.
School goes into lockdown because a student brought…a thermometer.
Save the life of a fellow employee at AutoZone? That’s a firing. (Hat tip (last two): Alphecca.)
Once you find out that PSY once sang “Kill those f*cking Yankees who have been torturing Iraqi captives/Kill those f*cking Yankees who ordered them to torture/Kill their daughters, mothers, daughters-in-law and fathers/Kill them all slowly and painfully,” suddenly “Gangnam Style” doesn’t seem quite so amusing.
Lots of larger pieces in various stage of construction, but rather than put them up when everyone is getting ready for Thanksgiving, here’s a quick LinkSwarm:
Former Sen. Warren Rudman dead at age 82. Gramm-Rudman-Hollings really worked at controlling the deficit. That’s why Democrats had to kill it.
Israel and Hamas agree to a ceasefire. Pretty much ensuring that we’ll go through this whole charade again a year or two down the road.
The Bakery, Confectionery, Tobacco and Grain Millers Union, having been given a second chance by a federal judge, decided that the first hole in their foot just wasn’t big enough and decided to shoot again. Hostess is still dead.
Two weeks after wining reelection, and facing an FBI probe for corruption, Jesse Jackson, Jr. resigns. Like father like son.
Another quick update on the respective fates of our nation’s two biggest states:
In case you didn’t notice, California Democrats now have a super-majority in the legislature, which means they can raise taxes to their heart’s content. That should only heighten the difference between California’s Blue State model and Texas’ Red State model.
California spends far more money on its welfare state that Texas, but has greater income inequality.
Six days to the election, and I’ve spent most of the night handing out candy. Six days until we choose to follow the successful Texas Red State path of low taxes and limited government, or the failing Blue State California path of bankruptcy and bigger government.
CalPERS sues Compton to force the bankrupt city to keep donating to the underfunded, soon-to-be-bankrupt state pension fund.
Nothing at all to do with politics, but I can’t resist noting that the “Dream Team” Los Angeles Lakers have hit a little snag on their way to going undefeated in the regular season. Meanwhile, the completely gutted and rebuilt Houston Rockets are 1-0. You take your satisfaction where you can find it…
With the election less than two weeks away, time for a roundup of how the champions of their respective political models (Texas for Red States and California for Blue States) are doing:
Moody’s: “we expect…more bankruptcy filings and bond defaults among California cities, reflecting the increased risk to bondholders as investors are asked to contribute to plans for closing budget gaps.”
It’s all part of California’s Fifty Shades of Golden electoral masochism. “Not surprising, the most productive of California’s citizens are leaving in droves. For those who want to prosper, the safeword is “Texas.'”
The guy from California who under-reported unemployment to make the numbers look better? Obama donor. This is my shocked face.
California has actually carried out some pension reforms (like capping annual benefits at $132,000), but its pension plans are still underfunded by $165 billion.
California got $411 million in the National Mortgage Settlement. So how much of that actually went to help people with their mortgages? None of it. “Think of California’s persistent budget deficit as a great white shark devouring every source of cash in its path.”
The total personal income (TPI) in Texas reached $1.07 trillion dollars in the second quarter of this year, according to the U.S. Bureau of Economic Analysis. That’s an increase of 71 percent from the state’s corresponding total 10 years earlier, $626.7 billion.
Here’s another way of looking at it: Texas accounted for 8.02 percent of the nation’s TPI this year, up 1.10 percentage points from 6.92 percent in 2002.
That’s nearly five times larger than the runner-up, Florida, which increased its share of national TPI by 0.23 points in a decade. Just four other states registered gains better than a tenth of a point.
Texas has the best unemployment rate among the five biggest states, at 6.8%. California, at 10.2%, has the worst.
Lawrence Person’s BattleSwarm Blog endorses Ted Cruz for United States Senator. I believe that Cruz is the best candidate, that he has a long, strong, and deep commitment to conservative principles, and that he will make a great Senator for Texas.
I originally endorsed Cruz on April 30, a month before the Republican primary, and gave extended reasons why Cruz was the best candidate of all those running in the Republican primary, weighing the strengths and weaknesses of each. This post reiterates that endorsement, and explains why Ted Cruz is a vastly superior choice for Senator than Democrat Paul Sadler.
Sadler had a reputation as a “moderate” Democrat in the Texas House, which meant he wanted government to get bigger and spend more at a slightly slower rate than his fellow Democrats, and was reportedly a skilled legislator on education issues. But I don’t want a “skilled legislator,” I want a conservative fighter. I want someone to fight for shrinking the size and scope of the federal government and reign in the insanely bloated federal spending that’s holding down the economy, not manage the bloat. There are quite enough Democrats in Congress who pretend to be moderate until the votes really count (see also: ObamaCare); we don’t need another one.
Like his party, Sadler has moved steadily left over the years. After failing to win a U.S. House seat, Sadler worked first as an asbestos trial lawyer, and then as head of a Texas wind power coalition putting him in not one but two of the biggest recipient groups for liberal big government crony capitalism largess. This suggests that he would try to roll back tort reform and would make a very poor representative for Texas’ vital oil and gas industry.
Further, given the positions Sadler has taken in interviews and debates, there seems to be very little of that old “moderate” patina left on him. He’s for higher taxes, bigger government, green pork, public employee unions, illegal alien amnesty, and ObamaCare. He’d fit right in among the big spenders in a Harry Reid-led Senate.
By contrast, Ted Cruz is not only the unquestioned Tea Party representative for shrinking big government, he has a broad, deep and impressive conservative background. You don’t specialize in 9th and 10th Amendment studies because you want to be rich, and you don’t work at the Texas Public Policy Foundation if you want to be a squishy moderate. Cruz is not only exceptionally sharp, an excellent debater and a gifted public speaker, he’s also a classic fusionist candidate with both strong free market and social conservative credentials. He beat all his Republican opponents despite millions spent to smear him and came out of the runoff not only unscathed, but with a national reputation. He was a great Texas Solicitor General, and I think he will make a great Senator. I urge all my Texas readers to cast their votes for him as the next United States Senator from Texas.
Texas has benefited greatly from having a better economy than the nation as a whole, and Rick Perry made the low-tax, small government model Texas uses the centerpiece of his abortive run for President.
However, the Libertarian Cato Institute seems considerably less impressed with Perry’s job as Governor, as they gave him a C on their Fiscal Policy Report Card. Indeed, his numerical score of 51 is only two points above California’s spendthrift Jerry Brown (!!!) with a D at 49, and lower than the Republican average of 57.
Here’s their knock on Perry:
Governor Perry has a conservative reputation, but he hasn’t cut state taxes substantially or reduced the size of Texas government. Indeed, Perry has presided over steady increases in spending. Between the 2000–2001 biennium when Perry assumed office and the 2012–2013 biennium, state general fund spending rose at an annual average rate of 3.2 percent, and total state spending rose at an annual average rate of 4.6 percent.
His record on taxes is mixed. In 2003 he signed into law a package of tax and fee increases.In 2006 he approved a business tax overhaul that replaced the corporate franchise tax with a modified gross receipts tax called the “Texas Margin Tax.” The new tax hit 180,000 additional businesses and increased state-level taxes by more than $1 billion annually.
The added state revenues were used to reduce local property taxes, but the overall effect of the package has been to centralize government power in the state and reduce beneficial tax competition between local jurisdictions. Nonetheless, Perry has supported increases in small business exemptions for the Margin Tax. And in 2011 he vetoed a bill to tax online purchases. In 2012 he proposed a five-point Texas Budget Compact, which includes transparency in budgeting, a constitutional limit on spending growth, opposition to new taxes, a strong rainy day fund, and the cutting unnecessary government programs.
One reason Perry may not rank better is the report is based on data covering January 2010 to August 2012, so presumably Perry’s work as Governor in the preceding decade isn’t covered (despite it’s prominent mention in the section quoted above). Another is that several higher ranked governors scored well for things like cutting individual income tax rates, while Texas has no state income tax. I also wonder how well they factor in population growth.
While I don’t want to reject Cato’s ranking out of hand, the opaqueness of their rating system (which must necessarily involve a substantial subjective component) makes me very wary of taking it at face value. You would think that Brown would rank much lower, especially with his state’s municipal bankruptcies, tax hikes and the train to nowhere. Though I do think Perry still has considerable room for improvement, I have to take Cato’s ranking of him with several grains of salt.
And if you’re looking for a more readable version of the report, click here.
