Is this the first time the United States of American has risked or been in default? No, it is not. A default has occurred three other times in recent history, of our country, and we are currently now in default. Let's look at some of the reasons. The "rich elite" of this country think the vast majority of the American people are naive, ignorant, so poorly/under educated about understanding of these complex financial issues that they act as "sheeple" and this assessment is based on the current reality in the country today save a few who understand these important issues and the risk they pose to our country.
Sheeple is a term of disparagement in which people are likened to sheep. The term is often used to denote persons who voluntarily acquiesce to a perceived authority figure's suggestion without critical analysis or sufficient research to understand the ramifications of that decision. By doing so, Sheeple undermine their own individuality and may willingly give up their rights. The implication of the term is that people fallaciously appeal to authority and believe or do what they are told by perceived authority figures who they view as trustworthy. Being of this belief or blindly accepting it is extremely dangerous to your personal freedoms and our way of life and should be avoided at all cost!
The next time you hear anyone say the Government has never defaulted ask them what the word default means? The noun default means failure and the verb default means the failure to meet financial obligations or dodge payment. Default is defined as a failure to act on an obligation legally required.
It is a reality that the incoming actual tax revenues (income) have not even come close (a deficit) to the cost projections (of expenses) on which the various governmental department budgets were drawn up, so the US Government has looked at all the entities they owe money to and decided that "stiffing" the American people is the least likely to cause them harm. They will continue to pay the bankers and they will pay foreign nations and they will continue to bail out Wall Street for the mortgage backed securities fraud by embezzling your retirement money you gave them in trust. The plain and simple truth is the US Government has been and is continuing to rob you to save the private central bank (Federal Reserve).
For example, Social Security is not "unfunded" nor is it an "entitlement." That is your money that went into the trust fund. You worked for it, and it was taken out of all your paychecks even if you didn't want it to be taken out during your entire working life. The Social Security Trust Fund, without your authorization, invested your money by loaning it to the US Government, which promptly spent it (Yes, all of it) and more (borrowing an additional $0.43 cents of each dollar spent) and gave IOU's (paper promises) and which happens to be the largest single holder of US Government debt. At last count, Beijing (China) owned almost $1.2 trillion or 8% of U.S. Treasury debt. The Social Security Trust Fund owns $2.5 trillion or 17% and is counting on the IOU's (nothing but a paper promise) to pay future S.S. benefits.
The precise date of the onset of Social Security cash deficits (when outflow exceeds income) makes little practical difference at this date. Reforms to repair the system's finances should have been enacted years ago but Congress failed to act for political reasons, as is usualby kicking the S.S. can down the road. No one wants to cut benefits for today's seniors, raise taxes on wage earners in a recession or cause benefits to decline in real terms. Any changes to fix the system must be phased in gradually, and we are nearly out of time to usher in those changes in a way that avoids stark inequitieslike the inability to pay promised S.S. benefits.
Whether Social Security's annual shortfall arrives in 2016, 2014, or sooner, today's long-run actuarial imbalance is already much bigger than the gap that required enormous political exertions in 1983 when Social Security was on the brink of being unable to pay benefits. The window of opportunity for a tolerable and fair solution is closing fast. Can we afford another 10 trillion in debt? Here are the facts on default.
Default Event #1. 1933. The federal government declared a national emergency, ordered Americans to sell all of their gold to the government for $20 an ounce, and then raised the price of gold to $35/ounce. In doing so, the government devalued the paper dollar by 43% and thereby defaulted on their debts.
Default Event #2. 1964-1968. The federal government stopped coining silver coins and then refused to redeem paper "Silver Certificates" with silver dollars. The free market price of silver was already about $5 per ounce so a $1 Silver Certificate was actually worth about $5 in physical silver. The government could no longer afford to surrender $5 worth of silver for each $1 Silver Certificate, so it passed laws to allow it to stop. In doing so, government defaulted on existing debt.
Default Event #3. 1971. In 1934, the feds fixed the value of gold at $35/ounce. By A.D. 1971, the free market price of gold was $41. As a result, the federal government was losing money by paying one ounce of gold for every 35 foreign paper dollars when the free market value of an ounce of gold was 41 paper dollars. President Nixon therefore closed the "gold window" and foreigners holding U.S. dollars could no longer redeem them for gold at the U.S. Treasury. Gold is now above $1,664 per ounce. This is quite a devaluation of the US Dollar, huh! Until this country returns to sound fiscal policies that prevent the US Treasury from flooding the market place with "fiat" currency that continually decreases in value (it follows the Law of Supply and Demand) while we continue on the path to destruction . All the while knowing the risk of our demise was preventable but self inflicted.
David B. Currance
The GOP refused to end federal subsidies for ethanol because they all signed the Grover Norquist pledge to never raise taxes under any circumstance, and they said that ending the federally funded subsidy on corn grown for bio-fuel would essentially be a tax increase, although they didn't say how. But now that President Obama wants to continue the payroll holiday tax cuts that benefit 46% of American workers, people like you and me, who go to work everyday and pay our taxes, the GOP is going to block this extention and try to demand that the tax cut for us ends, which means that you and I will be paying more taxes, a tax increase, on our hard earned paychecks. It is abundantly clear to me, and anyone else who has half a brain, that they will fight tooth and nail to keep the Bush tax cuts for the richest 2% of Americans, a program that was supposed to expire after ten years, because it is unfunded and costs America billions of dollars in lost revenue, but when the tax cuts effect you and I, the poor working men and women, they will ignore the Grover Norquist pledge they signed and stick it to us again and again. The GOP is not for the little guy, never was, and never will be, so dont be fooled by their lies anymore. Wake up, and see them for what they really are. Hypocrites!
James F. Gilbert
The Beverly United Methodist Church would like to thank everyone who helped with and participated in the Beverly Days Car Show that was held at the Beverly United Methodist Church.
We would especially like to thank those who entered their car in the car show, all the local businesses who purchased a sponsorship for the show and the following businesses who provided door prizes that were given at the end of the day: Advanced Auto, American Mountain Theatre, Auto Zone, Coca Cola, Domino's Pizza, Durbin Valley Railroad, Gandy-Dancer Theatre, Hardees, McDonald's, Papa John's, Pepsi Cola, Pizza Hut, Taco Bell, Town Cinema, The Inter-Mountain and Wendy's.
Because of your generosity this was a very special day. All of us at the Beverly United Methodist Church would encourage you to support these local businesses.
The Rev. Michael L. Ford, Pastor
Beverly United Methodist Church
When NAFTA or the (North American Free Trade Agreement) was introduced under the Clinton Administration there were those that thought it was a good idea and others that want to explore the idea further. After much debate NAFTA was signed into law under President Bush and now we are going to have to be looking over our shoulders because soon if the Federal Department of Transportation or D.O.T. has their way our southern boards will be opened up to Mexico and their trucking industry.
A little known program at the time slipped through the cracks of Congress with little or no objection to and that program is called "The Cross-Border Plan." Now I see that many of you have not heard of this program because in the first round of debates on NAFTA it was tabled and thought dead in committee. But as we all know things have a funny way of coming back to bite us right where it will hurt the most and that is what happened here. This program called for the U.S. D.O.T. to pick from application they had received from Mexican trucking companies those they felt could meet the programs criteria and offered them U.S. operating authority while they, the D.O.T. over saw the operation of these companies that were now setting up operations in the U.S.
Now let's fast forward to the present. We have come to the end of the trial program and Congress and the D.O.T. now say that they have proven that Mexican trucks are safe and we can open up the borders permanently. Does anyone see a problem here? The list of problems is way too long to even begin to list here but if we just look at what has been happening in Mexico over the last few years with shootings of their citizens and shots being fired across the border at our citizens and border patrol agents, not to mention all of the illegal's that have been streaming in since the start of time. Now we get to the drugs and the main source of the money that flows from our country to Mexico and all the problems that come with drug smuggling. Remember it's all about the money.
Congressmen lead the way to stop DOT's attempt to permanently open our southern border. With the ink barely dry on the newly signed "Cross-Border Trucking Program" with Mexico, Rep. Peter DeFazio, D-OR, along with Rep. Duncan Hunter, R-CA, and Rep. Daniel Lipinski, D-Ill, immediately introduced a bill on July 6 that will put a stop to permanent operating authority and taxpayer funded monitoring of Mexican motor carriers.
Secretary of Transportation Ray LaHood's return flight from Mexico probably hadn't even landed in Washington, DC, yet when DeFazio, Hunter and Lipinski filed HR-2407, the "Protecting America's Roads Act." "AS I have said many times, three issues must be addressed in the "Cross-Border Trucking Program: Safety, Security, and Job Loss. I have sent several letters to DOT asking them to address these issues. My calls for caution have gone unanswered. Now the legislation that we have introduced will put the brakes on a bad deal for American truck drivers and the traveling public," DeFazio said.
This bipartisan bill seeks to restrict the "Cross-Border Trucking Program" to a pilot program that lasts no more than three years. The bill would prohibit the Department of Transportation from granting operating authority that extends beyond the duration of the pilot program, which effectively would kill any attempt to grant permanent operating authority to Mexican motor carriers.
"The latest step in the Obama administration's persistent maneuvering, which is assumingly intended to mislead Congress and the general public, put the pilot program on course for permanent status. In just a few short years, the program was set to become fully operational without due examination of whether any benefits outweigh a predictable and much longer list of drawbacks," Hunter said. The bill also shifts the financial responsibility of electronic monitoring of Mexican motor carriers participating in the program back off the U.S. taxpayers. Todd Spencer, Executive Vice President of Owner Operator and Independent Drivers Association stated, "We are pleased to see that congressmen have moved swiftly to interject some sanity into this blatant maneuver to permanently open the border to long-haul trucks from Mexico."