Wednesday, October 15, 2008

This Is Bad

Every 4 years Americans convene to select a new president.  We  painfully examine the backgrounds and pedigrees of several dozen experienced politicians.  Nothing is off the table: sexual peccadillo's, drug use, SAT scores, military experience, educational achievement, etc... 

Then, with solemn demeanor we cast our votes....

And elect the tallest guy.

Dear Mr President (Obama):

The U.S. equity markets have lost over $9 TRILLION in value.  

The U.S. housing equity has lost over $4 TRILLION in value.

The U.S. Commodity markets have lost over $500 BILLION in futures contract value.

We, as a nation are MUCH poorer than just 1 year ago.  This is very serious stuff.  There ARE no rich to tax into submission anymore, and even if the government were to be so silly as to try to RAISE taxes, most folks have tax losses to carry forward for YEARS.

The good news is you will be able to take credit for the eventual recovery in the markets during the first years of your initial term, but won't be able to take credit for lower gasoline prices (that will have happened by January 20th).  

We can make real progress if you level with the American people (and if you stiff your supporters, all of whom are standing at the trough eagerly awaiting their reward) about our energy predicament.  We have had a U.S. Department of Energy for 31 years now, a huge rambling bureaucracy that cost plenty and does nothing - oil imports were less than 25% at the time of the U.S. Dept. of Energy's founding and are now over 65% (and falling, though not due to any positive action of our own, but from constrictions in the availability of surplus Oil in the exporting nations).

The economy is in need of fiscal stimulus, the monetary stimulus has prevented an immediate collapse, but if the government raises taxes now IT WILL BE LIGHT'S OUT.

Lastly, just one quick question:

If raising taxes is a bad idea in a shrinking economy... Why is it a good idea otherwise?*

Mentatt (at) yahoo (d0t) com

* To raise money to pay your constituents at the expense of the other guy's supporters.  It was a rhetorical question, after all.




5 comments:

bureaucrat said...

Quick line-up of Federal spending (FY 2009) ...

Social Security $644 billion
Medicare $408 billion
Medicaid $224 billion
Interest on debt $260 billion
Defense $515 billion

Total of above $2,051 billion
Tax receipts $2,700 billion

3/4ths of the Federal budget is more or less untouchable.

Now, other than my pension, what part of "no way" do you and Obama & McCain not understand? There is no energy independence, and there is no meaningful cutting of Federal spending. No way. Period.

bureaucrat said...

Taxes on the "non-existent" top 5% of income earners are going up. Simple as that.

A Quaker in a Strange Land said...

Bureaucrat:

If you increase the tax you are talking about, the U.S. WILL enter an EXTREME recession. What part about that don't you understand?

The liabilities in the budget are politically immutable, the income (debt) to pay them is not. What part about that don't you understand?

These things will get cut - SIGNIFICANTLY - one way or the other at some point. How that is managed will mean a great deal to Americans.

bureaucrat said...

If people go back to the basics, like food, housing and energy, and start over, we will be fine. An extreme recession resulting in the backruptcy of Mars candy company, Carnival Cruise Lines and Wynn Resorts will be like Saddam Hussein: nobody is gonna really miss them. :) I've been reading about our expeanding national debt since the 1990s. As of today, my very wealthy parents are still getting every Social Security check and veterans benefit. Wake me up when the apocylapse starts. Zzzzzz. :)

Anonymous said...

Just remember that Obama is part of the really radical left that now controls the Democrats. They aren't particularly interested in a prosperous America. They want one party Socialist world with a Socialist America as a vassal state. The average American should, in their eyes, be MUCH poorer than today, and they intend to make it so.