Posts Tagged ‘Sequester’

Captain Rick: A shutdown of the U.S. Government will most likely begin on October 1, 2013, the beginning of the new fiscal year. There is currently no budget agreement to fund the U.S. Government for the coming year. The Democrat led Senate and the the Republican led House are in a stalemate that does not appear likely will be rectified by October 1. The real showdown will come on or before October 17, when the U.S. Government reaches the debt ceiling of $16.699 trillion and will begin defaulting on its financial obligations, an event that has never before occurred.

The last threat of shutdown occurred on March 27, 2013. It was averted by an agreement to allow Sequester spending cut’s (part of the ‘Fiscal Cliff’ legislation that became effective on January 1, 2013) to gain some flexibility regarding where to make spending cuts, in lieu of the mandatory across the board cuts.

My goal is to help increase understanding of the extremely important events that are unfolding…

image

U.S. Government Shutdown … What will happen? Non essential elements of the government will begin shutting down. These are things like National Parks and Monuments and the federal employees and contractors that support them. The employees would be furloughed. Contractors would have their payments delayed. At no time in the past has a shutdown lasted for more than a month. In every case the contractors eventually got paid and the furloughed employees were awarded back pay, so in essence, they received a nice long paid vacation, compliments of the U.S. taxpayers. In every previous case of shutdown, it ended up costing tax payers more than if the government had remained open.

What does a shutdown accomplish? Nothing, except increased cost. It is however, a necessary reminder that our government needs spending to remain less than revenue. In reality the U.S. has been spending far more than it receives in revenue, especially in recent years.

U.S annual spending: $3.52 trillion

U.S. annual revenue: $2.69 trillion

U.S. annual deficit: $825 billion

Total U.S. National debt: $16.95 trillion

U.S. GDP: $15.91 trillion (U.S. Debt exceeds GDP…a wake up call to get the fiscal house in order…or prepare for economic destruction)

Who is to blame? First and foremost to blame is President Obama. He is our president, elected to lead our nation in a positive direction…yet he has demonstrated the most reckless spending in American history, especially with his Fed’s continuation of pumping $85 billion per month of ‘Quantitative Easing’ debt dollars into the American Economy (adding directly to the U.S. National Debt) in an effort to make an economically sick nation look just anemic. It is all ‘smoke and mirrors’ that is doing nothing more than increasing America’s debt at an astronomic expense and burden to future generations.  Second to blame is the entire U.S. Legislature, including the Senate and House, Republicans and Democrats. None of them impress me as having the intelligence or ability to agree on a plan to withdraw America from its insatiable addiction for debt spending far beyond its revenue. I believe most of them have their ‘pockets’ fed by ‘big money’.

Obama passes blame and creates fear in news conference: Today I listened to President Obama speak in a news conference casting fear upon Americans by placing blame for his reckless spending on the shoulders of the U.S. House:
“If Congress chooses not to pass a budget by Monday, the end of the fiscal year, they will shut down the government along with many vital services that the American people depend on,” The Senate “acted responsibly” by passing its bill, and “now it’s up to the Republicans in the House of Representatives to do the same.”
He asked Republicans “to think about who you’re hurting” by letting the government shut down, and said “it would throw a wrench into the gears of our economy at a time when those gears have gained some traction.”
He also made clear that a government shutdown wouldn’t stop the Affordable Care Act from being implemented. “That’s not going to happen. More than 100 million Americans currently already have new benefits and protections under the law. On Tuesday, about 40 million more Americans will be able to finally buy quality affordable health care just like anybody else.”

Reality Check. What really happened: This was one of the most disgusting, fear-causing set of statements I have heard President Obama make recently. What really happened is that the House sent a bill to the Senate that included defunding Obamacare (a program with an enormous cost that America can not afford at this time of financial crisis). The Senate revised the bill to remove the Obamacare defunding and sent it back to the House. In opposition to Obama’s statement, I believe the Senate did not act responsibly. If the House does not pass the bill on Monday (which it should not), it will not be the House that causes the shutdown as Obama warns. It will be the result of the failure of the President and the entire U.S. Legislature combined. Obama said that a shutdown will stop many vital services. This is not true, unless the shutdown lasted for a long period of time…or Obama chooses to focus on certain entities for political gain. Obama’s scare tactics of asking Republicans to ‘think of who they are hurting’ by the government shutdown are absolutely despicable. President Obama should ask himself who he is hurting by spreading such fear and lies. This shutdown does throw a ‘wrench’ into Obamas ‘gears’ to make the economy look ok, when it is really sucking badly. Obama is fixated on Obamacare, a mark he hopes the world will remember him by. He will push it, even if it contributes to the financial destruction of America.  In reality, 40 million Americans are going to find out that ‘affordable health care’ is not really affordable and the majority of them will pay (or evade) the penalty to avoid it. The resultant unexpected, massive costs will lie firmly on the backs of American tax payers and add directly to the U.S. national debt.  I have this on my list of future blog reports. It sounds to me like Obama is running scared and is choosing to hide his fear by casting false fear on Americans. That scares me. Does it scare you?

View the comments (below) for ongoing updates of important happenings at the U.S. Capitol concerning this unfolding story.

I have done my very best to chronicle the events that contributed to this first U.S. government shutdown in nearly 18 years…as displayed in my comment updates below. This report could be among the best chronicles on the web. I am honored that Google and other search engines have picked up on this report.  The views for this report have exceeded those of all other ANJ reports by a factor of 10X+. The view stats from the past week far surpass any previous week. It tells me that there are lots of people that are tuning into this blog post to get the real facts…not the hype found on virtually all web news sites and especially TV news casts.

I welcome your comments, likes, shares and following of my blog! (If not visible, click the red title above)

Associated ATRIDIM NEWS JOURNAL Report Categories:

U.S. Government Shutdown

Obamacare

U.S. Debt Crisis

Fed Financial Policy

Captain Rick’s Fiscal Cliff Course 101

Economy

Advertisements

Captain Rick: The U.S. managed to crawl out of the GDP recession zone in its ‘final’ report for Q4 2012 to post a dismal 0.4% GDP, second worst since the end of the Great Recession in 2009. The first estimate in January reported –0.1% GDP, in the recession zone. 

GDP (Gross National Product) is the broadest means of quantifying the health of an economy.

In my previous GDP report, I stated: “If Congress gets tough and addresses the debt crisis head on, I suspect it will present a deeper, temporary plunge into negative growth territory. If Congress continues to ‘kick the can down the road’, I suspect we will see less of a dive in GDP early on…but will set the stage for a much deeper dive in a year or two…possibly as deep or deeper than the ‘Great Recession’ of 2008-2009”.

The U.S. Congress passed and President Obama signed legislation to “kick the debt can down the road” AGAIN as reported in my previous post. While these actions have no effect on GDP for Q4 2012, they will effect GDP for Q1 2013 and beyond.

image

The red line in the chart above indicates the 3% level that the U.S. GDP must maintain to keep up with population growth. GDP has been far short of that for many years. In spite of the positive hype we are hearing in the mainstream news media, America is traversing extremely dangerous economic waters. Hype does not fix problems… credible action does. Unfortunately the world is seeing ‘zero’ credible action out of the politicians who represent the citizens of the United States of America.

Prognosis for the future…where are we headed?

I see several troubling economic factors that parallel the times leading up to the ‘Great Recession’. The world stock markets have reached a new high, passing those reached just prior to the stock market crash of 2008. Like then, I see no justifiable reason for the market rise. Today’s market reminds me of a bunch of gamblers in Vegas looking for a place to throw all of their dollars to bet it all. The market is again inflating into a balloon ripe for explosion. Real estate prices have been climbing at a fast pace, as is real estate speculation…similar to that witnessed prior to the bursting of the real estate bubble, prior to the Great Recession. I can not predict how much farther things can go before a repeat of 2008 occurs…or perhaps worse, but I feel that a down slide is coming soon. Much will have to do with congress’s handling of the debt crisis (very dismal at this point). It will be further complicated by the multi-trillion dollar cost of Obamacare (the worlds greatest socialized, welfare medical program). In addition, we must remember that multi millions of baby boomers are beginning to collect Social Security from a trust fund that has been totally robbed of funds to finance the U.S. Government and its politician’s thirst for deficit spending. It will all play out in a very ugly scene before the world’s eyes during the next few years.

I welcome your comments, likes and shares!

Info from previous reports:

Fiscal Cliff: https://atridim.wordpress.com/category/fiscal-cliff-course-101/

U.S. Debt Crisis: https://atridim.wordpress.com/category/u-s-debt-crisis/

GDP: https://atridim.wordpress.com/category/gdp/

Captain Rick: The March 27 deadline for the U.S. government shutdown has been averted by yet another stunt by U.S. lawmakers to kick the U.S ‘debt can’ down the road AGAIN until the end of the fiscal year in September … when it will all come back to haunt us AGAIN.

U.S lawmakers finally brought the 2013 budget fight to an end on March 21 by approving a bill that ended the threat of a U.S. government shutdown on March 27. It funds the government through the end of the current fiscal year in September. The measure now set to become law reduces the impact of the $85 billion in forced cuts — called sequestration — to only $59 billion.

It establishes stop-gap budgets for targeted departments and programs. It resets priorities and helps better manage the draconian formula as set forth by the sequestration spending cuts. Overall, the legislation locks in $984 billion in non-entitlement program spending — a tiny drop from the $1.043 trillion initially approved before the forced sequestration cuts took effect.

image

I believe I speak for most Americans and many people around the world when I say … we have had enough of the “U.S. Capital Circus”. Its time for America’s president and lawmakers to unite and figure out a real solution to get America off of the deficit spending binge and balance the budget, followed by a way to pay back America’s monumental national debt of $1.7 trillion, which now exceeds America’s GDP. This is an extremely serious world economic issue … the world’s largest! Nothing else comes close in magnitude. Time is running short. Without real, credible action soon, America will fall over the real ‘Fiscal Cliff’ … a point of ‘no return’. It will take much of the world along for the fall.

I welcome your comments, likes and shares!

Info from previous reports:

Fiscal Cliff: https://atridim.wordpress.com/category/fiscal-cliff-course-101/

U.S. Debt Crisis: https://atridim.wordpress.com/category/u-s-debt-crisis/

Captain Rick: Its time to take a breather from America’s fiscal calamities to enjoy a Fiscal Cliff…Sequester  “Cartoon Break”.

image

image

image

imageimage

I welcome your comments, likes and shares!

On the serious side … info from previous reports:

Fiscal Cliff: https://atridim.wordpress.com/category/fiscal-cliff-course-101/

U.S. Debt Crisis: https://atridim.wordpress.com/category/u-s-debt-crisis/

Captain Rick: The U.S. Federal Budget has grown 40% larger since Obama became president. America’s thirst for deficit spending has has quadrupled since. Deficit spending has grown from under 6% of the Federal Budget in 2007 to a whopping almost 24% in 2013. At the rate President Obama is increasing the U.S. National Debt, deficit spending will consume nearly 50% of the Federal Budget by the time he leaves office. It is obvious he is leading America on a suicide journey to the edge of the Fiscal Cliff.

The Sequester Cuts, that begin to go into effect today, represent only a tiny reduction of America’s deficit spending as demonstrated by the pie crumbs left after a nearly quarter-sized hunk of pie was removed. The Sequester cuts represent only 2% of the Federal Budget and less than 10% of deficit spending.

image

The Sequester Cuts are tiny contribution to begin to harness President Obama’s debt spending binge. Actually, the cuts will achieve little if deficit spending keep increasing during the next year at the same rate as the past four. A year from now deficit spending will have gone up by a much larger percentage than the tiny reduction realized from the Sequester Cuts. America is in serious fiscal trouble. The Sequester cuts are a start. Far more needs to be done to save America from fiscal destruction in a few short years.

It would have been better if Congress and the President could have agreed on which cuts should be made, but they could not, thus the previously agreed Sequester, signed by President Obama, went into effect today. I believe I speak for many Americans when I say that President Obama’s choice to free thousands of illegal aliens under the guise of Sequester cuts was politically motivated and used very poor judgment.

When will the Washington Circus end?

Americans are getting sick and tired of it … but then they are the ones responsible for electing the incompetents representing us in Washington. Perhaps the real problem lies on the shoulders of our voters … but then again … we often face ‘crappy’ choices at the poll. Intelligent voters in America are becoming a minority. I am doing my very best to help reverse that trend! I hope you will follow my blog and share it with your friends via the many social network buttons I have provided for you below. And please…don’t be bashful…share your comment with ANJ’s rapidly growing audience across America and around the world. Your voice is important!

I welcome your comments, likes and shares … below!

More info from previous reports:

Fiscal Cliff: https://atridim.wordpress.com/category/fiscal-cliff-course-101/

U.S. Debt Crisis: https://atridim.wordpress.com/category/u-s-debt-crisis/

Captain Rick: On March 1, 2013 President Obama becomes the owner of the “Sequester”. He will shoulder the blame for this travesty of American government breakdown as a result of the Budget Control Act he signed into law on August 2, 2011.

image

The U.S. Senate failed to pass both Republican and Democratic alternatives to head off across-the-board spending cuts, further ensuring Washington will blow past a Friday deadline to avoid or replace $85 billion in cuts that threaten economic growth, military readiness and jobs.

The Democratic alternative would have replaced the cuts, known as the sequester, through 2013 with a combination of a minimum 30% tax on millionaires and cuts to defense and farm programs. It failed 51-49.

The Republican alternative would have transferred sweeping authority to President Obama to force him to determine how to implement $85 billion in cuts instead of the across-the-board spending cut affecting most reaches of the federal government. The sequester exempts military personnel accounts and the social safety net including Social Security and Medicare. The GOP measure also failed, 38-62.

Both proposals needed a 60-vote super majority to pass, but either vehicle was dead from the start. The GOP-controlled House opposes the Senate Democrats’ proposal because it raises taxes. GOP lawmakers do not support using new taxes to turn off the sequester; rather they are seeking alternative spending cuts and entitlement reforms.

After a two-month sequester delay agreed to in a January tax deal, the cuts are scheduled to start kicking in March 1. There is about $85 billion in cuts scheduled through Sept. 30, the end of the federal fiscal year. In total, the sequester will trim $1.2 trillion in spending across the federal government over the next decade if left untouched.

The cutting mechanism is an unpopular budget tool that was included as a fail-safe in a 2011 budget law that required Congress to find $1.2 trillion in deficit reduction on their own. When they failed to do so in December 2011, they started a one-year countdown to the automatic cuts. In the past year, Congress and the White House have been unable to come up with an alternative to the sequester, or reach a long-term budget deal that would allow them to turn it off.

The president and congressional leaders will make a final attempt at a pre-deadline compromise at a White House meeting Friday morning, but top lawmakers conceded the prospects were dim for a deal in the short-term.

Captain Rick’s closing thoughts

I believe I speak for most Americans by saying … our government in Washington is totally broken. I welcome your comments below.  

More info from previous reports:

Fiscal Cliff: https://atridim.wordpress.com/category/fiscal-cliff-course-101/

U.S. Debt Crisis: https://atridim.wordpress.com/category/u-s-debt-crisis/

Captain Rick: Blogs across America have exploded in the past few hours as they “smell a political rat” by President Obama’s mass release of illegal aliens in advance of and under the disguise of Sequester spending cuts. I have seen big political moves, but this one “takes the cake”. 

This appears to be a political move by President Obama to pressure Republicans to cave on automatic Sequester spending cuts which go into effect on on Friday. Those reading my previous reports, know that these cuts are necessary as a result of a total breakdown of Washington being able to legislate fiscal responsibility. It is a shame that our President has to resort to dirty politics by scaring Americans in order to continue his obsession for spending trillions of dollars beyond America’s means.

image

The Immigration and Customs Enforcement agency (ICE) confirmed that it has released hundreds of immigrants awaiting deportation trials over the past few days to prepare for the sequestration slated to kick in March 1.

House Speaker John Boehner (R-Ohio) told CBS News it is "very hard for me to believe that they can’t find cuts elsewhere in their agency."

My state of Arizona contains the most porous corridor for illegal aliens entering the U.S. It’s a very important issue for the citizens of Arizona. I received an email from Jan Brewer, Governor of Arizona. She sums up this political move with excellence. I share her words with you below.

Message from Jan Brewer, Governor of the great state of Arizona

I’m appalled to learn the U.S. Department of Homeland Security has begun to release hundreds of illegal aliens from custody, the first of potentially thousands to soon be freed under the guise of federal budget cuts. This is pure political posturing and the height of absurdity given that the releases are being granted before the federal ‘sequestration’ cuts have even gone into effect.

This represents a return to exactly the kind of catch-and-release procedures that have long made a mockery of our country’s immigration system. The news is especially concerning when coupled with DHS’ acknowledgment that it may not be able to maintain operation of 34,000 immigration jail beds, as mandated by Congress.

Everyone knows the federal government must get a handle on spending, and it is well past time that the President begins working with Congress to find real budget solutions. But we cannot let public safety and the rule of law be collateral damage of the President’s failed leadership to pass a budget.

My very best,

Jan Brewer

More info from previous reports:

Fiscal Cliff: https://atridim.wordpress.com/category/fiscal-cliff-course-101/

U.S. Debt Crisis: https://atridim.wordpress.com/category/u-s-debt-crisis/