By Michael Master

www.saveamericanow.us.com

It is obvious from most statements and articles that the Treasury Dept and the Fed do not really know what will happen if the debt limit is not raised. Government officials can only say: “do you really want to take that risk?”

Moody and the other rating organizations say that USA debt instruments will be downgraded if government spending is not cut immediately even if the debt limit is raised. According to HuffPost AOL News of July 21, 2011, the Treasury and the Fed already have contingency plans so that life will continue as usual. Philadelphia Federal Reserve Bank President Charles Plosser said that the Fed and the Treasury have been planning for months how to handle the situation so the American economy is not interrupted.

What the Fed and the Treasury do know is that the government will be able to pay most of its bills because it has an ongoing income of revenue every day from tax receipts. They also know that the government will have to prioritize what bills will get paid and what ones will not. And they know that the government will have to immediately cut back on its spending which will be good news to the rating services that might actually help increase the ratings of government securities.

Social Security checks will go out on time … not late as Obama tried to scare us. Medicare will be paid on time. And the military will get paid on time.

So maybe government workers will have to take a pay cut. That is OK since government workers already make 30% more than their counterparts in the private sector according to USA Today, which is part of the reason why the USA has a debt limit problem. Maybe marginal programs and payments to foreign governments will have to get cut. Maybe Obamacare will have to be repealed. Maybe the Department of Education and the EPA will have to cut back. Maybe the USA will have to get out of Libya and Afghanistan. Maybe NPR and Planned Parenthood will no longer get any money from the government.

Maybe these are the reasons why Obama is so worried about not getting the debt limit increased. His programs might get cut.

Obama increased spending by $700 billion per year (27%). So why is it so bad to cut back on spending the same as it was increased? Maybe the only way to get the government to cut spending is to take away its credit card.

It sounds to me like those Congressmen who want to raise the debt limit without cutting spending immediately are probably afraid that spending on their pet projects and pet lobbyists will get cut. It sounds like those businesses who want the debt limit raised are afraid that they might not get any more money from the government tit if it is not.

To me, it also sounds like not raising the debt limit might just be a good thing. Certainly, there will not be any gloom and doom. As said by Rahm Emmanuel: “never waste a crisis.” Maybe the USA will benefit more by not increasing the debt limit. Maybe that is the only way to cut government spending.

Obama said to Boehner and Cantor, “don’t call my bluff.” Well, maybe it is time to call his bluff. He isn’t holding anything in his cards. Since the Fed and the Treasury have already planned for the worst and say things will be OK, call Obama’s bluff. Cap the debt limit and do not raise it.

Michael Master is the author of “Save America Now!” It can be ordered at http://www.amazon.com/gp/product/1616235756

How to reduce the debt?

1. cut all federal government employee pay by 7%. According to USA Today, government workers get paid 30% more than their counterparts in the private industry. A 7% cut in pay will reduce deficit spending by $140 billion per year.

2. repeal Obamacare. According to the OMB, increased costs from Obamacare are $2.4 Trillion over 10 years. So a repeal of Obamacare will save $240 Billion per year.

3. Cut out unnecessary programs like payments to foreign governments by the State Dept (Hillary Clinton), EPA, Dept of Education (this is a state responsibility according to the Constitution), Several programs in the Dept of Interior, etc. This will save about $350 billion per year.

4. eliminate tax loop holes, oil credits, grants, environmental studies, subsidies for ethanol and other items. This will provide about $200 billion per year.

5. close several military bases and get out of Afghanistan and Libya. This saves about $100 billion per year.

All told, this is more than $1 Trillion per year without touching Social Security or Medicare.

Obama increased government spending by $700 Billion per year, so why not just reverse all the stuff that he added? That would save $700 billion per year.

So why doesn’t Obama do this? Because he really wants to grow government.

Source: www.saveamericanow.us.com

Hi Fred,

Let me answer the items that you sent to Ginger.

1. nothing can been done to circumvent your spam blocker. AOL has no methods to do that.

2. the issue is not one of immigration … it is one of too much immigration. 100 million immigrants and direct offspring in the last 40 years out of a population of 300 million in the USA are way too many immigrants to assimilate. My grandparents came here from Syria and Hungary. They came here to be Americans … not to be Syrians and Hungarians living in America. Ginger’s grandparents were the same. Her father refused to allow any of them to speak Spanish in the home. They had to speak English. They came here to be Americans. Of her 100 cousins, etc who live in Arizona and California, practically all of them think the borders need to be closed and that way too many immigrants are entering America. Assimilation is the issue … not immigration.

3. Like many of us who were hippies in our college days, Ginger and I made a mistake. We believed all the liberal crap about zero population growth. We believed the environmentalists about over population. We even voted for McGovern and Carter. We should have had more children. While Africa and South America have too many births, the western world has too few. By the time we understood the errors of our decisions, it was too late. Hopefully, our children will learn from our mistakes. A nation that does not produce enough children to replace itself is a dying nation. Caucasians have gone from 24% of the world population to 10% of the world population in the last 40 years because white people are not having enough children. Does the world treat white people as a minority? Of course not … the world is not interested in protecting minorities … it is interested in wealth redistribution … theft. The lack of Caucasian births is the biggest root cause to the world economic problems. Caucasians pay the bills while the other groups receive government hand outs. A reduction from 24% to 10% is having a huge economic effect on the world.

4. So why do I bother to send information to those who disagree with me? Well, what is gained by singing to a group of people who agree with me? People who disagree need to help each other see what they cannot see on their own.

There are 2 problems with Social Security and with Medicare:

1. the government used the funds for other things. It raided the funds for things like the Great Society. It needs to pay the money back. Cut other spending to do it. If Social Security had not been used for other domestic programs, then there would be no insolvency problems with it. It would be an annuity with employer participation as it was supposed to be.

2. the baby boom generation did not make enough children to replace itself as it aged. the number of people between 40 and 55 are decreasing. So there are not enough younger people paying into Social Security and Medicare. Therefore, the Ponzi program that was implemented to offset the stolen money from
Social Security is falling apart. This will only get worse until 2022 when the number of people between 40 and 55 starts to increase again.

The insurance companies understand this. They wanted out of decreasing margins from insuring an aging population so they convinced Obama to enact Obamacare to give them cover at decreasing benefits and increasing rates. They gave $20 million to Obama and only 7 million to McCain. Reid, Pelosi, Dodd, and Schumer received more from insurance companies than the entire rest of Congress combined. Read Kiplinger. It is all there. Insurance rates increased at twice the rate for the same coverage this year under Obamacare. If Obamacare is so wonderful, then why have more than 1300 waivers been granted? Why were waivers granted to AARP and to SEIU since they backed it so veheminantly?

Just 40 years ago, 8 people were working for every one person who was retired. Today, only 3 people are working for every one person who is retired. In just 20 years, there will only be one person working for every person who is retired. We did not have enough children to replace ourselves. Our government proposes more immigration to solve it. That is wrong, wrong, wrong. Read the words of Cameron, Merkle, and other leaders in the western world who have made the mistake of increased immigration to solve low birth rates. Increased immigration just exacerbates the problems. Healthcare, education, state provided benefits, wages, consumption, crime, all get strained to the breaking point.

Immigration is OK. But too much immigration is harmful.

It is time to face facts: liberal philosophies have destroyed America. Zero population growth for Caucasians was wrong. A nanny state was wrong. We need more white children, less taxes, and less government influence. When the government has too big of influence, then it becomes a breeding ground for corruption (Democrats and Republicans) … large companies, lobbyists, special interest groups, unions, oil companies, planned parenthood, ACORN, etc … they all learn to work the government system to get what they want at the expense of the individual tax payers.

Less government, less taxes, less immigration, and more children. Save America now.

www.saveamericanow.us.com