Posted by
drpete on Monday, August 17, 2009 10:55:07 AM
In my last column, among much else, I posed the following question, asking
what would be your strategy going forward?
If your household is average, typical, garden variety, everyday,
run-of-the-mill, and thus grosses, I'm guessing, say, $70,000 per year
and nets after current taxes -- federal, state, local, on income,
sales, property -- say, $50,000, what would your strategy going forward
be if you had ($572,000 [because of government fiscal irresponsibility]
+$115,000 [because of your own inability to control your shopping
addiction]) $687,000 in debt and current assets of, say, $80,000, thus
net worth of negative $607,000? That's where we are today, this day,
and there's no bailout 'cause the bailer of record is already in your
knickers and Zimbabwe says that it has its own problems.
I intentionally misstated the dilemma you'd face, by using flawed accounting. There's good news and bad, but please either review the previous column so that you have the context
either here (to click back and forward between this and the prior column) or
or here (if you'd rather be able to scroll up and down the same page for both columns).
The personal financial dilemma I painted was a metaphor for where the country is, and I assigned to you your share of the government's $63,000,000,000,000 (That's trillion) indebtedness as one of about 120,000,000 (That's million) households. That came out to $572,000. Now for the flawed accounting, the intentional misstatement. What I didn't assign to you was your share (120 millionth) of the government's assets.
From an accounting standpoint, this situation
wouldn't show up on an "income" or "earnings" statement, but rather a "statement of financial position" or "balance sheet". Indeed, we through our government could sell assets to pay down those $63,000,000,000,000, and bring us back to financial solvency. The metaphor presented in the last column and restated above was to show you that we're toast. There's would be no hope. It's just not feasible, not possible, to dig out of that hole.
The federal government owns land, lots of it; indeed, more than half of all the land in the USA. There are just under 400 national parks. There are some 79,000 "historic places". The Great Smoky Mountain National Park is the most-visited and is in my backyard. Beautiful! I visited the Grand Canyon last spring. Beautiful! We could hold a global "absolute auction" Smoky Mountain is almost 521,000 acres while the Grand Canyon Park is about 1.2 million acres. Let's say that auction gets $1,000 per acre. Right there in one sitting we'd haul in about 1.75 billion bucks. If we just had another 360,000 equivalent places rather than under 400, we'd have the job done.
I've never been to the Alaska Natural Wildlife Refuge, that place of about 19,000,000 (That's million) acres and home to the porcupine caribou. Most of us know it as "ANWAR". A buyer might choose to buy just the 1,500,000 acres, known as "area 1002" wherein lies somewhere around 15,000,000,000 (That's billion) barrels of oil. At auction might we get, say, $300,000,000,000 (That's billion)? Geeez! Selling "area 1002" of ANWAR alone could get us maybe 1/2 of 1% of the way back to solvency. PETA likely wouldn't hold sway with the new owners, so the porcupine caribou would have to be dancin the aztec two-step to have much hope of continuing the specie.
So, I have the Great Smoky Mountain National Park in my backyard. In my "front" yard, then, I have Oak Ridge and the Oak Ridge National Laboratory. Here, we know it as "ORNL". When the Soviet Union imploded, that was good news. When we realized that Soviet nukes were outa control, that was bad news. Right now USA nukes are in control and by and at ORNL, the most secured and secure site in America. So, if by selling all of our national parks and our retrievable crude oil, we only solve, say, 1% of our debt problem, now what? Let's call it a debt "crisis" and not let it go to waste. How 'bout we auction our nukes? Let's say we have 5,000 of them and at auction they go on average for $100,000,000 (That's million) per. Even with volume discounts for big buyers, we could raise about $500,000,000,000 (That's billion).
Okay, to sum up so far, if we sold
all of the federal lands, not just those two parks, maybe we'd haul in half a tril. ANWAR itself get us a third of a tril. The whole nuke stockpile adds another half a tril. So, we're already at better than 2% outa hock.
I've gotta cut this short and bring this column to a close, 'cause I have towels to fold, a bit of yardwork to complete, a few honey-do's, and I've schedule golf for tomorrow, so lemme leave it to y'all to come up with some more money-raising schemes. Okay, sorry, just a little bit more.
I and other conservatives for years argued that you cut the deficit by cutting spending, and you reduce the debt by growing the economy. Between 2001 and 2008 the federal budget grew by 60% or 6.9% per year. With the growth of GDP during that same period, the budget would have been balanced (i.e., no deficit) if annual spending growth had been held to 4.4%
versus the 6.9%. Right now GDP has been shrinking slightly and may soon be merely flat. Both economic and fiscal policies of the congress and the radical-liberal-fascist-statist oligarchy are, and will continue for the foreseeable future to be, to devastate the American economy . . . by design. The largest federal budget deficit ever recorded was 6%. For 2009, the CBO thinks that it will top 10%. Over the next half-century, deficits in Medicare, Medicaid, Social Security alone will likely exceed $50,000,000,000,000 (That's trillion). Meanwhile, as wasteful as it undoubtedly is, the defense budget has shrunk to just 4% of GDP.
Is there any case to be made at all for weaning Americans off of Medicare, Medicaid, Social Security, SCHIP, the unearned income tax credit, government schools, the religion of environmentalism; of individual, overseas and corporate welfare; of "nation-building" and "promoting democracy" around the globe?
Not that it matters in this big picture, but yesterday Kathleen Sebelius, Health & Human Services Secretary, said that the "public option" was not an essential element of the President's healthcare program. They would consider "co-ops" as a compromise, that to provide "competition" for those evil, nasty private insurance companies. Republicans are stumbling over each other to jump aboard the bi-partisanship bandwagon.
What should we take from the Sebelius message? The White House has determined that HR 3200 or anything like it is a lost cause right now, and the best "foot-in-the-door" move on the road toward the goal of single-payer is the play-the-stupid-Republicans "compromise". Right now, conservatives should be taking the Sebelius stated rationale and turning it on her. The way to get competition for those insurance companies is to undue the myriad rules and regulations in place by government which prevents competition. Now that there is no bill written which reflects what the liberal-fascist-statist oligarchy is actually proposing, it will muffle the townhall meetings substantially.