Government Control Run Amuck

Government is broken. We hear about it all the time. But this story about government shutting down a neighbor helping a neighbor should shock you. 

For those of you that don't understand freedom and liberty and getting government out of our lives, you must read this article.

The state government in Michigan actually threatened a mom from watching kids waiting for the bus in the morning.  This must stop.

Social Security Insolvent: $150 billion added to federal deficit

Today, the Social Security program became insolvent.

Since its inception, Social Security was running a surplus, and promises of "lock boxes" and "trust funds" were made by politicians claiming that the program was flush with money and that we have many years of solvency.

We all knew this was bogus, of course, as I laid it out here last year. But now the Social Security program no longer will artificially lower our federal deficit, it will add to it. From today on, we will have to "borrow" money from the trust fund that we already spent.

Last year, when the federal deficit was around $480 billion, we added $1 trillion to the national debt. How was that possible? First, there was $350 billion of "off budget" spending such as emergency spending on the wars and economic bailouts. But more importantly, the surpluses of the Social Security trust fund was lent to the general budget (and not counted against the federal deficit).

This year, however, we will miss the opportunity to spend the $150 billion that was added to the general fund. Now we are forced to print more money to pay for Social Security.

Washington is broken and needs an honest analysis and serious belt tightening...

But here is the link to this groundbreaking story that no one will really cover...

Pop Culture Icon Offers Great Advice

Simon Cowell, of American Idol fame, is sitting at the top of the mountain. Fame, success and riches.

On his 50th birthday, he wrote this letter to his younger self, that summarizes his life--and to offer some advice...

The take away? 

1. Don't worry so much from day to day...

2. Don't buy something to impress others

3. Don't do debt

4. Work hard and believe in yourself..

Inflation at 18%?

If China and Japan do not buy additional debt, the cost for the US government to borrow money will go up (interest rates will rise). 

It should be STRONGLY noted that Japan is only buying SHORT TERM DEBT. America is not able to keep borrowing long term. It is simple as that. 

On a related note, the United States will have to borrow $2.5 trillion this year alone. In addition, the Obama Administration wants to push universal health care at a cost of $1 trillion over 10 years. Additionally, a cap and trade bill will cost Americans trillions of dollars in increased energy costs and inflation for EVERY product requiring transportation.

Now how do we expect to solve this problem with Washington living in a parallel alternative universe? The answer? We can't. We need some tough love for our elected leaders. The questions is, who will be the recipients of tough love, the producers or non producers?

Read the story of inflation predictions here.

American Debt Crisis

I have had many conversations with people in powerful positions in Sioux Falls over the last week. When asked what is the condition of America, all responded that we are somewhere between a 5 and 6 on a scale of 10. (10 being absolute destruction).

I maintain we are approaching a 9--in medical terms, it would be referred to as "approaching room temperature." Why do I have such a grim outlook when others seem fearful, yet confident we will recover? 

As person after person explained to me, there have been terrible times throughout our nations history. During WWII, imagine facing a world war. After the Korean War, but especially after the Vietnam War, our country faced mutually assured destruction. One individual says his mother truly thought during the Bay of Pigs that nuclear war was imminent. Finally another reminded me of the days of 18% interest rates and 10% inflation of the middle and late 1970's. America has always rebounded and come around.

But as I explained to them, we have never seen a time in our country where government promises and the government's ability to pay for them have been so far apart. We are adding $2.5 trillion to the national debt in a single year. We have $65 trillion of toxic assets that are bubbling right below the economic surface. 

And then this article explains the biggest problem of all. Record government spending over the next 30 years that will eventually bleed the taxpayers dry.

Don't miss it. This will make you reconsider the frightening future of America.