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State of America, First Six Months Under Pres. Obama & 5 Previous Presidents August 7, 2009

Posted by Daniel Downs in Barak Obama, Bill Clinton, Congress, economy, employment, federal budget, George W. Bush, health care, military, national debt, national security, news, politics, presidents, senior citizens.
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Brookings recently published mid-year report on the state of America at the end of Pres. Obama as compared with the past five presidents. There is a stark contrast between Obama and GW Bush. The tables below include comparisons of the presidencies of Bill Clinton, GW Bush, and Barak Obama. (To see the entire report, go to www.brookings.edu).

“Common Defense”

 

Bill Clinton (1993)

George W. Bush (2001)

Barack Obama (2009)

U.S. defense budget (billions of constant fiscal 2009 dollars)
$416
$395
$697
Number of U.S. military personnel stationed abroad
308,000
255,000
476,000
U.S. defense budget as a percentage of GDP
4.2%
2.9%
4.2%
Number of U.S. military combat fatalities
29
3
212
Number of nations that have tested a nuclear weapon
5
7
8
Armed conflicts worldwide
32
28
26
Civilian casualties due to armed conflicts worldwide
103,000
42,000
25,000

“General Welfare”

 

Bill Clinton (1993)

George W. Bush (2001)

Barack Obama (2009)

Real GDP growth (annualized for first quarter of presidency)
0.5%
-0.5%
-5.5%
Unemployment rate
7.0%
4.5%
9.5%
Consumer confidence (Conference Board consumer confidence index in June)
58.6
118.9
49.3
Inflation (six-month change in Consumer Price Index, annualized)
2.8%
3.6%
2.7%
Interest rate on 30-year fixed mortgage
7.42%
7.16%
5.42%
Public debt as a percentage of GDP
49.4%
33.0%
54.8%
Oil imports (as a percentage of U.S. oil consumption)
55.9%
70.6%
78.4%
Percentage of large metropolitan areas with employment declines
13%
37%
97%
Percent of large metro areas with house price declines
69%
1%
61%
Federal Reserve balance sheet as a percentage of GDP
6.20%
6.29%
14.51%
Personal savings rate
5.7%
1.9%
4.3%
Life expectancy for people born in year of election
75.8
77.0
77.8 (est.)
Percentage of non-elderly Americans lacking health insurance in year of election
16.8%
16.8%
16.6%

“Blessings of Liberty”

 

Bill Clinton (1993)

George W. Bush (2001)

Barack Obama (2009)

Approval rating of the president, as of July 15
45%
57%
60%
Approval rating of Congress, as of July 15
24%
49%
33%
“Satisfied with the way things are,” as of July 15 
24%
51%
31%
Satisfaction improvement over six months 
-5%
-5%
+14%
Approval rating of the president by independent voters, as of July 15
41%
52%
54%
Gap between Republican and Democratic presidential approval ratings 
58
59
65

What the above statistics tells us is what problems a president inherited and how much change he was able to effective produce. Clinton inherited Reagan’s fiscal discipline. Reagan’s ability to decrease taxes as well as government spending was a success that made Clinton appears a better president than he actually was. Congress is the legislative body that creates the final budget. A spending crazy Congress required a vetoing President like GW Bush. Now, we have Obama, one of those spending crazy members of Congress. GW Bush did as well as he did most likely because he a conservative Congress during his first six months in office.

To see how Carter, Reagan, HW Bush compares to the Clinton, GW Bush, and Obama, go to www.brookings.edu.

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Some Insights on the Economic Crisis July 4, 2009

Posted by Daniel Downs in federal government, Federal Reserve, national debt, news, political economy.
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In his recent financial commentary titled “When Zombies Attack,” Bill Bonner wrote,

“Rise of the Zombies,” is a headline in today’s Financial Times. It tells a familiar and predictable story: the feds have propped up businesses coast-to-coast. Instead of being allowed to fail, they are kept alive by the government…and continue to take resources that could be redirected to more promising competitors.

But don’t bother telling the feds that. They don’t care. The old, worn out zombie businesses still make campaign contributions and employ voters. The businesses of tomorrow don’t. The present votes. The future does not.

After telling us how the feds are ripping the taxpayers off to keep worthless business because of political cronyism, Bonner expands his coverage to include state revenue and a equation of political economy.

The feds and the states are losing income. When businesses lose revenue
they cut back expenses. But governments – at least those that are
modern popular democracies – find that they need to increase spending. They have more people asking for help. And they have programs that become automatically more expensive – such as unemployment benefits – when the economy softens.

Now, the equation of political economy:

Let’s see. Expenses down, income up = happiness.

Expenses up, income down = misery.

See how simple it is?

In another commentary titled “Stay Out of the Water,” Bonner get more patriotic meaning the Londoner mentions July 4th. Leading up to this holiday some news we all could believe in. It casued reveling among economists, investors and politicians. First, the report about Madoff’s sentencing for lying to investors was followed by reports from Bloomberg, General Electric’s CEO, and George Soros’ pronouncement that the “crisis is behind us and that growth will begin again next year.” But, on Thursdays, all of their hopes crashed after hearing the official employment report. Instead of going down as predicted, another 467,000 people joined the Democrats unemployment plan.

Bonner’s not-so-happy commentary continues,

And so…this weekend, investors walk along the beach deep in thought. Is it safe to go back into the water…or not? They should listen carefully. That gurgling sound they hear is not mermaids singing, it is the world economy, drowning.

As we reported in this space, the feds’ bailouts, boondoggles and bankers’ bonus plans aren’t working. At the end of last year, they predicted unemployment over 8% in 2009 – if the stimulus plan were not enacted. But it was enacted. Unemployment is at 9.5% already and it is still rising. It will be over 10% before the end of the year. Global trade is collapsing; exports from Germany and Japan are down about 40% from a year before. Prices are going down too – with a report this Wednesday that the entire Eurozone has slipped into negative inflation. And from Britain came data showing a contraction of 2.4% in the first quarter, bringing the year-to-year decline to nearly 5%. “Economy shrinks at 1930s rates,” said the headline in Wednesday’s Telegraph.

When we look at America’s employment numbers, we feel like a school doctor. We would call the authorities, except that it was the authorities who should be arrested. After the feds got finished with them, the numbers told of a better-than-expected drop in May U.S. payrolls. The key to this uplifting news was not a genuine improvement, but new and improved techniques in torture. Water-boarded with seasonal adjustments and birth/death models, the numbers began to see jobs
everywhere. As for “discouraged workers”, meaning those who gave up
looking because they couldn’t find a job, these unfortunate souls
disappeared from the jobless figures altogether.

John William’s Shadow Government Statistics reports that without these twists, the numbers tell the same story they’ve been telling all year – unemployment is still getting worse, at about the same pace as earlier in the year. “The unadjusted annual decline in May payrolls was the worst since May 1958,” says Williams. And if they were allowed to speak freely – as they did in the ’30s – the figures would show real unemployment at over 20% of the workforce…or about 30 million people. That approaches Great Depression levels…and we’re still only in 1930, not 1932. As for those still working, an additional 1.5 million U.S. workers have been “forced into part time work” according to the Financial Times.

Analysts compare these trends to post-WWII pattern, which result sin a 62 year cycle of credit expansion. That’s a long time of debt-based economic growth. That cycle is coming to an end and a new cycle begins. “It is the beginning of a major credit contraction, with no pent-up demand, no savings, and too much capacity to turn out too much stuff that too many people don’t have the money to buy.”

“With incomes falling and house prices weak, consumers will miss
payments, default, and cut back spending. Business earnings will
decline; bankruptcies will increase. This economic undertow is
treacherous. Investors should stay out of the water,” says Bonner.

For more financial insights of Bill Bonner, visit The Daily Reckoning.

National debt and divine justice March 4, 2009

Posted by Daniel Downs in Bible, covenant, economy, Federal Reserve, justice, national debt.
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The national debt was $10.6 trillion. According to Rep. Steve Austria, the national debt will increase another $1.1 trillion as a result of recent stimulus-bailout legislation. If we add the previous $800 billion bank bailout legislation, a more accurate figure is $2 trillion raising the national debt to $12.5 trillion. The Government Accounting Office (GAO) reports that foreign ownership of the national debt was around 30 percent. But at the beginning of the year, it increased to over 50 percent. If that were not bad enough, the Congressional Budget Office reports that Congress will spend $1.2 trillion more than it will receive this year. Again, if we add the recent stimulus bill, the numbers climb to over $1.7 trillion more than last year and all of it on credit. The U.S. government not only owes around $6 trillion to foreigners, the two largest creditors being Japan and communist China, but Congress intends to spend $2.1 trillion more than it can repay. When we compare the national debt to the total national economic productivity or Gross Domestic Product (GDP), which is estimated at a little over $14 trillion, it becomes apparent that politicians assume they have right to spend nearly all of the people’s wealth on credit.

Sadly, America is a debtor nation. As we will see, this type of compulsive spending for the cause of secular, socialist, and global agendas is a curse of divine justice. The following then is what the penmen of God had to say about this matter.

One of the more pertinent illuminations of ancient wisdom comes from the writer of Proverbs, who many scholars believe King Solomon was its author. King Solomon wrote:

Do not be among those who become guarantors of debt. (Pro. 22:26)

The federal government is a guarantor of student loans, bank loans, business loans, mortgage loans, loans to foreign governments, and other types of loans. For decades, the federal government has been bailing out bank and Wall Street because of bad lending practices to corporations and foreign governments. It is part of the purpose of the Federal Reserve, federal deposit insurance, and federal loan guarantee programs. Taxpayers have been footing the bill without even realizing it. Maybe now it will be understood that working taxpaying Americans are ultimate bailing out all these rotten practices for the benefit of those in power. As Austria has pointed out, the average Joe or Juanita benefits little. It should be apparent that profit over people is not working well for most Americans.

It is important to note that the Hebrew word used for debt in the above verse refers to interest bearing loans. In the modern vernacular, the proverb could be rewritten thus: “Do not be among those who guarantee interest bearing bank or payday loans for anyone.”

The law of Israel prohibited loans with interest. At the same time, the law also required society to give loans to the needy or poor. According to the laws governing credit and debt, all outstanding loans to fellow citizens had to be canceled every seven years. Only loans to foreign nations or foreign individuals were exempt from God’s law of debt forgiveness. (Ex. 22:25; Deut. 16:1-11)

If the covenant people were faithful to covenantal law, God promised a specific kind of blessing: they would become creditor to the world but not a debtor. However, if they did not follow God’s law, the Jewish nation was promised judgment. One aspect of the promised judgment was that they would become debtors and foreigners would consume their productivity. (Deut. 28:44, 33, 38)

Right now, foreigners either through financial debt or through an on-going international trade imbalance consume over 50 percent of economic productivity of Americans. By importing more foreign goods and services than exported, more of working America’s wealth goes to foreigners. What America exports more than it imports is military related goods and services. Yet, that too is more allusion than reality. For example, Congress gives Israel $2 billion in aid for the purpose of Israel using most, if not all, of it to purchase military equipment like airplanes from American companies like Lockheed. That $2 billion is part of the public debt borrowed to fulfill the aforementioned allusion. It is taxpayers funding the purchase of weaponry for the sole benefit of only a few Americans.

Another voice of ancient wisdom and enlightenment was the priestly prophet Isaiah. During an earlier stage of his preaching for God, what appears to have been a message addressed to the whole world is recorded in chapter 24 of the book by his name. The following are a few excerpts relevant to our discussion:

“Behold, the Lord lays the earth waste, devastates it, distorts its surface and scatters its inhabitants. And the people will be like the priest, the servant like his master, the maid like her mistress, the buyer like the seller, the lender like the borrower, the creditor like the debtor. The earth will be completely laid waste and completely despoiled, for the Lord has spoken this word…. The earth is also polluted by its inhabitants, for they transgress laws, violated statutes, broke the everlasting covenant. Therefore, a curse devours the earth and those who live in it are held guilty…. So it will happen in that day, that the Lord will punish the host of heaven on high, and the kings of the earth on earth.” (Isa. 24:1-3, 5-6a, 21)

Isaiah probably had in mind the law of credit and debt when he wrote that God was going to waste the earth and cause it to be despoiled. (24:3) This divine punishment will be the result all inhabitants polluting the earth. The earth becomes corrupted because of the perpetual violations of the eternal covenant and its laws. (v. 4) Because all people are as guilty as the next guy, all would experience what God means by making the earth completely laid waste. (v5) The peculiar result is stated by the prophet this way: “The buyer will be like the seller, the lender will be like the borrower, and the creditor will be like the debtor.” (v 2)

Many scholars, Jewish and Christian, claim the eternal covenant refers only to the 663 laws written in the books of Moses or Torah. This is not the case. The eternal covenant began with Adam and his sons. It was perpetuated through Noah, later though Abraham, expanded to a national model of society through Moses and Israel, expanded again with the priesthood and the royal bloodline of David, and more fully completed through Jesus of Nazareth and his disciples. The moral law of the eternal covenant is still in effect today just as it was when most of the laws of the American colonies and later the states and the nation conformed to it.

What makes the prophecy of Isaiah so interesting is the fact that it has been happening in our lifetime. For example, most workers today produce goods and services that they or others within their companies sell. All workers in turn buy things they want or need from other sellers. Seller and buyer are virtually the same.

Okay, it could be rightly argued that it has always been the case since ancient times. Not so with banking, which didn’t exist universally? In banking, depositors lend their money to banks often believing that they will earn more money through interest. This belief is erroneous because banks only pay interest rates near the inflation rate. Bank CDs pay little over the inflation rate as well. Therefore, banks only allow depositors to keep the same value of their original loans also called deposits. Banks take the depositors loans and lend to borrowers at higher interest rates in order to make a profit. Depositors are very kind people because they lend money to needy bankers so that they can earn a living without having to do much strenuous labor.

We can apply the same to the national debt. Taxpayers hold the gigantic public debt in the federal government who lends to as well as borrows from the American people and from foreigners. Government borrows by exchanging paper bonds of specified value for money of equal value with a promise to repay at set interest rate, which rate is usually a little more and sometimes less than the inflation rate. As with depositing wealth in federal banks, lending wealth to the government is not very profitable, especially for individuals. It is an allusion because the feds inflationary program consumes any real profit. The actual beneficiaries are institutions of government and corporations. (By the way, Federal Reserve Banks, Fannie Mae, and Freddie Mac are unconstitutional and illegal corporations, and so are any other institutions incorporated by the federal government. The records of the Constitutional conventions prove it. Their existences are monuments to criminal acts against the Supreme Law of the Land.)

Another golden nugget of ancient enlightenment reveals the likely outcome of unethical and lawless financial acts against God’s eternal covenant. As it was written by the author of Proverbs:

“The borrower becomes the lender’s slave.” (22:7)

To whom then is the America enslaved? Is the imperial government enslaved to both the global agenda of its politicians as well as to foreigners? Are we the people really free? Are we not more like indentured servants to a corrupt government, corporate powers, and foreigners? Consider that foreigners now own a significant percentage of all industries and physical capital. Moreover, federal and state governments have seriously considered leasing our highways to foreigners to fund their transportation departments.

Isaiah 24 also sheds light on Revelation 13. When the beast or anti-Christ arises, he will gain control over the global economy. When this global dictator does, all–both buyer and seller–will become truly equal. They both will be subservient to him. None will they be able to buy or sell without giving allegiance to this dictator and his politics of change. Here is secular egalitarianism at its worst.

This is the end result of a globalized economy regulated by a unified world government fostered by world socialists on Capitol Hill, in state government, corporations, and universities of America. It is part of the divine judgment and the eventual end to their grand schemes whether called secularism or socialism or globalism or democracy.

As depicted by Isaiah 24, the eternal covenant will still stand after they have perished from the earth.

By Daniel Downs

Source: Xenia Citizen Journal, March 1, 2009

A Global Economic Rule : Big Government Bails Out Bad Corporate Finance November 24, 2008

Posted by Daniel Downs in capitalism, corporations, Democrats, economy, globalism, monetary policy, national debt, politics, Republicans, war.
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“If companies (e.g., banks) are big enough, and the country is rich enough, corporate managers and investors can use the government as the ultimate insurance policy to bail them out if speculative risks go wrong.”

— Robert A. Isaak (2005)

The above quote (also was written in Here’s A Thought section) is a rule of the global economy, according to Pace University professor of International Management Robert A. Isaak. This rule is evident in the history of the concept of competitive advantage that began with Adam Smith’s Wealth of Nations was further developed by British Economist David Ricardo. Competitive Advantage is Ricardo’s application of Smith’s idea about growing national economies by maximizing individual interests. Ricardo’s believed all nations would benefit more equally if all nations concentrated on one or few competitive strengths like producing steel, automobiles, oil, computer technology, etc. This was Ricardo’s idea of balancing trade and maximizing national prosperity.

German economist Frederick List and British philosopher John Stuart Mills both saw the necessity of protectionist policies by means of tariffs to allow the incubation and maturation of new national specializations, especially new manufactured goods and new technologies. These policies worked well for many years. The British hegemony of the 19th Century and America’s domination during the 20th Century prove that competitive advantage works. However, global economic hegemony is not possible without possessing the world’s key reserve currency.

America assumed global economic leadership (hegemony) with the creation of International Monetary Fund (IMF), World Bank, and General Agreement on Tariffs and Trade (GATT) at Bretton Woods. Through these institutions, America gained control of the global economy. At the same time. the dollar was fixed to the value of gold, which in 1934 was $34 an ounce.

American politicians began violating these policies of their own making to fund the rebuilding of countries devastated during World War II. It was not out of the goodness of their hearts; the aim of the Marshall Plan was economic growth and the creation of deterrence against Soviet aggression. Under the leadership of President Lyndon Johnson, our government continued to print money (increase the national debt) to fund the Vietnam War and his Great Society programs, which were meant to further the socialist domestic programs of FDR’s New Deal.

Yes, Democrats believe in war and its debt. FDR, LBJ, John F. Kennedy, Bill Clinton were all Democrats and warring commanders-in-chief. Don’t expect Obama to be any less. This means Republicans like Bush are no more warmongers than democrats.

When it comes to screwing up the economy, liberals in Republican garb deserve as much credit as democrats. This is especially true of Richard Nixon, who removed America’s global currency from the gold standard. Why? He had to maintain big government spending. While Charles de Gaulle was dumping the U.S. dollard for gold, Nixon was dumping gold for a new system of floating IOUs. According to Professor Isaak,

Now a dollar was a good as you think it is. That paper IOU in your pocket is just a piece of paper based on a lot of belief. Currencies have become bets placed on the short-term futures of the national (or regional) economies that they represent. As money not just paper but credit cards and blips on computer screens, not only did the world economy speed up, but the uncertainty about the value of any of these symbolic commodities increased as well.

Liquid gold — oil — became one of those industry favored by competitive advantage with the legal blessing of government. Before the 1970s, western nations held that advantage. Then arose a bunch of disgruntled Arabs who formed OPEC to take away some of that economic advantage for themselves. Today, we here more about OPEC than the western oil cartel. But, as Equatorial Guinea’s national leader has demonstrated, the blessing of competitive advantage conferred on EG by the American oil cartel does not benefit the poor natives who still live on $1 a day. The citizens of EG do not benefit from their God-given natural resource. Only tyrants, both African EG and American, do.

When the World Trade Organization (WTO) replaced GATT, the rules changed to further benefit only the rich and powerful nations. The same has occurred with massive revolution of information distribution. The rich came to own and control the media, the cheap and often free means of information and its distribution, only to dominate culture, politics, and the economy. Only those who gain the attention of the world’s masses can control the information economy and modern technology–so much for democracy and capitalism.

Anyway, as an example of how the above quote works, Professor Isaak uses the rise of Mexico as a competitive oil producer. When oil was discovered in Mexico, Marxist economists from the Cambridge School of Economics in England advised Mexican officials to take out more loans than they could afford to pay back. By doing so, the Marxist believed “Mexico would ‘have the banks by the debt,’ and the U.S. government would have to step in and bail out the banks or the banks would have to write off the debts to avoid a global financial crisis.” This worked for by the 1980s the price oil fell making it impossible for Mexico to repay their loans, which initiated the severe economic recession of the 1980s.

Whereas British Marxist saw the demise of American hegemony, David Rockefeller, head of Chase Manhattan Bank, saw Mexico’s liquid gold as a treasure to be exploited. He too encourage Mexico to take out huge loans knowing the principal would not likely be paid back. Rockefeller believed that Mexican oil profits would continue to increase, which meant enormous repayment of loan interest. Based on this hypothetical growth, he and other American and European bankers believed risk would be worth it. However, his expectations were crushed with steep declines in oil prices.

As reported in 1987 by Melanie S.Tammen of The Heritage Foundation, Mexico’s oil-based debt was $100 billion and almost $30 billion was owed to American banks. Federal Reserve Chairman Paul Volcker encouraged Mexico to increase borrowing based on the belief that it would spur economic growth as well as solve the international crisis that began in 1982. By 1987, the American government initiated a 14 billion dollar bailout of our failing banks. This plan was the brain-child of both Fed Chairman Paul Volcker and James Baker, Treasury Secretary to Republican President Ronald Regan.

We should not forget that this was also the decade of gasoline rationing and the savings and loan debacle.

In 1995, oil-rich and Marxist Mexico was bailed out again. Fed Chairman Paul Volcker again advised Democrat President Bill Clinton to help bailout the Mexican economy as well our banks. This time the it took $50 billion.

Obama and other Democrats claim deregulation is one of the main underlying causes of the current economic crisis and bailouts. They were right. What they and the media withheld from the American public is the fact that deregulation began under Democrat President Jimmy Carter, a Democrat-controlled Congress, and a Supreme Court favoring deregulation.

Thus, Isaak shows why Rep. Ron Paul’s advocacy of returning the dollar to the gold standard, the economy to the original ideal of capitalism, and limiting federal government and its spending are necessary now. America’s political and corporate leaders are leading us down the path to disaster. If Gerald Celente of Trends Research Institute is correct, they are leading us into a crisis worse than the great depression, one resembling communist Union of Soviet Socialist Republics’ (USSR) pre-Perestroika food lines.

Sources:

Robert A. Isaak, The Globalization Gap: How the Rich Get Richer and the Poor Get left Further Behind (Upper Saddle River, NJ: FT Printice-Hall, 2005), pp.161-182.

Heritage Foundation, Foreign Aid and Trade, Backgrounder #588, September 25, 1987

PRWeb, August 20, 2008

The Democratic Party Community Blog, October 11, 2007; Pipeline News, February 7, 2006

Trends Research Institute

Don’t Bail Out My State: South Carolina’s Governor Says More Debt Isn’t The Answer November 17, 2008

Posted by Daniel Downs in Congress, economy, health care, national debt, news, politics, taxes.
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The Wall Street Journal published an article by the above title today. Its author was South Carolina Governor Mark Sanford. Gov. Stanford presents an informed argument against the Congress’ bailout of Wall Street and cash strapped states. He asks and answers a number of questions that are worth considering.

One of his questions is: Who bails out the “bail-outor”? What he means is who will bailout the federal government. His answer is what we already know. The federal government does really have any money. All of the money it plans on using to “stabilize” banks, Wall Street firms, automakers, and states will all be borrowed against every Americans future income. The answer, therefore, is either no one because foreigners and their governments are also experiencing the same deepening economic recession.

Gov. Sanford makes a point all taxpayers must seriously consider. He wrote, “Already, our nation’s unfunded liabilities total $52 trillion — about $450,000 per household. There’s something very strange about issuing debt to solve a problem caused by too much debt.” (Emphasis added.)

All of the talk about balancing the federal budget is nothing but hot elite air. Not only will the feds not be able to balance their budget, but their huge bailout borrowing extravaganza will hurt fiscally responsible community banks and fiscally prudent states, according to Gov. Sanford. As he indicates, the bailout will only benefit the bad boys.

Democrats want to increase the national debt even more by expanding health care costs. Gov. Sanford informs us that Medicaid expenses have been increasing 9.5% a year for the past 10 years, which is unsustainable. Add universal health care costs to the bill and what is already unsustainable becomes a catastrophic economic problem. Who will pay for it? The largest group of taxpayers in America is the middle-income group.

President-elect Obama is being billed as the next FDR. That should cause great concern to all because FDR began the big borrowing-big government programs. FDR helped to prolong the economic crisis of the 1930s. FDR jumped into World War II in order to borrow…borrow…borrow America out of the great depression. WWII was legitimated borrowing huge sums of money to put Americans to work. Does did really work? Only temporarily. What I have been hearing from various economists and money market experts is that each economic crisis has been getting worse since FDR’s big borrowing bailout.

Another important question Gov. Sanford asks is: Isn’t government intervention supposed to be the last resort and come only when it can make a difference? As he notes, Congress committed $2.3 trillion as a first resort solution to improving our economy. Adding another $150 billion is like adding a twinkie to truckloads of sugar already dumped to sweeten a lake. It won’t make much difference except to the taxpayers who will have to repay the insane amount of debt.

Maybe that is why millions of Americans have little savings, no retirement, inadequate health care, and little economic future.

Looking at the issue as a head of state, Gov. Sanford counsels against states accepting a federal bailout of states. Instead of is his solution to states effects by the economic crisis:

[T]here is something Congress can do: free states from federal mandates. South Carolina will spend about $425 million next year meeting federal unfunded mandates. The increase in the minimum wage alone will cost the state $2.6 million and meeting Homeland Security’s REAL ID requirements will cost $8.9 million.

Here is the age-old wisdom of Constitutional government: Limited not only as to its powers but also to its spending, borrowing, and taxing.

Gov. Sanford apparently believes it is not too late for Americans to stop Congress from mortgaging our economic future with unsustainable debt to bailout Wall Street and states.

To contact your Congressional representatives, go to the House of Representatives directory and to the Senate directory or call the Capitol switchboard at (202) 224-3121 for Representatives and Senators.