What It's Not About

Don't Be Confused Or Bamboozled

This isn't, or shouldn't be, about raising taxes. Ever wonder why the Democratic Party is called the "Tax & Spend" party? During the first two years of this administration, when the Oval Office and both houses of Congress were controlled by The Great Thinkers, we saw lots of spending - too much spending. They saw the opportunity to commandeer the tax payer gravy train and they jumped right on in. In two short years they increased the national debt from the $10 trillion range to the $14 trillion range. That was in two years folks. It's going up again, if Obama and his cronies get their way.

This is all about politics at the expense of the American people, even a 5th grader can understand that. This short video will explain, in child like terms, what The Great Thinkers are failing to grasp. Or do they and just want to exercise their political agenda of more spending and more taxes?

Smarter Than A Fifth Grader?

Remember that a good crisis should never be wasted according to the occupants of The Whine House. The latest gambit is to seize upon S&P down grading the economic outlook to a negative. Here's the ploy. Nowhere in that report to down grade the outlook did they once mention having to raise the debt limit as the cure all, or reason, to turning the negative to a positive. There was not a mention of the debate on raising any debt ceiling. But remember not to waste a crisis. In fact, Barclay's Bank let it be known when issuing the report that, "This announcement was not about the debt ceiling." But remember to never let a good crisis go to waste.

I won't go into the complexity of the debt rating system. Just suffice it to say that it is extremely complex. There is a parallel to look at when back in 1995-1996 Moody's put parts of the the official US debt, but not all of it, in the negative ledger. That was a result of the debt ceiling impasse at that time and it was stated as such. Even if the debt ceiling issue is resolved in the short term, there will be little, if any, impact of turning the corner on the downgrade. Debt service is part of the key to understanding a part of this.

In the near term, the US brings in more than enough revenue on a monthly basis to service the interest payments on our debt. But that isn't necessarily a good thing if spending isn't cut. But it appears that The Great Thinkers up there don't grasp that part. If spending is not drastically reduced, the national debt cannot be reduced to lower those interest payments. Look at the bottle cap closely that I used for this Hub. Raising taxes isn't the answer because they'd have to go through the roof to make the present budget even come close to balancing, much less make any headway on reducing the debt. I wrote about "how much" we'd all be looking at yesterday here:

http://hubpages.com/hub/Did-You-Pay-Your-Taxes

Back to the crisis. The Democrats have seized on the S&P downgrade as the issue to have to raise the debt ceiling, even though that had nothing to do with the "why." The why is because of the continued excessive spending that this administration is once again proposing. As noted earlier, Barclay's specifically stated that it had nothing to do with the debt ceiling debate. But why let a good crisis go to waste? Lets just mix apples and oranges and see if the American people are as stupid as we think they are. Some of us aren't, some of you are.

Prepare yourself for this latest inane, insane Democratic attempt to spin a crisis. Isn't this the same Obama who, as a Senator, opposed the raising of the debt ceiling back in 2006. Didn't he say then that "Increasing America's debt weakens us domestically and internationally." I happen to agree with that statement of actual fact. Joe Biden and Harry Reid chimed in at the time stating the same thing just using more words. Aren't those same three responsible for raising the national debt another $4 trillion in two short years. Either they have short memories or very selective ones.

Harry Reid had this to say at the time, "Given the explosion of debt in recent years, it is long past time for Washington the course and adopt a new fiscal policy." Did that include financing the Cowboy Poetry Festival or bemoaning the fact that if the federal government was shut down that all those people who missed The Cherry Blossom Festival would suffer horrific misery? After all, they only bloom once a year. Is that what it means Harry, this new fiscal policy that you helped usher in to send spending through the roof?

That was back then when George Bush was President and yes, he shares part of the responsibility for the debt explosion. But this bunch is making Bush look like a clown at the rodeo in comparison to their spending binge. The first part of their new fiscal act was to spend like a drunken sailor for two years solid. Now they want to try to play catch up at the American tax payers expense? Their answer is to tax the rich? You mean those guys and gals who create the jobs we desperately need?

They just want to renew their credit card so the spending can continue. Obama calls it "investment" now since "spending" has become a dirty word. The Republicans could dance the jig naked and still not win over the Lames Stream Media, so why bother. They need to take the hard line and not raise the debt ceiling without adopting spending policies that significantly cut what we, the American tax payer, can't afford to pay.

I believe that the American people understand that economic disaster looms over the horizon when one refuses to pay off their existing debt and just ask for a new credit card. Well, many of them do, the other ones end up in bankruptcy proceedings. Nuff said? I you don't understand the basics here, I suggest you catch on quickly.

Understand this about The Frog. I'm not a Democrat nor am I a Republican. I'm a registered Independent and a very concerned American who has had about enough of this political posturing going down on The Hill. It's about decreasing spending, not raising taxes. When you get a chance go back and read yesterday's Hub that I wrote about taxation if you haven't already. It speaks volumes. Hang onto your wallets folks, the professional pick pockets are going at it again.

PS - Isn't that video so easy to understand that a 5th grader can grasp the concept? Low spending = low taxes. Think about that one for a while.

As Always,

The Frog Prince


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Comments 25 comments

The Frog Princess profile image

The Frog Princess 5 years ago from Florence area of the Great Pee Dee of South Carolina

Frog, Please forward this to Fox News, Msnbc, Mr. President, and on and on and on. With the mind of a 5th grader maybe just maybe DC can finally understand the concept. I will say I think this is your best yet, baby.


breakfastpop profile image

breakfastpop 5 years ago

Dear Frog Prince,

I agree with your Princess, this is a fine piece of work. The problem is that there are way too many voters who do not have the sophistication of a school kid and who will fall for Obama's vendetta against the rich. If Obama calls spending "investment" they believe. Voted up useful and definitely awesome.


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

BPOP - All I can say, which I say often, is "It's so easy to spend someone else's money." They never miss a dime that they can grab.

I think a liberal can maybe understand the video. But as usual, they will deny, deny and then deny again.


Old Poolman profile image

Old Poolman 5 years ago from Rural Arizona

Outstanding my friend. The frustrating part is that so many do NOT UNDERSTAND. My question is, are they incapable of understanding, or do they refuse to understand? This same information has been presented in formats down to a grade school level, and it ain't rocket science. That would lead me to believe it is a refusal to understand on the part of some people. Blind loyalty and hatred along party lines. They are basically saying "I refuse to understand this concept and you can't make me."

What family in financial trouble has ever been able to get out of trouble by using credit cards? Yes, using credit cards will keep them going for a short time, but then they hit the max limit on every credit card they have. Now they are stone broke and have no more credit available. Can they start demanding money from their more financially fortunate friends and family members? Not no, but hell no. Yet that is exactly the way our current administration is thinking.


rkhyclak profile image

rkhyclak 5 years ago from Ohio

Well done Frog! It is easy to understand, but like you said they'll just deny it. It's a lot easier to face ones fairytale than it is to face reality.


partisan patriot 5 years ago

Froggy

I'm with you 100%; we either fight against raising the debt ceiling or I say it's time to usher Beohner out and Bachmann in as Speaker. We need someone in that office with the "gonads" to stand up to Sissy Harry; Queen Nancy and soros' puppet Barackie Boo; dnace Barrackie Boo dance!!!!


Texasbeta 5 years ago

Nice...ignore deficit spending, and ignore the issue of Bush jr. raising the debt drastically more than Obama, even while NOT counting the wars. Also, I love how you cite the rating agencies as a source, ignoring that they are in the pocket of wall street. Remember how they rated Lehman triple A the day they went under? What about the toxic CDOs they rated triple A so the states could buy them, and when they went under the states went broke and you people blamed it on teachers' rights. This is a joke.


cjv123 profile image

cjv123 5 years ago from Michigan

Your better half said it perfectly - forward this on!

And Texasbeta - unfortunately, you have a habit of being wrong! Are you kidding? Do you think that by saying something it makes it true? You do not use facts.

Obama far increased the deficit - BTW - you don't "spend" a deficit. It's a DEBT already - the Deficit is the measure of how much money comes in that doesn't cover how much debt we have. Or to put it as the money crunchers put it: "The deficit is the difference between the money Government takes in, called receipts, and what the Government spends, called outlays, each year. Receipts include the money the Government takes in from income, excise and social insurance taxes as well as fees and other income."

Here is a source that totally debunks the "It's all Bush's fault" tired, ridiculous theme of you and the left. How can you time and time again be shown FACTS and still repeat the same WRONG myths??? You truly defy all reasonable discussion!

http://online.wsj.com/article/SB100014240527487039...

Bush's debt/spending or the deficit in all of his eight years combined was WAY smaller than Obama has managed in literally just two years. You keep going to different blogs, repeating this, you are continually proven wrong factually, you simply go to another Hub and repeat the same wrong thing over and over. Is there no hope for you???

Oh and nice try making Wall Street the Evil Meanies so you can discount the actual economic numbers and use liberal blogs as your trusted "sources." Obama's own "by-partisan" team even came up with these grim statistics. Holy cow...can you get more uninformed?


CHRIS57 profile image

CHRIS57 5 years ago from Northern Germany

Mr. O. and his administration don't do a good job in handling economic problems through monetary expansion. But does that really hit the nail?

If personal spending of American households from 2000 on was almost 40% above household income, who is to blame whom?

I think Obama had little choice after taking over an economy with chronical deficit spending (both administrative and private).

That, of course is no excuse. I only get the impression that nobody in political ranks will be really able to tackle the problems. Because tackling the problems, going into austerity, spend only of what you earn has not been en vogue in America for decades.


Old Poolman profile image

Old Poolman 5 years ago from Rural Arizona

Texasbeta, I'm getting the feeling based on your comments that as far as you are concerned everything today is just wonderful when it comes to our government. Unless of course it was touched by a Republican. I know you lean pretty far left, but take a look at the big picture and you will see some things on both sides that should shock you. I admire your party loyalty, but it may be distorting your view of the world.


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

Poolman - Fact is pretty soon the US government is gonna hot the max and find it hard to borrow anymore. He leans so far to the left he might fall off the face of the earth. Misguided loyalty and a buck fifty will get you a cup of coffee down at the local diner.

Texasbeta - This Hub isn't about Bush jr. Either stay on topic or no one will read another word you write. Got that? I suggest you stop trolling and go find someone who cares about your opinions.

cjv - Has a habit of being? How about always. He reads the Huffington Post, believes the talking points and then wants to sound intelligent. I don't think so.

Chris - Obama has no clue about economics and he has admitted that. Rather than change the fiscal policy (you did read what he and Reid had to say didn't you), he and his party went on a grand spending spree. Thise are the facts. Rather than offer a cure, he offered us more poison.


Ghost32 5 years ago

I just watched a clip of Obama blaming gas price increases on a lack of Green spending...whoa! Must stop typing! Hub in brain!

Later, y'all!

Voted Up and Inspirational!


Wayne Brown profile image

Wayne Brown 5 years ago from Texas

You da man, Frog! Awesome stuff! WB


Writer David profile image

Writer David 5 years ago from Mobile, AL

Frog, this has never been about money. It's not about spending, it's not even about raising taxes. It is about POWER. The Democrats motive is to destroy the American economy. Your hub seems to backup that assertion. They then can build us back up to where they visualize America; a third-world nanny stated. It seems to be their dream. Cutting spending is a side show. It always has been. Democrats have no intention of cutting spending. Again, your hub backs this up with raising the debt ceiling. great hub as usual!


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

David - All one has to do is first research what past there is available about Obama, observe his actions since he has entered office and not his words and they will see his agenda. I believe that you are also correct.


poorconservative1 profile image

poorconservative1 5 years ago

Great Hub Frog and I think partisan patriot is right, Bachmann would make a much better Speaker than Beohner. That woman's got a pair.

Thanks

Chuck


Stu From VT 5 years ago

All good points Frog, but my fear is that half of Congress hasn't passed fifth grade, and the other half who proceeded onto higher learning were made even less knowledgable by their "higher learning."

Cutting spending is of course where most of the action has to be, but the magnitudes scare Congress to death. A real fix here would cost alot in terms of votes and campaign money. The only way to fix this is to accept the fact doing what's right will in many cases lead to punishment (not being reelected). Those kind of real statesmen are in very short supply.

Stu


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

Stu - The days of having statesmen are long ago. Years ago politics wasn't a career, it was a temporary calling. It has evolved into a system of corruption that the founding fathers would be ashamed of.

They all keep talking about how painful it will be. It will be. So why not get on with it rather than prolong the pain trying to fool the American people?


Stu From VT 5 years ago

Frog, right on. If we wait too much longer, pain will be the least of our issues. The corpus could become so large that no solution will work. The problem then won't be pain, but it will literally be existence.


Ms Dee profile image

Ms Dee 5 years ago from Texas, USA

Up and Awesome! The professional politics game they play is so *sick*! Deceivers, liars and thieves. The corruption of power--ugh! And the citizenry so trusting! Wish we could throw the Foggy Bottom occupants out and start clean along with a re-education of the citizens. Ah, well. It is what it is.


Stu From VT 5 years ago

Texasbeta,

Frog could whip you with one brain tied behind his back.

"You apparently don't understand economics in the slightest bit. With regards to your point that you don't SPEND deficits:" - Frog never said that you "spend deficits." His meaning was that if you raise taxes, without capping spending by law, the extra money will just go to more spending, not deficit reduction.

"IT is called deficit spending. It is the ONLY method used by the ENTIRE world during a recession and is a primary aspect to economics education, taught the first year of any economics class in any high school in the world. If you want to claim someone doesn't use fact, get educated first." - No, YOU need to get educated. Keynes was right in his premise that sound fiscal management is critical to a well functioning economy. But he was DEAD WRONG in his conclusion undisciplined borrowing is the way out of a recession. Government project spending must be RATIONAL to avoid intolerable debt buildup. The idea is that you should put people back to work by funding ONLY those projects whose anticipated incremental tax revenues defray the project cost (principal plus interest) at a business-like ROI to the taxpayer (say 15% per annum) over time. This generates SURPLUSES over time, not ever growing DEBT. CEO's call it "capital allocation." Just like CEO's have a fiduciary duty to maximize shareowner value, GOVERNMENT HAS A FIDUCIARY DUTY TO MAXIMIZE TAXPAYER VALUE.

"With regards to the Bush vs Obama deficit issue. When Bush took office it was at 54.7% of GDP. When he left, it was at 83.4% of GDP, and he didn't include the wars. Obama has taken it to 90% as of 2010." - Both were irresponsible spenders, but Obama is far worse.

"With regards to making Wall Street the meanies and your ridicule: you have to be kidding me. What a total shill!" - You have a partial point here. Wall Street was irresponsible, and some cases criminal. But Bush failed to enforce risk regulations, and the repeal of Glass-Steagall placed thinly capitalized investment banks under the comfy umbrella of FDIC insurance for their consumer deposits. Bush sent the signal to misbehave, and that's what Wall Street did. Shame on both.

Stu, Goof from VT


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

Stu - He used Wikipedia as a valid source. What a hoot. Tells me his frame of reference.

Maybe I should take some time and pay the boy a visit when I go out to Texas. I don't believe he is from Texas though.

You can kiss Texasbeta goodbye.


Stu From VT 5 years ago

Frog - "Someday I have to sit down and have a long talk with that boy" - Jed Clampett, Oilman


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

Stu - Why waste good breath?


Stu From VT 5 years ago

Especially when the Air Czar will set limits on breaths per day to save us from .5 PPM CO2 in the atmosphere.

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