The Ethics of Repudiation | Mises Daily

… In summary, as a taxpayer, you did not borrow the funds, you did not spend the funds, and you have no moral obligation to repay the funds.

click here for Mises

Rothbard’s recommendation: “I propose, then, a seemingly drastic but actually far less destructive way of paying off the public debt at a single blow: outright debt repudiation.” Repudiation is not only a sound economic solution to our fiscal crisis, but it is also the morally correct solution. Rothbard’s more detailed proposal, which was a “combination of repudiation and privatization,” should be considered a blueprint for an effective debt-reduction plan. As Rothbard argued, such a plan “would go a long way to reducing the tax burden, establishing fiscal soundness, and desocializing the United States.” As an added bonus, default would be as effective, if not more effective, than a balanced budget amendment, in reducing the likelihood of a future re-occurrence of the problem.

But “[i]n order to go this route, however, we first have to rid ourselves of the fallacious mindset that conflates public and private, and that treats government debt as if it were a productive contract between two legitimate property owners.” The commentary by Hummel and Henderson are evidence that some are seriously addressing this issue, alas, after over a 20 year lag….

via Mises Daily.

A front row seat for the ‘fiscal cliff’ negotiation show…

You are here.

A Solution To The National Debt: A Taxing Issue | Nano Patents

…Kwak said the Republicans have a “coherent, well-articulated” position on revenues: that society would be better if government, and thus taxes, would simply shrink. By contrast, Kwak added, in recent decades Democrats have never been able to settle on a coherent message about the need for greater taxes.

“The counter-argument to the conservative vision has not been spelled out,” Kwak said….via Nano Patents and Innovations

You Ain’t Seen Nothing Yet | The Burning Platform

….Hope is not an option. There is too much debt, too little cash-flow, too many promises, too many lies, too little common sense, too much mass delusion, too much corruption, too little trust, too much hate, too many weapons in the hands of too many crazies, and too few visionary leaders to not create an epic worldwide implosion. Too bad....

A must read via The Burning Platform.

There’s No Painless Way Out | ZeroHedge

Uncle Sam’s bills of almost $4tn per year relative to his income of just over $2tn means that he does what most American’s do – he borrows money –

Massive $17 Trillion Hole Found In Obamacare | Zerohedge

“Two years ago, when introducing then promptly enacting Obamacare, the president stated that healthcare law reform would not cost a penny over $1 trillion ($900 billion to be precise), and that it would not add ‘one dime’ to the debt. It appears that this estimate may have been slightly optimistic… by a factor of 1700%...”  go here  ZeroHedge

Picture Summary of 5 Core Threats to the Economic Future of Families & their Children compared to the past | Michael Hodges

Each generation hopes their children and grandchildren will achieve more economic potential and more individual freedom than prior generations. As a new grandfather I researched economic conditions and education quality facing the generation of my infant grandchildren and their parents, compared to that faced by my generation when their age. The results are available to you in a series of free mini-reports listed on the home page – with explanatory pictures.

There are so many great & positive things about our beloved America to celebrate. But, there are also some negative trends. Perhaps if more are aware of the negatives even more solutions & positives will result. The objective of these reports is to increase awareness of certain disturbing items, using an easy-to-understand format with hard data presented in picture form.

via Grandfather Economic Report Summary by MWHodges.

United States At The Tipping Point | NFF

“While politicians of both political parties in Washington dither and waste time, the United States is now at a tipping point. Our National Debt at $15 Trillion and growing, with no end is sight, is now at 100% of our Gross Domestic Product. Italy’s National Debt is at 120%, which has pushed that nation toward economic collapse. Based on Socialist President Obama current deficit spending trajectory, we will add another $10 Trillion to our National Debt in the next ten years, assuming the markets will allow it, which is doubtful.

Sooner than ten years, we will hit the precipice when other nations and investors will not lend money to the US to support our entitlement programs, unless we are willing to pay very high interest rates and give up our national sovereignty. If that happens, the interest on the Debt will be the single greatest expenditure of our federal budget crowding out many other government functions. Before that happens, the Federal Reserve will start printing money, which is already happening, destroying the value of the dollar. Eventually, we will also see interest rates rise dramatically. When that happens, the economy will come to a stand still as many companies will not be able to borrow to expand their businesses, resulting in even higher unemployment and a lower standard of living for the American people.

The financial tipping point is here. The elections of 2012 and 2014 also represent a tipping point related to our form of government. During the last 100 years, beginning with President Woodrow Wilson, Socialists have moved our country away from limited Constitutional Government, designed by our Founding Fathers, to the modern Welfare State. The result is an ever more intrusive federal government, involved in literally every aspect of daily life, predicated on the redistribution of income in the name of “social justice”. The federal government is today the biggest threat to our freedom, since we faced foreign enemies committed to Fascism or Communism.

So in 2012 and 2014, in addition to preventing the bankruptcy of our nation, we will decide if we want to be a free people, or if we will surrender our freedoms to the federal government and the nanny state. We have experienced 100 years of Socialist creep. Bit by bit, the federal government has limited our freedoms. The federal government, like the Gestapo, confiscates our property and wealth at will and it will only get worse if Socialists in government, included President Obama, are reelected in 2012 and 2014.

The balloon has burst. Even if all wealth was confiscated from the “rich”, which the Socialists would do in a minute if they thought they could make it happen, it would be impossible to pay off our $15 Trillion National Debt, or to fund all the entitlements put in place by Socialist to win elections. The United States is today borrowing 40 cents for every dollar that it spends. Obviously, to end deficit spending and begin to pay off our National Debt, this has to stop, which will cause the Mobs to riot on our streets. This is already happening at the instigation of Socialist President Obama, who preaches Hate Speech Class Warfare to intentionally divide our nation.

In order for it to stop, the federal government must shrink from the current Obama 25% of GDP to around 17%. That means eliminating at least 500,000 federal civilian employees, through a hiring freeze and normal attrition in the next five years. It also means getting rid of many redundant programs, agencies, commissions and departments of the federal government. Have you noticed that no politician of either party is advocating a common sense plan that sounds anything like the plan advanced by this Blogger. The question is why not?

That is because both political parties are vested in huge federal spending. Republicans and Socialists are feeding at the trough to gain personal wealth; though Socialists gain more by big government since their public employee union pals contribute to their campaigns. So the bigger the government, the more public employees paying union dues that can go to support Socialist campaigns. It is a vicious circle of corruption, which is why we need Congressional Term Limits.

In 2012 and 2014 we must sweep these Socialists, including President Obama out of office because it is the only hope we have for getting our nation back on track. When we do so, we must be careful to elect real Conservatives that are not go along to get along kind of politicians. It is important to remember that establishment Republicans helped get us to a $15 Trillion National Debt. Instead, we must elect Conservatives opposed to business as usual, not more Republicans in empty suits on the take. We need radical change to save our nation.

We must elect Conservatives committed to rolling back 100 years of Socialism to return to limited Constitutional Government to prevent the bankruptcy of our nation. There can be no additional compromise with Socialists or Socialism if we are to prevent the bankruptcy of our country. We have to take back our country in 2012 and 2014. We can do it. We must do it to preserve our freedom, our nation and way of life. We are at a tipping point. We will either remain a free people, or experience civil strife, tyranny and the destruction of our nation. The choice is ours to make and we must make it soon.” Joseph Morabito, National Freedom Forum