Censored by Huffington Post - the solution (to the budget) is simple

The solution is simple. 

You cut ALL of the well over $1.3tn a year of Corporate Welfare. 

Some of this is direct subsidies to big business.

Some of it is tax loopholes for large corporations

Some of it is pure waste - like America paying the highest price for drugs in the world - cut the costs of the drugs and save spending on Medicare/Medicaid. 

Some of it is in other forms of waste like :- 
Paying mercenary contracts of over $100bn a year when they charge 5 times as much as using US troops 

Or the continuation of the F35 plane project at $12.6bn a year, which even John McCain described as a complete waste of money. 

How about cutting America's ballistic nuclear submarine fleet saving $2bn a year. The submarine fleet is still at cold war levels.

How about cutting the bloated DHS budget that is spending countless billions in order to spy on every American citizen. 

Loads of ways to save money. 

Loads of ways to cut the massive subsidies to big business. 

The big banks are being subsidised to the tune of nearly $1tn a year. 
Stop doing that and the rest of America would be almost $1tn a year better off. 

Addendum
The subsidies to the big banks are on top of the  $1.3tn of Corporate Welfare quoted above. The true level of Corporate Welfare is well over $2tn a year. 
You can think of this as wealth redistribution. 
Wealth redistribution from the many to the very few. 

My above comments to this article are being censored.
http://www.huffingtonpost.com/2013/03/17/boehner-corker-taxes_n_2895620.html 

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The numbers NOBODY wants you to see. Military spend now TRIPLE that of cold war.

Inflation adjusted chart

See the following for the numbers each year :-
http://www.davemanuel.com/2010/06/14/us-military-spending-over-the-years/

From this it can be seen that current military spending is now far higher than it was during the height of the cold war and the Vietnam war.

But the current numbers very significantly understate the true level of National Security spending.
The government is trying to cover up the true levels by hiding a long list of military spend in other departmental budgets.
E.G. the cost of maintaining America's nuclear arsenal, which is booked to the Department of Energy.
E.G. the increased costs of Veterans pensions and medical care that are a direct result of the wars (they are not included in the Pentagon budget).
Neither is the massive ramp up in DHS spending for domestic spying etc.

In 2011 the true level of military spending was about $930bn.
For 2012 true military spending increased VERY substantially to $1,219bn.

The REAL National Security budget - the numbers NOBODY wants you to see :-
http://ian56.blogspot.co.uk/2012/11/the-real-national-security-budget.html

N.B. CBO spending plans show that military spending is planned to increase every year from 2014 to 2023 - rising by well over $100bn a year from 2012 levels by 2023.

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Censored by Huffington Post - the REAL costs of the wars

My comments were in response to this article

Iraq War Cost U.S. More Than $2 Trillion, Could Grow to $6 Trillion, Says Watson Institute Study

http://www.huffingtonpost.com/2013/03/14/iraq-war-cost-more-than-2-trillion_n_2875493.html

The REAL cost of the wars. 
$5tn+ to end of 2011

http://ian56.blogspot.co.uk/2012/05/real-cost-of-afghan-and-iraq-wars.html 

25 reasons why the decision to invade Iraq was a VERY bad idea. 
http://ian56.blogspot.co.uk/2012/07/what-was-wrong-with-iraq-war.html

Some of my comments did get through Like these ones :-

By far the largest cost of the decision to invade Iraq and the $5tn+ costs of unfunded wars has been the bankrupting of America to all intents and purposes and was of GREAT benefit to CHINA in the rise of it's global power. 

The decision to invade Iraq hastened the day of the loss of American hegemony. 
It made America much weaker - strategically, militarily, fiscally and economically. 
It GREATLY assisted China - they picked up half of Africa for free in trade deals. 

As I said that it would in January 2002. 

It was plain to see that the, as yet unannounced, invasion of Iraq would do IMMENSE HARM TO AMERICA. 

The costs of the wars were at least $5tn at the end of 2011 and the costs continue to mount as the article correctly states. 

Some estimates put the estimated cost as high as $7tn at the end of 2011. 

But even this $7tn estimate does not include factors like this :- 

As a direct result of the Iraq invasion oil prices skyrocketed. 
They were below $30 prior to the war and eventually peaked at $140 in 2007/08. 

Iraqi oil production halved on the invasion and did not get back to pre invasion levels until 2011. 

Each $1 rise in the oil price has a siginificant detrimental effect on the growth of the US economy. 

How much did a $110 oil price rise hurt America in terms of lower GDP growth, lower tax revenues and higher benefits payments for things like unemployment? 

It has to be a very significant cost indeed - but nobody has tried to estimate it and include it in the cost of the wars. 

It was also a direct transfer of wealth from America and Europe to oil producing nations like Iran, Saudi Arabia and Venezuela. How much has this cost America in the end? 

The Iraq invasion also made Iran a significant regional power, where previously it was directly opposed and kept in check by Saddam Hussein. 
How much has this cost America? 

LOADS of other things that are not normally included in the costs of the wars, but are true direct costs.

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Not a particularly good speech by Rand Paul at CPAC this year

The speech 

http://www.youtube.com/watch?v=d3sSgGU2LSQ&feature=youtu.be

The good bits :- 

We certainly do need to defend the Bill of Rights.
All of these recent measures need to be IMMEDIATELY reversed and the Bill of Rights needs to be restored.
http://ian56.blogspot.co.uk/2012/11/obamas-civil-rights-violations.html

He did say we need to get the government out of the way and cut the size of the government and the massive number of pointless regulations that are harming businesses.

The indifferent bits :- 

In order for the economy to ever recover, disposable incomes of ordinary people need to start rising again. Rand's proposal of a 17% flat tax can be dramatically improved upon. Taxes on middle earners and below need to be cut FIRST and then lower taxes on the rich - the VERY rich don't pay much in taxes anyway - they have loopholes.

This is what is required to be done to turn things around.
http://ian56.blogspot.co.uk/2013/03/the-government-is-being-incredibly.html

Rand did say it wasn't a Conservative thing to do to bail out the big banks.
But he should of gone further.

We need to start jailing the criminal senior bankers like Dimon and Blankfein - give them 30 years hard jail time each.
Lock up about 30 others too, including Paulson and Geithner.

Keep jailing criminal bankers until they stop committing crimes.

See how quickly that would start cleaning up Wall St.

Impose meaningful penalties on the big banks for their crimes - not a trivial slap wrist fine of 5 weeks of revenues.
Fine the big banks $200bn+ - it's easy to do.

The bad bits :-

Rand didn't mention the massive $1,219bn of military spending in 2012 or the mountains of Pentagon waste. They need to be MASSIVELY cut.

He sucked up to Israel again.

Rand didn't mention the over $1.3tn of annual Corporate Welfare that needs to be stopped.

He didn't say we need to break up the Corporate cartels that now operate in each major industry.
He didn't say we need to reinstate Glass Steagal straight away.

Rand didn't say :-

The erosion of the American economy in 2 words - jobs & wages.
The erosion of the American economy in 4 economic charts.
http://ian56.blogspot.co.uk/2013/03/some-charts-on-jobs-and-wages.html

He also didn't say that with current policies government spending will be $6tn a year in 2023, the deficit will be over $3tn a year and the National Debt will be over $40tn or about 250% of GDP.

http://ian56.blogspot.co.uk/2013/03/cbo-projections-of-future-gdp-growth.html

Why didn't Rand use this as a prime example of government waste?
Why is the government continuing to waste $1.45tn on a pile of junk - the F35 plane?
Even John McCain has called it a total waste of taxpayer money.
http://ian56.blogspot.co.uk/2013/03/what-hell-is-government-doing-wasting.html

Or the use of mercenaries instead of US troops that is costing over $100bn a year?

He didn't say that Paul Ryan's budget proposals are an absolute joke based on outright lies and would cause economic carnage in the USA if they were ever implemented.
http://ian56.blogspot.com/2013/03/paul-ryan-need-to-be-kicked-out-of-gop.html

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The erosion of the US economy in 2 words - jobs & wages. The erosion of the US economy in 4 economic charts.

When there was REAL economic growth in America in the 1950's and 1960's and there were low government deficits and little money supply expansion, EVERYBODY'S income and standard of living rose dramatically.

When economic growth is fuelled by an exponential rise in debts and money supply expansion (as from circa 1980) only the rich benefit. 
The total amount of debt (the total money supply) rose from about $6tn in 1980 to $68tn in 2007.

Total money supply 1970 to 2012

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Paul Ryan needs to be KICKED OUT of the GOP. His "budget plan" is an absolute JOKE

People like Ryan need to be kicked out of the GOP. 

Ryan's budget will NEVER balance the budget. 
His budget will run $1tn+ deficits ad infinitum.

To make his numbers work he has to assume that the economy will grow by 6% a year forever.
During the boom period (1950 to 2000) America only grew by an average of 3.3%. 
During the latter period - circa 1980 on the economy was debt fuelled, not real, total money increased exponentially and total debt went up over TEN times from $6tn to $68tn
Since 2000 the economy has only grown at an average of just under 2%. 

Ryan's assumptions for future growth rates are plainly ridiculous.  

Ryan also assumes that he will close $750bn of annual tax loop holes by 2022. 
But he doesn't name a SINGLE one. 
They would disproportionately hurt the middle class and would cause a major depression if they were closed (and not offset by other tax breaks). 

These assumptions too are plainly ridiculous. 

Giving tax breaks to the rich isn't the priority. 
The top 0.1% are already doing more than ok. 
It's the 99% that are suffering. 

In order for the economy to ever recover, disposable incomes of ordinary people need to start rising again, instead of plummeting like they have since 2001. 

What is required is to cut $1.3tn+ a year of Corporate Welfare and to use that money to give massive tax cuts for middle earners and below. 

Cutting benefits now would only send the economy into a tailspin from which it would NEVER recover. The economy needs to start growing again before the looming crisis in pensions is tackled by raising the retirement age.
The problem with medicare funding needs to be tackled by making Healthcare much more EFFICIENT - America pays double what other countries pay with inferior results - e.g. a declining expected life span.
The Ryan plan would massively deepen the coming recession.

MASSIVELY CUT Corporate Welfare and military spending and give that money back to who it rightfully belongs to - ordinary taxpayers. 
It is easy to see how to cut $1.3tn+. 
Then we can start working on the next $500bn of government waste.
The Ryan budget goes in EXACTLY the OPPOSITE direction for America to EVER recover. 



The GOP will NEVER win another election with people like Ryan in the party.
Look at the reaction on Huffy Po.

http://www.huffingtonpost.com/2013/03/12/paul-ryan-budget-house-gop_n_2860696.html

It is hardly surprising given the utter stupidity of Paul Ryan's so called "budget plan".

What is required to be done to turn America's economy around is detailed in here.
http://ian56.blogspot.co.uk/2013/05/how-to-fix-americas-economy-create-jobs.html

Updates 03/13
Paul Ryan is a reckless spending proponent of MASSIVE government and MASSIVE deficits.
He should be KICKED OUT of the GOP - he is NOT a Republican - he does NOT advocate Republican values of small government and fiscal discipline.

What a Paul Ryan budget would do to America. DEEP recession.
http://ian56.blogspot.co.uk/2012/10/the-reality-of-mitt-romneys-tax-plans.html

Paul Ryan has voted for bills that have raised the National Debt by $10tn. His record speaks for itself.
http://ian56.blogspot.co.uk/2012/10/paul-ryans-contribution-to-national.html

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The erosion of the US economy in 2 words - Jobs & wages

The current de facto policy of inflating asset bubbles to spark a "wealth effect" is no substitute for policies that make it less burdensome to start new enterprises and hire employees.

The Status Quo is shameless when it comes to hyping the recovery by whatever metric is most positive. Recently, that has been the stock market, but if GDP rises significantly (and recall GDP increases if the government borrows and blows money), then that number is duly trotted out by politicos and Mainstream Media toadies.

If we scrape away this ceaseless perception management, we find that legitimate broadbased prosperity is always based on rising employment and increased purchasing power of wages. The phantom wealth that is conjured by asset bubbles vanishes when the bubbles inevitably pop, leaving all those who borrowed against their ephemeral bubble wealth hapless debt-serfs.

Since very few households own enough productive assets (i.e. financial assets above and beyond the family home equity) to replace earned income (i.e. a job) with unearned income, rising asset yields and prices do little to improve household wealth or income. 

http://www.zerohedge.com/news/2013-03-11/erosion-us-economy-two-words-jobs-and-wages

Chart courtesy of mdbriefing.com 

Lot's of other excellent employment and wages charts on the article.

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