Farming
U.S. Real Gross Domestic Product Growth Still Stagnating At 2.4% in First Quarter of 2013 As Institute for Supply Management Factory Index Sinks to 49.0 Lowest Since June 2009 — Videos
Table 1.1.1. Percent Change From Preceding Period in Real Gross Domestic Product
[Percent] Seasonally adjusted at annual rates
Last Revised on: May 30, 2013 – Next Release Date June 26, 2013
| Line | 2011 | 2012 | 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| I | II | III | IV | I | II | III | IV | I | ||
| 1 | Gross domestic product | 0.1 | 2.5 | 1.3 | 4.1 | 2.0 | 1.3 | 3.1 | 0.4 | 2.4 |
| 2 | Personal consumption expenditures | 3.1 | 1.0 | 1.7 | 2.0 | 2.4 | 1.5 | 1.6 | 1.8 | 3.4 |
| 3 | Goods | 5.4 | -1.0 | 1.4 | 5.4 | 4.7 | 0.3 | 3.6 | 4.3 | 4.1 |
| 4 | Durable goods | 7.3 | -2.3 | 5.4 | 13.9 | 11.5 | -0.2 | 8.9 | 13.6 | 8.2 |
| 5 | Nondurable goods | 4.6 | -0.3 | -0.4 | 1.8 | 1.6 | 0.6 | 1.2 | 0.1 | 2.2 |
| 6 | Services | 2.0 | 1.9 | 1.8 | 0.3 | 1.3 | 2.1 | 0.6 | 0.6 | 3.1 |
| 7 | Gross private domestic investment | -5.3 | 12.5 | 5.9 | 33.9 | 6.1 | 0.7 | 6.6 | 1.3 | 9.0 |
| 8 | Fixed investment | -1.3 | 12.4 | 15.5 | 10.0 | 9.8 | 4.5 | 0.9 | 14.0 | 4.1 |
| 9 | Nonresidential | -1.3 | 14.5 | 19.0 | 9.5 | 7.5 | 3.6 | -1.8 | 13.2 | 2.2 |
| 10 | Structures | -28.2 | 35.2 | 20.7 | 11.5 | 12.9 | 0.6 | 0.0 | 16.7 | -3.5 |
| 11 | Equipment and software | 11.1 | 7.8 | 18.3 | 8.8 | 5.4 | 4.8 | -2.6 | 11.8 | 4.6 |
| 12 | Residential | -1.4 | 4.1 | 1.4 | 12.1 | 20.5 | 8.5 | 13.5 | 17.6 | 12.1 |
| 13 | Change in private inventories | — | — | — | — | — | — | — | — | — |
| 14 | Net exports of goods and services | — | — | — | — | — | — | — | — | — |
| 15 | Exports | 5.7 | 4.1 | 6.1 | 1.4 | 4.4 | 5.3 | 1.9 | -2.8 | 0.8 |
| 16 | Goods | 5.7 | 3.7 | 6.2 | 6.0 | 4.0 | 7.0 | 1.1 | -5.0 | 0.3 |
| 17 | Services | 5.8 | 5.1 | 6.1 | -8.8 | 5.2 | 1.1 | 4.0 | 2.5 | 2.0 |
| 18 | Imports | 4.3 | 0.1 | 4.7 | 4.9 | 3.1 | 2.8 | -0.6 | -4.2 | 1.9 |
| 19 | Goods | 5.2 | -0.7 | 2.9 | 6.3 | 2.0 | 2.9 | -1.2 | -3.9 | 1.1 |
| 20 | Services | -0.6 | 4.2 | 13.8 | -1.7 | 9.0 | 2.3 | 2.6 | -5.6 | 5.8 |
| 21 | Government consumption expenditures and gross investment | -7.0 | -0.8 | -2.9 | -2.2 | -3.0 | -0.7 | 3.9 | -7.0 | -4.9 |
| 22 | Federal | -10.3 | 2.8 | -4.3 | -4.4 | -4.2 | -0.2 | 9.5 | -14.8 | -8.7 |
| 23 | National defense | -14.3 | 8.3 | 2.6 | -10.6 | -7.1 | -0.2 | 12.9 | -22.1 | -12.1 |
| 24 | Nondefense | -1.7 | -7.5 | -17.4 | 10.2 | 1.8 | -0.4 | 3.0 | 1.7 | -2.1 |
| 25 | State and local | -4.7 | -3.2 | -2.0 | -0.7 | -2.2 | -1.0 | 0.3 | -1.5 | -2.4 |
| Addendum: | ||||||||||
| 26 | Gross domestic product, current dollars | 2.2 | 5.2 | 4.3 | 4.2 | 4.2 | 2.8 | 5.9 | 1.3 | 3.6 |
Fed’s Advisory Council Admits We’re Screwed
Even more amazing than the admission is how long it took them to figure it out. However the most amazing aspect of all is the lack of reaction. The mainstream media, including the financial media, has completely ignored the warning. It’s as if the report doesn’t even exit. Perhaps it’s part of a psychological defense mechanism whereby any information that casts doubt on the recovery myth, no matter how credible the source, is conveniently ignored.
US ECONOMY GROWS 2 4% IN Q1
U.S. GDP In Q1 Revised Lower As Austerity Measures Bite
Peter Schiff US Economy Living On Borrowed Time..
Peter Schiff predicts another economic crash
* See the navigation bar at the right side of the news release text for links to data tables,
contact personnel and their telephone numbers, and supplementary materials.
| Lisa S. Mataloni: | (202) 606-5304 | (GDP) | gdpniwd@bea.gov |
| Andrew Hodge: | (202) 606-5564 | (Profits) | cpniwd@bea.gov |
| Recorded message: | (202) 606-5306 | ||
| Jeannine Aversa: | (202) 606-2649 | (News Media) |
Gross Domestic Product, 1st quarter 2013 (second estimate);
Corporate Profits, 1st quarter 2013 (preliminary estimate)
Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 2.4 percent in the first quarter of 2013 (that is, from the fourth quarter to the first quarter), according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 0.4 percent. The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, real GDP increased 2.5 percent. With the second estimate for the first quarter, increases in private inventory investment, in exports, and in imports were less than previously estimated, but the general picture of overall economic activity is not greatly changed (for more information, see "Revisions" on page 4). BOX.______ Comprehensive Revision of the National Income and Product Accounts BEA plans to release the results of the 14th comprehensive (or benchmark) revision of the national income and product accounts (NIPAs) in conjunction with the second quarter 2013 "advance" estimate on July 31, 2013. More information on the revision is available on BEA’s Web site at www.bea.gov/gdp-revisions. An article in the March 2013 issue of the Survey of Current Business discusses the upcoming changes in definitions and presentations, and an article in the May Survey describes the changes in statistical methods. An article in the September Survey will describe the estimates in detail. Revised NIPA table stubs and news release stubs will be available in June. FOOTNOTE.______ Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified. Quarter-to-quarter dollar changes are differences between these published estimates. Percent changes are calculated from unrounded data and are annualized. "Real" estimates are in chained (2005) dollars. Price indexes are chain-type measures. This news release is available on BEA's Web site along with the Technical Note and Highlights related to this release. For information on revisions, see "Revisions to GDP, GDI, and Their Major Components". ________________ The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, residential fixed investment, nonresidential fixed investment, and exports that were partly offset by negative contributions from federal government spending and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased. The acceleration in real GDP in the first quarter primarily reflected an upturn in private inventory investment, an acceleration in PCE, a smaller decrease in federal government spending, and an upturn in exports that were partly offset by an upturn in imports and a deceleration in nonresidential fixed investment. Motor vehicle output added 0.28 percentage point to the first-quarter change in real GDP after adding 0.18 percentage point to the fourth-quarter change. Final sales of computers added 0.02 percentage point to the first-quarter change in real GDP after adding 0.10 percentage point to the fourth- quarter change. The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.2 percent in the first quarter, 0.1 percentage point more than in the advance estimate; this index increased 1.6 percent in the fourth quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 1.4 percent in the first quarter, compared with an increase of 1.2 percent in the fourth. Real personal consumption expenditures increased 3.4 percent in the first quarter, compared with an increase of 1.8 percent in the fourth. Durable goods increased 8.2 percent, compared with an increase of 13.6 percent. Nondurable goods increased 2.2 percent, compared with an increase of 0.1 percent. Services increased 3.1 percent, compared with an increase of 0.6 percent. Real nonresidential fixed investment increased 2.2 percent in the first quarter, compared with an increase of 13.2 percent in the fourth. Nonresidential structures decreased 3.5 percent, in contrast to an increase of 16.7 percent. Equipment and software increased 4.6 percent, compared with an increase of 11.8 percent. Real residential fixed investment increased 12.1 percent, compared with an increase of 17.6 percent. Real exports of goods and services increased 0.8 percent in the first quarter, in contrast to a decrease of 2.8 percent in the fourth. Real imports of goods and services increased 1.9 percent, in contrast to a decrease of 4.2 percent. Real federal government consumption expenditures and gross investment decreased 8.7 percent in the first quarter, compared with a decrease of 14.8 percent in the fourth. National defense decreased 12.1 percent, compared with a decrease of 22.1 percent. Nondefense decreased 2.1 percent, in contrast to an increase of 1.7 percent. Real state and local government consumption expenditures and gross investment decreased 2.4 percent, compared with a decrease of 1.5 percent. The change in real private inventories added 0.63 percentage point to the first-quarter change in real GDP, after subtracting 1.52 percentage points from the fourth-quarter change. Private businesses increased inventories $38.3 billion in the first quarter, following an increases of $13.3 billion in the fourth quarter and $60.3 billion in the third. Real final sales of domestic product -- GDP less change in private inventories -- increased 1.8 percent in the first quarter, compared with an increase of 1.9 percent in the fourth. Gross domestic purchases Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 2.5 percent in the first quarter; it was unchanged in the fourth quarter. Gross national product Real gross national product -- the goods and services produced by the labor and property supplied by U.S. residents -- increased 1.5 percent in the first quarter, compared with an increase of 0.9 percent in the fourth. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which decreased $30.3 billion in the first quarter after increasing $19.2 billion in the fourth; in the first quarter, receipts decreased $20.8 billion, and payments increased $9.5 billion. Current-dollar GDP Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 3.6 percent, or $140.4 billion, in the first quarter to a level of $16,004.5 billion. In the fourth quarter, current-dollar GDP increased 1.3 percent, or $53.1 billion. Gross domestic income Real gross domestic income (GDI), which measures the output of the economy as the costs incurred and the incomes earned in the production of GDP, increased 2.5 percent in the first quarter, compared with an increase of 5.5 percent (revised) in the fourth. For a given quarter, the estimates of GDP and GDI may differ for a variety of reasons, including the incorporation of largely independent source data. However, over longer time spans, the estimates of GDP and GDI tend to follow similar patterns of change. Revisions The "second" estimate of the third-quarter percent change in GDP is 0.1 percentage point, or $3.9 billion, less than the advance estimate issued last month, primarily reflecting downward revisions to private inventory investment, to exports, and to state and local government spending that were partly offset by a downward revision to imports and an upward revision to personal consumption expenditures. Advance Estimate Second Estimate (Percent change from preceding quarter) Real GDP.......................................... 2.5 2.4 Current-dollar GDP................................ 3.7 3.6 Gross domestic purchases price index.............. 1.1 1.2 Corporate Profits Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased $43.8 billion in the first quarter, in contrast to an increase of $45.4 billion in the fourth. Current-production cash flow (net cash flow with inventory valuation adjustment) - - the internal funds available to corporations for investment -- increased $110.9 billion in the first quarter, in contrast to a decrease of $89.8 billion in the fourth. Taxes on corporate income decreased $13.6 billion in the first quarter, compared with a decrease of $4.4 billion in the fourth. Profits after tax with inventory valuation and capital consumption adjustments decreased $30.2 billion in the first quarter, in contrast to an increase of $49.8 billion in the fourth. Dividends decreased $101.7 billion in contrast to an increase of $124.3 billion. The large fourth- quarter increase reflected accelerated and special dividends paid by corporations at the end of 2012 in anticipation of changes to individual income tax rates. Current-production undistributed profits increased $71.4 billion, in contrast to a decrease of $74.3 billion. Domestic profits of financial corporations decreased $2.0 billion in the first quarter, compared with a decrease of $3.5 billion in the fourth. Domestic profits of nonfinancial corporations decreased $8.8 billion in the first quarter, in contrast to an increase of $24.8 billion in the fourth. In the first quarter, real gross value added of nonfinancial corporations increased, and profits per unit of real value added decreased. The decrease in unit profits reflected an increase in the unit nonlabor costs incurred by corporations that was partly offset by a decrease in unit labor costs; unit prices were unchanged. The rest-of-the-world component of profits decreased $33.0 billion in the first quarter, in contrast to an increase of $24.1 billion in the fourth. This measure is calculated as (1) receipts by U.S. residents of earnings from their foreign affiliates plus dividends received by U.S. residents from unaffiliated foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign parents plus dividends paid by U.S. corporations to unaffiliated foreign residents. The first-quarter decrease was accounted for by a decrease in receipts and an increase in payments. Profits before tax decreased $49.8 billion in the first quarter, in contrast to an increase of $27.3 billion in the fourth. The before-tax measure of profits does not reflect, as does profits from current production, the capital consumption and inventory valuation adjustments. These adjustments convert depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost basis to the current-cost measures used in the national income and product accounts. The capital consumption adjustment increased $12.9 billion in the first quarter (from -$199.5 billion to -$186.6 billion), compared with an increase of $0.5 billion in the fourth. The inventory valuation adjustment decreased $6.9 billion (from -$9.2 billion to -$16.1 billion), in contrast to an increase of $17.6 billion. The first-quarter changes in taxes on corporate income and in the capital consumption adjustment mainly reflect the expiration of bonus depreciation claimed under the American Taxpayer Relief Act of 2012. For detailed data, see the table "Net Effects of the Tax Acts of 2002, 2003, 2008, 2009, 2010, and 2012 on Selected Measures of Corporate Profits" at www.bea.gov/national/xls/technote_tax_acts.xls. Profits from current production are not affected because they do not depend on the depreciation-accounting practices used for federal income tax returns; rather, they are based on depreciation of fixed assets valued at current cost using consistent depreciation profiles based on used-asset prices. For more details on the effect of tax act provisions on the capital consumption adjustment, see FAQ #999 on the BEA Web site, "Why does the capital consumption adjustment for domestic business decline so much in the first quarter of 2012?". * * * BEA's national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA's Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. * * * Next release -- June 26, 2013, at 8:30 A.M. EDT for: Gross Domestic Product: First Quarter 2013 (Third Estimate) Corporate Profits: First Quarter (Revised Estimate)
Surprise Manufacturing Downturn Holds Back U.S. Growth: Economy
By Shobhana Chandra
the U.S. unexpectedly shrank in May at the fastest pace in four years, showing slowdowns in business and government spending are holding back the world’s largest economy.
The Institute for Supply Management’s factory index fell to 49, the lowest reading since June 2009, from the prior month’s 50.7, the Tempe, Arizona-based group’s report showed today. Fifty is the dividing line between growth and contraction. The median forecast of 81 economists surveyed by Bloomberg was 51.
Across-the-board federal budget cuts and overseas markets that are struggling to rebound will probably continue to curb manufacturing, which accounts for about 12 percent of the economy. At the same time, demand for automobiles, gains in residential construction and lean inventories may spark a pickup in orders and production in the second half of the year.
“Manufacturing is really stymied by slow corporate spending and government spending cutbacks,” said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, who was the only analyst in the Bloomberg survey to correctly project the drop in the index. “Manufacturing will grow at a modest pace this year” although it “is unlikely to accelerate in coming months,” LeBas said. “This is part of the slower expansion we’ll have in the second quarter.”
Estimates in the Bloomberg survey ranged from 49 to 54.
Stocks fluctuated between gains and losses after the report. The Standard & Poor’s 500 Index fell 0.3 percent to 1,626.19 at 12:39 p.m. in New York. The gauge had posted its first consecutive weekly losses since November.
Manufacturing sector contracts in May: ISM
Manufacturing activity contracted in May for the first time in six months as new orders slipped and there was less demand for exports, an industry report showed on Monday.
The Institute for Supply Management (ISM) said its index of national factory activity in May fell to 49.0 from 50.7 in April, short of expectations for 50.7.
A reading below 50 indicates contraction in the manufacturing sector. The last time the ISM manufacturing index fell below 50 was November 2012, shortly after the U.S. east coast was hit by a massive storm.
The gauge for new orders dropped to 48.8 from 52.3, while a measure of employment edged down to 50.1 from 50.2. Production fell to 48.6 from 53.5.
The exports index fell to 51.0 from 54.0, while imports held up relatively better, slipping slightly to 54.5 from 55.0.
Though growth has cooled in recent months, before May the national reading had managed to stay in expansion territory, unlike some regional reports that have shown shrinkage.
Economic growth overall in the second quarter is expected to slow from the first quarter’s 2.4 percent pace.
Fed’s Advisory Council of bankers warns of risks posed by QE3
A Federal Reserve advisory panel of bankers issued a stark warning to the U.S. central bank earlier this month over the dangers of its massive bond purchases, according to documents released on Friday.
“Current policy has created systemic financial risks and potential structural problems for banks,” the Federal Advisory Council noted, according to minutes of its meeting on May 17, which the Fed posted on its public website.
In February, the council, made up of 12 representatives from the banking industry who meet four times a year, stated that it continued to support the Fed’s accommodative monetary policy.
In May, there was an acknowledgment that the policies had provided support for a slow recovery, but no explicit backing.
“However, the effectiveness of the policies in producing healthy economic and employment growth is not clear. Uncertainty about fiscal and monetary policy is deterring business investment that would spur growth,” the Council noted.

Fed officials say they are mindful of the potential costs of a campaign of their massive bond purchases, aimed at spurring growth by holding down borrowing costs, and have signaled that they may scale back buying if the economy continues to improve over the next few months.
The program, currently running at an $85 billon monthly pace, has harsh critics. The Advisory Council echoed some of these concerns in its May meeting, including a trend of low rates pushing investors into riskier assets to make up for lost yield.
The Advisory Council also noted that the Fed’s campaign of so called quantitative easing, which entered a third stage – dubbed QE3 – in September, has tripled the Fed’s balance sheet to around $3.3 trillion, and could be disruptive to exit.
“Uncertainty exists about how markets will reestablish normal valuations when the Fed withdraws from the market. It will likely be difficult to unwind policy accommodation.”
Each of the Fed’s 12 regional branches chooses a banker from its district to sit on the council, whose members include Joseph Hooley, head of Boston’s State Street Corp ; James Gorman, boss of Morgan Stanley in New York; and Kelly King, head of BB&T Corp in Winston-Salem, North Carolina. (Reporting By Alister Bull; Editing by Nick Zieminski)
http://www.reuters.com/article/2013/05/31/usa-fed-council-idUSL2N0EC1KX20130531
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Read Full Post | Make a Comment ( None so far )Police State In Boston–What’s Next? Martial Law: Obama’s National Defense Resources Preparedness Executive Order To Declare Martial Law In Time of Peace — Videos
Police perform house-to-house raids in Watertown MA ripping innocent families from their homes
On Friday, April 19, 2013, during a manhunt for a bombing suspect, police and federal agents spent the day storming people’s homes and performing illegal searches. While it was unclear initially if the home searches were voluntary, it is now crystal clear that they were absolutely NOT voluntary. Police were filmed ripping people from their homes at gunpoint, marching the residents out with their hands raised in submission, and then storming the homes to perform their illegal searches.
Shocking Footage: Americans Ordered Out Of Homes At Gunpoint By SWAT teams
This is what martial law in the US looks like
Steve Watson
Infowars.com
April 22, 2013
Shocking footage has emerged from Friday’s lockdown in Boston, where police, federal agents, national guard troops and SWAT teams enforced door to door searches of everyone’s home within twenty blocks as the entire city was placed under orders to stay off the streets.
The video, shot by a resident from their own house across the street, shows police barking orders at men and women as they order them at gunpoint to identify themselves, put their hands on their heads, and get out of their own home. They are then ordered to run down the street to be further frisked by police as scores of armed militarized cops look on.
The scenes look like something out of a disaster movie, with the backdrop of suburban America juxtaposed with what is essentially martial law playing out in full daylight.
The story floated in the mainstream media that the door to door searches were conducted with the voluntary consent of the residents of Watertown is clearly false. 9000+ Police locked down an entire city and went in with full force, with armored vehicles and combat gear, all to search for an injured 19 year old kid who turned out to be cowering in someone’s back yard.
While armies of police roamed around people’s homes and private property, Public transportation was shut down, businesses were forced to close, and a no-fly zone was enacted over Boston in an unprecedented show of force.
At this point, as military helicopters buzzed over neighborhoods, the Fourth Amendment had ceased to exist in Boston, which quickly resembled a war zone.
The compliant mainstream media reported on the activity without alarm or question. Katy Waldman of Slate wrote an article claiming that under dire circumstances police can suspend 4th Amendment rights against unreasonable searches:
In exigent circumstances, or emergency situations, police can conduct warrantless searches to protect public safety. This exception to the Fourth Amendment’s probable cause requirement normally addresses situations of “hot pursuit,” in which an escaping suspect is tracked to a private home. But it might also apply to the events unfolding in Boston if further harm or injury might be supposed to occur in the time it takes to secure a warrant.
This activity, once again, sets a shocking precedent. Police and military are training in these circumstances every single day of the year. They are fully acclimatized to the process, as if it is completely normal. They do not hesitate in carrying out such orders, which are now being implemented whenever the authorities deem a situation to be an emergency.
This is what fully fledged martial law in America looks like.
http://www.infowars.com/shocking-footage-americans-ordered-out-of-homes-at-gunpoint-by-swat-teams/
Has Watertown Made Warrantless Searches The ‘New Normal’?
April 25, 2013
By Bob Parks
The whole notion of the police “manhunt” is not a new American phenomenon. Cops chase bad guys, cops corner bad guys. Sometimes the bad guys give up quietly, sometimes they go down in a blaze of glory. But we’ve always had rules of engagement when it came to law enforcement interaction with the general public.
It appears all that got thrown out the window in the aftermath of the Boston Marathon terror bombing and the subsequent police chase in Cambridge, Massachusetts that came to a screeching halt in Watertown.
Seemingly, for the first time in the United States, we witnessed paramilitary-garbed law enforcement personnel forcing residents out of their homes at gunpoint. In some cases, the language used by law enforcement was menacing.
Because of the hysteria that comes after any terror event, the American people wanted the perpetrators caught and, in doing so, appeared to have allowed their rights against unlawful search and seizure to not be suspended, but removed.
How many times have we watched cop dramas on television where the police had a pretty good idea of where the bad guys were, but as they weren’t sure, came to the door and asked permission to come inside to “have a look around”? The only time they ever bashed a door in is when they absolutely knew the bad guys were there. If there was ever any doubt, they’d have to wait… for a court order from a judge.
That did not happen here.
The police came to people’s homes, ordered them to leave immediately at the point of a gun in some cases, and then entered their place of residence. It’s never “consensual” when the person asking you for something has a gun in his hand. “Probable cause” is convenient, but in this case, very arbitrary.
Again, I understand this was the culmination of a horrific event, but let’s say instead of the Thursday evening car chase racing through the streets and winding up in Watertown, it went up Route 9 and ended in very upscale Newton?
Do you think armed police would, under the authority of the governor of Massachusetts and the federal government, put an assault rifle nozzle in the face of a potential wealthy political donor? Would those policemen force the family of the elite into the streets while they entered a home that is worth 20 of their salaries combined?
If it weren’t a middle class area like Watertown, would you really see a politician ordering law enforcement to forcibly enter and search homes on the upper west side of Manhattan or Georgetown or Beverly Hills? Would this happen to a celebrity in his home or, heaven forbid, a congressman?
When citizens are searched by pat-down, rousted out of their homes, and we end up thanking the police with blind understanding, the government has essentially found an acceptable means to take more of our rights away without even one politician having to cast a vote.
These past events in Watertown have set a precedent.
The police can now enter our homes anytime they want. It just requires a verbal massaging of the circumstance. After all, who ever heard of “shelter-in-place” before Friday, April 19, 2013?
If the government can order us to stay in our homes, it looks like it can throw us out of them any time it wants… at the point of a gun.
http://cnsnews.com/blog/bob-parks/has-watertown-made-warrantless-searches-new-normal
Systematic House-to-House Raids in Locked-Down Watertown, Massachusetts
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Raid on Boston bombing suspect captured on film
Obama signs Executive Order NDRP Martial Law – Hannity Full News Clip Fox News (Mar 19, 2012)
Alex Jones – Obama’s New America with Martial Law
President Obama recently signed an Executive Order giving him the power to implement martial law in the US. The National Defense Resources Preparedness Executive Order will give Obama the power to seize the countries resources in a time of crisis or peace. This includes resources ranging from livestock to sources of energy and water.
Many critics of the Obama Administration believe this is another effort at power grab, but others argue that EO update is irrelevant. Alex Jones, host of The Alex Jones Show, joins RT with his take on the EO.
Obama Signs NDAA Martial Law in America 2012
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Executive Order — National Defense Resources Preparedness
EXECUTIVE ORDER
NATIONAL DEFENSE RESOURCES PREPAREDNESS
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et seq.), and section 301 of title 3, United States Code, and as Commander in Chief of the Armed Forces of the United States, it is hereby ordered as follows:
PART I – PURPOSE, POLICY, AND IMPLEMENTATION
Section 101. Purpose. This order delegates authorities and addresses national defense resource policies and programs under the Defense Production Act of 1950, as amended (the “Act”).
Sec. 102. Policy. The United States must have an industrial and technological base capable of meeting national defense requirements and capable of contributing to the technological superiority of its national defense equipment in peacetime and in times of national emergency. The domestic industrial and technological base is the foundation for national defense preparedness. The authorities provided in the Act shall be used to strengthen this base and to ensure it is capable of responding to the national defense needs of the United States.
Sec. 103. General Functions. Executive departments and agencies (agencies) responsible for plans and programs relating to national defense (as defined in section 801(j) of this order), or for resources and services needed to support such plans and programs, shall:
(a) identify requirements for the full spectrum of emergencies, including essential military and civilian demand;
(b) assess on an ongoing basis the capability of the domestic industrial and technological base to satisfy requirements in peacetime and times of national emergency, specifically evaluating the availability of the most critical resource and production sources, including subcontractors and suppliers, materials, skilled labor, and professional and technical personnel;
(c) be prepared, in the event of a potential threat to the security of the United States, to take actions necessary to ensure the availability of adequate resources and production capability, including services and critical technology, for national defense requirements;
(d) improve the efficiency and responsiveness of the domestic industrial base to support national defense requirements; and
(e) foster cooperation between the defense and commercial sectors for research and development and for acquisition of materials, services, components, and equipment to enhance industrial base efficiency and responsiveness.
Sec. 104. Implementation. (a) The National Security Council and Homeland Security Council, in conjunction with the National Economic Council, shall serve as the integrated policymaking forum for consideration and formulation of national defense resource preparedness policy and shall make recommendations to the President on the use of authorities under the Act.
(b) The Secretary of Homeland Security shall:
(1) advise the President on issues of national defense resource preparedness and on the use of the authorities and functions delegated by this order;
(2) provide for the central coordination of the plans and programs incident to authorities and functions delegated under this order, and provide guidance to agencies assigned functions under this order, developed in consultation with such agencies; and
(3) report to the President periodically concerning all program activities conducted pursuant to this order.
(c) The Defense Production Act Committee, described in section 701 of this order, shall:
(1) in a manner consistent with section 2(b) of the Act, 50 U.S.C. App. 2062(b), advise the President through the Assistant to the President and National Security Advisor, the Assistant to the President for Homeland Security and Counterterrorism, and the Assistant to the President for Economic Policy on the effective use of the authorities under the Act; and
(2) prepare and coordinate an annual report to the Congress pursuant to section 722(d) of the Act, 50 U.S.C. App. 2171(d).
(d) The Secretary of Commerce, in cooperation with the Secretary of Defense, the Secretary of Homeland Security, and other agencies, shall:
(1) analyze potential effects of national emergencies on actual production capability, taking into account the entire production system, including shortages of resources, and develop recommended preparedness measures to strengthen capabilities for production increases in national emergencies; and
(2) perform industry analyses to assess capabilities of the industrial base to support the national defense, and develop policy recommendations to improve the international competitiveness of specific domestic industries and their abilities to meet national defense program needs.
PART II - PRIORITIES AND ALLOCATIONS
Sec. 201. Priorities and Allocations Authorities. (a) The authority of the President conferred by section 101 of the Act, 50 U.S.C. App. 2071, to require acceptance and priority performance of contracts or orders (other than contracts of employment) to promote the national defense over performance of any other contracts or orders, and to allocate materials, services, and facilities as deemed necessary or appropriate to promote the national defense, is delegated to the following agency heads:
(1) the Secretary of Agriculture with respect to food resources, food resource facilities, livestock resources, veterinary resources, plant health resources, and the domestic distribution of farm equipment and commercial fertilizer;
(2) the Secretary of Energy with respect to all forms of energy;
(3) the Secretary of Health and Human Services with respect to health resources;
(4) the Secretary of Transportation with respect to all forms of civil transportation;
(5) the Secretary of Defense with respect to water resources; and
(6) the Secretary of Commerce with respect to all other materials, services, and facilities, including construction materials.
(b) The Secretary of each agency delegated authority under subsection (a) of this section (resource departments) shall plan for and issue regulations to prioritize and allocate resources and establish standards and procedures by which the authority shall be used to promote the national defense, under both emergency and non-emergency conditions. Each Secretary shall authorize the heads of other agencies, as appropriate, to place priority ratings on contracts and orders for materials, services, and facilities needed in support of programs approved under section 202 of this order.
(c) Each resource department shall act, as necessary and appropriate, upon requests for special priorities assistance, as defined by section 801(l) of this order, in a time frame consistent with the urgency of the need at hand. In situations where there are competing program requirements for limited resources, the resource department shall consult with the Secretary who made the required determination under section 202 of this order. Such Secretary shall coordinate with and identify for the resource department which program requirements to prioritize on the basis of operational urgency. In situations involving more than one Secretary making such a required determination under section 202 of this order, the Secretaries shall coordinate with and identify for the resource department which program requirements should receive priority on the basis of operational urgency.
(d) If agreement cannot be reached between two such Secretaries, then the issue shall be referred to the President through the Assistant to the President and National Security Advisor and the Assistant to the President for Homeland Security and Counterterrorism.
(e) The Secretary of each resource department, when necessary, shall make the finding required under section 101(b) of the Act, 50 U.S.C. App. 2071(b). This finding shall be submitted for the President’s approval through the Assistant to the President and National Security Advisor and the Assistant to the President for Homeland Security and Counterterrorism. Upon such approval, the Secretary of the resource department that made the finding may use the authority of section 101(a) of the Act, 50 U.S.C. App. 2071(a), to control the general distribution of any material (including applicable services) in the civilian market.
Sec. 202. Determinations. Except as provided in section 201(e) of this order, the authority delegated by section 201 of this order may be used only to support programs that have been determined in writing as necessary or appropriate to promote the national defense:
(a) by the Secretary of Defense with respect to military production and construction, military assistance to foreign nations, military use of civil transportation, stockpiles managed by the Department of Defense, space, and directly related activities;
(b) by the Secretary of Energy with respect to energy production and construction, distribution and use, and directly related activities; and
(c) by the Secretary of Homeland Security with respect to all other national defense programs, including civil defense and continuity of Government.
Sec. 203. Maximizing Domestic Energy Supplies. The authorities of the President under section 101(c)(1) (2) of the Act, 50 U.S.C. App. 2071(c)(1) (2), are delegated to the Secretary of Commerce, with the exception that the authority to make findings that materials (including equipment), services, and facilities are critical and essential, as described in section 101(c)(2)(A) of the Act, 50 U.S.C. App. 2071(c)(2)(A), is delegated to the Secretary of Energy.
Sec. 204. Chemical and Biological Warfare. The authority of the President conferred by section 104(b) of the Act, 50 U.S.C. App. 2074(b), is delegated to the Secretary of Defense. This authority may not be further delegated by the Secretary.
PART III – EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY
Sec. 301. Loan Guarantees. (a) To reduce current or projected shortfalls of resources, critical technology items, or materials essential for the national defense, the head of each agency engaged in procurement for the national defense, as defined in section 801(h) of this order, is authorized pursuant to section 301 of the Act, 50 U.S.C. App. 2091, to guarantee loans by private institutions.
(b) Each guaranteeing agency is designated and authorized to: (1) act as fiscal agent in the making of its own guarantee contracts and in otherwise carrying out the purposes of section 301 of the Act; and (2) contract with any Federal Reserve Bank to assist the agency in serving as fiscal agent.
(c) Terms and conditions of guarantees under this authority shall be determined in consultation with the Secretary of the Treasury and the Director of the Office of Management and Budget (OMB). The guaranteeing agency is authorized, following such consultation, to prescribe: (1) either specifically or by maximum limits or otherwise, rates of interest, guarantee and commitment fees, and other charges which may be made in connection with such guarantee contracts; and (2) regulations governing the forms and procedures (which shall be uniform to the extent practicable) to be utilized in connection therewith.
Sec. 302. Loans. To reduce current or projected shortfalls of resources, critical technology items, or materials essential for the national defense, the head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 302 of the Act, 50 U.S.C. App. 2092, to make loans thereunder. Terms and conditions of loans under this authority shall be determined in consultation with the Secretary of the Treasury and the Director of OMB.
Sec. 303. Additional Authorities. (a) To create, maintain, protect, expand, or restore domestic industrial base capabilities essential for the national defense, the head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 303 of the Act, 50 U.S.C. App. 2093, to make provision for purchases of, or commitments to purchase, an industrial resource or a critical technology item for Government use or resale, and to make provision for the development of production capabilities, and for the increased use of emerging technologies in security program applications, and to enable rapid transition of emerging technologies.
(b) Materials acquired under section 303 of the Act, 50 U.S.C. App. 2093, that exceed the needs of the programs under the Act may be transferred to the National Defense Stockpile, if, in the judgment of the Secretary of Defense as the National Defense Stockpile Manager, such transfers are in the public interest.
Sec. 304. Subsidy Payments. To ensure the supply of raw or nonprocessed materials from high cost sources, or to ensure maximum production or supply in any area at stable prices of any materials in light of a temporary increase in transportation cost, the head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 303(c) of the Act, 50 U.S.C. App. 2093(c), to make subsidy payments, after consultation with the Secretary of the Treasury and the Director of OMB.
Sec. 305. Determinations and Findings. (a) Pursuant to budget authority provided by an appropriations act in advance for credit assistance under section 301 or 302 of the Act, 50 U.S.C. App. 2091, 2092, and consistent with the Federal Credit Reform Act of 1990, as amended (FCRA), 2 U.S.C. 661 et seq., the head of each agency engaged in procurement for the national defense is delegated the authority to make the determinations set forth in sections 301(a)(2) and 302(b)(2) of the Act, in consultation with the Secretary making the required determination under section 202 of this order; provided, that such determinations shall be made after due consideration of the provisions of OMB Circular A 129 and the credit subsidy score for the relevant loan or loan guarantee as approved by OMB pursuant to FCRA.
(b) Other than any determination by the President under section 303(a)(7)(b) of the Act, the head of each agency engaged in procurement for the national defense is delegated the authority to make the required determinations, judgments, certifications, findings, and notifications defined under section 303 of the Act, 50 U.S.C. App. 2093, in consultation with the Secretary making the required determination under section 202 of this order.
Sec. 306. Strategic and Critical Materials. The Secretary of Defense, and the Secretary of the Interior in consultation with the Secretary of Defense as the National Defense Stockpile Manager, are each delegated the authority of the President under section 303(a)(1)(B) of the Act, 50 U.S.C. App. 2093(a)(1)(B), to encourage the exploration, development, and mining of strategic and critical materials and other materials.
Sec. 307. Substitutes. The head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 303(g) of the Act, 50 U.S.C. App. 2093(g), to make provision for the development of substitutes for strategic and critical materials, critical components, critical technology items, and other resources to aid the national defense.
Sec. 308. Government-Owned Equipment. The head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 303(e) of the Act, 50 U.S.C. App. 2093(e), to:
(a) procure and install additional equipment, facilities, processes, or improvements to plants, factories, and other industrial facilities owned by the Federal Government and to procure and install Government owned equipment in plants, factories, or other industrial facilities owned by private persons;
(b) provide for the modification or expansion of privately owned facilities, including the modification or improvement of production processes, when taking actions under sections 301, 302, or 303 of the Act, 50 U.S.C. App. 2091, 2092, 2093; and
(c) sell or otherwise transfer equipment owned by the Federal Government and installed under section 303(e) of the Act, 50 U.S.C. App. 2093(e), to the owners of such plants, factories, or other industrial facilities.
Sec. 309. Defense Production Act Fund. The Secretary of Defense is designated the Defense Production Act Fund Manager, in accordance with section 304(f) of the Act, 50 U.S.C. App. 2094(f), and shall carry out the duties specified in section 304 of the Act, in consultation with the agency heads having approved, and appropriated funds for, projects under title III of the Act.
Sec. 310. Critical Items. The head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 107(b)(1) of the Act, 50 U.S.C. App. 2077(b)(1), to take appropriate action to ensure that critical components, critical technology items, essential materials, and industrial resources are available from reliable sources when needed to meet defense requirements during peacetime, graduated mobilization, and national emergency. Appropriate action may include restricting contract solicitations to reliable sources, restricting contract solicitations to domestic sources (pursuant to statutory authority), stockpiling critical components, and developing substitutes for critical components or critical technology items.
Sec. 311. Strengthening Domestic Capability. The head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 107(a) of the Act, 50 U.S.C. App. 2077(a), to utilize the authority of title III of the Act or any other provision of law to provide appropriate incentives to develop, maintain, modernize, restore, and expand the productive capacities of domestic sources for critical components, critical technology items, materials, and industrial resources essential for the execution of the national security strategy of the United States.
Sec. 312. Modernization of Equipment. The head of each agency engaged in procurement for the national defense, in accordance with section 108(b) of the Act, 50 U.S.C. App. 2078(b), may utilize the authority of title III of the Act to guarantee the purchase or lease of advance manufacturing equipment, and any related services with respect to any such equipment for purposes of the Act. In considering title III projects, the head of each agency engaged in procurement for the national defense shall provide a strong preference for proposals submitted by a small business supplier or subcontractor in accordance with section 108(b)(2) of the Act, 50 U.S.C. App. 2078(b)(2).
PART IV - VOLUNTARY AGREEMENTS AND ADVISORY COMMITTEES
Sec. 401. Delegations. The authority of the President under sections 708(c) and (d) of the Act, 50 U.S.C. App. 2158(c), (d), is delegated to the heads of agencies otherwise delegated authority under this order. The status of the use of such delegations shall be furnished to the Secretary of Homeland Security.
Sec. 402. Advisory Committees. The authority of the President under section 708(d) of the Act, 50 U.S.C. App. 2158(d), and delegated in section 401 of this order (relating to establishment of advisory committees) shall be exercised only after consultation with, and in accordance with, guidelines and procedures established by the Administrator of General Services.
Sec. 403. Regulations. The Secretary of Homeland Security, after approval of the Attorney General, and after consultation by the Attorney General with the Chairman of the Federal Trade Commission, shall promulgate rules pursuant to section 708(e) of the Act, 50 U.S.C. App. 2158(e), incorporating standards and procedures by which voluntary agreements and plans of action may be developed and carried out. Such rules may be adopted by other agencies to fulfill the rulemaking requirement of section 708(e) of the Act, 50 U.S.C. App. 2158(e).
PART V - EMPLOYMENT OF PERSONNEL
Sec. 501. National Defense Executive Reserve. (a) In accordance with section 710(e) of the Act, 50 U.S.C. App. 2160(e), there is established in the executive branch a National Defense Executive Reserve (NDER) composed of persons of recognized expertise from various segments of the private sector and from Government (except full time Federal employees) for training for employment in executive positions in the Federal Government in the event of a national defense emergency.
(b) The Secretary of Homeland Security shall issue necessary guidance for the NDER program, including appropriate guidance for establishment, recruitment, training, monitoring, and activation of NDER units and shall be responsible for the overall coordination of the NDER program. The authority of the President under section 710(e) of the Act, 50 U.S.C. App. 2160(e), to determine periods of national defense emergency is delegated to the Secretary of Homeland Security.
(c) The head of any agency may implement section 501(a) of this order with respect to NDER operations in such agency.
(d) The head of each agency with an NDER unit may exercise the authority under section 703 of the Act, 50 U.S.C. App. 2153, to employ civilian personnel when activating all or a part of its NDER unit. The exercise of this authority shall be subject to the provisions of sections 501(e) and (f) of this order and shall not be redelegated.
(e) The head of an agency may activate an NDER unit, in whole or in part, upon the written determination of the Secretary of Homeland Security that an emergency affecting the national defense exists and that the activation of the unit is necessary to carry out the emergency program functions of the agency.
(f) Prior to activating the NDER unit, the head of the agency shall notify, in writing, the Assistant to the President for Homeland Security and Counterterrorism of the impending activation.
Sec. 502. Consultants. The head of each agency otherwise delegated functions under this order is delegated the authority of the President under sections 710(b) and (c) of the Act, 50 U.S.C. App. 2160(b), (c), to employ persons of outstanding experience and ability without compensation and to employ experts, consultants, or organizations. The authority delegated by this section may not be redelegated.
PART VI - LABOR REQUIREMENTS
Sec. 601. Secretary of Labor. (a) The Secretary of Labor, in coordination with the Secretary of Defense and the heads of other agencies, as deemed appropriate by the Secretary of Labor, shall:
(1) collect and maintain data necessary to make a continuing appraisal of the Nation’s workforce needs for purposes of national defense;
(2) upon request by the Director of Selective Service, and in coordination with the Secretary of Defense, assist the Director of Selective Service in development of policies regulating the induction and deferment of persons for duty in the armed services;
(3) upon request from the head of an agency with authority under this order, consult with that agency with respect to: (i) the effect of contemplated actions on labor demand and utilization; (ii) the relation of labor demand to materials and facilities requirements; and (iii) such other matters as will assist in making the exercise of priority and allocations functions consistent with effective utilization and distribution of labor;
(4) upon request from the head of an agency with authority under this order: (i) formulate plans, programs, and policies for meeting the labor requirements of actions to be taken for national defense purposes; and (ii) estimate training needs to help address national defense requirements and promote necessary and appropriate training programs; and
(5) develop and implement an effective labor management relations policy to support the activities and programs under this order, with the cooperation of other agencies as deemed appropriate by the Secretary of Labor, including the National Labor Relations Board, the Federal Labor Relations Authority, the National Mediation Board, and the Federal Mediation and Conciliation Service.
(b) All agencies shall cooperate with the Secretary of Labor, upon request, for the purposes of this section, to the extent permitted by law.
PART VII - DEFENSE PRODUCTION ACT COMMITTEE
Sec. 701. The Defense Production Act Committee. (a) The Defense Production Act Committee (Committee) shall be composed of the following members, in accordance with section 722(b) of the Act, 50 U.S.C. App. 2171(b):
(1) The Secretary of State;
(2) The Secretary of the Treasury;
(3) The Secretary of Defense;
(4) The Attorney General;
(5) The Secretary of the Interior;
(6) The Secretary of Agriculture;
(7) The Secretary of Commerce;
(8) The Secretary of Labor;
(9) The Secretary of Health and Human Services;
(10) The Secretary of Transportation;
(11) The Secretary of Energy;
(12) The Secretary of Homeland Security;
(13) The Director of National Intelligence;
(14) The Director of the Central Intelligence Agency;
(15) The Chair of the Council of Economic Advisers;
(16) The Administrator of the National Aeronautics and Space Administration; and
(17) The Administrator of General Services.
(b) The Director of OMB and the Director of the Office of Science and Technology Policy shall be invited to participate in all Committee meetings and activities in an advisory role. The Chairperson, as designated by the President pursuant to section 722 of the Act, 50 U.S.C. App. 2171, may invite the heads of other agencies or offices to participate in Committee meetings and activities in an advisory role, as appropriate.
Sec. 702. Offsets. The Secretary of Commerce shall prepare and submit to the Congress the annual report required by section 723 of the Act, 50 U.S.C. App. 2172, in consultation with the Secretaries of State, the Treasury, Defense, and Labor, the United States Trade Representative, the Director of National Intelligence, and the heads of other agencies as appropriate. The heads of agencies shall provide the Secretary of Commerce with such information as may be necessary for the effective performance of this function.
PART VIII - GENERAL PROVISIONS
Sec. 801. Definitions. In addition to the definitions in section 702 of the Act, 50 U.S.C. App. 2152, the following definitions apply throughout this order:
(a) “Civil transportation” includes movement of persons and property by all modes of transportation in interstate, intrastate, or foreign commerce within the United States, its territories and possessions, and the District of Columbia, and related public storage and warehousing, ports, services, equipment and facilities, such as transportation carrier shop and repair facilities. “Civil transportation” also shall include direction, control, and coordination of civil transportation capacity regardless of ownership. “Civil transportation” shall not include transportation owned or controlled by the Department of Defense, use of petroleum and gas pipelines, and coal slurry pipelines used only to supply energy production facilities directly.
(b) “Energy” means all forms of energy including petroleum, gas (both natural and manufactured), electricity, solid fuels (including all forms of coal, coke, coal chemicals, coal liquification, and coal gasification), solar, wind, other types of renewable energy, atomic energy, and the production, conservation, use, control, and distribution (including pipelines) of all of these forms of energy.
(c) “Farm equipment” means equipment, machinery, and repair parts manufactured for use on farms in connection with the production or preparation for market use of food resources.
(d) “Fertilizer” means any product or combination of products that contain one or more of the elements nitrogen, phosphorus, and potassium for use as a plant nutrient.
(e) “Food resources” means all commodities and products, (simple, mixed, or compound), or complements to such commodities or products, that are capable of being ingested by either human beings or animals, irrespective of other uses to which such commodities or products may be put, at all stages of processing from the raw commodity to the products thereof in vendible form for human or animal consumption. “Food resources” also means potable water packaged in commercially marketable containers, all starches, sugars, vegetable and animal or marine fats and oils, seed, cotton, hemp, and flax fiber, but does not mean any such material after it loses its identity as an agricultural commodity or agricultural product.
(f) “Food resource facilities” means plants, machinery, vehicles (including on farm), and other facilities required for the production, processing, distribution, and storage (including cold storage) of food resources, and for the domestic distribution of farm equipment and fertilizer (excluding transportation thereof).
(g) “Functions” include powers, duties, authority, responsibilities, and discretion.
(h) “Head of each agency engaged in procurement for the national defense” means the heads of the Departments of State, Justice, the Interior, and Homeland Security, the Office of the Director of National Intelligence, the Central Intelligence Agency, the National Aeronautics and Space Administration, the General Services Administration, and all other agencies with authority delegated under section 201 of this order.
(i) “Health resources” means drugs, biological products, medical devices, materials, facilities, health supplies, services and equipment required to diagnose, mitigate or prevent the impairment of, improve, treat, cure, or restore the physical or mental health conditions of the population.
(j) “National defense” means programs for military and energy production or construction, military or critical infrastructure assistance to any foreign nation, homeland security, stockpiling, space, and any directly related activity. Such term includes emergency preparedness activities conducted pursuant to title VI of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5195 et seq., and critical infrastructure protection and restoration.
(k) “Offsets” means compensation practices required as a condition of purchase in either government to government or commercial sales of defense articles and/or defense services as defined by the Arms Export Control Act, 22 U.S.C. 2751 et seq., and the International Traffic in Arms Regulations, 22 C.F.R. 120.1 130.17.
(l) “Special priorities assistance” means action by resource departments to assist with expediting deliveries, placing rated orders, locating suppliers, resolving production or delivery conflicts between various rated orders, addressing problems that arise in the fulfillment of a rated order or other action authorized by a delegated agency, and determining the validity of rated orders.
(m) “Strategic and critical materials” means materials (including energy) that (1) would be needed to supply the military, industrial, and essential civilian needs of the United States during a national emergency, and (2) are not found or produced in the United States in sufficient quantities to meet such need and are vulnerable to the termination or reduction of the availability of the material.
(n) “Water resources” means all usable water, from all sources, within the jurisdiction of the United States, that can be managed, controlled, and allocated to meet emergency requirements, except “water resources” does not include usable water that qualifies as “food resources.”
Sec. 802. General. (a) Except as otherwise provided in section 802(c) of this order, the authorities vested in the President by title VII of the Act, 50 U.S.C. App. 2151 et seq., are delegated to the head of each agency in carrying out the delegated authorities under the Act and this order, by the Secretary of Labor in carrying out part VI of this order, and by the Secretary of the Treasury in exercising the functions assigned in Executive Order 11858, as amended.
(b) The authorities that may be exercised and performed pursuant to section 802(a) of this order shall include:
(1) the power to redelegate authorities, and to authorize the successive redelegation of authorities to agencies, officers, and employees of the Government; and
(2) the power of subpoena under section 705 of the Act, 50 U.S.C. App. 2155, with respect to (i) authorities delegated in parts II, III, and section 702 of this order, and (ii) the functions assigned to the Secretary of the Treasury in Executive Order 11858, as amended, provided that the subpoena power referenced in subsections (i) and (ii) shall be utilized only after the scope and purpose of the investigation, inspection, or inquiry to which the subpoena relates have been defined either by the appropriate officer identified in section 802(a) of this order or by such other person or persons as the officer shall designate.
(c) Excluded from the authorities delegated by section 802(a) of this order are authorities delegated by parts IV and V of this order, authorities in section 721 and 722 of the Act, 50 U.S.C. App. 2170 2171, and the authority with respect to fixing compensation under section 703 of the Act, 50 U.S.C. App. 2153.
Sec. 803. Authority. (a) Executive Order 12919 of June 3, 1994, and sections 401(3) (4) of Executive Order 12656 of November 18, 1988, are revoked. All other previously issued orders, regulations, rulings, certificates, directives, and other actions relating to any function affected by this order shall remain in effect except as they are inconsistent with this order or are subsequently amended or revoked under proper authority. Nothing in this order shall affect the validity or force of anything done under previous delegations or other assignment of authority under the Act.
(b) Nothing in this order shall affect the authorities assigned under Executive Order 11858 of May 7, 1975, as amended, except as provided in section 802 of this order.
(c) Nothing in this order shall affect the authorities assigned under Executive Order 12472 of April 3, 1984, as amended.
Sec. 804. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect functions of the Director of OMB relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
BARACK OBAMA
THE WHITE HOUSE,
March 16, 2012.
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WASHINGTON, March 22—Throughout the course of the budget debate, Democratic Senators have repeatedly suggested their budget contains a “balanced approach,” a rhetorical description that has no accounting value. (Sen. Sheldon Whitehouse (D-RI) went even further last night and repeatedly said his party’s plan called for “balancing the budget.”)
But as Sen. Sessions pointed out this morning, “They know they don’t have a balanced budget. They won’t tell the American people they don’t have one. They just use the word. But it’s not in their document. Where and when do we hold people accountable in this United States Senate for an accurate [description] of legislation? It’s wrong.”
To view for yourself the budget tables with the Democrats’ own numbers (in other words, before one even begins to strip out all the gimmicks and accounting tricks), please click here: http://1.usa.gov/YwdsbM. Note that cumulative deficits will amount to $5.198 trillion, and the nation’s gross debt will climb to $24.365 trillion by 2023.
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Making the Federal Budget
How do you spend four trillion dollars? Turns out, you don’t; it takes the President and the Congress to allocate, authorize, appropriate, resolve, outlay, sequester, impound, and just plain spend that much in 2011. Such a process is baffling at times. It’s so complex that you may marvel that Washington can get any action accomplished and paid for at all. So how does the federal budget happen?
Join the Mercatus Center’s Capitol Hill Campus and Senior Research Fellow Jason J. Fichtner for a walk through the process of making the federal budget. He explains the process from its beginnings in the halls of the White House, highlight the many roles Congress takes to authorize and enforce the budget, and navigate the twisting, puzzling conglomeration of bureaucratic steps, political goals, and accountancy rules that go into making our government function.
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The Fiscal Year 2014 Senate Budget builds on the work done over the last two years to create jobs, invest in broad-based economic growth, and tackle our deficit and debt responsibly.
This budget takes the balanced and responsible approach to our fiscal challenges that every bipartisan group has endorsed and that the American people support. It includes responsible spending cuts made across the federal budget, as well as significant new savings achieved by eliminating loopholes and cutting wasteful spending in the tax code that benefits the wealthiest Americans and biggest corporations.
The Senate Budget is grounded in the understanding that our country’s long-term fiscal and economic goals will only be met with policies that support a strong and growing middle class. And it keeps the promises we have made to our seniors, our families, and our communities.
The American people are sick and tired of watching their government lurch from crisis to crisis. The Senate Budget offers a serious and credible path away from this gridlock and dysfunction and toward a long-term plan to create jobs, lay down a strong foundation for broad-based economic growth, replace sequestration, and tackle our deficit and debt responsibly and credibly.
This budget reflects the values of a diverse Senate serving a diverse nation, and it is guided by the principles and priorities that are strongly supported by the constituents we were elected to represent
http://www.budget.senate.gov/democratic/index.cfm/senatebudget
Foundation for Growth: Restoring the Promise of American Opportunity
The Fiscal Year 2014 Senate Budget builds on the work done over the last two years to create jobs, invest in broad-based economic growth, and tackle our deficit and debt responsibly.
This budget takes the balanced and responsible approach to our fiscal challenges that every bipartisan group has endorsed and that the American people support. It includes responsible spending cuts made across the federal budget, as well as significant new savings achieved by eliminating loopholes and cutting wasteful spending in the tax code that benefits the wealthiest Americans and biggest corporations.
The Senate Budget is grounded in the understanding that our country’s long-term fiscal and economic goals will only be met with policies that support a strong and growing middle class. And it keeps the promises we have made to our seniors, our families, and our communities.
The American people are sick and tired of watching their government lurch from crisis to crisis. The Senate Budget offers a serious and credible path away from this gridlock and dysfunction and toward a long-term plan to create jobs, lay down a strong foundation for broad-based economic growth, replace sequestration, and tackle our deficit and debt responsibly and credibly.
This budget reflects the values of a diverse Senate serving a diverse nation, and it is guided by the principles and priorities that are strongly supported by the constituents we were elected to represent.
The highest priority of the Senate Budget is to create the conditions for job creation, economic growth, and prosperity built from the middle out, not the top down.
The Senate Budget takes the position that trickle-down economics has failed as an economic policy and that true national prosperity comes from the middle out, not the top down. We believe that deficit reduction at the expense of economic growth is doomed to failure, and policies that promote a strong middle class are essential to tackling our long-term deficit and debt challenges.
The policies President Barack Obama and Congress put in place in response to the Great Recession pulled our economy back from the brink and helped to add back jobs. But with an unemployment rate that remains stubbornly high, and a middle class that has seen their wages stagnate for far too long, we simply cannot afford any threats to our fragile recovery. Therefore, the Senate Budget:
• Fully replaces the harmful cuts from sequestration with smart, balanced, and responsible deficit reduction, which would save hundreds of thousands of jobs while protecting families, communities, and the fragile economic recovery.
• Invests in long-term economic growth and national competitiveness by tackling our serious deficits in infrastructure, education, job training, and innovation to create jobs now and lay down a strong foundation for broad-based growth.
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• Includes a $100 billion targeted jobs and infrastructure package that would start creating new jobs quickly, begin repairing the worst of our crumbling roads and bridges, and help train our workers to fill 21
st century jobs. This jobs investment package is fully paid for by eliminating loopholes and cutting wasteful spending in the tax code that benefits the wealthiest Americans and biggest corporations.
• Protects and continues tax cuts for the middle class and low-income working families.
The Senate Budget builds on the work we have done over the last two years to tackle our deficit and debt responsibly.
At the end of 2010, the bipartisan Simpson-Bowles Commission report laid out a responsible goal of reducing our deficit by $4 trillion over ten years. Since that time, Congress and the administration have implemented $2.4 trillion in deficit reduction, with $1.8 trillion coming from spending cuts and $600 billion coming from new revenue from the wealthiest Americans. The Senate Budget:
• Surpasses the bipartisan goal of $4 trillion in 10-year deficit reduction and puts our deficit and debt on a downward, sustainable, and responsible path.
• Builds on the $2.4 trillion in deficit reduction already done with an additional $1.85 trillion in new deficit reduction for a total of $4.25 trillion in deficit reduction since the Simpson-Bowles report.
• Includes an equal mix of responsible spending cuts and new revenue raised by closing loopholes and ending wasteful spending in the tax code.
• Achieves $975 billion in deficit reduction through responsible spending cuts made across the federal budget:
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$493 billion saved on the domestic spending side, including $275 billion in health care savings made in a way that does not harm seniors or families.
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$240 billion saved by carefully and responsibly cutting defense spending to align with the drawdown of troops in our overseas operations.
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$242 billion saved in reduced interest payments.
• Achieves $975 billion in deficit reduction by closing loopholes and eliminating wasteful spending in the tax code that benefits the wealthiest Americans and biggest corporations.
• Includes reconciliation instructions, a fast-track process that makes sure that the new revenue from the wealthiest Americans and biggest corporations cannot be filibustered in the Senate.
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The Senate Budget keeps the promises we have made to our seniors, families, veterans, and communities.
The Senate Budget takes the position that the promises we made to our seniors, families, veterans, and communities ought to be fulfilled. This budget:
• Preserves and protects Medicare so that it is strong for seniors today and will be there for our children and grandchildren.
• Rejects calls to dismantle, privatize, or voucherize Medicare.
• Builds on the responsible changes made in the Affordable Care Act to continue reducing health care costs while protecting patients.
• Protects the expansion of health insurance to nearly 30 million Americans and ensures the federal-state partnership on Medicaid is preserved.
• Rejects efforts to simply shift health care costs to states or make cuts that harm seniors and the most vulnerable families.
• Maintains the key principle that deficit reduction should not be done on the backs of the most vulnerable families and communities.
• Continues to make the investments we need in national defense, homeland security, and law enforcement to keep our country and our communities strong and secure.
• Keeps the promise we have made to our veterans that their country will be there for them and provide the resources and support they need when they come home.
The House Republican approach would hurt middle class families and the economy and break the promises we have made to our seniors.
The Senate Budget offers a very different vision than the approach taken by House Republicans.
Their proposals would cut the legs out from under our fragile economic recovery and threaten millions of jobs. They would slash the investments in infrastructure, education, and innovation that we need to lay down a strong foundation for broad-based growth and that would position us to compete and win in the 21
st century global economy.
House Republicans would dismantle Medicare and cut off programs that support the middle class and most vulnerable families. And they would do all that while refusing to ask the wealthiest Americans and biggest corporations to contribute their fair share.
We believe that the American people strongly support the pro-growth, pro-middle class approach taken in the Senate Budget. And we look forward to engaging with families and seniors across the country as we work to pass the responsible, fair, and bipartisan budget deal the American people expect and deserve.
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The following timetable is used to guide the federal budget process each year (see 2. U.S.C. 631)
| Date | Action |
| 1st Monday in February | President’s budget submission (includes OMB sequester preview report and adjustments to spending caps). |
| February 15 | CBO budget and economic outlook report |
| Within 6 weeks of President’s budget | Committees submit views and estimates to the Budget Committees |
| April 1 | Senate Budget Committee reports resolution |
| April 15 | Congress completes budget resolution. If not, Chairman of House Budget Committee files 302(a) allocations; Ways and Means is free to proceed with pay-as-you-go measures |
| May 15 | Appropriations bills may be considered in the House |
| June 10 | House Appropriations reports last bill |
| June 15 | Congress completes action on reconciliation reconciliation (if applicable) |
| June 30 | House completes action on annual appropriation bills |
| July 15 | President submits mid-session review |
| October 1 |
Fiscal year begins Home / Committee Resources / Glossary Appropriations Act: A statute, under the jurisdiction of the House and Senate Appropriations Committees, that generally provides authority for Federal agencies to incur obligations and to make payments out of the Treasury for specified purposes. An appropriation act is the most common means of providing budget authority. Currently, there are 13 regular appropriations acts for each fiscal year. From time to time, Congress also enacts supplemental appropriations acts. (See Appropriations under Budget Authority; Continuing Resolution; Supplemental Appropriation.) Authorizing Committee: A committee of the House or Senate with legislative jurisdiction over laws that set up or continue the operations of Federal programs and provide the legal basis for making appropriations for those programs. Authorizing committees also have direct control over spending for mandatory programs since the Government’s obligation to make payments for such program is contained in the authorizing legislation (See Entitlement.) Authorizing Legislation: Legislation enacted by Congress that sets up or continues the operation of a Federal program or agency indefinitely or for a specific period of time. Authorizing legislation may limit the amount of budget authority which can be appropriated for a program or may authorize the appropriation of “such sums as are necessary.” (See Budget Authority; Entitlement.) Backdoor Spending: (See Direct Spending or Mandatory Spending.) Budget Authority: The authority Congress gives to Government agencies, permitting them to enter into obligations which will result in immediate or future outlays. Budget authority may be classified in several ways. It may be classified by the form it takes: appropriations, borrowing authority, or contract authority. Budget authority may also be classified by the determination of amount: definite authority or indefinite authority. Finally budget authority may be classified by the period of availability: 1-year authority, multi-year authority, or no-year authority (available until used). Forms of Budget Authority Appropriations.–An act of Congress that permits Federal agencies to incur obligations and to make payments out of the Treasury for specified purposes. An appropriations act is the most common means of providing budget authority. Borrowing Authority.–Statutory authority that permits a Federal agency to incur obligations and to make payments for specified purposes out of money borrowed from the Treasury, the Federal Financing Bank, or the public. The Budget Act in most cases requires that new authority to borrow must be approved in advance in an appropriation act. Contract Authority.–Statutory authority that permits a Federal agency to enter into contracts in advance of appropriations. Under the Budget Act, most new authority to contract must be approved in advance in an appropriation act. Offsetting collections and receipts.–Income from the public which is displayed in the budget as negative budget authority. (See Offsetting Collections and Offsetting Receipts. Budget Baseline: Projected Federal spending, revenue and deficit levels based on the assumption that current policies will continue unchanged for the upcoming fiscal year. In determining the budget baseline under Gramm-Rudman-Hollings, the Directors of OMB and CBO estimate revenue levels and spending levels for entitlement programs based on continuation of current laws. For estimating discretionary spending amounts (both defense and non- defense), the Directors assume an adjustment for inflation (GNP deflator) added to the previous year’s discretionary spending levels. The baseline also includes sufficient appropriations to cover a Federal pay comparability raise (without absorption). Budget Deficit: The amount by which the Government’s total outlays exceed its total revenues for a given fiscal year. (See Outlays; Revenues.) Budget Resolution: A concurrent resolution passed by both Houses of Congress setting forth, reaffirming, or revising the congressional budget for the U.S. Government for a fiscal year. A budget resolution is a concurrent resolution of Congress. Concurrent resolutions do not require a presidential signature because they are not laws. Budget resolutions do not need to be laws because they are a legislative device for the Congress to regulate itself as it works on spending and revenue bills. (Unified) Budget Surplus: The amount by which the Government’s revenues exceed its outlays for a given fiscal year. The “on-budget surplus” excludes spending and revenues of the Social Security Trust Fund, and the Postal Service. (See Outlays; Revenues.) Capital Budget: A budget that segregates capital spending from all other spending, what is usually considered the “operating budget.” In a capital budget, spending and receipts in the capital budget are excluded from the operating budget and are not included in the operating budget’s deficit or surplus calculations. A capital budget would include spending only for capital assets. Capital assets are usually defined to be limited to land, structures, equipment, and intellectual property that are owned and used by the Federal government and have a useful life of more than 2 years. However, some proponents of capital budgeting have suggested that capital should be defined to include Federal “investment” spending that yields long-term benefits. President Clinton established a Commission to Study Capital Budgeting by issuing Executive Order 13037 on March 3, 1997. The Commission is required to issue its report by December 17, 1998. Congressional Budget: (See Budget Resolution.) Continuing Resolution: Appropriations legislation enacted by Congress to provide temporary budget authority for Federal agencies to keep them in operation when their regular appropriation bill has not been enacted by the start of the fiscal year. A continuing resolution is a joint resolution, which has the same legal status as a bill. A continuing resolution frequently specifies a maximum rate at which obligations may be incurred, based on the rate of the prior year, the President’s budget request, or an appropriation bill passed by either or both chambers of Congress. However, there have been instances when Congress has used a continuing resolution as an omnibus measure to enact a number of appropriation bills. A continuing resolution is a form of appropriation act and should not be confused with the budget resolution. Credit Authority: Authority to incur direct loan obligations or to incur primary loan guarantee commitments. Under the Budget Act, new credit authority must be approved in advance in an appropriation act. Crosswalk: Also known as “committee allocation” or “section 302 allocation.” The means by which budget resolution spending totals are translated into binding guidelines with respect to budget authority and outlays for committee action on spending bills. The Budget Committees allocate the budget resolution totals among the committees by jurisdiction, Crosswalk allocations of budget authority and outlays to the committee appear in the joint explanatory statement accompanying a conference report on the budget resolution. Current Services Budget: A section of the President’s budget, required by the Budget Act, that sets forth the level of spending or taxes that would occur if existing programs and policies were continued unchanged through the fiscal year and beyond, with all programs adjusted for inflation so that existing levels of activity are maintained. (See Baseline.) Deferral of Budget Authority: An action by the executive branch that delays the obligation of budget authority beyond the point it would normally occur. Pursuant to the Congressional Budget and Impoundment Control Act of 1974, the President must provide advanced notice to the Congress of any proposed deferrals. A deferral may not extend beyond the end of the fiscal year in which the President’s message proposing the deferral is made. Congress may overturn a deferral by passing a law disapproving the deferral. Deficit: The amount by which the government’s total budget outlays exceeds its total receipts for a fiscal year. Direct Spending: A term defined in the Budget Enforcement Act of 1990 to include entitlement authority, the food stamp program, and budget authority provided in law other than appropriations acts. From the perspective of the appropriations process, all direct spending is classified as mandatory as opposed to discretionary spending. New direct spending is subject to pay-as-you-go requirements. Direct spending is synonymous with mandatory spending. (See Mandatory Spending and Entitlement.) Discretionary Spending: A category of spending (budget authority and outlays) subject to the annual appropriations process. (See Appropriations Acts.) Entitlement: Programs that are governed by legislation in a way that legally obligates the Federal government to make specific payments to qualified recipients. Payments to persons under the Social Security, Medicare, and veterans’ pensions programs are considered to be entitlements. (See Direct Spending and Mandatory Spending.) Emergency Spending: As provided in the Budget Enforcement Act, a provision of legislation designated as an emergency by both the President and the Congress. As a result, this additional spending is not subject to the discretionary caps or the pay go requirements and thus will not cause a sequester. In addition, emergency legislation is effectively exempt from Budget Act points of order. There is no specific criteria in the law for emergency spending. However, the following criteria were contained in a June 1991 report prepared by the Office of Management and Budget–as required by Pub. L. No. 102-55 for the determination of whether to designate spending as an emergency spending: Necessary expenditure.–an essential or vital expenditure, not one that is merely useful or beneficial; Sudden.–quickly coming into being, not building up over time; Urgent.–pressing and compelling need requiring immediate action; Unforseen.–not predictable or seen beforehand as a coming need (an emergency that is part of an aggregate level of anticipated emergencies, particularly when normally estimated in advance, would not be “unforseen”); and Not permanent.–the need is temporary in nature. Expenditures: (See Outlays.) Federal Debt: Consists of all Treasury and agency debt issues outstanding. Current law places a limit or ceiling on the amount of debt. Debt subject to limit has two components: debt held by the government and debt held by the public. Debt held by the government.–Represents the holdings of debt by federal trust funds and other special government funds. For example, when a trust fund is in surplus as is presently the case with Social Security, the law requires that this surplus be invested in government securities. Debt held by the public.–Represents the holdings of debt by individuals, institutions, other buyers outside the federal government, and the Federal Reserve System. The change in debt held by the public in any given year closely tracks the unified budget deficit for that year. Fiscal Policy: Federal government policies with respect to taxes, spending, and debt management intended to promote the nations’ macroeconomic goals, particularly with respect to employment, gross national product, price level stability, and equilibrium in balance of payments. The budget process is a major vehicle for determining and implementing Federal fiscal policy. The other major component of Federal macroeconomic policy is monetary policy. (See Monetary Policy.) Fiscal Year: A fiscal year is a 12-month accounting period. The fiscal for the Federal Government begins October 1 and ends September 30. The fiscal year is designated by the calendar year in which it ends; for example fiscal year 1997 is the year beginning October 1, 1996, and ending September 30, 1997. Functional Classification: A system of classifying budget resources by major purpose so that budget authority, outlays, and credit activities can be related in terms of the national needs being addressed (for example, national defense, health) regardless of the agency administrating the program. There are currently 20 functions. A function may be divided into two or more subfunctions depending upon the complexity of the national need addressed by that function. (See Budget Authority; Outlays.) return to topIImpoundment: A generic term referring to any action or inaction by an officer or employee of the U.S. Government that precludes the obligation or expenditure of budget authority in the manner intended by Congress. (See Deferral of Budget Authority; Rescission of Budget Authority.) return to topJJoint Committee on Taxation (JCT): Section 8001 of the Internal Revenue Code authorized the creation of the Joint Committee on Taxation. By statute, it is composed of five members from the Committee on Finance (three majority, two minority) chosen by such Committee and five members from the Committee on Ways and Means (three majority, two minority) chosen by such Committee. In practice, the Chairmanship and Vice Chairmanship of the Joint Committee on Taxation has rotated between the Chairman of the Committee on Finance and the Chairman of the Committee on Ways and Means with each new Congress. Among other things, the JCT’s duties are to investigate the operation and effects of the federal tax system. return to topM Mandatory Spending: Refers to spending for programs the level of which is governed by formulas or criteria set forth in authorizing legislation rather than by appropriations. Examples of mandatory spending include: Social Security, Medicare, veterans’ pensions, rehabilitation services, Members’ pay, judges pay and the payment of interest of the public debt. Many of these programs are considered entitlement. (See Direct Spending.) Mark-Up: Meetings where congressional committees work on language of bills or resolutions. At Budget Committee mark-ups, the House and Senate Budget Committees work on the language and numbers contained in budget resolutions and legislation affecting the congressional budget process. Monetary Policy: Management of the money supply, under the direction of the Board of Governors of the Federal Reserve system, with the aim of achieving price stability and full employment. Government actions in guiding monetary policy, include currency revaluation, credit contradiction or expansion, rediscount policy, regulation of bank reserves and the purchase and sale of Government securities. (See Fiscal Policy.) return to topNNet Deficit Reduction: Savings below the defined budget baseline achieved for the upcoming fiscal year because of laws enacted or final regulations promulgated since January 1. CBO and OMB independently estimate these savings in their initial and final sequester reports. return to topO Offsetting Collections: Income from the public that results from the government engaging in “business-like” activities with the public, such as the sale of products or the rendering of a service. Examples include proceeds funds derived from the sale of postage stamps. Offsetting collections are credited against the level of budget authority or outlays associated with a specific program or account. (See Offsetting receipts.) Offsetting Receipts: Income from the public that results from the government engaging in “business-like” activities with the public such as the sale of products or the rendering of services. Examples include proceeds from the sale of timber from Federal lands or entrance fees paid at national parks. Rather than being credited against the spending of a particular program or account, (as in the case with offsetting collections) offsetting receipts are deducted from total budget authority and outlays rather than added to Federal revenues even though they are deposited in the Treasury as miscellaneous receipts. Generally offsetting receipts are associated with mandatory spending. (See Offsetting collections.) Off-budget Federal Entity: Any Federal fund or trust fund whose transactions are required by law to be excluded from the totals of President’s budget submission and Congress’ budget resolution, despite the fact that these are part of the government’s total transactions. Current law requires that the Social Security trust funds (the Federal Old Age, Survivors, and Disability trust fund) and the Postal Service be off-budget. However, these entities are reflected in the budget in that they are included in calculating the deficit in order to derive the total government deficit that must be financed by borrowing from the public or by other means. All other federal funds and trust funds are on budget. (See Unified Budget.) Outlays: Outlays are disbursements by the Federal Treasury in the form of checks or cash. Outlays flow in part from budget authority granted in prior years and in part from budget authority provided for the year in which the disbursements occur. Outlay Rates: The ratio of outlays (actual government disbursements) in a fiscal year relative to new budgetary resources in that fiscal year. In estimating the budget baseline and baseline deficit for their sequestration reports, CBO and OMB use outlay rates for projecting levels of spending resulting from available budget authority. Pay-as-you-go: Arises in two separate contexts: a point of order in the Senate and a sequester order from OMB. Pay-as-you-go in the Senate.–Since fiscal year 1994, the budget resolution has included a pay-as-you-go rule in the Senate. The rule provides a 3/5ths vote point of order in the Senate against consideration of legislation that would cause a net increase in the deficit over a ten year period. It applies to all legislation except appropriations legislation. To determine a violation, CBO measures the budget impact of a direct spending or revenue bill combined with the budget impact of all direct spending and revenue legislation enacted since the latest budget resolution’s adoption to see if the legislation would result in a net deficit increase for any one of three time periods (the first year, the sum of years 1 through 5, and the sum of years 6 through 10.) The pay-go rule sunsets at the end of fiscal year 2002. Pay-as-you-go and sequestration under the BEA.–The Budget Enforcement Act requires OMB to also enforce a “pay-as-you-go” requirement which has a similar effect as the Senate’s point of order: Congress is required to “pay for” any changes to programs which result in an increase in direct spending, or in this case risk a sequester. If OMB estimates that the sum of all direct spending and revenue legislation enacted since 1990 will result in a net increase in the deficit for the fiscal year, then the President is required to issue a sequester order reducing all non-exempt direct spending accounts by a uniform percentage in order to eliminate the net deficit increase. Most direct spending is either exempt from a sequester order or operates under special rules that minimize the reduction that can be made in direct spending. Social Security is exempt from a pay-as-you-go sequester and Medicare cannot be reduced by more than 4 percent. President’s Budget: The document sent to Congress by the President in January or February of each year, requesting new budget authority for Federal programs and estimating Federal revenues and outlays for the upcoming fiscal year. Revenues: Collections from the public arising from the Government’s sovereign power to tax. Revenues include individual and corporate income taxes, social insurance taxes (such as social security payroll taxes), excise taxes, estate and gift taxes, customs duties and the like. Reconciliation Process: A process by which Congress includes in a budget resolution “reconciliation instructions” to specific committees, directing them to report legislation which changes existing laws, usually for the purpose of decreasing spending or increasing revenues by a specified amount by a certain date. The legislation may also contain an increase in the debt limit. The reported legislation is then considered as a single “reconciliation bill under expedited procedures.” Reserve Fund: A provision in a budget resolution that grants the Chairman of the Budget Committee the authority to make changes in budget aggregates and committee allocations once some condition or conditions have been met. Since a budget resolution establishes a binding ceiling on aggregate budget authority and outlay levels and a binding floor on revenues, budget resolutions frequently include reserve funds for deficit-neutral legislation that would otherwise violate the budget resolution and be subject to a point of order under the Budget Act. For example, the FY 1997 budget resolution included a tax reduction reserve fund that allowed the Chairman to reduce the revenue floor and the relevant spending allocations to accommodate legislation that reduced taxes if that legislation also contained offsetting spending reductions. Rescission of Budget Authority: Cancellation of budget authority before the time when the authority would otherwise cease to be available for obligation. The rescission process begins when the President proposes a rescission to the Congress for fiscal or policy reasons. Unlike the deferral of budget authority which occurs unless Congress acts to disapprove the deferral, rescission off budget authority occurs only if Congress enacts the rescission. (See Deferral of Budget Authority; Impoundment.) Scoring or Scorekeeping: The process for estimating budget authority, outlay, revenue and deficit levels which result from congressional budgetary actions. Scorekeeping data prepared by the Congressional Budget Office include status reports on the effect of congressional actions and comparisons of these actions to targets and ceilings set by Congress in budget resolutions. These reports are published in the Congressional Record on a regular basis. OMB is responsible for scoring legislation to determine if a sequester is necessary. Sequester: Pursuant to Gramm-Rudman-Hollings, a presidential spending reduction order that occurs by reducing spending by uniform percentages. Sequestrable Resource: Pursuant to Gramm-Rudman-Hollings federal funding authority (budgetary resources) subject to reductions under a presidential sequester order for achieving required outlay reductions (in non-exempt programs). Supplemental Appropriation: An act appropriating funds in addition to those in the 13 regular annual appropriations acts. Supplemental appropriations provide additional budget authority beyond the original estimates for programs or activities (including new programs authorized after the date of the original appropriation act) in cases where the need for funds is too urgent to be postponed until enactment of the next regular appropriation bill. (See Appropriations Act.) return to topTTax Expenditures: Revenue losses attributable to a special exclusion, exemption, or deduction from gross income or to a special credit, preferential rate of tax, or deferral of tax liability. return to topU Unfunded Mandates: A Federal Intergovernmental Mandate is any provision in legislation, statute, or regulation that would impose an enforceable duty upon State, local or tribal government, except as conditions of assistance or duties arising from participation in a voluntary federal program. Exceptions to this rule are: enforcing constitutional rights; statutory prohibitions against discrimination; emergency assistance requested by states; accounting/auditing for federal assistance; national security; Presidential designated emergencies; and Social Security. Provisions that increase stringency of conditions of assistance or decrease federal funding for large state entitlement programs (greater than $500 million) if states lack authority to decrease their responsibilities are considered mandates as well. A Federal Private Sector Mandate is any provision in legislation, statute, or regulation that would impose an enforceable duty upon the private sector. The exceptions are a condition of Federal assistance or a duty arising from participation in a voluntary Federal program. Unified Budget: A comprehensive display of the Federal budget. This display includes all revenues and all spending for all regular Federal programs and trust funds. The 1967 President’s Commission on Budget Concepts recommended the unified budget and it has been the basis for budgeting since 1968. The unified budget replaced a system of the budgets that existed before 1968 (an administrative budget, a consolidated cash budget, and a national income accounts budget). |
Budget Control Act
The Budget Control Act Serves as the Budget for 2012 and 2013
The Budget Control Act states: “For the purpose of enforcing the Congressional Budget Act of 1974 through April 15, 2012 … the allocations, aggregates, and levels set in subsection (b)(1) shall apply in the Senate in the same manner as for a concurrent resolution on the budget for fiscal year 2012.” In many ways, the Budget Control Act is even more extensive than a traditional budget resolution. Number one, it has the force of law, unlike a budget resolution that never goes to the President. A budget resolution is purely a Congressional document; the Budget Control Act is a law. Number two, it sets discretionary caps for 10 years, instead of the one year normally set in a budget resolution. Number three, it provides enforcement mechanisms, including two years of “deeming resolutions,” which allow budget points of order to be enforced. And fourth, it creates a reconciliation-like “Super Committee” process to address both entitlements and tax reform. And it backs that process up with a $1.2 trillion sequester.
Budget Control Act Legislative Text
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Word of the Day: Fiscal Cliff!
Explaining the ‘fiscal cliff’
Forward off the fiscal cliff: falling, falling, splat!
Time is quickly running out for President Barack Obama and the congressional leadership of the Democratic and Republican parties as they attempt to negotiate a deal that would avert going over the year-end “fiscal cliff.”
If a deal or fiscal cliff fix is not agreed to by then, the so-called Bush marginal tax rate cuts would expire on Jan. 1, 2013 followed by the cutting or sequestration of government spending on Jan. 15.
Should these massive tax hikes and huge spending cuts happen, the Congressional Budget Office (CBO) has projected that the unemployment rate would rise above 9 percent in the latter half of 2013 from its present level of 7.9 percent with the economy going into another recession, with negative economic growth in real gross domestic product for the first two quarters of 2013.
In a November report titled “Economic Effects of Policies Contributing to Fiscal
Tightening in 2013,” the CBO projected that “if all of that fiscal tightening occurs, real (inflation-adjusted) gross domestic product (GDP) will drop by .5 percent in 2013 (as measured by the change from the fourth quarter of 2012 to the fourth quarter of 2013), reflecting a decline in the first half of the year and renewed growth at a modest pace later in the year.”
The estimated 10-year cost of the expiration of the Bush 2001/2003 marginal rate tax cuts is $2.4 trillion. The estimated cost of the expiration of Alternative Minimum Tax (ATM) patches is $864 billion and of various “tax extenders” is $890 billion. Over a 10-year period, the spending cuts or sequester of 10 percent of defense spending is estimated to be $510 billion and of 8 percent of non-defense spending is estimated to be $335 billion.
A majority of Democrats and Republicans appear to agree that the Bush marginal rate tax cuts should be extended for those individuals earning less than $250,000. Both parties also agree on extending the ATM patches, tax extenders (R&D tax credit and others) and the so-called doc fix for Medicare reimbursement. Both parties appear to agree on not extending the temporary one year 2 percent reduction in the Social Security (FICA) employee payroll tax and not extending unemployment insurance benefits.
The biggest disagreements between both political parties is over Obamacare, or the Affordable Care Act, with its additional 3.8 percent tax on dividends and capital gains and a .9 percent tax on wage income for those earning more than $250,000. The Republican Party wants to repeal Obamacare in its entirety, while the Democrat Party wants Obamacare to be implemented on schedule.
Obama and the Democratic Party want to raise the marginal tax rates of those earning above $250,000 by increasing the marginal tax bracket rates from 25, 28, 33, and 35 percent to 28, 31, 36, and 39.6 percent and increasing the estate tax from 35 percent for estates over $5 million to 55 percent for estates over $1 million. The Democrats also want to increase the capital gains tax from 15 percent to 20 percent and tax dividends as ordinary income.
In a nationally televised statement to the nation on Nov. 28, Obama said, “”Our ultimate goal is to get an agreement that is fair and balanced.” “If Congress does nothing, every family in America will see their taxes automatically go up at the beginning of next year,” the president added.
The Republican Party wants the Bush marginal tax rates either made permanent or extended for at least another year and either the elimination of the estate tax or no changes in the current estate tax. Republicans also want to either eliminate the tax on capital gains and dividends taxes or leave their taxation unchanged. They argue that it is the successful small business owner who creates wealth, income and jobs.
House Speaker John Boehner said, “Raising tax rates is unacceptable.” and added “Frankly, it couldn’t even pass the House. I’m not sure it could pass the Senate.”
Boehner concluded, “The goal here is to grow the economy and control spending. You’re not going to grow the economy if you raise the top 2 percent rates. It’ll hurt small businesses and it’ll hurt our economy, why this is not the right approach.”
However, the biggest differences between both political parties in their attempt to avoid falling off the fiscal cliff concerns government spending cuts or sequestration. The real problem is not adequate tax revenues, but excessive government spending, with deficit spending under President George W. Bush of nearly $3.3 trillion over eight fiscal years (2002-2009) and Barack Obama of nearly $5.1 trillion over four fiscal years (2010-2013).
Next week part 2 of this article will address the challenge of cutting federal government spending.
Raymond Thomas Pronk is host of the Pronk Pops Show on KDUX web radio from 3-5 p.m. Fridays and author of the companion blog http://www.pronkpops.wordpress.com
TIME Explains- the Fiscal Cliff
Complete explanation of ‘fiscal cliff’
The Fiscal Cliff — Everything You Need to Know Explained
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Douglas Holtz-Eakin: Going Off the Fiscal Cliff Is Irresponsible
Senator Pat Toomey on Fiscal Cliff: A Strong Recovery Is within Reach
2012 Fiscal Cliff
Fiscal Cliff: How Much Would Taxes Rise in 2013?
Donald Marron, director of the Urban-Brookings Tax Policy Center, walks viewers through the anatomy of the Fiscal Cliff, explaining exactly what as it stake for Americans in various income groups.
RON PAUL TALKING ABOUT THE FISCAL CLIFF!
Fiscal Cliff – Clock Ticking – Cavuto
MiMike Maloney on the Fiscal Cliff and the “Holy Sh*t” Demographic Bankrupting America!
Black Friday, Fiscal Cliff, Gold, Dollar
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With Election Over, Washington Shifts Focus to Fiscal Cliff
Is America about to Fall off the Fiscal Cliff?
United States fiscal cliff
“…The “Fiscal Cliff” refers to the expected slow down in the U.S. economy if spending from the government goes down as much as scheduled and taxes go up as much as scheduled on January 2013.[1] These laws include tax increases due to the expiration of the Bush tax cuts and spending cuts under the Budget Control Act of 2011. The Congressional Budget Office reported an increased risk of recession during 2013 if the deficit is reduced suddenly, while indicating that lower deficits and debt would in time improve long-term economic growth.[2] The deficit for 2013 is projected to be reduced by roughly half. Further, over the next ten years, projected increases in the United States public debt would be lowered by as much as $7.1 trillion or about 70%, resulting in a considerably lower ratio of debt relative to the size of the economy.
The Budget Control Act of 2011 was enacted as a compromise to resolve a dispute concerning the public debt ceiling. Deficit spending previously appropriated by Congress was bringing the federal government’s total debt close to the statutory ceiling. Republicans in Congress refused to approve an increase in the ceiling unless there were deep spending cuts. The Budget Control Act included an immediate increase in the debt ceiling, along with a mechanism for facilitating two additional increases. It also provided for automatic spending cuts to begin on January 2, 2013.
The year-over-year changes for fiscal years 2012–2013 include a 19.63% increase in tax revenue and 0.25% reduction in spending. These changes would return tax revenue to approximately its historical average of 18% GDP, while continuing to spend at dollar levels held approximately the same since 2009.[3] Some major programs, like Social Security, Medicaid, federal pay (including military pay and pensions), and veterans’ benefits, are exempted from the spending cuts. Spending for federal agencies and cabinet departments would be reduced through broad, shallow cuts (referred to as budget sequestration).
The projected effects of these changes have led to calls both inside and outside of Congress to extend some or all of the tax cuts, and to replace the across-the-board reductions with more targeted cutbacks. It has been speculated that any change is unlikely to come until the period roughly between the 2012 federal elections and the end of the year. Additionally, the debate may be exacerbated by the expectation that the debt ceiling is expected to be reached before the end of 2012,[note 1] unless “extraordinary measures” are used.[4] Nearly all proposals to avoid the fiscal cliff involve extending certain parts of the 2010 Tax Relief Act or changing the 2011 Budget Control Act or both, thus making the deficit larger by reducing taxes and/or increasing spending.
Etymology
The term ‘fiscal cliff’ had in the past been used to refer to various fiscal issues. The term started being used in the current context near the original expiration of the Bush tax cuts in 2010.[5] In 2011, the term started to be used to refer to the deficit reductions that would occur in 2013 under current law.[6]
In late February 2012, Ben Bernanke, chairman of the U.S. Federal Reserve, popularized the term “fiscal cliff” for this crisis. Before the House Financial Services Committee he described that “a massive fiscal cliff of large spending cuts and tax increases” would take place on January 1, 2013.[7][8]
Some analysts have argued that “fiscal slope” or “fiscal hill” would be more appropriate terminology because while the cumulative economic effect over all of 2013 would be substantial, it would not be felt immediately but rather gradually as the weeks and months went by.[9]
Legislative history
During a lame duck session in December 2010, Congress passed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The act extended the Bush tax cuts for an additional two years and “patched” the exemptions to the Alternative Minimum Tax (AMT) for tax year 2011. This act also authorized a one-year reduction in the Social Security (FICA) employee payroll tax. This was extended for an additional year by the Middle Class Tax Relief and Job Creation Act of 2012, which also extended federal unemployment benefits and the freeze on Medicare physician payments.[10]
On August 2, 2011, Congress passed the Budget Control Act of 2011 as part of an agreement to resolve the debt-ceiling crisis. The Act provided for a Joint Select Committee on Deficit Reduction (the “super committee”) to produce legislation by late November that would decrease the deficit by $1.2 trillion over ten years. If the committee failed to do so, as it in fact had failed to do,[11] another part of the Act directs automatic across-the-board cuts (known as “sequestrations”), split evenly between defense and domestic spending, beginning January 2, 2013. Also, the Affordable Care Act imposed new taxes on families making more than $250,000 a year ($200,000 for individuals) starting at the same time.[12]
At the end of 2011, the patch to the AMT exemptions expired. Technically, the AMT thresholds immediately reverted to their 2000 tax year levels, a drop of 26% for single people and 40% for married couples. Anyone over these reduced thresholds at the end of 2012 would be subject to the AMT. Therefore, more taxpayers would pay more unless some legislation was passed (as was done in 2007) that affects the exemptions retroactively.[10]
Current laws leading to the fiscal cliff
The following provisions of current law are most involved in the fiscal cliff:[13][14]
- Expiration of the Bush tax cuts extended by President Obama in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010;
- Across-the-board spending cuts (“sequestration”) to most discretionary programs as directed by the Budget Control Act of 2011;
- Reversion of the Alternative Minimum Tax thresholds to their 2000 tax year levels;
- Expiration of measures delaying the Medicare Sustainable Growth Rate from going into effect (the “doc fix”), most recently extended by the Middle Class Tax Relief and Job Creation Act of 2012 (MCTRJCA);
- Expiration of the 2% Social Security payroll tax cut, most recently extended by MCTRJCA;
- Expiration of federal unemployment benefits, most recently extended by MCTRJCA and
- New taxes imposed by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010.
Without new legislation, these provisions will automatically go into effect on January 1 or 2, 2013, except for the Alternative Minimum Tax growth, which may be changed retroactively. Some provisions will increase taxes (the expiration of the Bush and FICA payroll tax cuts and the new Affordable Care tax and AMT thresholds) while others will reduce spending (sequestration, expiration of unemployment benefits and implementation of the Medicare SGR).[13]
Proposals to avoid the fiscal cliff involve repealing legislation containing certain of these provisions or passing new legislation to extend provisions that are due to expire. Different proposals may include changes to some or all of the above provisions. For example, the Congressional Budget Office’s “Alternative Fiscal Scenario” includes only the first four items above. Changes to other provisions are also sometimes included in such proposals; for example, changing the original caps on discretionary appropriations contained in 2011′s Budget Control Act, indexing the AMT exemptions for inflation or the wholesale or partial reform of the tax laws or entitlement programs.[15]
Congressional Budget Office projections
US federal debt from 1940 to 2022. The right side of the diagram projects what would happen to the debt if Congress (a) allows current laws to take effect and reduce the deficit (the baseline) or (b) extends the current policies, such as keeping tax cuts in place (the alternative).
CBO scenarios
Decisions regarding the fiscal cliff will have meaningful implications for deficits, debt, and economic growth. The Congressional Budget Office (CBO) has projected two fiscal scenarios for the years 2013 to 2022:[16]
- The baseline projection. This scenario would have lower deficits and debt but also have lower spending and higher taxes.
- The alternative fiscal scenario. Higher deficits and debt but lower taxes and higher spending.[note 2]
These paint starkly different fiscal futures. If Congress and the President do not act, allowing tax cuts to expire and mandated spending cuts to be implemented, the next decade will more closely resemble the baseline projection. If they act to extend current policies, keeping lower tax rates in place and postponing or preventing the spending cuts, the next decade will more closely resemble the alternate fiscal scenario.
Baseline projection. The CBO has been publishing baseline projections since 1985.[15] Under “the baseline”, tax cuts are allowed to expire and spending cuts are implemented in 2013, resulting in higher tax revenues plus lower spending, deficits, debt and interest for the next decade and beyond. Future deficits would be reduced from an estimated 8.5% of GDP in 2011 to 1.2% by 2021. Revenues would rise towards 24% GDP, versus the historical average 18% GDP.[17]
The total deficit reduction or debt avoidance over ten years could be as high as $7.1 trillion, versus the $10–11 trillion debt increases if current policies are extended. In other words, roughly 70% of debt increases projected over the next 10 years could be avoided by allowing laws on the books during 2012 to be implemented.[18]
CBO estimates under the baseline projection that public debt rises from 69% GDP in 2011 to 84% by 2035.[19] In the long run, lower deficits and debt should lead to relatively higher growth estimates. But, in the short run, real GDP growth in 2013 would likely be reduced to 0.5% from 1.1%. This would mean a high probability of recession (a 1.3% GDP contraction) during the first half of the year followed by 2.3% growth in the second half.[20][21]
Alternate fiscal scenario. If Congress “avoids” the fiscal cliff, the future more closely resembles the continuation of 2012 policies, described by the CBO’s “alternative fiscal scenario.” This scenario involves extending the Bush income tax cuts, restricting the reach of the AMT, and keeping Medicare reimbursement rates at the current level (the so-called “doc fix”, versus declining by one-third as mandated under current law). Revenues are assumed to remain around the historical average 18% GDP. Under this scenario, public debt rises from 69% GDP in 2011 to 100% by 2021 and approaches 190% by 2035. This scenario has considerably higher debt and interest payments than the baseline projection, but short-term impact on the economy is avoided.[19]
CBO Infographic.
Projected effects
The Congressional Budget Office estimates that allowing certain laws on the books during 2012 to expire or take effect in 2013 (the baseline scenario) would cut the 2013 deficit approximately in half and significantly reduce the trajectory of future deficits and debt increases for the next decade and beyond. However, the 2013 deficit reduction would adversely impact the economy in the short-run. On the other hand, if Congress acts to extend current policies (the alternative scenario), deficits and debt will rise rapidly over the next decade and beyond, slowing the economy over the long run and dramatically increasing interest costs.[16]
CBO estimates that if the baseline scenario is allowed to take effect in 2013, it would reduce federal spending by $103 billion and increase tax revenues by $399 billion (and another $105 billion “mostly in revenue”) through September 2013 (the end of FY2013). This would amount to a net total of $560 billion, roughly half the $1.2 trillion FY2011 deficit.[20] The White House estimates that a family of four with an income of $50,000 to $85,000 would pay an additional $2,200 in federal taxes.[22]
The CBO has identified the following metrics for its baseline and alternative scenarios for the period starting January 2013:[23]
| Fiscal or Economic Measure | CBO Baseline |
Alternative Scenario |
|---|---|---|
| Federal deficit in FY2013 | $641 billion | $1037 billion |
| Economic growth in FY2013 | −0.5% of GDP | 1.7% of GDP |
| Unemployment rate for October thru December 2013 | 9.1% | 8.0% |
| Public debt in 2022 | 58% of GDP | 90% of GDP |
Consideration of these scenarios and other options[note 2] leads to what the CBO calls “a broad spectrum of fiscal policy choices”.[23]
Estimated deficit for the first year
The CBO estimated that the total deficit of fiscal year 2012 (which ends on September 30, 2012) will be $1.171 trillion. The CBO also estimated that the total reductions to the fiscal year 2013 deficit by letting current laws take effect (which increase taxes and reduce spending) would be about $560 billion.[20]
Therefore, since the total US public debt was approximately $11.053 trillion as of July 2012,[24] the public debt would climb by the end of FY2013 to either $11.664 trillion (if Congress does nothing, allowing current law to take effect) or $12.224 trillion (if the fiscal cliff is avoided, extending current tax and spending policies into the future), all other considerations remaining the same. This difference amounts to 5.07% of the federal debt in nine months.
Under current laws scheduled to take effect by the end of 2012, the total 2013 deficit will be $612 billion, as opposed to $1,171 billion for the previous year. The chart at the right contains a breakdown of the currently authorized reductions to the FY2013 deficit. The total of this chart is $606 billion but this is without considering economic feedback. Reduced taxes and increased spending, due to the 1.3% contraction in the first half of 2013, as well as other constraints, are expected to decrease the savings by $47 billion, giving a net total of $560 billion in deficit reduction during FY2013.[20][21]
CBO analysis of policy options
The CBO reported in November 2012 the economic and employment effects of various policy options related to the cliff. Each option has a different GDP and employment impact per dollar of deficit impact. In other words, some choices are more economically efficient. CBO explained why spending cuts have a more significant adverse impact on the economy than tax increases per dollar of deficit reduction: “The larger ‘bang for the buck’ next year of the spending policies under the alternative fiscal scenario occurs because, CBO expects, a significant part of the decrease in taxes (relative to those under current law) would be saved rather than spent.”[25]
Effects of sequestration
The spending reduction elements of the fiscal cliff are primarily contained within the Budget Control Act of 2011, which directed that both defense and non-defense discretionary spending[note 3] be reduced by “sequestration” if Congress was unable to agree on other spending cuts of similar size. Congress was unable to reach agreement and therefore the sequestrations are expected start taking effect on January 2, 2013 if Congress, and President Obama, do not agree to a budget deficit reduction plan. The scope of the law excludes major mandatory programs such as Social Security and Medicare.
The effect on both defense and non-defense discretionary spending will be significant if the cliff is not avoided. Cuts totaling $110 billion per year will be applied from 2013 to 2022, split evenly ($55 billion each) to defense and non-defense discretionary spending. For scale, discretionary funding for 2011 totaled $1,277 billion: budget authority of $712 billion for defense and funding totaling $566 billion for non-defense activities.[15]
During 2013, defense and non-defense discretionary spending would be maintained around 2012 levels due to the sequester. However, the spending begins to rise thereafter, but not at the pace projected prior to the sequester. In other words, the trajectory of spending increases is reduced, but spending is not frozen at 2012 levels. Defense and non-defense discretionary spending increases from 2013–2021 would be about 1.5% annually, significantly below the prior decade.[15]
For example, according to the CBO Historical Tables, defense spending (including overseas contingency operations for the wars in Iraq and Afghanistan) grew from $295 billion in 2000 to $700 billion in 2011, an annual growth rate of 8.2%. Non-defense discretionary spending grew at a 6.6% annual rate during that time, from $320 billion to $646 billion.[26]
The austerity represented by the sequester is not unprecedented; from 1990–1999, defense spending actually declined by about 1% annually, from $300 billion to $276 billion, although non-defense discretionary spending grew by 4.5% annually, rising from $200 to $297 billion.[26]
The CBO estimated the possible impact on defense spending in October 2011 testimony: “Compliance with the caps on discretionary funding could occur through many different combinations of defense and non-defense funding. For example, defense and nondefense appropriations might be cut proportionally relative to the funding that would be necessary to keep pace with inflation. In that case, funding for defense programs apart from overseas contingency operations would drop from $552 billion in 2011 to $538 billion in 2012 before rising again and reaching $637 billion in 2021 (see Table 3).[15]
Between 2012 and 2021, such funding would be $445 billion less than the amount that would occur if the amount of funding for 2011 grew at the rate of inflation. When measured as a share of GDP, funding for defense would decline by about 1 percentage point from 2011 to 2021, or by more than one-fourth (see Table 5). Funding for defense in 2021 (excluding overseas contingency operations) would represent 2.7 percent of GDP; by comparison, annual funding for defense (excluding overseas contingency operations) has averaged 3.4 percent of GDP during the past decade.”[15]
The CBO estimated the possible impact on non-defense discretionary spending in October 2011 testimony: “If defense and nondefense appropriations were cut proportionally relative to the funding that would be necessary to keep pace with inflation, nondefense budget authority would decrease from $511 billion in 2011 to $505 billion in 2012 before rising again and reaching $597 billion in 2021 (see Table 4). Between 2012 and 2021, budget authority for nondefense purposes would be $418 billion less than the amount that would be provided if funding grew at the rate of inflation after 2011. Under an assumption that the obligation limitations for certain transportation programs grow over time at the rate of inflation, nondefense funding in 2021 would represent 2.8 percent of GDP; by comparison, such funding has averaged 4.1 percent of GDP during the past decade (see Figure 6).”[15]
Effects of tax increases
Various sources estimated the 2013 impact on taxpayers (individual and married filing jointly) from the tax increases that would occur if the Bush income tax cuts and Obama payroll tax cuts are allowed to expire. The table below shows the dollar and percentage increase in taxes due and assumes two federal allowances are taken. The interactive tool at the source cited can be adjusted based on the reader’s circumstances.[27]
| Income Level / Filing status | Single | Married Filing Jointly |
|---|---|---|
| $50,000 | $1,576 / 18% | $1,870 / 26% |
| $100,000 | $4,076 / 17% | $3,272 / 17% |
| $150,000 | $5,850 / 15% | $5,046 / 15% |
| $200,000 | $7,350 / 13% | $6,546 / 14% |
Commentary
Many experts have argued that the U.S. should avoid the fiscal cliff while taking steps to bring the long-term deficit and debt trajectory under control.[28][29][30] For example, economist Paul Krugman recommended that the U.S. focus on employment in the short-run, rather than the deficit.[30] Federal Reserve Chair Ben Bernanke emphasized the importance of balancing long-term deficit reduction with actions that would not slow the economy in the short-run.[29] Charles Konigsburg, who directed the bi-partisan Domenici-Rivlin deficit reduction panel, advocated avoiding the fiscal cliff while taking steps to reduce the budget deficit over time. He recommended the adoption of ideas from deficit panels such as Domenici-Rivlin and Bowles-Simpson that accomplish these two goals.[28]
Other experts at the Center on Budget and Policy Priorities and the Carlyle Group have argued that allowing the tax increases and spending cuts to occur under current law may be necessary to create the “grand bargain” required to get the U.S. deficit and debt trajectory under control for the long-run. In other words, allowing current law to take effect would create conditions under which legislators might be forced to enact better designed deficit reduction approaches of similar or greater magnitude.[31]
Even financial news networks CNBC and CNBC.com are launching a network-wide initiative aimed at calling attention to the fiscal situation. The network’s campaign is called “RISE ABOVE”[32], a call to action appealing to everyone to rise above partisan political views in an effort to come to agreement on a plan that tackles both the long and short term challenges to the American economy. CNBC plans to engage business leaders, politicians and viewers through a series of programming efforts designed to increase the understanding of the core issues and to raise the level of dialogue beyond the rhetoric and talking points that have saturated media coverage of the ‘fiscal cliff.’[33]
Proposals to mitigate the fiscal cliff
Congress
U.S. Federal budget deficit as % of GDP assuming continuation of certain policies for 2012-2022. The baseline deficit assumes current law takes effect, meaning tax cuts expire and spending cuts are applied. Avoiding the “fiscal cliff” increases the projected deficit.
Congressional Republicans have proposed that the Bush tax cuts be extended in their entirety.[34] In August 2012, the Congressional Budget Office (CBO) estimated that extending these tax cuts for the 2013–2022 time period would add $3.18 trillion to the national debt relative to the current law baseline, comprising $2.74 trillion in foregone tax revenue plus another $0.44 trillion for interest and debt service costs.[35]
On July 25, 2012, the U.S. Senate voted 51–48 to pass a bill supporting the President’s tax proposal which extended cuts for most taxpayers, while rejecting the Republican proposal of extending the tax cuts for all 45–54.[36] The U.S. House of Representatives rejected, 170–257, the President’s tax proposal on August 1, 2012.[37]
As of November 1, 2012, a group of senators, now called the Gang of Eight, composed of Democratic Whip Richard J. Durbin D-Il., Finance Committee member Tom Coburn, R-Okla., Budget Committee Chair Kent Conrad, D-N.D., Sen. Michael F. Bennet, D-Colo., Sen. Mark R. Warner, D-Va., Finance member Mike Crapo, R-Idaho., Sen. Saxby Chambliss, R-Ga., and Sen. Mike Johanns, R-Neb., have been working since 2011 but “has so far failed to reach an agreement after more than a year of talks.”[38] Because of the number of spending cuts and tax changes, at least half a dozen committees, such as the House Ways and Means and Senate Finance committees, might want to weigh in on the bill.[38] Congressional rules allow bills to skip committee hearings, but the group lacks the clout to “push its plan through Congress outside the regular order of business”.[38]
On November 16, 2012, the US leaders announced that President Obama (D) met with House Speaker John A. Boehner (R-Ohio) House Minority Leader Nancy Pelosi (D-Calif.) Senate Majority Leader Harry Reid (D-Nevada) and Senate Minority Leader Mitch McConnell (R-Ky.) “to discuss” the plan “to work on” a plan “over the weekend” “to create a plan” that would be ready to present the week of November 26, 2012 concerning the fiscal cliff.[39]
IRS
In a three-page letter, Steven Miller, acting IRS Commissioner, outlined the effects of the fiscal cliff and said that the IRS is working under the assumption that Congress would “patch” the Alternative Minimum Tax (AMT). The patch prevents the AMT from impacting many more taxpayers. This is similar to what Congress has done in previous years.[40]
President’s position
Since the budgetary and economic impact is due to existing laws, Congress would have to pass new legislation and have the President sign it into law to avoid the cliff. Since a Presidential veto requires a two-thirds majority in both the House and Senate to override, a Presidential veto of attempts to avoid the cliff would likely ensure that significant deficit reduction would occur. The President has promised to veto any attempt to bypass the cliff that does not include an increase of tax rates for the wealthy.[41]
Timeline
- March 23, 2010: President Obama signed into law the Patient Protection and Affordable Care Act. One of this law’s provisions is to impose new taxes on families making $250,000 per year or more starting in 2013.[42]
- December 17, 2010: Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, patching the AMT through 2011 and extending the Bush tax cuts to the end of 2012.[43]
- August 2, 2011: The President signed the Budget Control Act of 2011. This act provided that, if the Joint Select Committee did not produce bipartisan legislation, across-the-board spending cuts would take effect on January 2, 2013.[44]
- February 22, 2012: Obama signed into law the Middle Class Tax Relief and Job Creation Act of 2012, which extended the following provisions until December 31, 2012: the 2% Social Security payroll tax cut, federal unemployment benefits and the freeze on Medicare physician payments.[45]
- February 29, 2012: Ben Bernanke popularized the term “fiscal cliff” in his testimony before the House Financial Services Committee.[8][7]
- July 3, 2012: IMF head Lagarde warned that the threat of “going over the fiscal cliff” could weaken the US economy later in 2012. The IMF also reduced its projection for US growth in 2013 from 2.4 to 2.25 percent of GDP.[46]
- July 17, 2012: Bernanke pushed Congress to avoid the fiscal cliff, warning that a failure to do so will further dampen the sluggish economic recovery.[29]
- July 31, 2012: Reid and Boehner agreed on a continuing resolution that would pay for the day-to-day running of the government until the end of March 2013. This does not affect the fiscal cliff or the debt-ceiling.[47]
- August 7, 2012: Obama signed the Sequestration Transparency Act of 2012, which directed his administration to detail in 30 days how they plan to implement the automatic cuts mandated by the Budget Control Act.[48]
- September 14, 2012: Obama released his 400-page document detailing cuts.[49] http://cdn.govexec.com/media/gbc/docs/pdfs_edit/091412cc1.pdf [50]
- October 22, 2012: At the third of three presidential debates, Obama says sequestration will not happen.[51]
- November 16, 2012: US leaders announced that they met “to discuss” the plan “to work on” a plan “over the weekend” “to create a plan” that would be ready to present the week of November 26, 2012 concerning the fiscal cliff.[39] …”
http://en.wikipedia.org/wiki/United_States_fiscal_cliff
Why Not Just Fall Off the Fiscal Cliff?
Contrarians and some politicos on both the left and the right have started to ask the forbidden question
By Joyce Hanson, AdvisorOne
“…As everyone knows by now, considering all the talk by market pundits and business media, fear of falling off the fiscal cliff has become the obsession du jour ever since President Obama won re-election. The threatened results of a failure to resolve the issue – including tax hikes, spending cuts and an almost certain recession – sound so dire that nobody wants the U.S. to fall off that cliff.
Then again, maybe some do. Contrarians and some politicos on both the left and the right have started to ask the forbidden question: Why not just fall off the fiscal cliff?
For example, conservative thinker Marc A. Thiessen of the American Enterprise Institute dared suggest in an opinion piece for The Washington Post on Monday that the best way to start the new year in a bipartisan fashion would be to head over the cliff.
“Today, the only ones in Washington who advocate fiscal cliff-diving are liberal Democrats. It’s time for conservatives to join them. Letting the Bush tax cuts expire will strengthen the GOP’s hand in tax negotiations next year, and it may be the only way Republicans can force President Obama and Senate Democrats to agree to fundamental tax reform,” Thiessen wrote.
True enough, liberal Paul Krugman in a post-election column for The New York Times on Nov. 8 urged Democrats not to make a deal in terms of accommodating Republican demands.
“I don’t mean to minimize the very real economic dangers posed by the so-called fiscal cliff that is looming at the end of this year if the two parties can’t reach a deal,” Krugman wrote. “The looming combination of tax increases and spending cuts looks easily large enough to push America back into recession. Nobody wants to see that happen. Yet it may happen all the same, and Mr. Obama has to be willing to let it happen if necessary.”
Facing What May Become Reality
After the Dec. 31 deadline, if no compromise is reached, both the Bush-era tax cuts and the Obama administration’s payroll tax cut are scheduled to expire. At the same time, $1.2 trillion of automatic “sequestration” spending cuts divided equally between defense and non-defense discretionary programs are set to kick in.
Some market participants are girding themselves to face the reality of Washington gridlock if lawmakers fail to reach any kind of a fiscal cliff compromise, whether it’s a continued kicking of the can down the road or a grand bargain.
For example, Mike Acton (left), director of research for AEW, an institutional investment manager that focuses on real estate, said that contrarians are arguing that if tax rates go back to where they were 10 years ago, it would generate as much as $4.5 trillion of new revenue.
“So if in January the Bush tax cuts went away, that would allow $1.5 trillion of reduction in the debt ceiling as called for by the deficit supercommittee,” Acton said. “They created that as a way to force an agreement.”
Acton noted that falling off the cliff would mean that the capital gains tax, dividend tax, estate taxes and personal income tax rates would all go back up. …”
http://www.advisorone.com/2012/11/20/why-not-just-fall-off-the-fiscal-cliff
Greenspan: ‘Markets Will Crater’ With Fiscal Cliff
Former Fed chairman says mild recession is ‘cheap price’ of coming crisis
By John Sullivan, AdvisorOne
“…Former Federal Reserve Chairman Alan Greenspan told Bloomberg Television on Friday that “markets will crater if we run into any evidence that we can’t solve this [fiscal cliff] problem.”
Greenspan, who said recently that big Wall Street banks should allowed to go bankrupt, said, “If we get out of this with a moderate recession, I would say that the price is very cheap.”
Greenspan on the fiscal cliff:
“We have to recognize that this is going to be extraordinarily difficult to solve. All of the simple low hanging fruits have been picked and the presumption that we are going to resolve the big issue on spending by making a few little twitches here and there I think is a little naive. If we get out of this with a moderate recession, I would say that the price is very cheap. The presumption that we will solve this problem without paying I think is grossly inappropriate.”
On Simpson and Bowles saying that the markets could crash if a deal isn’t made:
“I think it is not only Simpson-Bowles. I think the markets are getting very shaky. And they are getting shaky because I think fiscal policy is out of control. And I think the markets will crater if we run into any evidence that we cannot solve this problem. And I think the notion that the issue of the impact on the economy is strictly the spending tax issue, is also the market. I think we underestimate the extent to which the market value of assets has a very important impact on real GDP.”
On whether the U.S. is headed into a recession even if a deal is made:
“Not necessarily. I am just saying that we may get a deal, which will take us for next year or so. But the question isn’t that. I think the question is essentially how are we going to stop what is a critical problem here, an extraordinarily rapid rise in what the Department of Commerce calls government social benefits to persons, which has been rising very rapidly bipartisanly in the sense that it has been rising even faster under Republican administrations than Democratic administrations. And they are all very closely involved in these new benefits, the only problem is that it is eating into the savings of the society and our long-term growth. And yes, we can continue for the next year or so without any really serious problems emerging. But I think it is a highly risky endeavor.
“The problem is, if we are going to come to grips with this thing, we are going to have to recognize that even if we have got to pay the cost of a significant rise in taxes to get a significant slowing and then decline in social benefits, that is a very cheap price in the sense that a large increase in taxes required to fund what is currently on the books is going to cause a recession. But I think that if we can get away with that is the only cost to this whole problem, I think that is a pretty good deal.”
On where Republicans and Democrats will find common ground on cutting entitlement programs:
“It is going to be extraordinarily difficult. The issue is that words matter. If you ask the average person in the street about, for example, their social security benefits, they will say we have paid in, it is our money, we have earned it, I am getting it back. It is not welfare, it is not charity. It is equivalent to a private, fully-funded pension fund. It isn’t. It is essentially extremely underfunded. In fact, if we were to go to a fully-funded system, comparable to those fully-funded private systems, we would have to cut benefits by the equivalent of 4% points of payroll taxes or raise payroll taxes by the equivalent amount. Those are very large numbers and would suggest that yes, indeed, people have put money in, but certainly not enough to fund what they are getting back. The notion that we have to confront is that people do not think that this is any different from a private fund. The trouble is that it is.”
On tax policy:
“The problem basically is that we have tried for decades to somehow manage our budget in such a way that, yes we can run deficits of this or that size, and we use it sophisticatedly for fiscal policy. It turns out we cannot do that well. It gets out of hand and this is not an accident. There is no question that raising taxes will turn the economy downward. Ideally I would like to just cut spending. I do not think politically that is feasible because the problem, no matter how you look at it, is fundamentally this extraordinary rise in social benefits to persons. That is the core of the problem. But the issue is, if we can solve it the way I would want to solve it, if we go back to where we were earlier at a much lower level of those benefits because I think what is then going on in recent years, we have not been able to afford.”
On whether tax rate increases or eliminating deductions and closing loopholes will get the revenue agreement:
“I agree with those who argue that marginal tax rates really do matter. And I thought the genius of the Simpson-Bowles plan to identify a trillion dollars’ worth of tax expenditures which Republicans can a look at as subsidies, and the Democrats can look at as increased taxes to upper income groups. The problem is you are looking at the same issue and you can compromise on that. But look, if the issue here is whether you do it tax rates or you do it by taking loopholes out so to speak, obviously the latter is the better choice by far. The issue here is in both cases, you lower the rate of savings in a society and that will curtail capital investment, curtail the rate of growth and productivity, and essentially slow down the rate of real resource creation, which at the end of the day is what funds social benefits.” …”
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Read Full Post | Make a Comment ( None so far )American History–Thomas E. Woods, Jr., Ph.D.–The Politically Incorrect Guide to American History Lectures–Videos
The Politically Incorrect Guide to American History, Lecture 1 | Thomas E. Woods, Jr.
Lecture 1, “Themes and Lessons from Colonial America” by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
The Politically Incorrect Guide to American History, Lecture 2 | Thomas E. Woods, Jr.
Lecture 2, “The Constitution: Four Disputed Clauses” by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
The Politically Incorrect Guide to American History, Lecture 3 | Thomas E. Woods, Jr.
Lecture 3, “The Principles of ’98″ by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
The Politically Incorrect Guide to American History, Lecture 4 | Thomas E. Woods, Jr.
Lecture 4, “Lysander Spooner and Other Antebellum Radicalism” by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
The Politically Incorrect Guide to American History, Lecture 5 | Thomas E. Woods, Jr.
Lecture 5, “Secession and the American Experience” by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
The Politically Incorrect Guide to American History, Lecture 6 | Thomas E. Woods, Jr.
Lecture 6, “Secession and War” by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
The Politically Incorrect Guide to American History, Lecture 7 | Thomas E. Woods, Jr.
Lecture 7, “Reconstruction” by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
The Politically Incorrect Guide to American History, Lecture 8 | Thomas E. Woods, Jr.
Lecture 8, “Myths and Facts About Big Business” by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
The Politically Incorrect Guide to American History, Lecture 9 | Thomas E. Woods, Jr.
Lecture 9, “World War I” by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
The Politically Incorrect Guide to American History, Lecture 10 | Thomas E. Woods, Jr.
Lecture 10, “The 1920s – Domestic and International” by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
The Politically Incorrect Guide to American History, Lecture 11 | Thomas E. Woods, Jr.
Lecture 11, “Herbert Hoover and the Great Depression” by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
The Politically Incorrect Guide to American History, Lecture 12 | Thomas E. Woods, Jr.
Lecture 12, “The Economics of the New Deal and World War II” by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
The Politically Incorrect Guide to American History, Lecture 13 | Thomas E. Woods, Jr.
Lecture 13, “The History of Foreign Aid Programs” by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
The Politically Incorrect Guide to American History, Lecture 14 | Thomas E. Woods, Jr.
Lecture 14, “Civil Rights and the Supreme Court” by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
The Politically Incorrect Guide to American History, Lecture 15 | Thomas E. Woods, Jr.
Lecture 15, “Welfare Programs and the Great Society” by Dr. Thomas E. Woods, Jr., a senior fellow in history at the Ludwig von Mises Institute, presents this fifteen-lecture course covering the material in his book The Politically Incorrect Guide to American History. Presented to the Auburn University Academy for Lifelong Learners, and recorded at the Mises Institute in Auburn, Alabama between September 2006 and March 2007.
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American History–Jamestown Colony–Videos
The Jamestown Colony
Jamestown & Tobacco: America the Story of Us
Jamestown: Against All Odds
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The New World – Rolfe & Rebecca/Pocahontas (Near to You)
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American History–Ancient Americans The Mayas and Aztecs–Videos
Ancient Americans The Mayas and Aztecs
Fall of the Aztec & Maya Empires 1/5
Fall of the Aztec & Maya Empires 2/5
Fall of the Aztec & Maya Empires 3/5
Fall of the Aztec & Maya Empires 4/5
Fall of the Aztec & Maya Empires 5/5
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The Coming World Recession: U.S. and Europe Enter A Recession As Growth Rates in Real Gross Domestic Product Plummet–Gloom & Doom–Video
CNBC:Global Recession? Marc Faber: 100%
THE DEPRESSION IS ABOUT TO BEGIN
Global Recession Looms as Euro Crisis Deepens
Peak Oil Global recession means drop in oil prices
IMMINENT AMERICAN DEPRESSION: Peter Schiff – We Aren’t That Far Behind Greece?!
Is talk of a “Grexit” the Smoke Screen for a Global Economic Meltdown?
Marc Faber: 100% Chance of Global Recession
By: Lee Brodie
“…Faber indicated that while investors remain focused on Greece and Europe – other issues, bigger issues are looming. And they’re more threatening.
“As an observer of markets – whenever everyone focuses on one thing – like Greece and Europe – maybe they miss issues that are far more important – such as a meaningful slowdown in India and China.”
The latest reports from Beijing would support Faber’s assertion. The HSBC Flash Purchasing Managers Index, slipped to 48.7 in May from 49.3 in April. That marks the seventh straight month that the index has been below 50, a level which indicates economic activity is contracting.
Faber also cited weakness in the high-end as another key catalyst that’s very negative.
“There are more and more stocks that are breaking down – economic sensitive stocks and companies that cater to the high-end,” he said. “That suggests to me the economy is likely to weaken and the huge asset run is likely to come to an end with significant asset deflation.”
http://www.cnbc.com/id/47566735
Background Articles and Videos
PBS Frontline – Money Power and Wallstreet part 1 of 4 (2012)
PBS Frontline – Money Power and Wallstreet part 2 of 4 (2012)
PBS Frontline – Money Power and Wallstreet part 3 of 4 (2012)
PBS Frontline – Money, Power and Wallstreet part 4 of 4 (2012)
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Rising Gasoline Prices Due To Excessive Speculation In Oil Futures Contracts–Political Issue in 2012 Elections–American People Are Being Screwed At The Gas Pump & Grocery Store–Videos
http://www.gasbuddy.com/gb_retail_price_chart.aspx?time=24
Gas Prices Explained
Quantitative Easing Explained
Senator Blumenthal on Curbing Excessive Oil Speculation
Senator Blumenthal calls for action against excessive oil speculation that inflates gas prices
Cantwell: ‘Shenanigans’ in Oil Market Reminiscent of Enron ‘Nightmare’ in Pacific NW
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Banksters & Speculation Behind High Food-Oil Prices
Under Questioning by Cantwell, Exxon CEO Estimates Oil Should Cost $60-70 Per Barrel
On May 12, 2011, when questioned by U.S. Senator Maria Cantwell (D-WA) at a Senate Finance Committee hearing, Exxon Mobil Chairman and Chief Executive Officer Rex Tillerson said that oil should cost between $60 and $70 per barrel, if the price of oil were based on supply and demand fundamentals. Oil was trading at $98 per barrel on Thursday morning, after inexplicitly plunging 5.5 percent yesterday.
Michael Greenberger on “commodity prices and volatility”
Regulations on Speculation Weak, But Better Than Nothing
Speculation and Watered Down Regulation
Secret Exemptions Allowed Speculators to Distort Futures Markets
CFTC Commissioner: “A Hair Trigger Away from Economic Calamity”
Will CFTC Limit Excessive Speculation?
Stossel: Oil Speculation
The Price Of Oil
CHHS Director explains derivatives regulation on C-SPAN – 5/15/09
Michael Greenberger Talks Speculation In Commodity Markets
Oil speculation and oil prices
Myth: The World is Running Out of Oil (Peak Oil)
Hearing on Energy Price Manipulation – Greenberger Testimony
Background Articles and Videos
Lecture 2: Course outline, futures markets history and market mechanics
Lecture 3: Futures contracts
Lecture 4: Options contracts and market history
Lecture 5: Reading futures contract price quote tables
Lecture 15: A further review of technical analysis
Lecture 16: Introduction to hedging with futures
Lecture 17: Hedging continued
Lecture 18: Hedging risk vs. return, diversification and options on futures
Lecture 19: Options on futures continued, with examples
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David Hart on Frédéric Bastiat–Videos
David Hart on Frederic Bastiat
The Bastiat Collection | Mark Thornton
That Which is Seen and That Which is Not Seen by Frederic Bastiat
That Which Is Seen, and That Which Is Not Seen Frederic Bastiat
Private and Public Services Frederic Bastiat
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Frédéric Bastiat–The Law–Videos
Read Full Post | Make a Comment ( None so far )John Stossel: The Battle for the Future –Video
John Stossel: The Battle for the Future
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George Lakoff–Videos
How Democrats & Progressives Can Win: George Lakoff
George Lakoff, how conservatives train leaders
George Lakoff: Moral Politics
Bringing Progressive Politics Back To The People
The Left, the Right, and the Family View of Government
How Dems Are Failing to Sell Health Care Reform – George Lakoff
George Lakoff on the role of government
CA Progressive Game Plan, by Prof. George Lakoff, CAL Berkely
George Lakoff pt1 of 6 – Frameworks, Empathy and Sustainability
George Lakoff pt2 of 6 – Frameworks, Empathy and Sustainability
George Lakoff pt3 of 6 – Frameworks, Empathy and Sustainability
George Lakoff p4 of 6 – Frameworks, Empathy and Sustainability
George Lakoff pt5 of 6 – Frameworks, Empathy and Sustainability
George Lakoff pt6 of 6 – Frameworks, Empathy and Sustainability
George Lakoff “The Brain and Its Politics”
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Authors@Google: George Lakoff
Authors@Google: George Lakoff
Part One: George Lakoff speaking at McNally Robinson
Part Two: George Lakoff speaking at McNally Robinson
Part Three: George Lakoff speaking at McNally Robinson
Part Four: George Lakoff speaking at McNally Robinson
Part Five: George Lakoff speaking at McNally Robinson
Part Six: George Lakoff speaking at McNally Robinson
Part Seven: George Lakoff speaking at McNally Robinson
George Lakoff on how he started his work on conceptual metaphor
…
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Imperialism: Enemy of Freedom–Ludwig von Mises Institute–Videos
How Empires Bamboozle the Bourgeoisie | Llewellyn H. Rockwell, Jr.
The Classical Liberal Theory of Empire | Ralph Raico
The Case for Free Trade, Not Imperialism | Walter Block
What Empire Does to a Culture | Roderick T. Long
The Firm vs. Nationalism | Peter G. Klein
Financing the Empire | Mark Thornton
Taxation, Inflation, and War | Joseph T. Salerno
The Anti-Imperialist League and the Battle Against Empire | Thomas E. Woods, Jr.
The Confused Literature on Globalization | David Gordon
Small States, Global Economy | Jeffrey M. Herbener
The New Global Marketplace | Sudha Shenoy
Mises in 1919 | Jörg Guido Hülsmann
The International Language of the Austrian School | Jeffrey A. Tucker
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Ron Paul Would Cut $1 Trillion In Spending and Balance The Budget In Three Year–Republican Party Establishment Paul Ryan’s Budget Runs $1 Trillion Deficit In Fiscal Year 2012 and Would Balance The Budget In 25 Years–Video
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Path to Prosperity (Episode 3): 3 Steps to Pro-Growth Tax Reform — VISUALIZED
Poll: Ron Paul Leading in Iowa
Paul holds a slim lead over Romney in first post-Christmas Iowa poll
“…With the Iowa caucus one week away, Ron Paul is standing his ground in Iowa, according to a Public Policy Poll released Wednesday.
Paul leads the field with 24 percent, but Mitt Romney is a close second at 20 percent.
The survey of 565 likely Republican caucus-goers was conducted Dec. 26-27, indicating that so far Paul has weathered the intense media focus and attacks from his rivals centered on the controversial newsletters that bear the Texas congressman’s name and some of his foreign policy views that fall outside of the mainstream.
The poll showed a continuing sharp decline in Newt Gingrich’s support, as the former House Speaker finished a distant third at 13 percent. Only a month ago, Gingrich led the field at 27 percent, but his decision not to counter the barrage of attack ads against him in Iowa seems to have sunk him for now.
Only 37 percent of Iowans now have a favorable view of Gingrich, while 54 percent say they have an unfavorable view.
Rounding out the field are Rep. Michele Bachmann (Minn.) at 11 percent, and Texas Gov. Rick Perry and former Sen. Rick Santorum (Pa.) at 10 percent each. …”
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Vote Your Conscience–Vote Your Heart–Vote Ron Paul–Faith, Family, Friends, Freedom, First–Peace and Prosperity–President Paul–Videos
“I want to use all my strength, to resist the notion that I can run your lives, or run the economy, or run the world. I want to use that strength to repeal and reject that notion, and stand up and defend the principles of liberty.”
~Congressman Ron Paul
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Pronk Pops Show 1-55–Download or Listen To Podcasts–Give It A Listen–Videos
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Pronk Pops Show 55:November 23, 2011
Pronk Pops Show 54:November 16, 2011
Pronk Pops Show 53:November 9, 2011
Pronk Pops Show 52:November 2, 2011
Pronk Pops Show 51:October 26, 2011
Listen To Pronk Pops Podcast or Download Shows 55
Listen To Pronk Pops Podcast or Download Shows 52-54
Listen To Pronk Pops Podcast or Download Shows 49-51
Listen To Pronk Pops Podcast or Download Shows 45-48
Listen To Pronk Pops Podcast or Download Shows 41-44
Listen To Pronk Pops Podcast or Download Shows 38-40
Listen To Pronk Pops Podcast or Download Shows 34-37
Listen To Pronk Pops Podcast or Download Shows 30-33
Listen To Pronk Pops Podcast or Download Shows 27-29
Listen To Pronk Pops Podcast or Download Shows 22 (Part 2)-26
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Listen To Pronk Pops Podcast or Download Shows 10-15
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Pronk Pops Show 55
Pronk Pops Show 55, November 23, 2011
Segment 0: Israeli Brainwashed Glenn Beck’s Confused Hit Piece On Ron Paul–Get A Clue–Videos
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Segment 1: Republican Presidential Debate On National Security–November 22, 2011–CNN, Heritage Foundation, American Enterprise Institute–Videos
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Segment 2: Collectivists vs. Individualists: Occupy Wall Street Compared To Tea Party–Videos
For additional information and videos:
Segment 3: Who Is Behind And Funding Occupy Wall Street–The Radical Left: Communist Party USA, Socialist Party USA, Democratic Socialists of America, Maoist Revolutionary Communist Party, Trotskyist Socialist Workers Party, Worker’s World Party,Working Families Party (front for ACORN), New York Communities For Change, Adbusters, George Soros and Barack Obama–Video
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Segment 4, Remembering John F. Kennedy–Videos
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Pronk Pops Show 54
Pronk Pops Show 54, November 16, 2011
Segment 0: Ron Paul On Bill Bennett’s Morning In America Show–6-8 A.M Eastern Time,Wednesday, November 16, 2011?–Talk Radio–Videos
For additional information and videos:
Segment 1: CBS–Communists, Bolshevik, Socialists–Progressives All–Limited Ron Paul To 90 Seconds And Pulls Poll In Republican Presidential Debate On Foreign Policy–Warfare and Welfare Washington vs. Peace and Prosperity People–Videos
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Segment 2, Super Committee/Congress Is Neither Super Nor Congressional–Cut $1,000 Billion In Fiscal Year 2013 Budget And Pass FairTax Or You Are Fired!–Videos
For additional information and videos:
Pronk Pops Show 53
Pronk Pops Show 53, November 9, 2011
Segment 0: Unemployment Rate 9.0 Percent Or Greater For 28 Months and Over 8% For Entire Obama Administration–Only 80,000 New Jobs Created in October, 2011–Never Created 250,000 Permanent Jobs In A Single Month Of Obama Presidency–Videos
For addition information and videos:
http://pronkpops.wordpress.com/2011/11/09/pronk-pops-show-53-november-9-2011-segment-0/
Segment 1: 50 Year American Tax Revolution: When The Impossible Became The Inevitable–Flat Tax or FairTax–Videos
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Segment 2, Student Interview On Republican Presidential Candidates Debates and 2012 Election
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Pronk Pops Show 52
Pronk Pops Show 52, November 2, 2011
Segment 0: 50 Year American Tax Revolution: When The Impossible Became The Inevitable–Flat Tax or FairTax–Videos
For additional information and videos:
Segment 1: Newt Gingrich’s Optional 15% Flat Tax Plus 15.3% Social SecurityTax–More Taxes Than Cain’s-9-9-9 (27%) Tax Plan But Less Than Perry’s Optional 20% Flat Tax Plus 15.3% Social SecurityTax–Videos
For additional information and videos:
Segment: 2: Herman Cain’s 9-9-9 Plan: 9% Business Income Flat Tax, 9% Personal Income Flat Tax, 9% National Retail Consumption Tax–Videos
For additional information and videos:
Pronk Pops Show 52, November 2, 2011: Segment 3: Perry proposes optional flat 20 percent income tax and cap on government spending–Videos
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Pronk Pops Show 52, November 2, 2011: Segment 4: A Ron Paul tax reform plan: no income taxes or IRS — FairTax Less!–”When The Impossible Became The Inevitable”–Videos
For additional information and videos:
Pronk Pops Show 51
Pronk Pops Show 51, Octber 26, 2011
Segment 0: Perry proposes optional flat 20 percent income tax and cap on government spending–Videos
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Segment 1: A Ron Paul tax reform plan: no income taxes or IRS — FairTax Less!
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Pronk Pops Show 50
Pronk Pops Show 50, October 19, 2011
Segment 0: Ron Paul’s Economic Plan for Restoring America to Peace and Prosperity–Videos
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Special Guest Interview: Stephen Levine: Chasing and Photographing Thunderstorms
Segment 1: Republican Presidential Candidate Debate in Las Vegas–Videos
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Pronk Pops Show 49
Pronk Pops Show 49, October 12, 2011
Segment 0: Let a 1,000 Apples Bloom: Creating Unbelievable Products, Wealth and Jobs–Videos
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Segment 1: President Obama Beats 62 Year Record Held By Reagan: Unemployment Rate Over 8% For 32 Months and Over 9% For 27 Months!–Average Weeks Unemployed Hits All Time High of 40.5 Weeks!–Videos
For additional information and videos:
Pronk Pops Show 48
October 06, 2011 08:47 AM PDT
Pronk Pops Show 48, October 8, 2011
Segment 0: President Obama In Dallas Tuesday Oct. 4: Collecting Contributions For $1,000,000,000 Propaganda Campaign And Demanding His Jobs Bill Be Passed–More Taxes, More Spending, More Deficits, More Debt, More Unemployment–No Hope, No Change, No Jobs, No Thanks–”How’s That Hopey-Changey Stuff Working Out For Ya?”–Videos
For addition information and videos:
Segment 1: Gungate: What did you know and When Did You Know About Operation Fast and Furious And Project Gunrunner– Attorney General Holder and President Obama?
For addition information and videos:
Pronk Pops Show 47
September 28, 2011 04:57 PM PDT
Pronk Pops Show 47, September 28, 2011
Segment 0: Ron Paul On U.S. Foreign Policy–Mutually Assured Destruction vs Mutually Assured Respect –Videos
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Segment 1: Herman Cain Wins Florida Straw Poll: The Cain Mutiny–Videos
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Segment 2: Republican Presidential Debate, September 22, 2011–Videos
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Pronk Pops Show 46
September 21, 2011 04:29 PM PDT
Pronk Pops Show 46, September 21, 2011
Segment 0: Obama’s Solargate: Solyndra Stimulus Spending Cost Taxpayers An Estimated $535 Million–Crony Capitalism Campaign Contribution Corruption–Videos
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Segment 1: Eat The Rich!–Vote Obama In 2012 For More Spending, More Taxes, More Deficits, More Debt, More Unemployment, More Recession–No Hope–No Change–No Deal!–Videos
For additional information and videos:
Segment 2: Ron Paul On U.S. Foreign Policy–Mutually Assured Destruction vs Mutually Assured Respect –Videos
For additional information and videos:
Pronk Pops Show 45
September 16, 2011 12:33 PM PDT
Pronk Pops Show 45, September 14, 2011
Segment 0: Obama Proposes Tax Increases To Pay For Jobs/Stimulus Spending Package–Videos
For additional information and videos:
Segment 1: Republican Debate September 12, 2011–Tea Party–CNN–Videos
For additional information and videos:
Pronk Pops Show 44
September 08, 2011 10:22 AM PDT
Pronk Pops Show 44, September 7, 2011
Segment 0: Union Thug Hoffa Threatens To Take Out The Tea Party At Labor Day Rally–Obama “Proud” of Hoffa–Videos
For additional information and videos:
Segment 1: No Hope: Consumer Confidence Craters–No Change: Official Unemployment Rate Above 8% and Total Unemployment Rate Above 15% For Entire Obama Administration–Great Obama Recession Economy (GORE)–Videos
For additional information and videos:
Pronk Pops Show 43
August 31, 2011 03:19 PM PDT
Pronk Pops Show 43, August 31, 2011
Segment 0: Remembering The 9/11 First Responders–Videos
For Additional Information and Videos:
Segment 1: The Conference Board’s Consumer Confidence Index Craters: 59.2 In July To 44.5 In August–Lowest Since April 2009!
For Additional Information and Videos:
Segment 2: U.S. Economy On The Verge Of A Recession–Second Quarter GDP Growth Rate Revised Down From 1.3% to 1.0%–Bernanke Advocates Fiscal Stimulus–No QE3 For Now–Consumer Confidence Craters–Videos
For Additional Information and Videos:
Segment 3: Obama’s Approval Rating On Economy Hits New Gallup Poll Low Of 26%–Republican Presidential Candidates Romney, Perry, Paul and Bachmann Attack Obama’s Job Creation Record–Videos
For Additional Information and Videos:
Pronk Pops Show 42
August 24, 2011 03:25 PM PDT
Pronk Pops Show 42, August 24, 2011
Segment 0: Malcolm Gladwell–Outliers: The Story of Success–Videos
For additional information and videos:
Segment 1: Obama’s Approval Rating On Economy Hits New Gallup Poll Low Of 26%–Republican Presidential Candidates Romney, Perry, Paul and Bachmann Attack Obama’s Job Creation Record–Videos
For additional information and videos:
Pronk Pops Show 41
August 17, 2011 04:23 PM PDT
Pronk Pops Show 41, August 17, 2011
Segment 0: 2011 Iowa Straw Poll: Bachmann knocks off Pawlenty, Paul builds momentum, Perry crashes party—Show me the money!–Videos
For additional information and videos:
Segment 1: Beyond Top Tier–First In The Hearts and Minds Of The American People and Founding Fathers–The One–Ron Paul–Restoring Liberty, Peace and Prosperity–Videos
For additional information and videos:
Segment 2 : It’s Time For A Permanent, Pervasive and Predictable Stimulus Package–The FairTax–Launching A Peace and Prosperity Economy–Videos
For additional information and videos:
Pronk Pops Show 40
August 10, 2011 03:35 PM PDT
Pronk Pops Show, August 10, 2011
Segment 0: The Warfare and Welfare Economy Worsens With 30 Americans Killed and Over 45 Million Americans On Food Stamps–American People Want A Peace and Prosperity Economy–A Paycheck Not Food Stamps–Stop Out Of Control Spending On Government Interventions Abroad and At Home–Videos
For Additional Information and Videos
Segment 1: More GORE–Great Obama Recession Economy–Government Treasury Securities Downgraded From AAA to AA+ With A Negative Outlook By Standard & Poor’s Rating Agency–Too Little Too Late–The Austrian School of Economics Was Right!–Videos
For Additional Information and Videos
Pronk Pops Show 39
August 03, 2011 04:00 PM PDT
Pronk Pops Show 39, August 3, 2011
Segement 0: Will Tea Party Caucus Vote As A Block Against Democratic and Republican Establishment Compromise Bill On Raising National Debt Ceiling By $900 Billion, Adding Over $7,000 Billion To National Debt In The Next Ten Years Plus A Huge Tax Hike in 2013?–The American People Would Like To Know!–Videos
For Addition Information and Videos:
Segment 1: The Second Obama Recession Starts Or The Great Obama Depression Continues–The Growth Rate of Gross Domestic Product Declines For Four Consecutive Quarters–The Economy Has Peaked And Entered A Period Of Stagflation–Rising Prices, Unemployment And Obama Misery Index!–Ron Paul To The Rescue?–Videos
For Addition Information and Videos:
Pronk Pops Show 38
July 27, 2011 03:17 PM PDT
Pronk Pops Show 38, July 27, 2011
Segment 0: Tea Party Democrats, Republicans, and Independents Betrayed–Tell The Democratic and Republican Establishments To Balance The Budget and Cut The Debt Ceiling–Just Say No To Obama, Reid, Boehner and Ryan Unbalanced Budgets–Videos
For additional information and videos:
Segment 1: It’s Time For A Permanent, Prevasive and Predictable Stimulus Package–The FairTax–Launching A Peace and Prosperity Economy–Videos
For additional information and videos:
Pronk Pops Show 37
July 21, 2011 03:44 PM PDT
Pronk Pops Show 37, July 21, 2011, Part 1
Segment 0: President Obama Lies and Scares People On Social Security–Stop Spending and Balance The Budget!–Videos
For Additional Information and Videos
Pronk Pops Show 37, July 20, 2011: Segment 1: The American People’s Solution To Economic Stagnation: Increase National Debt Ceiling By $2,000 Billion To $16,300 Billion In Exchange For Passage of A Balanced Budget Amendment And The FairTax Bills And Repealing The Income Tax 16th Amendment To U.S. Constitution–A Balanced, Fair And Transparent Approach To Creating Jobs and Growing A Peace and Prosperity Economy–Videos
For Additional Information and Videos
Part 2 Segments 2, 3 and 4 will be broadcast next Wednesday, July 27, 2011 from 3-5pm and posted on Thursday, July 28, 2011
Pronk Pops Show 36
July 13, 2011 04:23 PM PDT
Pronk Pops Show 36, July 13, 2011
Segment 0: Lipstick On A Pig–Great Obama Depression– Deeper and Longer–Official U-3 Unemployment Rate Hits 9.2% In June 2011 With 14 Million Unemployed and Total Unemployment Rate U-6 Hits 16.2% With Over 24.8 Million Americans Seeking Full Time Job–Obama Is Not Working–2012–End An Error!–Fire Obama–Videos
For additional information and videos:
Segment 1: Gretchen Morgenson & Joshua Rosner–Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led To Economic Armageddon–Videos
For additional information and videos:
Segment 2: Jim Rogers, Peter Schiff, Marc Farber and Ron Paul On The National Debt Ceiling and Balancing The Budget–Videos
For additional information and videos:
Segment 3: Obama’s Gungate: Operation Fast and Furious–Arming Mexican Drug Cartels and Criminals–Killing American and Mexican Citizens–A Pretext For The Ultimate Aim of Disarming The American People and Repealing the Second Amendment–Department of Justice, Department of Homeland Security, FBI, BATFE, ICE and DEA Coverup and Stonewalling–Call For Special Prosecutor–President Obama and Attorney General Holder Should Be Impeached For Obstruction of Justice–Videos–Updated
For additional information and videos:
Segment 4: Ron Paul won’t seek re election for Congress–Why? Can You Say–President Ron Paul–Vote For A Committed and Principled Constitutionalist–The Peace and Prosperity Candidate For President–Ron Paul–Videos
For additional information and videos:
http://pronkpops.wordpress.com/2011/07/13/pronk-pops-show-36-july-13-2011-segment-4-ron-paul-won%E2%80%99t-seek-re-election-for-congress%E2%80%93why-can-you-say%E2%80%93president-ron-paul%E2%80%93vote-for-a-committed-and-principled-const/?preview=true&preview_id=1406&preview_nonce=16c661faf2
Pronk Pops Show 35
July 06, 2011 03:44 PM PDT
Pronk Pops Show 35, July 6, 2015
Segment 0: The Meaning of Independence Day–Videos
For additional information and Videos:
Segment 1: The Legal Standard In A Murder Case: Prove It Beyond A Reasonable Doubt–Suspicion And Opinion Is Not Enough–Casey Anthony Murder Case–Not Guilty–Videos
For additional information and Videos:
Segment 2: George Bureau of Investigations Finds Atlanta School Teachers and Principals Cheating Scandal:Raised Students Scores On Tests –Government Corrupt Schools–
For additional information and Videos:
Segment 3: Obama’s Marxist Class Warfare On Millionaires and Billionaires–Tax The Job Creators–President’s Unbalanced Budget Would Result In A Big $1,100 Billion Deficit In Fiscal Year 2012–This Is Obama’s So-Called Balanced Approach–Obama Is Not Working–Fire Obama Right Now!–Videos
For additional information and Videos:
Pronk Pops Show 34
June 29, 2011 03:38 PM PDT
Pronk Pops Show 34, June 29, 2011
Segment 0: Sexist Elitist Chris Wallace Asks Michele Backmann Are You A Flake?–Chris, Are You A Wimp?–Videos
For additional information and videos:
Segment 1: Is Ron Paul An Isolationist–No–He Is For Free Trade and A Nonterventionist Foreign Policy–Are The NeoCons Warmongers–Yes–Aggressive Interventionist Foreign Policy–Empire or Nation Building!–Videos
For additional information and videos:
Segment 2: Cut, Cap, And Balance Pledge–The Washington D.C. Howdy Doody Debt Ceiling Show–”Say Kids What Time Is It?”–Howdy Doody Time–Fiscal Year 2020 Balanced Budget Time–Not Serious–Send In The Clowns–There Already There!– Videos
For additional information and videos:
Pronk Pops Show 33
June 22, 2011 03:21 PM PDT
Pronk Pops Show 33, June 22, 2011
Segment 0: Jon Huntsman Launches 2012 Candidacy for President At Liberty Park–Should Become A Democrat Like John V. Lindsay And Run Against President Obama in 2012!–Videos
For additional information and videos:
Segment 1: Republican Candidates For President Romney, Cain, and Johnson Refuse To Sign Pro-Life Citizen’s Pledge–While Sarah Palin’s Trig’s Creator E-Mail Moves Millions–Videos
For additional information and videos:
Segment 2: Rick Perry/Sarah Palin Republican Establishment Candidate Ticket vs. Ron Paul/Michele Bachmann Republican Constitutional Candidate Ticket for the 2012 Presidential Race–Videos
For additional information and videos:
Segment 3: The Next President Of The United States Tells Truth To Power At Republican Leadership Conference–Great Speech!
For additional information and videos:
Segment 4: Bloomberg Poll Bad News For Obama–Only 30% Certain They Will Vote For Obama in 2012!–66% Think Country On The Wrong Track!–Videos
For additional information and videos:
Pronk Pops Show 32
June 15, 2011 03:10 PM PDT
Pronk Pops Show 32, June 15, 2011
Segment 0: Money, Organization, Message, Momentum, Ambition–MOMMA–You Need MOMMA To Win A Presidential Race!–Videos
For Additional Information and Videos:
Segment 1: Republican Presidential Debate In New Hampshire June 13, 2011–American People The Winner–Obama The Loser–Videos
For Additional Information and Videos:
Segment 2: The Political Issues of 2012 Elections: #1–Unemployment–Jobs, #2–Government Spending–Balanced Budgets, #3-Tax Reform–The FairTax, #4-Inflation–End The Fed, #5-Wars–Bring The Troops Home–Videos
For Additional Information and Videos:
http://pronkpops.wordpress.com/2011/06/15/pronk-pops-show-32-june-15-2011-
segment-2-1-the-issues-unemployment-jobs-2-government-spending-balanced-budgets-3-tax-reform-the-fairtax-4-inflation-end-the-fed-5-wars-bring-the-t/?preview=true&preview_id=1183&preview_nonce=577da72775
Segment 3: Pronk Presidential Prediction–The Winner Is?–The American People!–Videos
For Additional Information and Videos:
Pronk Pops Show 31
June 08, 2011 03:17 PM PDT
Pronk Pops Show 31: June 8, 2011
Segment 0: ENTJ–Know Thyself–This above all: to thine own self be true–Videos
For additional information and videos:
Segment 1: A Breach of Public Trust–Hound Dogs–Clinton, Weiner, and Obama–Notorious Habitual Liars–Wake Up–Start A Revolution–Ron Paul–Videos
For additional information and videos:
Segment 2: June 2011–Unemployment Situation Worsens–9.1% Official Unemployment Rate (U-3) with 13,900,000 Unemployed and 15.8% Total Unemployment Rate (U-6) With 24,283,000 Americans Looking For Full Time Jobs!–Great Obama Depression (GOD)!–Videos
For additional information and videos:
Pronk Pops Show 30
June 02, 2011 01:26 PM PDT
Pronk Pops Show, June 2, 2011
Segment 0: The Facebook Effect–Videos
For additional information and videos:
Segment 2: Paul Allen–Idea Man: A Memoir By The Cofounder of Microsoft–Videos
For additional information and videos:
Segment 3: Last Dance For Love–Congress Blocks Debt Limit Hike–For Now–Who Is The Political Class Fooling–Bring The Troops and Jobs Home and Send The Bureaucrats and Big Spenders Home–Save Medicare and Social Security–Hot Stuff–Videos
For additional information and videos:
Pronk Pops Show 29
May 26, 2011 01:12 PM PDT
Pronk Pops Show 29, May 26, 2011
Segment 1: Herman Cain–The Tea Party Movement Candidate–Running On Cutting Spending, Opposing Higher Debt Ceiling, Enforcing Immigration Laws, Defunding Planned Parenthood, Nominating Pro Life Judges, And Passing The FairTax–Common Sense Solutions!–Videos
For additional information and videos:
Segment 2: Taxman Obama’s Hidden Tax Increase On The Rich That Results In Fewer Jobs And Lower Economic Growth vs. Ryan’s Long and Winding Road To Economic Stagnation vs. Senators Lee, DeMint and Paul’s Stairway To Peace and Prosperity With A Balanced Budget!–Videos
For additional information and videos:
Segment 3: Israeli Prime Minister Benjamin Netanyahu Addresses Congress–A Lesson In Leadership–Videos
For additional information and videos:
Segment 4: Memo To Washington Republican Party Establishment–You Are Not Listening To The American People–Read Our Lips–”Cut Spending and Balance The Budget Starting With Fiscal Year 2012″–Videos
For additional information and videos:
Pronk Pops Show 28
May 18, 2011 04:26 PM PDT
Pronk Pops Show 28, May 18, 2011
Segment 1: Segment 1: Newt Gingrich Running For President As A Big Government Interventionist Republican Progressive aka Green “Compassionate” Conservative?–Favors Individual Health Care Mandates While Attacking Paul Ryan As A Right Wing Radical Social Engineer For Proposing A Premium Support or $15,000 Voucher System To Save Medicare From Bankruptcy!–Videos
For additional information and videos:
Segment 2: Leave It To Beaver–Newt Gingrich–The Beaver Puppet of The Republican Washington D.C. Establishment Political Class With It Social Engineered Warfare and Welfare Economy with A $3,500 Billion Unbalanced Budget For Fiscal Year 2012 with Nearly $1,000 Billion In Deficit Spending!–Videos
For additional information and videos:
Segment 3: Ron Paul Running For President Of The United States in 2012–It Is Official–The Third Time Is The Charm!–Videos
For additional information and videos:
Segment 4: Ron Paul Is Running For President of The United States In 2012!–The Third Time Is The Charm–A Man Of Integrity–A Candidate For Peace and Prosperity–Neither A Big Government Warfare Republican Nor A Massive Government Welfare Democrat–A Man Of And For The American People–A Tea Party Patriot–Ron Paul–Videos
Pronk Pops Show 27
May 11, 2011 10:13 AM PDT
Pronk Pops Show 27, May 10, 2011
Segment 1: Bureau of Labor Statistics Official Unemployment Rate (U-3) Increased To 9.0% With 13.7 Million Americans Unemployed and Total Unemployment Rate (U-6) Increased To 15.9% With 24.4 Million Americans Seeking Full Time Job–Economy Adds 244,000 Jobs But Initial Unemployment Claims Hit Eight Month High of 474,000!–Videos
For additional information and videos:
Segment 2: OMI-Obama Misery Index–U.S. Misery Index Is Rising As Both The Unemployment Rate and Inflation Rate Increase!–Videos
For additional information and videos:
Segment 3: Segment 3: Speaker Boehner’s Address to the Economic Club of New York on Jobs, Debt, Gas Prices–Videos
For additional information and videos:
Pronk Pops Show 26
Pronk Pops Show 26, May 5, 2011
Segment 1: How Did Bin Laden Bankrupt America?–Was Osama Bin Landen Executed For Bankrupting America?–Yes, President Obama Wants The Credit For Bankrupting America!–Videos
For additional information and videos:
Segment 2:Segment 2: President Obama Is The Reason Your Gasoline Prices Are Going Up!–American People Favor Drilling For Oil and Gas!–Drill Baby Drill–Videos
For additional information and videos:
http://pronkpops.wordpress.com/2011/05/03/pronk-pops-show-26-may-3-2011-segment-2/
Pronk Pops Show 25
April 27, 2011 11:28 AM PDT
Pronk Pops Show 25, April 26, 2011
Segment 0: Eva Cassidy–A Singer’s Singer
Segment 1: Ron Paul Is Running For President of The United States In 2012!–The Third Time Is The Charm–A Man Of Integrity–A Candidate For Peace and Prosperity–Neither A Big Government Warfare Republican Nor A Massive Government Welfare Democrat–A Man Of And For The American People–A Tea Party Patriot–Ron Paul–Videos
For additional information and videos:
Segment 3: President Obama Is The Reason Your Gasoline Prices Are Going Up!–American People Favor Drilling For Oil and Gas!–Drill Baby Drill–Videos
For additional information and videos:
Pronk Pops Show 24
Pronk Pops Show 24: April 19, 2011
Segment 0: S&P Rating Outlook Changed From “Stable” To “Negative” For U.S. Treasury Debt–Videos
Segment 1: Who is John Galt? Who is Ayn Rand–Videos
For additional information and videos:
Segment 2: President Obama’s Fiscal Year 2012 Budget Speech Of April 13, 2011–Eat The Rich And Killing The American Dream Class Warfare–Cuts National Security Spending and Raise Taxes On The Rich–Produces Massive Deficits, National Debt, and Higher Unemployment For 12 More Years–Progressive Radical Socialist Economic Stagflation–Videos
For additional information and videos:
http://pronkpops.wordpress.com/2011/04/18/pronk-pops-show-24-april-18-2011-segment-2-president-obamas-fiscal-year-2012-budget-speech-of-april-13-2011-eat-the-rich-and-killing-the-american-dream-class-warfare-cuts-national-security-sp/
Segment 3: The FairTax (National Consumption Sales Tax) vs. The Flat Tax (One Rate Federal Income Tax)–Who Pays The Most Federal Individual Income Tax? Videos
For additional information and videos:
Pronk Pops Show 23
Pronk Pops Show 23: April 12, 2011
Segment 0: Sidney Lumet–Rest In Peace–Videos
Segment 1: Tea Party Movement Demands Passage of Balanced Budget Amendment and The FairTax As The Price For Raising The National Statutory Debt Limit of $ 14,294,000,000 One Last Time By $1,000,000,000,000!–Videos
For additional information and videos:
Segment 2: The FairTax (National Consumption Sales Tax) vs. The Flat Tax (One Rate Federal Income Tax)–Who Pays The Most Federal Individual Income Tax? Videos
For additional information and videos:
Pronk Pops Show 22 (Part 2)
Pronk Pops Show 22, April 7, 2011
Segment 1: 3,500,000 Million Americans Unemployed in March 2011 Still Exceeds Great Depression High of 13,000,000 In March 1933–The Obama Depressions Continues–Bureau of Labor Statistics: 8.8% Official Unemployment Rate (U-3) vs. Gallup Unemployment Rate of 10.0%–Nonfarm Payroll Increased By 216,000–The Government Makes The Depression Worse!–Videos
Segment 2: Obama’s Anti-American, Anti-Capitalist, Anti-Growth, Anti-Jobs, and Anti-Security Energy Policy–Videos
Segment 3: Republican Establishment Will Propose A Ten Year $6,200 Billion Cut In Spending Over Ten Years–The Problem Is It Does Not Balance The Budget For Another Five Years At The Earliest–Tea Party Movement Demands Balanced Budgets Starting In 2012 For The Next Ten Years!–A Jet Plane To Prosperity Not A Path To Prosperity–Videos
Segment 4: Just One More Thing Congressman Ryan: When Does The Republican’s Path To Prosperity Balance The Budget?–The Twelth of Never!–Videos
For additional information and videos on the above segments:
Pronk Pops Show 22 (Part 1)
Pronk Pops: Show 22, April 7, 2011
Segment 0: Glenn Beck Ending His Show At Fox News
Segment 1: 3,500,000 Million Americans Unemployed in March 2011 Still Exceeds Great Depression High of 13,000,000 In March 1933–The Obama Depressions Continues–Bureau of Labor Statistics: 8.8% Official Unemployment Rate (U-3) vs. Gallup Unemployment Rate of 10.0%–Nonfarm Payroll Increased By 216,000–The Government Makes The Depression Worse!–Videos
Segment 2: Obama’s Anti-American, Anti-Capitalist, Anti-Growth, Anti-Jobs, and Anti-Security Energy Policy–Videos
Segment 3: Republican Establishment Will Propose A Ten Year $6,200 Billion Cut In Spending Over Ten Years–The Problem Is It Does Not Balance The Budget For Another Five Years At The Earliest–Tea Party Movement Demands Balanced Budgets Starting In 2012 For The Next Ten Years!–A Jet Plane To Prosperity Not A Path To Prosperity–Videos
Segment 4: Just One More Thing Congressman Ryan: When Does The Republican’s Path To Prosperity Balance The Budget?–The Twelth of Never!–Videos
For additional information and videos on the above segments:
Pronk Pops Show 21
Pronk Pops Show 21, March 29, 2010
Segment 1: The Truth And Consequences About Undeclared Wars–Real Strange Bedfellows–Obama Allies U.S. with Libyan Rebels Including Islamic Jihadists, Moslem Brotherhood, and Al-Qaeda!–Give Peace A Chance–AC-130 Gunship–A-10 Warthogs–F-15E Strike Eagles and Special Operation Smash Squads
For Additional Information and Videos:
Pronk Pops Show 20
Pronk Pops Show 20: March 22, 2011
Segment 1:F-15 Crashes In Libya
Segment 2
ne Unconstitutional and Undeclared War Too Many: The Great Pretender, Peace Candidate And Noble Peace Prize Winner, President Barack Obama Undeclared War On Libya’s Muammar Ghaddafi In Defense Of Libyian Islamic Fighting Group (LIFG) Rebels Linked To al-Qaeda and The BP Libyian Oil Deal Linked To Obama Campaign Contributions–A Political Payoff!–Obama Has To Go In 2012–Videos
Segment 3:Earthquake Damages Japanese Nuclear Plant At Fukushima Daiichi, Four Explosions and Four Nuclear Reactors Flooded With Seawater To Contain Release Of Radioactive Material and Plant Released Radioactive Materials To Stop Pressure Buildup–Partial Meltdown Of Nuclear Core Feared–Radioactive Material Escaping From Plant–Over 250,000 Ordered Evacuated From 20 Kilometer (12.4 Miles) Radius From Plant–Videos
For Additional Information and Videos:
Pronk Pops Show 19
Pronk Pops Show 19: March 8, 2011
Segment 1: The Washington Political Elites of Both Parties Are Not Serious About Balancing The Federal Budget And Funding Entitlement Liabilities–Send In The Clowns–Don’t Bother There Here–Videos
Segment 2, Gallup–U.S. Unemployment Hits 10.3% In February 2011 Vs. Bureau of Labor Statistics (BLS) U.S. Unemployment Rate Declined By .1% To 8.9% in February 2011 With Job Creation of 192,000 In February 2011–Over 13.7 Million Americans Unemployed More Than Worse Month of Great Depression!
For more information and videos related to this show click on links below:
Pronk Pops Show 18
Pronk Pops Show 18: March 3, 2011
Segment 1: Remembering The Brooklyn Dodgers and Duke Snider
Segment 2: The National Debt Will Hit $20,000,000,000,000 By 2020!
Segment 3 Public Sector Unions vs. The America People: Replacing The American Dream With The Socialist Union Nightmare
For additional information and videos on the above segments:
Pronk Pop Show 17
Pronk Pops Show 17: February 22, 2011
Black History Month–Progressives–Eugenics–Black Population Control–Abortion–Black Genocide–Planned Parenthood–Barack Obama
For more information and videos relating to the show:
Pronk Pops Show 16
Pronk Pops Show 16: February 15, 2011
Conservative Political Action Conference 2011
President Obama’s Saint Valentine’s Massacre of The American People–Fiscal Year 2012 Budget Buster–Spending $3,729 Billion–Taxes $2,627 Billion–Deficit $1,101 Billion–Dead On Arrival–DOA– 3 Million Tea Party Patriots To March On Washington D.C. On Friday, April 15, 2011 In Protest!
For more information and videos related to this show click on link below:
Pronk Pops Show 15: Hour 3
Pronk Pops Show 15:February 8,2011, Hour 3
Lies, Damn Lies, Statistics, and Obama’s Unbelievable Unemployment Numbers
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Pronk Pops Show 15: Hour 2
Pronk Pops Show 15: February 8, 2011 Hour 2
Rolling Power Outages in Texas
Obama Care Declared Unconstitutional and Void By Federal Judge
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Pronk Pops Show 15: Hour 1
Pronk Pops Show 15: February 8,2011, Hour 1
Super Storm and Super Bowl In Dallas, Texas
Man-Made Carbon Dioxide Emission and Global Warming–Science vs. Politics
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Pronk Pops Show 14
Pronk Pops Show 14: January 27, 2011
The Big Lie and Free Speech
President Obama’s State of the Union Campaign Speech
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Pronk Pops Show 13
Pronk Pops Show 13: December 9, 2010
Latest News Update on WikiLeaks
Federal Reserve Unconventional Monetary Policy
President Obama and Republicans Agree To Two Year Tax Rate Extension and
One Year Unemployment Benefit Extension–More Deficit Spending and Debt!
For more information and videos related to this show click on link below:
Pronk Pops Show 12
Pronk Pops Show 12: December 8, 2010
News Update On WikiLeaks and Julian Assange
The Chairman of The Federal Reserve and Quantitative Easing 2
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Pronk Pops Show 11
Pronk Pops Show 11: December 3, 2010
News and Commentary On November 2010 Unemployment Rate and Level Statistics
WikiLeaks
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Pronk Pops Show 10
Pronk Pops Show 10: December 1, 2010
Update on new TSA Airport Screening Procedures
Portland, Oregon Terrorist Bomber Arrested by F.B.I.
WikiLeaks Posts Department of State Cables
For more information and videos related to this show click on link below:
http://pronkpops.wordpress.com/2010/11/24/pronk-pops-show-10-november-24-2010-food-prices-rising-fairtax-updates-on-tsa-and-quantitative-easing-money-printing-videos/
Pronk Pops Show 9
Pronk Pops Show 9: November 19, 2010
Federal Reserve Chairman Bernanke Responds To Critics of Monetary Policy
Transportation Security Administration or TSA New Screening Procedures:
Full Body Scanners and Extended Pat-Downs
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Pronk Pops Commentary 1
Pronk Pops Commentary 1: November 11, 2010
Stop Federal Reserve Quantitative Easing or Money Printing
Pronk Pops Show 8
Pronk Pops Show 8: November 10, 2010
Tea Party Major Issues: Jobs, Spending, Deficits, Debt, Taxes, Health Care and Illegal Immigration
Tea Party Stars: Senators: Rand Paul and Marco Rubio
Republican Tea Party Test: Cutting Federal Spending By Over $1,000 Billion To Balance The Budget For Fiscal Years 2011, 2012, and 2013.
For more information and videos related to this show click on link below:
Pronk Pops Show 7
Pronk Pops Show 7: November 9, 2010
Unemployment News
Tea Party Effect On 2010 Elections
Key Issues: Federal Budget Deficits and National Debt
Cutting Federal Government Spending and Balancing The Federal Budget
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Pronk Pops Show 6
Pronk Pops Show 6: November 3, 2010
Winning Elections With MOMMA (Money, Organization, Message, Momentum, Ambition) and The Tea Party Movement Effect
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Pronk Pops Show 5
Pronk Pops Show 5: October 27, 2010
Democratic Party’s National Attack Ad Campaign on Candidates and the Flat Tax
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Pronk Pops Show 4
Pronk Pops Show 4: October 20, 2010
Money, Quantitative Easing and Inflation in the United States Economy
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Pronk Pops Show 3
Pronk Pops Show 3: October 14, 2010
Unemployment and inflation in the United States economy
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Pronk Pops Show 2
Pronk Pops Show 2: October 13, 2010
The 10:10 carbon emission ad campaign on climate change
http://www.youtube.com/watch?v=wliC2Eiwoyw
Secretary of State Hillary Clinton replacing Vice President Joseph Biden on the 2010 Democratic Party ticket
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Pronk Pops Show 1
Pronk Pops Show 1: September 29, 2010
University of Texas at Austin shooting/suicide
The Tea Party Movement in the United States
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Give it a listen!
Pronk Pops Show 55:November 23, 2011
Pronk Pops Show 54:November 16, 2011
Pronk Pops Show 53:November 9, 2011
Pronk Pops Show 52:November 2, 2011
Pronk Pops Show 51:October 26, 2011
Listen To Pronk Pops Podcast or Download Shows 55
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Read Full Post | Make a Comment ( None so far )James Burke : “After The Warming”–Videos
Warning: Burke’s video is propaganda and should be viewed with caution
James Burke : “After The Warming”, 1/11
James Burke : “After The Warming”, 2/11
James Burke : “After The Warming”, 3/11
James Burke : “After The Warming”, 4/11
James Burke : “After The Warming”, 5/11
James Burke : “After The Warming”, 6/11
James Burke : “After The Warming”, 7/11
James Burke : “After The Warming”, 8/11
James Burke : “After The Warming”, 9/11
James Burke : “After The Warming”, 10/11
James Burke : “After The Warming”, 11/11
Please watch the following videos to see why Burke is wrong.
Why The Global Warming Agenda Is Wrong
Dr Roy Spencer on Global Warming Part 1 of 6
Dr Roy Spencer on Global Warming Part 2 of 6
Dr Roy Spencer on Global Warming Part 3 of 6
Dr Roy Spencer on Global Warming Part 4 of 6
Dr Roy Spencer on Global Warming Part 5 of 6
Dr Roy Spencer on Global Warming Part 6 of 6
Background Articles and Videos
1 of 9 Richard Lindzen The Peculiar Issue of Global Warming Fermilab Colloquium
2 of 9 Richard Lindzen The Peculiar Issue of Global Warming Fermilab Colloquium
3 of 9 Richard Lindzen The Peculiar Issue of Global Warming Fermilab Colloquium
4 of 9 Richard Lindzen The Peculiar Issue of Global Warming Fermilab Colloquium
5 of 9 Richard Lindzen The Peculiar Issue of Global Warming Fermilab Colloquium
6 of 9 Richard Lindzen The Peculiar Issue of Global Warming Fermilab Colloquium
7 of 9 Richard Lindzen The Peculiar Issue of Global Warming Fermilab Colloquium
8 of 9 Richard Lindzen The Peculiar Issue of Global Warming Fermilab Colloquium
9 of 9 Richard Lindzen The Peculiar Issue of Global Warming Fermilab Colloquium
The Great Global Warming Swindle (Full Movie)
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Climategate–The Political Scam, Investment Fraud, and Science Scandal of The Century Exposed–The Progressive Radical Socialist’s Big Lie And Con That Man Is The Cause Of Global Warming Was In Fact Nothing More Than Politicians, Investment Bankers, and Government Scientists Creating Climate Crisis!–
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Read Full Post | Make a Comment ( None so far )James Burke: Connections and Re-Connections–Videos
James Burke : Connections, Episode 1, “The Trigger Effect”, 1 of 5 (CC)
James Burke : Connections, Episode 1, “The Trigger Effect”, 2 of 5 (CC)
James Burke : Connections, Episode 1, “The Trigger Effect”, 3 of 5 (CC)
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James Burke : Connections, Episode 1, “The Trigger Effect”, 5 of 5 (CC)
James Burke : Connections, Episode 2, “Death In The Morning”, 1 of 5 (CC)
James Burke : Connections, Episode 2, “Death In The Morning”, 2 of 5 (CC)
James Burke : Connections, Episode 2, “Death In The Morning”, 3 of 5 (CC)
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James Burke : Connections, Episode 3, “Distant Voices”, 1 of 5 (CC)
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James Burke : Connections, Episode 3, “Distant Voices”, 5 of 5 (CC)
James Burke : Connections, Episode 4, “Faith In Numbers”, 1 of 5 (CC)
James Burke : Connections, Episode 4, “Faith In Numbers”, 2 of 5 (CC)
James Burke : Connections, Episode 4, “Faith In Numbers”, 3 of 5 (CC)
James Burke : Connections, Episode 4, “Faith In Numbers”, 4 of 5 (CC)
James Burke : Connections, Episode 4, “Faith In Numbers”, 5 of 5 (CC)
James Burke : Connections, Episode 5, “Wheel Of Fortune”, 1 of 5 (CC)
James Burke : Connections, Episode 5, “Wheel Of Fortune”, 2 of 5 (CC)
James Burke : Connections, Episode 5, “Wheel Of Fortune”, 3 of 5 (CC)
James Burke : Connections, Episode 5, “Wheel Of Fortune”, 4 of 5 (CC)
James Burke : Connections, Episode 5, “Wheel Of Fortune”, 5 of 5 (CC)
James Burke : Connections, Episode 6, “Thunder in the Skies”, 1 of 5 (CC)
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James Burke : Connections, Episode 7, “The Long Chain”, 1 of 5 (CC)
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James Burke : Connections, Episode 7, “The Long Chain”, 5 of 5 (CC)
James Burke : Connections, Episode 8, “Eat, Drink and be Merry”, 1 of 5 (CC)
James Burke : Connections, Episode 8, “Eat, Drink and be Merry”, 2 of 5 (CC)
James Burke : Connections, Episode 8, “Eat, Drink and be Merry”, 3 of 5 (CC)
James Burke : Connections, Episode 8, “Eat, Drink and be Merry”, 4 of 5 (CC)
James Burke : Connections, Episode 8, “Eat, Drink and be Merry”, 5 of 5 (CC)
James Burke : Connections³, Episode 9 : “Hit The Water” (HQ), 1 of 5
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James Burke : Connections³, Episode 9 : “Hit The Water” (HQ), 3 of 5
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James Burke : Connections³, Episode 9 : “Hit The Water” (HQ), 5 of 5
James Burke : Connections³, Episode 10 : “In Touch” (HQ), 1 of 5
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James Burke : Connections³, Episode 10 : “In Touch” (HQ), 5 of 5
James Burke : “Re-Connections”, 1 of 7
James Burke : “Re-Connections”, 2 of 7
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James Burke : “Re-Connections”, 7 of 7
Background Articles and Videos
James Burke
“…James Burke (born 22 December 1936) is a British broadcaster, science historian, author and television producer known amongst other things for his documentary television series Connections (1978) and its more philosophical oriented companion production, The Day the Universe Changed (1985), focusing on the history of science and technology leavened with a sense of humour. The Washington Post has called him “one of the most intriguing minds in the Western world”.[1]
Burke was born in Derry, Northern Ireland. He was educated at Maidstone Grammar School and at Jesus College, Oxford, where he gained an M.A. in Middle English.
Later, Burke moved to Italy, where he lectured at universities in Bologna and Urbino as well as at English schools in that country. While in Italy, he was engaged in the creation of an English–Italian dictionary and the publication of an art encyclopedia. In 1966, after a period of broadcasting work, Burke moved to London to join the BBC’s Science and Features Department, where he hosted and co-hosted a number of programmes. He also worked for a while as a teacher of English as a Foreign Language at the Regency Language School in Ramsgate.
Burke first made his name as a reporter on the BBC science series Tomorrow’s World. He was BBC television’s science anchor and chief reporter on the Project Apollo missions, being the main presenter on the BBC’s coverage of the first moon landings in 1969.
Burke co-produced (with Mick Jackson) an acclaimed 10-part documentary series Connections (1978) that was first aired on the BBC and subsequently on PBS channels in the United States. The series traced paths of invention and discovery through their interrelationships in history, with each episode chronicling a particular path, usually in chronological order, and was a great success for Burke, being the most watched PBS series up to that time. It was followed by the 20-part Connections2 (1994, Exec. Prod. Tim Cowling) and then the 10-part Connections3 (1997, Exec. Prod. Michael Latham) series. Later, it was shown in more than 50 countries and appeared in about 350 university and college curricula. Additionally, the book that followed the series was also a best seller on both sides of the Atlantic.
In 1985, Burke co-produced (with Richard Reisz and John Lynch) a 10-part series The Day The Universe Changed (revised in 1995). This series focuses more on the philosophical aspects of scientific change on Western culture. Burke has also been a regular contributor for Scientific American and Time magazines and served as a consultant to the SETI project. He has received the Royal Television Society’s silver and gold medals. In 1998 he was made an honorary fellow of the Society for Technical Communication.[2]
In contrast with the end of Connections, in which Burke worried that computing and communications would increasingly be in the hands of an expert elite, in the closing scenes of The Day the Universe Changed he instead suggested that a forthcoming revolution in communication and computer technology would allow people all over the world to exchange ideas and opinions instantaneously. Popular access to the internet suggests he was correct. …”
KnowledgeWeb
James Burke is the leading figure of the KnowledgeWeb Project. This is the digital incarnation of his books and television programmes, which allows the user to fly through history and create their own connective paths. According to the site, it will eventually have immersive, inhabited virtual reality recreations of historical people and places.
Major television credits
Television series and major single documentaries made by James Burke:
- The Burke Special (1972–1976)
- The End of the Beginning (1972), marking the end of Project Apollo
- Scenario: The Oil Game (1976), crisis game examining OPEC
- Scenario: The Peace Game (1977), crisis game examining NATO
- Connections (1978)
- The Men who Walked on the Moon (1979), 10th anniversary of Apollo 11
- The Other Side of the Moon (1979), a more critical look at Apollo
- The Real Thing, on various aspects of perception (1980)
- The Neuron Suite on the human brain (1982)
- MacGillivray Freeman’s Speed (IMAX) (1984), Narrator
- The Day the Universe Changed (1985, revised in 1995)
- After the Warming (1989), on the greenhouse effect
- Masters of Illusion (1993), on Renaissance painting
- Connections 2 (1994) (sometimes written Connections²)
- Connections 3 (1997) (or Connections³)
- Stump the Scientist, in which an audience of children were invited to put questions to a resident panel of scientists in the hope of “stumping” them[citation needed]
- ReConnections (2004) ReConnections from KCSM on archive.org
Books
- Tomorrow’s World I, (with Raymond Baxter) (BBC 1970) ISBN 978-0-563-10162-8
- Tomorrow’s World II, (with Raymond Baxter) (BBC 1973) ISBN 978-0-563-12362-0
- Connections: Alternative History of Technology (Time Warner International/Macmillan 1978) ISBN 978-0-333-24827-0
- The Day the Universe Changed (BBC 1985) ISBN 0-563-20192-4
- Chances (Virgin Books 1991) ISBN 978-1-85227-393-4
- The Axemaker’s Gift, (with Robert Ornstein), illustrated by Ted Dewan (Jeremy P Tarcher 1995) ISBN 978-0-87477-856-4
- The Pinball Effect — How Renaissance Water Gardens Made the Carburettor Possible and Other Journeys Through Knowledge (Little, Brown & Company 1996) ISBN 978-0-316-11610-7
- Circles — Fifty Round Trips Through History Technology Science Culture (Simon & Schuster 2000) ISBN 978-0-7432-4976-8
- The Knowledge Web (Simon & Schuster 2001) ISBN 978-0-684-85935-4
- Twin Tracks (Simon & Schuster 2003) ISBN 978-0-7432-2619-6
http://en.wikipedia.org/wiki/James_Burke_%28science_historian%29
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James Burke : “After The Warming”–Videos
Read Full Post | Make a Comment ( None so far )
Newt Gingrich’s Optional 15% Flat Tax Plus 15.3% Social SecurityTax–More Taxes Than Cain’s-9-9-9 (27%) Tax Plan But Less Than Perry’s Optional 20% Flat Tax Plus 15.3% Social SecurityTax–Videos
Presidential Candidate Newt Gingrich: My Opponent is Barack Obama
Newt Gingrich on the Fair Tax
21st Century Contract with America
PART 1: LEGISLATIVE PROPOSALS
Executive Summary
- Repeal Obamacare and pass a replacement that saves lives and money by empowering patients and doctors, not bureaucrats and politicians.
- Return to robust job creation with a bold set of tax cuts and regulatory reforms that will free American entrepreneurs to invest and hire, as well as by reforming the Federal Reserve and creating a training requirement for extended federal unemployment benefits to encourage work and improve the quality of our workforce.
- Unleash America’s full energy production potential in oil, natural gas, coal, biofuels, wind, nuclear oil shale and more, creating jobs, stimulating a sustainable manufacturing boom, lowering gasoline and other energy prices, increasing government revenues, and bolstering national security.
- Save Medicare and Social Security by giving Americans more choices and tools to live longer, healthier lives with greater financial independence.
- Balance the federal budget by freeing job-creators to grow the economy, reforming entitlements, and implementing waste cutting and productivity improvement systems such as Lean Six Sigma to eliminate waste and fraud. Pass a balanced budget amendment to keep it balanced.
- Control the border by January 1, 2014 and establish English as the official language of government; reform the legal visa system, and make it much easier to deport criminals and gang members while making it easier for law abiding visitors to come to the US.
- Revitalize our national security system to meet 21st century threats by restructuring and adequately funding our security agencies to function within a grand strategy for victory over those who seek to kill us or limit American power.
- Maximize the speed and impact of medical breakthroughs by removing unnecessary obstacles that block new treatments from reaching patients and emphasizing research spending towards urgent national priorities, like brain science with its impact on Alzheimer’s, autism, Parkinson’s, mental health and other conditions knowledge of the brain will help solve.
- Restore the proper role of the judicial branch by using the clearly delineated powers available to the president and Congress to correct, limit, or replace judges who violate the Constitution.
- Enforce the Tenth Amendment by starting an orderly transfer of power and responsibility from the federal government back “to the states, respectively, or to the people,” as the Constitution requires. Over the next year, state and local officials and citizens will be asked to identify the areas which can be transferred back home.
2. Return to robust job creation with a bold set of tax cuts and regulatory reforms that will free American entrepreneurs to invest and hire, as well as by reforming the Federal Reserve and creating a training requirement for extended federal unemployment benefits to encourage work and improve the quality of our workforce.
Government does not create jobs. The American people create jobs.
Ronald Reagan understood this truth. His bold series of tax cuts and deregulatory measures upon taking office ended the economic stagnation of the 1970s for good by freeing American businesses to create nearly 20 million new jobs in less than a decade. In September 1983 alone the Reagan recovery led the American people to create 1,100,000 new jobs, more jobs than the first eight months of 2011 combined.
We understood these principles when we won the first Republican majority in the House in 40 years in 1994. Balanced budgets, streamlined government and the biggest capital gains tax cut in history led to unemployment falling to under 4% by 2000.
My administration will build on this time-tested model: A profound restructuring and reduction of the tax and regulatory burden on Americans, with the very achievable goal of 4% unemployment and millions of new jobs within only a few years.
JOBS AND PROSPERITY PLAN: LOWERING TAXES
First, I pledge to veto any tax increase. American families and businesses deserve certainty and predictability, and I will work to make permanent all current rates of taxation that would otherwise increase automatically in 2013.
My Jobs and Prosperity plan will then make four major tax cuts:
- Reduce the Corporate Tax to 12.5%. Reducing the corporate income tax, currently the second highest in the developed world, will make America the number one destination in the world for foreign investment and the millions of jobs that will accompany this designation. Most of the $1.4 trillion in profits locked up overseas by the current 35% tax rate will come home to be reinvested and distributed at a 12.5% rate.
- Abolish the Capital Gains Tax. Lowering the cost of investment means hundreds of thousands of more jobs will be created. It happens every time we lower the capital gains tax. At a zero percent rate, hundreds of billions of dollars in new investments will pour into the United States to create new firms and build new factories.
- Abolish the Death Tax. This law is economically misguided and morally indefensible, and it is time for the government to stop destroying family wealth. Abolishing the death tax ensures family-owned businesses can focus on creating jobs and growing rather than on dealing with tax law.
- 100% Expensing. We want American workers to have the most modern and most productive equipment in the world, and we can encourage this development by allowing companies to write off all their new equipment in one year.
JOBS AND PROSPERITY PLAN: TAX SIMPLIFICATION WITH AN OPTIONAL FLAT TAX
My legislation will also include an optional flat tax of 15% or less. All tax filers would be given the option to pay their income taxes subject to current income tax provisions or to pay under a lower single rate of taxation with limited deductions. A revenue neutral flat tax reform would save hundreds of billions of dollars in compliance costs each year and would eliminate the need for taxes on savings, dividends, and capital gains.
This optional flat tax system will create a new personal deduction of $12,000 for every American. This deduction is well above the current poverty level, ensuring that this new system does not unfairly target the poor. The current $1,000 tax credit for each child aged sixteen or younger would also apply, as would the current earned income tax credit (EITC).
An optional flat tax reform will be simple: tax returns can be done on one sheet of paper. Subtract from income a standard deduction and deductions for charity and home ownership, multiply the result by the fixed single rate of taxation of at most 15%, and the process is over.
Gone will be the stressful hours spent figuring out whether your military service or marital status will adversely affect your return. No more headaches trying to determine where estimated tax payments go. Tax preparation fees could be money spent on something more rewarding.
Such an optional flat tax system would create a new standard deduction, which would be above the established poverty level, meaning an optional flat tax would not unfairly target the poor.
An optional flat tax would eliminate the Alternative Minimum Tax. And if a person had twice as much income as another, he or she would be taxed twice as much. Furthermore, a single rate tax structure would eliminate taxes on savings, capital gains, and dividends. Saving would increase and businesses would expand to create new jobs.
This concept of an optional flat tax would give American taxpayers an opportunity to choose simplicity versus complexity and a single rate over a lot of deductions.
Because the flat tax is optional, it does not raise taxes on a single person or unfairly impact seniors, lower income workers, or the poor.
http://www.newt.org/contract/legislative-proposals#Two
Let’s Bump Plans: A Comparison of Gingrich and Perry’s Flat Tax Plans
http://www.newt.org/news/lets-bump-plans-comparison-gingrich-and-perrys-flat-tax-plans
Gingrich’s Plan Far Bolder than Perry’s Plan and Will Lead to Far More Robust Job Creation and Capital Investment in United States
| Gingrich | Perry | Verdict: Gingrich Plan Better |
|
|---|---|---|---|
| Rate | 15% | 20% | Gingrich has advocated for several years an optional flat tax rate of 15%, which when coupled with Gingrich’s bold entitlement and regulatory reforms, will usher in another era of booming economic growth and new, higher-paying jobs. The Perry rate of 20% is higher than the 17% that Steve Forbes proposed in his 1996 and 2000 presidential campaign. |
| Who Gets to Make Deductions for Charitable Giving and Home Ownership?? | Everyone | Families making less than $500,000/year | By creating two separate classes of taxpayers, the Perry plan buys into the same class warfare that characterizes the Obama and Romney economic plans. The fact that there are still two brackets – even under a supposed “flat tax” plan – calls into question whether this is really a flat tax at all. |
| State and Local Tax Deductions | Not deductible in optional flat tax plan | Deductible in optional flat tax plan | The Gingrich plan has a lower rate so less need for state and local deductions. The deduction is a federal subsidy for states to adopt higher state and local taxes. Removing the subsidy would lead states to reduce state and local taxes, or adopt their own flat tax reforms. The Perry plan erodes states’ competitive advantages by making state and local taxes deductible in his optional flat tax plan. |
| Who Benefits from Elimination of Capital Gains Tax? | Everyone | Depends whether capital gains is long term or short term. Perry’s plan eliminates cap gains only for long term. | The Gingrich plan maximizes the capital investment and job creation that will accompany the elimination of this tax. The Perry plan only goes halfway, and by levying up to 35% tax on short-term capital gains, it will discourage investment, venture capital, and new jobs creation. |
| Corporate Income Tax | 12.5% | 20% | The Gingrich plan will create a boom of new American entrepreneurship by dramatically cutting the corporate tax rate to one of the lowest in the developed world. The Perry plan relies upon a short term “tax holiday,” then only drops the corporate tax rate to 20% — only average in the developed world, and still over 20% higher than our closest economic competitor Canada, which has a rate of only 16.5%. Gingrich rate makes U.S. more competitive than Canada. |
| Payroll Taxes | Eventually replace payroll tax with personal accounts, financing better results | No change in existing payroll tax | Gingrich supports personal savings investment and insurance accounts that would eventually be expanded to finance all of the benefits now financed by the payroll tax, allowing that tax ultimately to be phased out altogether. |
| Family Deductions Under Flat Tax Plan | $12,000 personal deduction for every individual. Both the EITC and the Child Tax Credit are preserved in Gingrich’s optional flat tax system. | $12,500 personal deduction for every individual. No information provided. | Preserving the EITC and Child Tax Credit are critical to ensure that the optional flat tax system does not unfairly target low-income Americans. Gingrich passed the first child tax credit as Speaker in 1997, and will preserve this credit and the EITC under his optional flat tax system. |
| Record in Achieving Dramatic Jobs and Economic Recovery at the National Level? | Yes. Substantial. See record at right. | None. | Speaker Gingrich’s Record (1995-1999):• Eleven Million New Jobs • Four Straight Balanced Budgets for the First Time Since the 1920s. • Unemployment rate of 4.2%. • Federal Spending Held to the Slowest Growth Rate Since the Early 1950s (avg. of 2.9% a year). • Venture capital investments grew 500% in three years and manufacturing sector grew to 17.43 million jobs. • Bipartisan Welfare Reform that Lifted Millions from Poverty. • Over $400 Billion of National Debt Paid Down |
http://www.newt.org/news/lets-bump-plans-comparison-gingrich-and-perrys-flat-tax-plans
Let’s Bump Plans: A Comparison of Gingrich and Romney’s Tax Plans
http://www.newt.org/news/lets-bump-plans-comparison-gingrich-and-romneys-tax-plans
| Gingrich | Romney | Verdict: Gingrich Plan Better |
|
|---|---|---|---|
| Personal Income Tax | Choice of current system or 15% flat tax with personal, homeowner, and charitable deductions | Maintain current tax rates | The Gingrich plan gives Americans a choice to continue to file under the existing system, or to eliminate compliance costs and hours of paperwork by filing with a flat rate of 15%. The Romney plan hopes to make taxes “flatter” in the future, but offers no immediate choice and no immediate relief. |
| Capital Gains Tax for Individuals | Eliminate tax completely | Depends how much money the taxpayer makes. Romney’s plan eliminates capital gains taxes for those making less than $200,000/year, but maintains the current system, with rates of up to 35%, for the rest. | The Gingrich plan maximizes the capital investment and job creation that will accompany the elimination of this tax, and acknowledges that a tax reform is only fair if all Americans receive relief. The Romney plan determines that some Americans should pay no taxes on a particular investment, while other Americans should pay taxes of up to 35% on the same investment. |
| Capital Gains Tax for Corporations | Eliminate tax completely | Maintain current system | The Gingrich plan is modeled on the success of the 1997 capital gains cut, which spurred job creation and a 500% increase in venture capital in just 3 years. The Romney plan maintains the corporate capital gains tax, an unequivocal burden on American job-creators who need to be freed to grow, prosper, and compete in a 21st century global economy. |
| Corporate Income Tax | 12.5% | 25% | The Gingrich plan will create a boom of new American entrepreneurship by dramatically cutting the corporate tax rate to one of the lowest in the developed world. The Romney plan will still be average-to-high compared to the rest of the developed world, and still over 50% higher than our closest economic competitor Canada, which has a rate of only 16.5%. Gingrich rate makes U.S. more competitive than Canada. |
| Payroll Tax | Eventually replace payroll tax with personal accounts, financing better results | No information | Gingrich supports personal savings investment and insurance accounts that would eventually be expanded to finance all of the benefits now financed by the payroll tax, allowing that tax ultimately to be phased out altogether. |
| Medicare reform | Choice between the traditional system or opportunity to purchase private insurance with premium support | No information | Under the Gingrich Plan, any American who wants to enjoy the existing Medicare system will be able to do so. Americans can also opt to transition to a more personalized system in the private sector with greater options for better care, where they would receive premium support to purchase private insurance. |
http://www.newt.org/news/lets-bump-plans-comparison-gingrich-and-romneys-tax-plans
Read Full Post | Make a Comment ( None so far )A Ron Paul Tax Reform Plan: No Income Taxes Or I.R.S.–FairTax Less: 2013: 20%, 2014: 19%, 2015: 18%, 2016: 17%, 2017: 16%–Income Tax 16th Amendment Repealed And Balance Budget Amendment Passed!–”When The Impossible Became The Inevitable!”
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The FairTax… For a better America
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What is the FairTax legislation?
Why is the FairTax better than a flat income tax?
What is the impact of the FairTax on business?
How does the “prebate” work?
people bring home their whole paychecks how can prices fall?
Will the FairTax lead to a massive underground economy?
Is the FairTax rate really 23%?
How will used goods be taxed?
FairTax
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Ron Paul needs to come out with his own comprehensive tax reform plan. I recommend the FairTax as a starting point with some significant changes.
The FairTax is a national retail sales consumption tax that would replace the following federal taxes:
- Personal income tax
- Payroll taxes for Social Security and Medicare
- Capital gains tax
- Alternative Minimum Tax
- Self-employment tax
- Corporate income tax
- Gift taxes
- Estate taxes
When you buy goods or services, income and payroll taxes are included or embedded in the price. When these taxes are eliminated, the price of the goods or services would decline.
Thus when the FairTax replaces these taxes, the price of the good or service with the new FairTax included should result in the price of the good or service remaining about the same.
The proposed FairTax rate is 23 percent when the tax is included in the unit price of the good or service. For example, a loaf of bread with a selling price of $1 would include 23 cents for the FairTax.
Since Paul wants to significantly limit the size and scope of the federal government, I propose he reduce the FairTax rate to 20 percent for 2013 with a tax prebate of $250 per individual to refund in advance the taxes paid on the necessities of life. A family of four would received a monthly prebate of $1,000 per month.
The FairTax Less rate would be reduced by 1 percent a year for the next four years so that by 2017 the rate would be 16 percent.
A declining FairTax Less rate combined with a declining balanced budget will force a reduction of government spending outlays.
It should take four to eight years before the 16th Amendment (income tax) is repealed and the balanced budget amendment passes.
Therefore, I would like to see the repeal of the 16th Amendment and the passage of a balanced budget Amendment be immediately initiated in the House of Representatives and Senate.
If this is done, by 2017 the American people will never again want to go back to the complex and time-consuming income tax.
Instead, the American people will be demanding smaller government and an even lower FairTax Less rate.
Also, Paul needs to advocate a FairTax Less plan to complement his Plan to Restore America to a peace and prosperity economy by cutting government spending by $1 trillion in his first year as president and balance the budget in his third year.
The advantage is that a single FairTax Less rate of 20 percent would beat Herman Cain’s 9-9-9 plan. Cain’s plan would have a flat 9 percent business tax, a flat 9 percent personal income tax and a 9 percent national retail sales tax. The total tax rate paid would be 27 percent under Cain’s plan.
A single FairTax Less rate of 20 percent would easily defeat Perry’s optional flat tax of 20 percent personal income tax and a 15.3 percent payroll tax for Social Security or Medicare for a total of 30.3 percent. This does not include the 20 percent corporate income tax that would bring the total taxes paid to over 50 percent.
Only when the American people consume or spend their money on new goods and services would they pay the FairTax Less rate of 20 percent.
The American people would have a strong economic incentive to work, save and invest their money.
More savings would lead to more investment and in turn more jobs as businesses grow and prosper.
It’s time for Ron Paul to announce his support for a FairTax Less plan.
The dynamic combination of Paul’s Plan to Restore America and the FairTax Less plan would result in a peace and prosperity economy.
The U.S. would be the only nation on earth with no taxes on capital and labor!
The FairTax Less plan would attract trillions of dollars of new investment into the U.S. from around the world.
RESTORE AMERICA NOW! Ron Paul 2012 – Plan!
The FairTax: It’s Time
[Raymond Thomas Pronk is host of the Pronk Pops Show on KDUX web radio from 3-5 p.m. Wednesdays and author of the companion blog www.pronkpops.wordpress.com]
Background Articles and Videos
“…What is the FairTax plan?
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.
The FairTax Act (HR 25, S 13) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.
The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.
The FairTax:
- Enables workers to keep their entire paychecks
- Enables retirees to keep their entire pensions
- Refunds in advance the tax on purchases of basic necessities
- Allows American products to compete fairly
- Brings transparency and accountability to tax policy
- Ensures Social Security and Medicare funding
- Closes all loopholes and brings fairness to taxation
- Abolishes the IRS
We offer a library of information throughout this Web site about the features and benefits of the FairTax plan. Please explore! …”
http://www.fairtax.org/site/PageServer?pagename=about_main
Tom Wright on the FairTax part 1
Tom Wright on the FairTax part 2
Tom Wright on the FairTax part 3
Tom Wright on the FairTax part 4
Tom Wright on the FairTax part 5
Tom Wright on the FairTax part 6
Tom Wright on the FairTax part 7
Why is the FairTax better than a flat income tax?
Dan Mitchell explains the fair tax
Q&A on the FAIRTAX pt.1
Q&A on the FAIRTAX pt.2
Americans For Fair Taxation
“…Americans For Fair Taxation (AFFT), also known as FairTax.org, states it is the United States’ largest, single-issue grassroots organization and taxpayers union dedicated to fundamental tax code replacement.[1] The Houston, Texas-based non-partisan political advocacy group is made up of volunteers who are working to get the Fair Tax Act (H.R. 25/S. 1025) enacted in the United States; a plan to replace all federal payroll and income taxes (both corporate and personal) with a national retail sales tax and monthly tax “prebate” to households of citizens and legal resident aliens. Americans for Fair Taxation state they subscribe to the ideals of simplicity, fairness, and freedom which they believe are embodied in the FairTax.[2][3] The organization claims to have signed up over 800,000 supporters.[4]
AFFT was founded in 1994 by three Houston businessmen, Jack Trotter, Bob McNair, and Leo Linbeck, who each pledged $1.5 million as seed money to hire tax experts to identify what they perceived as faults with the current tax system, to determine what American citizens would like to see in tax reform, and then to design the best system of taxation.[2] The three went on to raise an additional $17 million to fund focus groups with citizens around the country and tax policy studies.[2]
| Some of the experts funded include: |
- Professors David Burton and Dan Mastromarco, University of Maryland and The Argus Group
- Laurence Kotlikoff, Boston University
- Stephen Moore, The Cato Institute
- Professor Dale Jorgenson, Harvard University
- Bill Beach (economist), the Heritage Foundation
- Jim Poterba, The National Bureau of Economic Research
- Professor George Zodrow, Rice University and the Baker Institute for Public Policy
- Professor Joseph Kahn, Massachusetts Institute of Technology
http://en.wikipedia.org/wiki/Americans_For_Fair_Taxation
FairTax.org
http://www.fairtax.org/site/PageServer
Federal Insurance Contributions Act tax
Federal Insurance Contributions Act (FICA) tax (
/ˈfaɪkə/) is a United States payroll (or employment) tax[1] imposed by the federal government on both employees and employers to fund Social Security and Medicare[2] —federal programs that provide benefits for retirees, the disabled, and children of deceased workers. Social Security benefits include old-age, survivors, and disability insurance (OASDI); Medicare provides hospital insurance benefits. The amount that one pays in payroll taxes throughout one’s working career is indirectly tied to the social security benefits annuity that one receives as a retiree.[citation needed] This has led some to claim that the payroll tax is not a tax because its collection is tied to a benefit.[3] The United States Supreme Court decided in Flemming v. Nestor (1960) that no one has an accrued property right to benefits from Social Security.
The Federal Insurance Contributions Act is currently codified at Title 26, Subtitle C, Chapter 21 of the United States Code.[4]
Overview
The Center on Budget and Policy Priorities states that three-quarters of taxpayers pay more in payroll taxes than they do in income taxes.[5] The FICA tax is considered a regressive tax on income (with no standard deduction or personal exemption deduction) and is imposed (for the years 2009 and 2010) only on the first $106,800 of gross wages. The tax is not imposed on investment income (such as interest and dividends).
“Regular” employees (most wage-earners)
For 2008, the employee’s share of the Social Security portion of the tax is 6.2%[6] of gross compensation up to a limit of $102,000 of compensation (resulting in a maximum of $6,324.00 in tax). For 2009 and 2010, the employee’s share is 6.2% of gross compensation up to a limit of $106,800 of compensation (resulting in a maximum Social Security tax of $6,621.60).[7] This limit, known as the Social Security Wage Base, goes up each year based on average national wages and, in general, at a faster rate than the Consumer Price Index (CPI-U). For the calendar year 2011, the employee’s share has been temporarily reduced to 4.2% of gross compensation, with a limit of $106,800.[8] The employee’s share of the Medicare portion is 1.45% of wages, with no limit on the amount of wage subject to the Medicare tax.[6]
The employer is also liable for 6.2% Social Security and 1.45% Medicare taxes,[9] making the total Social Security tax 12.4% of wages, and the total Medicare tax 2.9%. (Self-employed people are responsible for the entire FICA percentage of 15.3% (= 12.4% + 2.9%), since they are in a sense both the employer and the employed; however, see the section on self-employed people for more details.)
If a worker starts a new job halfway through the year and has already earned the wage base limit with the old employer for Social Security purposes, the new employer is not allowed to stop withholding until the wage base limit has been earned with the new employer without regard to the wage base limit earned under the old employer. There are some limited cases, such as a successor-predecessor transfer, in which the payments that have already been withheld can be counted toward the year-to-date total.
If a worker has overpaid toward Social Security by having more than one job or by having switched jobs during the year, that worker can file a request to have that overpayment counted as tax paid when he or she files a Federal income tax return. If the taxpayer is due a refund, then the FICA overpayment is refunded.
Self-employed people
A tax similar to the FICA tax is imposed on the earnings of self-employed individuals, such as independent contractors and members of a partnership. This tax is imposed not by the Federal Insurance Contributions Act but instead by the Self-Employment Contributions Act of 1954, which is codified as Chapter 2 of Subtitle A of the Internal Revenue Code, 26 U.S.C. § 1401 through 26 U.S.C. § 1403 (the “SE Tax Act”). Under the SE Tax Act, self-employed people are responsible for the entire percentage of 15.3% (= 12.4% [Soc. Sec.] + 2.9% [Medicare]); however, the 15.3% multiplier is applied to 92.35% of the business’s net earnings from self-employment, rather than 100% of the gross earnings; the difference, 7.65%, is half of the 15.3%, and makes the calculation fair in comparison to that of regular (non-self-employed) employees. It does this by adjusting for the fact that employees’ 7.65% share of their SE tax is multiplied against a number (their gross income) that does not include the putative “employer’s half” of the self-employment tax. In other words, it makes the calculation fair because employees don’t get taxed on their employers’ contribution of the second half of FICA, therefore self-employed people shouldn’t get taxed on the second half of the self-employment tax. Similarly, self-employed people also deduct half of their self-employment tax (schedule SE) from their gross income on the way to arriving at their adjusted gross income (AGI). This levels the amount paid by self-employed persons in comparison to regular employees, who don’t pay general income tax on their employers’ contribution of the second half of FICA, just as they didn’t pay FICA tax on it either.[10][11]
These calculations are made on Schedule SE: Self-Employment Tax, although that is not readily apparent to novice self-employed taxpayers, owing to the schedule’s rather opaque name, which makes it sound like it is part of the general federal income tax. Some taxpayers have complained that Schedule SE’s title should be changed to something such as “Self-Employment FICA Tax”, so that its separateness from the general income tax is apparent,[12] perhaps not realizing that the SE tax is not imposed by the Federal Insurance Contributions Act (FICA) at all, and that neither SE taxes nor FICA taxes are “income taxes” imposed under Chapter 1 of the Internal Revenue Code.
Exemption for certain full-time students
A special case in FICA regulations includes exemptions for student workers. Students enrolled at least half-time in a university and working part-time for the same university are exempted from FICA payroll taxes, so long as their relationship with the university is primarily an educational one.[13] Medical residents working full-time are not considered students and are not exempt from FICA payroll taxes, according to a US Supreme Court ruling in 2011.[14] In order to be exempt from FICA payroll taxes, a student’s work must be “incident to” pursuit of a course of study, which is rarely the case with full-time employment.[14]
History
Prior to the Great Depression, the following presented difficulties for working-class Americans: [15]
- The U.S. had no federal-government-mandated retirement savings; consequently, for those people who had not voluntarily saved money throughout their working lives, the end of their work careers was the end of all income.
- Similarly, the U.S. had no federal-government-mandated disability income insurance to provide for citizens disabled by injuries (of any kind—non-work-related); consequently, for most people, a disabling injury meant no more income (since most people have little to no income except earned income from work).
- In addition, there was no federal-government-mandated disability income insurance to provide for people unable to ever work during their lives, such as anyone born with severe mental retardation.
- Further, the U.S. had no federal-government-mandated health insurance for the elderly; consequently, for many people, the end of their work careers was the end of their ability to pay for medical care.
- Finally, the U.S. had no federal-government-mandated health insurance for all those who are not elderly; consequently, many people, especially those with pre-existing conditions, have no ability to pay for medical care.
In the 1930s, the New Deal introduced Social Security to rectify the first three problems (retirement, injury-induced disability, or congenital disability). It introduced the FICA tax as the means to pay for Social Security.
In the 1960s, Medicare was introduced to rectify the fourth problem (health care for the elderly). The FICA tax was increased in order to pay for this expense.
Criticism
Social Security regressivity debate
The Social Security component of the FICA tax is regressive, meaning the effective tax rate regresses (decreases) as income increases.[16] The Social Security component is actually a flat tax for wage levels under the Social Security Wage Base (see “Regular” employees above). But since no tax is owed on wages above the Wage Base limit, the total tax rate declines as wages increase beyond that limit. In other words, for wage levels above the limit, the absolute dollar amount of tax owed remains constant; since this number (the numerator) remains constant while the wage level (the denominator) increases, the effective tax rate steadily decreases as wage levels increase beyond the Wage Base limit.
FICA is also not collected on unearned income, including interest on savings deposits, stock dividends, and capital gains such as profits from the sale of stock or real estate. The proportion of total income which is exempt from FICA as “unearned income” tends to rise with higher income brackets.
Some argue that since Social Security taxes are eventually returned to taxpayers, with interest, in the form of Social Security benefits, the regressiveness of the tax is effectively negated.[citation needed] That is, the taxpayer gets back what he or she put into the Social Security system. Others, including the Congressional Budget Office, point out that the Social Security system as a whole is progressive; individuals with lower lifetime average wages receive a larger benefit (as a percentage of their lifetime average wage income) than do individuals with higher lifetime average wages.[17][18]
http://en.wikipedia.org/wiki/Federal_Insurance_Contributions_Act_tax





















































