Rep. Lois Capps Town Hall Meeting, September 4, 2009, Oxnard, CA

09/15/09 | by George [mail] | Categories: Uncategorized

Rep. Lois Capps Oxnard, CA Town Hall Meeting – Sept. 4, 2009
By George Miller

U.S. Congress Rep. Lois Capps held a series of three Health Care Town Hall meetings in her 200 mile long, hyper-gerrymandered coastal Congressional district. I went to the final one Friday night, in downtown Oxnard. Observations and opinions here are strictly my own personal ones.

The police presence was large-- at least nine units, including marked and unmarked cars, a motorcycle and foot patrolmen.

AME Church provided excellent hosting and had very nice people in attendance. The panel was 100% pro-ObamaCare:

- Lois Capps, 23rd District House “Representative” (more on this later);
- Robert Gonzalez, Medical Director, Ventura County Health Care Agency;
- Katherine Raley, Program Manager, Ventura Area Agency on Aging.

There was no doubt at all in my mind that all these people are highly committed to health care, but I question some of their objectives and means of arriving there, at least legislatively speaking.

The moderator, former Ventura Star Editor Tim Gallagher, started with a patronizing lecture on rules of conduct. He seemed to be unaware that the anger of TAXPAYERS at being ignored and poorly served by Congress is what led to the tumultuous August Town Halls that made the news and effectively stalled the ObamaCare bill. Now we hope that our concerns about this and runaway, incompetent big government in general will be addressed, or there will be a lot of new representatives in DC after the 2010 elections.

Capps held this meeting on very short notice (at least to us), on the eve of a major holiday weekend, at a low income area church (but a very nice one), in a low income neighborhood (all designed to maximize support), with rules designed to limit bi-directional communication (no signs, no talking, no interaction, no booing or even clapping—that didn’t last long).

Carla estimated that the crowd was about 50-50 pro vs. anti-Obama care. Carol and others thought that there were even more HR 3200 opponents. I should make the point that the vast majority of us anti-ObamaCare people do support some “reforms,” and even overlap somewhat with the pro’s, but differ greatly with them on the extent of socialist Government control, extent of financing that would be required to carry out HR 3200 and certain other highly objectionable provisions. We also disagree that it is even Constitutional, which trumps all other arguments, in our humble opinions.

It was evident from the vocal crowd responses that many were not at all happy with much of what was being said.

Each panel member made a brief statement in support of HR 3200. No dissenting members were invited to be on the panel.

Lois did a 20 minute overview of the bill and her positions on it, which was informative, but differed somewhat from our perceptions of the content and interpretation of the bill posted on the Internet -- some of us are better informed than she appeared to be on portions of the bill. She also pointed out some amendments in progress that we hadn’t seen yet, mostly retreats from some positions that have raised huge outcries.

Lois’ positions (only summarized some key highlights and pain points here):

- Can keep present coverage. She failed to mention time limits, no changes rule.

- Can’t be dropped from plans for any reason. Good, but what will it cost to achieve that? I seem to remember reading that you would be forced to a public option if you left a job, stopped coverage or after a certain time period.

- People can’t handle rising cost of care, insurance. Amen. But some of this is due to malpractice costs, regulations, greater choices in new therapies, higher expectations, longer life spans, more aggressive care and most importantly—lifestyle choices- obesity, drugs, stress, demographics, etc.

- Plan will lower cost. Whose cost? Explanations of how were highly unconvincing. She said $500BB would be reduced in fraud, waste and abuse. Our question: why aren’t they doing that NOW with the current failed programs of Medicare, Medicaid, VA?

- Mandatory coverage rule will lower insurance costs, because uninsured people will be non-existent and greater economies of scale will lower costs. Sounds logical, but a shortage of resources may actually increase costs (Capps: meet law of supply and demand).

- Certain rule exemptions for small businesses under $500K, profit under $280-350K.

- National Health Exchange in 2013, offering multiple choices of Private and Public option. Unclear how this would work.

- No $ caps on coverage, limit out of pocket, 85% of insurance company expenses must be care, not admin. All sounds good on paper, but how will it be paid for?

- Obamacare will be “deficit neutral,” paid for by insurance premiums, efficiency savings and “surtax” on only 1.2% of population (people will vote themselves money from the treasury if they think they won’t have to pay for it). That will need to be one HELL of a “surtax!” Efficiency savings from the government that brought you The Post Office (bankrupt), AMTRAK (bankrupt), Social Security (bankrupt in 3-5 years)), Medicare (bankrupt), VA hospitals (awful). Need I say more?

- New Public Insurance Option” will create competition for insurance companies and reduce costs. Really? The government will be that efficient, huh, or will they have their own set of rule, including care standards, no lawsuits allowed, and additional subsidies?

- An estimated 10-11 million will choose public option in 2013, 16MM new people will join private insurance plans by then.

- Medicaid subject to 133% of poverty line for eligibility.

- Govt. will do existing science review, best practices review, recommended improvements. Will train more professionals, award more scholarships, repay student loans, offer training programs. Where will the money come from?

- Will plug “donut hole” of missing coverage, provide 50% discount on drugs, (with missing money?.

- Sec’y of Health will negotiate drug prices. No preventive medicine co-pays. Additional low income person subsidies. This might actually work, as reduced sickness could pay for it.

- Pay on quality of care, not quantity. Will be tricky to manage, but theoretically possible. My own experience is that the protagonists usually find loopholes that you keep having to plug.

- 55% of small businesses don’t provide health care. No wonder, since big business gets corporate welfare and is offered FAR lower insurance prices. This could be somewhat remedied by insurance risk pools instead of individual corporate contracts.

- No one will be forced on public option. We have heard otherwise that some will be pressured, some will be forced.

- No one will be denied any care. I heard contractions on foregoing care and rationing. Sounded like doubletalk to me.

- “:Absolutely no :death panels”, no mandatory end of life counseling. Then she and one panel member spent quite a bit of time explaining why end of life counseling is desirable, even necessary. I agree that when we run out of money, it will indeed become necessary and believe that patient and family only should decide when it is desirable, without BIG BROTHER pressure.

- Illegal immigrants not eligible for care per sec.246.” A question and audience reaction pointed out that provisions for an enforcement amendment were killed by Democrats.

- Propose to pay for all of this by:

o Eliminating corporate offshore “tax havens. How will they do this and why didn’t they do it years ago?
o Public option. THAT will reduce costs?
o Eliminate $500BB in fraud, waste and abuse. How will they do this and why didn’t they do it years ago for Medicare/Medicaid?
o Negotiate drug prices (now forbidden)

- Claimed abortions would not be covered by “private money.” She doesn’t seem to recognize that nearly all “public money comes from private money. Also, people have pointed out various loopholes.

Submitted questions (some are covered above)

Audience members were not allowed to talk, ask questions, only to submit them in writing. League of Women voters selected about 20+ questions out of a reported approx. 160 submitted from audience of about 250. They did select some tough questions.

- What about Tort reform? Lois admitted that it’s a big issue. Had no real answer. It’s not addressed in the bill. Some say the trial lawyers' special interests once again blocked this. Lois sort of admitted her desire for the status quo by saying that “wrongs must be addressed, without conceding that the system is abused. Robert mentioned that the defensive actions of providers are sometimes detrimental in that they take disproportionate action to cover themselves. Lois mentioned that “not everything is a federal issue,” which got HUGE applause, for a different reason than she likely intended.

- When does private insurance become impossible? Lois asserted that public and private are the same, except one is government, which drew a lot of hostile moans from the audience.

- Will there be age limits on procedures? Lois said no, although Emmanuel’s bioethicist” brother who is involved in this has publicly stated there should be and bill language is not definitive.

- Although she already addressed undocumented immigrant coverage, it was asked here too. She and Robert both said a case for undocumented agreement coverage could be made to address contagious diseases. She again ducked the illegal immigrant denial enforcement issue and completely ignored the deportment requirement. Gonzales additionally claimed it doesn’t belong in the bill. REALLY? Requiring any aliens here to have insurance wasn’t addressed, even though I know multiple LEGAL aliens here who say they are REQUIRED to have private insurance.

- Why not have private assigned risk insurance pools instead of public option? Good question and I heard no real answer.

- Disabled Medicaid coverage? I think Lois said yes.

- What about govt. having direct access to my bank account? She flatly denied it was in the bill, although multiple audience members shouted their disagreement.

- What do you think about Obama having radical Communists in his administration? Declined to answer.

- High COBRA cost? There will be “affordable” plan.

- Preventive medicine approach? Yes.

- SCHIP to public option? Yes. That doesn’t explain how hybrid families with children covered and parents on private care would be addressed. Lois did say that if children are covered, why not the parents, too. We saw that coming long before tonight.

- Medicaid home care? Yes, it will be addressed, with more reimbursement.

- Will Congress be covered by HR 3200? She ducked the question, claiming she had “an employer-provided plan.” In other words, she won’t be joining us peons.

-

Most Important Questions of the Evening

Is Federal Health Care Coverage a legitimate Constitutional activity?

Lois stammered through that without answering it and finally, she incredibly claimed it fell under “life, liberty and the pursuit of happiness!” What a B.S. answer. At least she didn’t invoke the commerce clause, though.

An “aha” point in the meeting was when the moderator read the other most important question of the night, namely:

Would you vote for a bill with a public option, even though a majority of your constituents opposed it?

She failed the test miserably. At least she didn't try to lie that a majority wanted it, though. Basically what she said is that she would vote for it anyway, while attempting to spin the answer in glowing terms of “a vote of conscience. ” At that point I had proof that I really DON’T have a representative in Congress, just a partisan hack with her own agenda. VOTERS PLEASE TAKE NOTE and impose de facto term limits soon.

On “Health Care Reforms” and “HR 3200 ObamaCare”

09/04/09 | by George [mail] | Categories: Uncategorized

“Health Care Reforms” and “HR 3200 ObamaCare”By George Miller
V1.5 9-15-09

Introduction

The Democrat proposed H.R. 3200, “America's Affordable Health Choices Act of 2009” (!), bill is a frightening, highly partisan vision of nearly totalitarian control of a large portion of the economy- and our lives and liberty. It is over a thousand pages of intrusion into your most personal decisions and affairs. It puts government firmly in control of much of your health care, privacy, life decisions and even your monetary discretion, in return for what is largely an illusory security “entitlement.”

Most people would agree that the U.S. health care system needs improvements—some are suggested in this document. However, just because our current system needs improvement doesn’t mean that HR 3200, as written, is anywhere close to the right answer. It cannot be amended to be acceptable, but must instead be started over from scratch, because the overall framework is so arrogant, so presumptuous, so statist, that it is nearly totally unacceptable.

It would take far too much time to analyze the bill point by point here, so we will first highlight a preferable, simpler summary of well-thought out reforms to the current system, and then will hit upon some of the more objectionable portions of the proposed bill, but by no means all of them. Some say that no alternatives have been advanced, but that is simply not true—they just haven’t been given proper hearings, as is the case for HR 3200.

Suggestions

Some recommended reforms are:

- True multi-state insurance company competition
- Better prior condition coverage
- Better job move coverage
- Insurance risk pools for small business, independents
- Simplified drug development procedures
- Published price lists
- True drug price competition
- Malpractice/tort reform
- Health insurance/provider “report card” evaluations/publication
- More health care along the Kaiser-Permanente and/or Mayo Clinic model
- Far more emphasis on patient health maintenance and preventive measures, such as lifestyle, nutrition, exercise, etc. (this may be the biggest health/cost driver)
- Effective omission of illegal immigrants. Let them buy insurance or go home. Are you aware that people here on work visas must prove employment and health care coverage?
- Consistent tax treatment
- Put real “teeth” in fraud definition, detection and enforcement
- Develop insurance and care guidelines, levels of standards, including legal minimums
- Ensure that there is an incentive for individuals to control health care costs
- Strongly emphasize private sector solutions, with public welfare coverage only as a last resort for indigents.

A few highlights of objections to proposed HR 3200, as approved in July by the House Committee:

Notes:
1. This is a “moving target,” since Congress is now actively debating and working on health care reform
2. Some of the so-called “fact-checking” sites we have seen attempting to “debunk” objections are mostly just plain wrong.)

- High, unwanted degree of government control over life decisions, options, financing, payment

- State and individual rights usurped by the federal government, a clear violation of the 10th Amendment. Health care is constitutionally not one of the responsibilities of the federal government, nor do citizens have any “right” to health care provided and paid via federal edict, with funds confiscated from citizens, via taxation or any other means. Even Social Security was only designed originally to be an insurance plan, hatched during a time of severe economic crisis, but grew, uncontrolled, into a huge Ponzi-style entitlement program that went bankrupt* (partially due to Congressional looting) and is now increasingly funded by general tax revenue and borrowing. However, we do concede that there is some limited authority for Congress to regulate parameters of commerce for insurance, but NOT get into government-run, personally intrusive systems, nor attempt to micromanage private business.

- There is no inherent “right” to government-provided health care. It is the responsibility of citizens and their families to provide for themselves. A certain amount of minimal life support services should be provided by lower levels of government/charity, for those who are physically or mentally unable to provide for themselves and also lack family support to do so. In any case, there is absolutely no right for anyone to be provided with top-tier healthcare, any more than they are entitled to the most expensive mansions, gourmet food or private jets.

- Direct access to citizens’ bank accounts by the government, to take what and when it sees fit. Outrageous.

- Government “panels” to decide upon, recommend and inevitably exert pressure advocating certain courses of care that may be opposed to family and best interests of patients.

- Medicare and Medicaid are already bankrupt. The “insurance” envisioned to be provided by “the government” would require large additional taxation and/or borrowing, which would place an undue burden on citizens targeted by the taxation system. Politician advocates have disingenuously presented it as an entitlement to be mostly provided by a 1% minority of citizens, labeled, “THE RICH,” but will inevitably need to be broadened to a much larger population, after approved and entrenched, of course. Consider how Medicare and Social Security taxes have grown and grown and grown, in income limits and percentages confiscated to feed these ever more broadening, hungry entitlements. Medicare primarily covers the aged. ObamaCare would be, in effect, Medicare for everyone, so expenses would rapidly mushroom. Although private insurance options are kept, new government “standards” would invalidate many plans, while employer mandates and other restrictive rules would cause more and more people to end up on “the Public Option.”

- Insufficient Protections to avoid granting benefits to illegal immigrants. Although bill language includes restrictions, all enforcement terms were stripped out of it, making it “toothless.” Discussions are underway to restore these.

- Abortion funding could be provided, via loopholes.

- Privacy would likely be one of the first victims of the bill. A huge government database could likely not be secured, especially with all of the bill terms making this information available to various parties. One clause hinted that implanted RFID chips might be utilized—too close to the “Mark of the Beast” for me to ever submit to.

- This bill seems designed to force everyone (except government officials) into the same sort of plan. It would likely result in a “least common denominator” approach, with more rationing and more coercion. People should have a right to buy their own better coverage, if they so desire and can afford it.

- ObamaCare, as presently configured, is an extremely overreaching, Socialist, statist approach. It is especially unworkable now, as this extremely expensive boondoggle is being proposed during what might turn out to be the worst financial crisis in the nation’s history, just when we most lack the ability to pay for it all. It guarantees far larger spending, taxes and/or deficits, at the worst possible time.

Other Discussion

- Insurance: Because of the often random and arbitrary nature of genetics, illnesses and injuries, insurance is preferable for all but those wealthy enough to self-insure. Co-ops and government are just other forms of insurance. The drawback of government is that it typically is not profit, efficiency and quality-oriented and lacks the discipline of the marketplace. In addition, it is subject to highly political influence and is usually too powerful to dispute and often lacks accountability. Even though private insurance businesses and providers usually have some profit built in, they can usually exceed the performance of a “public” (government) approach. Witness the Post Office, AMTRAK, Medicare, VA Hospitals and of course, Medicare and Medicaid.

- States’ Rights: The problem of a patchwork of wildly varying state regulations causing confusion and “holes” in the system is recognized. A good way to deal with that would be to make plan templates available that could be shared, but are not mandatory. States could accept the ones they wanted and people could select plans from these templates that insurance companies might offer, or other plans more to their liking and needs, knowing that the templates had already been vetted.

- Financial Responsibility: The problem of how to handle people who are not financially responsible, do not provide for themselves, then get sick or injured and want public assistance, or free services, is a tough one. Libertarian philosophy says that they are on their own, but liberal philosophy says we’re all responsible. The problem is analogous to someone who buys a powerful motorcycle without having the proper skills, a helmet and/or insurance, then proceeds to cause harm to himself and/or fellow man, leaving others with misery and financial expense. Government has responded by overriding his right to be a fool and forcing him to take a test, get a license, helmet and insurance. Even though some say they he should be free to do what he wants, he clearly can infringe upon others rights and well-being, unchecked.

.* These are solely the author’s opinions, based upon his available information.

References:
HR 3200—“America's Affordable Health Choices Act of 2009”
“Five Major Faults in the Health Care Bills,” Nina Owcharenko, The Heritage Foundation, 8-28-09
“Why ObamaCare Doesn’t Sell, By Jeremy Siegel, Yahoo Finance, 8-3-09
“Beware Big Brother Healthcare,” C. Bonney, Ventura County Star, 7-26-09
“This is in the Health Care Bill… Read It and Weep, America,” Jetbrane, IronLink.com, 8/10/09

ObamaCare Counter-Demonstration-- Ventura, CA 8/26/09

08/27/09 | by George [mail] | Categories: Uncategorized

Ventura County Government Center

The Obamatons were clearly NOT expecting a stiff counter-rally, if any opposition, that actually overwhelmed their own side in numbers, organization, energy and sheer sound volume.

Initially, we (The Ventura County Tea Party Patriots) were only on the West side of Victoria Avenue, but spilled over on their side too, our numerous signs mixed in with theirs, confusing the passing motorists on Victoria and Telephone Roads (our intention). Some of us were interviewed by a Ventura Star reporter.

Carla was shouting slogans and inspiration on a megaphone, to rally the troops and alert spectators, then later passed it to me for a spell. After wearing out my vocal chords, I went over to the dark side to mingle with the pro-ObamaCare advocates at the Government Center, which brooded under a half mast flag for Teddy Kennedy's ultimate term limit. I stationed myself on the busiest corner and raised my huge orange sign: "ObamaCare Needs End of Life Counseling." There were nearby a red hammer and sickle flag (nunerous American flags and "Don't Tread On Me flags across the street), a huge red ObamaCare sign with a hammer and sickle, "Nobama" and "No Abortion" signs surrounded by "health care now" and similar signs attached to liberals. About a quarter of the people were anti-Obamacare, even on this side of the street, with a larger group of Anti's across the street.

Almost immediately, I was accosted by an Obamaton who used nasty language, ridicule, name calling and threatening gestures. He was a 20 year retired military guy, in love with socialized medicine, but not civilized dialogue. I complimented him on possessing skills and mastery of the Saul Alinsky playbook that were better than the typical Obamaton, but suggested that he update his repertoire to actual rational discourse. He seemed confused by that and moved away after a short time. There were some heated discussions and arguments nearby, but no violence.

I had a number of interesting discussions with: actual Socialists, from a socialist party, who had voted for some socialist woman for president; also Obamatons and some union types, some in the purple shirts. The Socialists were mostly more coherent than the liberal democrats and seemed quite surprised to see that I didn't walk on all fours. I had to explain the sign to some Democrats, some of who initially thought that I was pro-ObamaCare, then started to think I was advocating killing Obama, but eventually just reached a determination that I wasn't on their team :-). I had to actually explain it to a few of them who asked.

Some were fairly friendly, some rather hostile. They seemed to think that the government has a bottomless pit of money to fund their "right to healthcare." Yes, it has now been elevated to a "right," and "the government," actually WE, MUST fund it for them. NO problem-- the "5%" who have unfairly stolen 95% of the money can easily be taxed to pay for it. Problem solved.

I was slack-jawed in horror at actually hearing real people say this up so close to me that I could smell them. Usually, I hear this claptrap only from The NY and LA Times, network TV, CNN, Moveon.org, the Daily Kos, Howard Dean and Teddy Kennedy (but no more). I explained gently that the government is bankrupt, Medicare is bankrupt, that the economy is crashing and is no longer able to even fund existing programs, instead borrowing and printing $trillions and that as we were speaking, $197 billion in new Treasury issues were being sold just this very week, more than 50% of the federal budget was deficit spending and that in any case, it wasn't my responsibility to provide for their every "need." They seemed completely removed from all these realities.

The response was that ending war spending and CEO bonuses will pay for it. Really- $2 trillion? I informed them that their Messiah was actually expanding wars in Afghanistan and Pakistan, while further pissing off our shrinking allies, pushing cap and trade, supplemental approprations and various Stimuli, while doing $14 trillion in bailouts and nationalizing entire industries.

I was informed by a Socialist, with others chiming in, that it is society's responsibilty to "take care" of people and fund healthcare, that abortions are a woman's right and should be paid by Obamacare. That made for some interesting discussion.

But, I remembered to tell them that I was one of the 5%, my resources weren't bottomless and by the way, most of this ObamaCare wouldn't even be constitutional. I could go on and on, but you must be getting the drift.

Good points were raised by both sides, but the venue wasn't a good debating forum .

At our Saturday demonstration outside a hospital, about 2/3 of the passers-by that showed a preference were anti-Obamacare. Across the street tonight, the majority were also anti. But on this side of the street, it was about 50-50.

A KEYT TV reporting team interviewed people on both sides (of the issue and the street). They seemed excited by the energy and controversy.

If nothing else, we made it crystal clear that Obamacare is not at all unopposed and that there are actually rational arguments against it. We made it clear to multiple people and small groups that many of us favor health care reform and even pointed out some of our signs supporting that assertion, while enumerating some points and mentioning that HR 32000 is a fatally flawed document and that we needed a different approach, with FAR less govt control. Multiple Obamatons voiced to me a lack of trust in the insurance industry to do the job, citing doubling of costs in 10 years, service denial, etc., without their factoring in the large inflation experienced, new therapies, tort litigation explosion, govt. thwarted competition, and the role of lifestyles in increased illnesses, etc.

As the traffic started to thin out, darkness was descending and a chill came into the air, the demonstration wound down. I chatted with our core group for a while. When I left, there were about a half dozen ObamaCare advocates and about 25 of us remaining.

There are some major differences to be ironed out. If the other side tries parliamentary tricks to try to force HR 3200 through in its current form, coupled with continuing serious financial/economic problems, there will be severe repercussions.


Regards,
George Miller
~~~~~~~~~~

How Much???

07/04/09 | by George [mail] | Categories: Uncategorized

by George Miller, Ventura County (CA) Tea Party Patriots—July 4, 2009 Version 2.1

This is the original text for the speech, which had to be cut down somewhat in the actual delivery at the Tea Party, due to schedule/time constraints.

Almost everyone with a pulse and a brain has heard about the crashes in real estate, stock market and debt—and the GIGANTIC government spending and taxes. Some people I talk to are unconcerned, because taxes haven’t risen much lately—at least YET. That’s by design- to gain approval for spending programs first, and then present the bill – after everyone has already eaten the meal and drank the Kool-Aid.

Most people have no idea at all how bad the situation really is. I didn’t forsake my regular 4th of July festivities to come here this year, without VERY good reasons and I suspect that you didn’t either.

I’ll take a few minutes to quantify for you just how bad things are, to help underline the urgency of quick and drastic ACTION—this is no ordinary recession and these aren’t ordinary times.

The Economy

The world annual economy is—or at least WAS- about $50 TRILLION dollars. It’s hard for almost anybody to imagine how much that really is. It’s the output of the combined efforts of over 6 billion people worldwide- their jobs, income, spending, charitable contributions, taxes, industrial output, government spending, etc. $50 TRILLION dollars is $50 X 1000 X 1000 X 1000 X 1000 dollars, or 50 x 10 to the 12th power, for you scientific and mathematical types. The United States of America, with only 5% of the world’s population, generates, or formerly generated, almost ¼ of that-- $13 TRILLION. Plus, we drive a lot of the rest of the world’s economy. Think of the vast imports from China, India, Japan, Korea, Viet Nam, Western Europe, etc.

What’s Different- Debt, Derivatives, Industrial Base

Why is this “recession” so much different? Three reasons- debt, derivatives and industrial base. The U.S. was the largest creditor in the world by far, but over the years, has degraded into the world’s greatest DEBTOR, with more debt than the rest of the world combined. How much debt? The nominal national debt is now $11 TRILLION, with at least $2 TRILLION more to be added this year. Often conveniently omitted are the additional, huge “unfunded liabilities” of Social Security and Medicare, estimated at $60-80 TRILLION, larger than the entire world economy and growing fast. Last week alone, we borrowed over $100 BILLION in new treasury debt. We are sucking away most of the world’s investable capital from free enterprise and other productive avenues. Private debt is another $44 TRLLION.

Derivatives were described by billionaire investor Warren Buffett as “financial weapons of mass destruction” and they are. A derivative is a financial instrument based upon some other financial instrument or behavior. Examples are options, futures and credit default swaps. They’re designed to protect some parties and to “leverage” huge investments and profits, but they can be extremely destructive, if things go the wrong way. This is what really destroyed AIG, Lehman Brothers, Bear Stearns and may yet wipe out Citibank, Bank of America and others. Total world notional derivatives value is estimated at an incredible $600+ TRILLION dollars, 12 times the world annual economic output. Many are being triggered by defaults/failures, stock market and interest rate volatility. The Federal government has paid out some $300 BILLION for AIG alone. The bailouts seem like a drop in the bucket in comparison-- they are trying to buck the tide.

Our industrial base is a far smaller portion of our economy (14%) than in our glory years, before we exported so many jobs.

The Budget and Deficit

Last year, we had a huge $400 BILLION deficit. This year, the administration has already conceded a $1.8 TRILLION deficit forecast, one dollar in deficit for every dollar of tax revenue forecast to be collected—that hasn’t happened since WWII. But guess what? Tax receipts are now down 34% from last year! Not surprising, with businesses imploding and unemployment exploding. The forecast is wildly optimistic, especially as it doesn’t account for that—or for most of the prolific new spending programs in the pipeline…

- Cap and Trade- Climate Change legislation, the largest tax increase in human history- as if the U.S. could change the climate much
- Universal “free” healthcare, when Medicare is already bankrupt and costs are skyrocketing
- Immigration “Reform” opening the gates to 12-30 million illegals and more at the gates, which will break the bank when we’re already broke, unemployed, underemployed. We’re for orderly, legal immigration. That’s how most of our families got here ourselves.

Add to all this the vastly higher payments for the aging, retiring “Boomer” hordes.

Taxes to Pay for All the Spending

Now, we already have among the highest taxes in the world. Most years, I pay well over half of my income for various taxes. The foolish election promises not to increase taxes for people with under $250,000 in income are already history. Do you seriously believe we can spend like this without getting a bill? With huge spending and borrowing, interest payments and entitlements alone will consume all available money, with nothing left for anything else. We’re passing the tipping point where government spending and the taxation needed to support it destroy productivity and even incentive to produce. It would seem that we would need at least two to three times this years’ federal tax receipts ~$4T+, to balance next year’s expenditures—an impossibility.

The new programs and expansions I just mentioned are not sustainable, not even possible. We will be forced to retreat. The only choices are an orderly retreat where we somewhat control the alternatives, or utter collapse. There WILL be a rebellion of the taxpaying classes. It has already begun. We are living it together, right here, today!

The Fed and the Value of Our “Money”

The Federal Reserve was established in 1913 as our current central bank. Its mission is to protect the value of the currency and maintain high employment—how are they doing? Well, the dollar is near an all time low in buying power. Since 1913, it is down 95-97%, depending on who you believe. I don’t have to tell you much about unemployment, except to say that the true numbers are far higher than the “cooked” government statistics with their phony “birth/death” model and ignoring entire classes of the idled populace (try looking at www.shadowstats.com ). The Fed is a major cause of the pain we are going through. Please support U.S. Rep. Ron Paul’s bill to audit the Fed, which already has a majority of the House as co-sponsors, yet somehow Nancy Pelosi isn’t motivated to move on it.

Closing

We got into this mess not just because of Obama, not even just Bush, Pelosi, Reid, Schumer, Nadler and Kennedy, Wall Street/Banks, et al. It was unfortunately one of the most bipartisan processes in history. Now, we must work TOGETHER to get out of it. We need to get more people in office who will address our priorities and free up private enterprise, within reason. Much serious damage has been done over the last 60+ years. We will not return to 2005 anytime in my lifetime, nor should we want to. But, we could possibly return to a sounder, better economy than we have now. The state of California is just as bad as the federal government, but lacks the money printing press- thank God!

In conclusion, remember: no economy has ever spent its way out of something like this.

~~~~


Supplemental information, other background notes

- 1920-21 depression was severe, but short, because prices were able to find their level and capital was quickly and productively redeployed by private enterprise.

- 1930’s Great Depression became “Great” after government meddling made things worse. WWII was what got us out of it.

- Crash and current recession/depression were caused by manipulation of interest rates, unsustainable stock market, debt and real estate bubbles, which are correcting, in spite of the best of Keynesian economic theory-driven efforts to reverse them. It is like trying to reverse the tide. It’s best to go with it in opportunistic ways, like a skilled swimmer in a riptide.

- The current stimuli/bailouts may actually move economic activity up, but will likely ultimately fail, because of redeployment of capital into unproductive avenues and unsustainable debt. Efforts should be far smaller and focused on life support and productive industries.

- The $11 trillion debt, plus $2 T more in ’09, plus approx. $70T unfunded liabilities, total $83T, which is about $272+K/person. That may rise to $22T debt, plus $100T unfunded liabilities by 2012= $122T, for $400+K/person, clearly unsustainable.

- Total debt 57 TRILLION ($186K/person), Not including SS/Medicare unfunded liabilities. Balance of trade $-821BB.

- Source document for $13+ trillion bailout estimate: http://www.24hgold.com/english/news-gold-silver-breakdown-of-the-fed-s-13-9-trillion-commitment.aspx?article=2130524596G10020&redirect=false&contributor=Mish

- Fewer people today will be able to eke out subsistence existences, with farms and gardens, in anew depression. Most are urban workers, with specialized skills.

Now What?

07/04/09 | by George [mail] | Categories: Uncategorized

Now What?

You are deeply concerned about what’s happening to our country—spending, borrowing and taxes out of control, socialism coming at warp speed, seen the publicity, been to a Tea Party, enjoyed the speeches, signs and talking to like-minded people. What’s next?

We hold these events and create publicity to make you more aware of what’s going on and build solidarity, but also to solicit your help, since nothing is likely to change without concerted action by concerned citizens.

Please send us an email at cbonney@west.net. We will keep you informed of future events, and opportunities. We will work together to take back not only our money, but our personal freedoms.

The mission of the Ventura County Tea Party Patriots, a non-profit, nonpartisan citizen organization, is to restore fiscal responsibility; to effect reductions in taxes and spending by the government at the local, state, and national levels; to mobilize and empower citizens through communication, education, and using election, initiative and petition processes; and to restore personal freedoms and rights that have been diminished due to extensive growth of government control and its unwillingness to faithfully execute existing laws and abide by the Constitution of the United States of America.

Activities (check off interest areas):

- Building public awareness
- Political action- legislation, influencing primaries, candidates, elections, ballot initiatives, petitions, rallies, demonstrations
- Communications/publicity
- Education
- Networking with like-minded organizations
- Assisting with activities (Operations)
- Financial contributions
- Fund-raising

Name _____________________________________ Phone________________________

Email______________________________________

Please contact us if you’d be willing to donate funds to the cause.

Ventura County Tea Party Patriots 881 E. Main Street, Ventura, CA 93001
www.PatriotRevival.com

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The mission of the Ventura County Tea Party Patriots, a nonprofit, nonpartisan citizen organization, is to restore fiscal responsibility; to effect reductions in taxes and spending by the government at the local, state, and national levels; to mobilize and empower citizens through communication, education, and using election, initiative and petition processes; and to restore personal freedoms and rights that have been diminished due to extensive growth of government control and its unwillingness to faithfully execute existing laws and abide by the Constitution of the United States of America.

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