Wednesday, August 22, 2012

CBO FY13 Assessment: Cut Taxes and Spending Or Face Worse Recession

In May 2012, the CBO adjusted its January 2012 study on what effects the FY13 budget will have on calendar year 2013, if current trends are maintained. The result was, simply stated, not good.

Recently, they updated that study and found that their analysis to be most likely correct, however the results will likely be even more extreme. If taxes are increased and federal spending are not restrained, reduced, cut, or made reasonably responsible; then we are headed towards another deep dip recession.

This is the "fiscal cliff" that Obama and his Keynesian-theory-loving advisers are driving us towards. It seems he is not interested in playing a game of chicken, either. He does not intend to speed towards that edge only to attempt to stop short. he direction Obama's proposed budgets, tax plans, and executive-invoked regulatory fees (such as EPA fees, USDA fees, increased regulatory fees on fossil fuels, etc.) amount to kicking in the NO2, putting on a blindfold, and disconnecting the brakes.

The CBO predicts that the current course will lead to shrinking the economy even further, as much as reducing GDP by another 0.5%. Our country cannot take any reduction in GDP. We need a 2-3% increase, not a decrease. In addition, unemployment will jump several points as businesses will reduce in order to preserve necessary capital in efforts to weather out the storm. That will mean some cuts in production, not taking risks in expanding product lines or services, and cutting payroll expenses. Those payroll expenses will mean anything from reductions in benefit packages to reductions in starting pay to layoffs.

The CBO already calculated the nightmare the PPACA will present to businesses, especially small businesses. Adding in those mandatory taxes and fees Obamacare forces upon those businesses, healthcare packages are not cuts that can be made without laying people off. So, that may be the policy of choice should this recession strike.

Legislators (and voters) on both sides of the aisle need to take some deep breaths and read economic studies written by Steve Moore and Art Laffer. They need to pay attention to the supply side of the economy. It has been ignored too long. Raising taxes on those working will decrease the national marginal propensity to invest, to save, and to spend. There will simply be less disposable income. The supply curves will also adjust, making even necessities such as milk, bread, and corn more expensive. Those are the results of raising taxes. With fewer people working, the tax base will also be reduced and the overall revenue will be lower.

On the "demand side", the government needs to act responsibly. If your teenager maxed out three credit cards and spent every cent he made at his part-time job (without saving for college), you'd cut him off (and probably ground him until he paid back every penny). Well, the budgets Obama proposed (and were defeated outright even in the left dominated Senate) wanted to max out not only his parents' cards, but those of every adult living in your neighborhood.

Proposing a reduction in spending increases is a start. However, real cuts need to be made, and soon. The FY13 budget starts on October 1, 2012. Cuts that impede national defense, national security, and intelligence gathering are not responsible. Cutting funding to the thousands of other wasteful programs are responsible.

Items the FY13 budget needs to spend money on, other than intelligence and defense, are paying down our nation's debts to foreign powers. In addition, those who have already paid into Social Security (especially those living off of the dividends) need to, at least, not lose what they have already invested.

With the elections coming up this November, voters need to consider the financial security and potential prosperity of themselves and their families. They need to do so on the municipal, state, and federal levels. The question is: do you vote for responsibility and accountability or do you vote for fiscal ruin, unemployment, and a dismal future. It's time to vote out those who want to start up more programs, increase taxes, and increase government spending, regardless of which party they claim membership.

Original article at Mental Aikido 

LG Electronics and Kenmore Elite Gas Dryer Recall

LG Electronics and Kenmore Elite gas dryers are being recalled.

Dryers subject to the recall were sold across the US between November 2009 and August 2010.

Manufactured in South Korea, they came in white, red, or a white gold combo.

Twenty-one thousand dryers are being recalled, due to an issue with overheating.

The gas valve can fail to turn off completely, so that the dryer won't stop heating.

When this occurs anything in the dryer can overheat and or catch on fire.

Such incidents have led to three people being burned, as well as fifty fires.

For more information, LG can be contacted at 866-223-5355 as well as their website.

Mini Micro Scooters Being Recalled

Kickboard USA has announced a recall of their Mini Micro Scooters.

5,600 of the scooters for toddlers are being called back.

The scooters, which were manufactured in Germany and Switzerland, were sold in the US.

They come in blue, orange, pink and aqua; and have "Micro" and "Mini Micro" printed on them.

The cover over the front wheels can break, leaving a sharp point, that could cause cuts.

No injuries have been reported due to the issue, the company is being cautious.

For further information contact Kickboard USA at 888-236-5657 or at their website.

Nissan Recalling 2013 Infiniti JX35

Nissan has announced a recall of the Infiniti JX35's 2013 models.

They state the vehicles need to be checked for defective fuel gauges.

The gauges are reading a higher fuel level than they actually have.

7,842 of the vehicles have been sold so far.

The 2013 model is also being investigated for a possible emergency brake defect, by the National Highway Traffic Safety Administration.

Remembering: Nolan Ryan and 5000

Born January 31, 1947 Lynn Nolan Ryan Jr. was already noticed by major league scouts when he was only a sophomore in highschool.

Red Murff, a scout for the New York Mets, decalred him the "best arm I’ve ever seen in my life".

In 1968 he was signed by the Mets, who traded him to the California Angels in 1971.

With the 1973 season he would set a single season record of having 383 strike outs.

From 1980-1988 he would pitch for the Houston Astros, and then in 1979 ended up at the Texas Rangers.

On August 22, 1989 Ryan would throw strikeout five thousand against Rickey Hendrson, of the Oakland A's.

Henderson later said, ''It was an honor to be the five thousandth. As Davey Lopes says, 'If he ain't struck you out, you ain't nobody.' "

Ryan would finish his twenty-seven year career with a total of 5,714, a record that still stands, and likely will for a long time.

During his career, he also threw seven no hitters, yet another record.

Morsi to Visit US

Mohamed Morsi announced that he will be visiting the US in September.

The Egyptian President will first be going to China, and then make his way to the US on September 23.

They will be his first trips, to either country, as President.

Back in July, US President Barack Obama, made an official invite to his Egyptian counterpart.

The US was a close ally of the former regime, and was initially cautious of the changes which took place there.

Many Americans became concerned over the Muslim Brotherhood's rise to power after Hosni Mubarak was removed from his office.

Nine Dead From Ebola in Congo

At least nine people are now dead from an Ebola outbreak in the Democratic Republic of the Congo.

Health officials in the country say that they are aware of at least six others who are sick from the disease.

The town of Isiro, in the province of Orientale seems to be the center of the outbreak.

Orientale is right next to three other African countries, with the Central African Republic and South Sudan to the north and Uganda to the east.

A national task force is being organized by the Congolese Ministry of Health, and being aided by several international aid groups.

Last month a different strain of Ebola killed sixteen in Uganda.

Ebola is a short term virus, that kills quickly after infecting it's victims, there is no cure, and it is fairly easy to spread.