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Obama's Grecian Vision

The Future of America?A few months ago I did a story called "4 Lessons American Voters Must Learn from Greece." Today we see things going from bad to worse in the once great empire and the words I wrote then are still true.

Sadly, Obama doesn't see it that way. In fact virtually everything he's proposing is exactly what the Greek politicians did over the last decade and led to today's economic apocalypse.

Let's hope I'm not sending this around again 6 months from now!

Dave

4 Lessons American Voters Must Learn from Greece

1. The “Socialist Democrat” economic model is a Ponzi Scheme that will ultimately collapse just like Greece has: It’s simply not possible to sustain an economy where one third of the population works for the government, the majority of workers belong to a labor union, and everyone receives generous entitlements that far exceed what they pay in taxes.

Although the US has been trending in this direction for decades, it is a matter of fact that since Obama became president we’ve moved toward Greece at hyper speed; consider these doomsday statistics:

In 2010, 46.4% of American paid no income tax.
America's wealthiest 25 percent pay 86 percent of total income taxes.
The wealthiest 5 percent pay 60 percent of total income taxes.
The amount of unfunded entitlements owed by the U.S. government has reached a record $61.6 trillion, which comes out to $534,000 per U.S. household
In just the last ten years, the American Public’s dependence on money from the Government has grown a staggering 49%!
(source: politifact.com)

2. Eventually you run out of “other people’s money:” In the beginning when government wages are low and very few people are on pension, it’s easy for politicians to promise all kind of entitlements by taxing the wealthy, corporations, and in the case of Greece, value taxes to be paid by tourists, but the truth is, this is just one big Ponzi scheme.

Faced with impending tax hikes to close the deficit, the wealthy have been taking their capital and leaving Greece in droves. The Guardian in the UK recently reported that $10 billion in private wealth was withdrawn from Greek banks in a 90 day period.

Within the US, Obama’s policies have created a similar crisis. Forbes reported last year that a staggering $15 to $20 trillion in US Wealth has been moved out of the country to avoid Obama’s “tax the rich” campaign.

And, as I reported yesterday, so far this year, 30% of new businesses in America have decided to incorporate offshore to avoid Obama’s anti-business tax and regulate policies.

Once the people who invest in creating private sector jobs and corporations leave town to avoid being taxed, unemployment skyrockets. In Greece’s case, unemployment is 16% and rising; to a lessor extent, we are seeing the same thing happen here.

3. When the politicians can no longer lie to the public, the public must pay for their lies: It’s unclear to me how the current Greek Tragedy ends, but one thing is clear. With each successive bail-out, the poor and middle class are suddenly getting taxed to death.

It is a fact of life that “there is no free lunch,” and when a nation is stupid enough to believe a politician who promises to increase entitlements, grow government, and call unfunded spending “investments” can find someone else to pay for it deserve what they get.

In the case of Greece, this means tax the poor and the middle class:

The threshold at which Greeks start paying tax will drop from 12,000 euros to 8,000 euros. The self-employed will be hit with a tax levy.

The BBC

A couple with two children and earning €20,000 a year, for example, will pay €840 more in taxes and levies – €640 of which represents income tax hikes and €200 the first payment in a three-year special levy that will be docked from salaries.

Property taxes are also set to increase, with the owners of houses worth more than €300,000 to pay a new €200 tax. Road duty is also to go up by 10 per cent.

The Irish Times

The two groups who will ultimately take the biggest hit are the government public union workers and those that have been living on the dole for decades:

Government worker wages will be slashed by over 20 billion Euros.
Only 10% of the government employees who retire will be replaced.
Greek Social Security payments will be slashed by over 5 billion Euros
Workers will pay 3.5 billion more in payroll taxes to fund their pensions
The Greek government plans to sell off Ports, The Phone Company, The Water Department, Toll Roads, Airports, and pretty much everything they can. Of course, if anyone actually buys these operations, they will fire or slash wages and benefits of the former government workers.

4. The end is ugly: Like I said, no one knows how this mess will end. Undoubtedly, the wealthy will continue to leave town, along with their private corporations. Tourism will dry up and eventually the government will run out of money and stop paying workers and pensioners.

The Irish Times report I cited earlier predicts a full national revolution. If that were to occur, you’d be looking at a “Cuba Scenario” with decades of stark poverty, police oppression, and no tourism whatsoever -- oh joy!

Act Now of Forever Hold Your Peace

In the two years that Obama has been president, the United States has gone from the middle of the pact in terms of national debt to near Greek levels.

The ratio of national debt to GDP that triggered the Greek Meltdown was 115% last year. In 2010, after 2 years of Obama, the US soared to 95%. According to Time Magazine, the US Ratio will reach 107% in 2012.

Of course, that “rosy” 107% forecast assumes that the economy continues to grow as Obama has promised. As we’ve seen in recent days, the “soft spot” Obama keeps talking about might just be a double dip recession. If that turns out to be true, we could bolt pass the “Greek Default Threshold” before the next presidential election!

If you’re someone who voted for Obama, call the White House and your Congressmen and plead with them to get serious about cutting the deficit without raising taxes that might chase investors and corporations out of the country.

And if you know someone who voted for Obama, who may not appreciate just how close we are to a “Greek Meltdown,” send them this story and do what you can to convince them that the government pensions and entitlements they love so much are unsustainable and will ultimately go away just like they have in Greece.

Finally, pray that Obama and the democrats will take this national crisis seriously and that John Boehner and the republicans will stick to their guns.

Dave

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Obama's Grecian Vision
Wednesday, 05 October 2011

Who Stole My Career?

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