Impotent Prophets & Politicians

I’m fed up with politicos predicting economic Armageddon, while continually making things worse! They should be ashamed of themselves….

My wife asked – impotent? Cambridge dictionary explains:

Impotent: not having the power or ability to change or improve a situation.

Politicians scream the sky is falling, blame their opponents, lie to the voters – yet they have NO DESIRE to change or improve the situation. The shame is they have no shame!

The Prophets

Prophet #1 – The Congressional Budget Office (CBO).

The Cato Institute reports:

“The Congressional Budget Office (CBO) just released its latest Budget and Economic Outlook….

Rising interest costs and unchecked entitlement spending are driving federal debt to unprecedented levels. …. The government continues to spend far more than it takes in.

…. Congress must bring entitlement spending under control, lest the US face a slow decline culminating in a sudden, severe, and painful fiscal crisis.

…. The CBO’s projections reinforce a clear, recurring message: The current fiscal trajectory is unsustainable and demands action.

As the CBO warns, ‘The size of the policy changes needed to put debt on a sustainable path will grow the longer lawmakers wait to implement those changes.’

…. Every year that politicians delay will narrow our options, raise costs, and bring the US closer to the kind of crisis that forces reform under the worst possible conditions.”

These esteemed CBO government prophets are covering their collective backsides, knowing nothing will change. “You can’t say we didn’t warn ya!”

Prophet #2 – The Social Security Administration (SSA).

Entitlement spending under control? The Social Security Administration’s (SSA) Annual Report:

“The concepts of solvency, sustainability, and budget impact…are not well understood. Currently, the Social Security Board of Trustees projects program cost to rise by 2035 so that taxes will be enough to pay for only 75 percent of scheduled benefits.

…. If trust fund assets are exhausted without reform, benefits will necessarily be lowered with no effect on budget deficits.”

These propeller heads obscure the truth. “Trust Fund” assets are a government farce. The fund is a shell game, holding only government IOUs. The SSA collects social security taxes, and pays out more in benefits. The fund balance is reduced by the amount of the shortfall. The Treasury borrows to pay current expenses (like wars and welfare), and even more to cover this “entitlement” shortfall.

Since Social Security began, politicians spent every dollar they collected in Social Security taxes and put IOUs in a phony fund. Now that Baby Boomers are retired, benefits exceed receipts, thus a shortfall.

The Bipartisan Policy Review Org. paints the ugly picture:

The SSA prophets also cover their backsides, “Don’t say we didn’t warn ya!”

Prophet #3 – The Bureau of International Settlements (BIS)

International expert Urs-Vrijhof-Drose explains, The Bureau Of International Settlements (BIS) jumped on the debt warning band wagon:

“Too Much Debt BIS Warns

As the world’s economies enjoy disinflation, the nation’s debt has reached levels that give them little leeway for potential accidents. According to the Bank for International Settlement (BIS), one major risk is the historically high private and public debt levels that lead to drastically reduced monetary and fiscal policy headroom (BIS Annual Economic Report 2024).

These bureaucratic prophets are warning the world.

Prophet #4 – The Federal Reserve (Fed)

Our revered Federal Reserve leaders chimed in:

“We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power.” — Fed Chairman Alan Greenspan

“We’ve been very, very clear that we will not allow inflation to rise above two percent or less.” — Fed Chairman Ben Bernanke

And the honorable (??) Janet Yellen claims she saved the day:

“Will I say there will never, ever be another financial crisis? No, probably that would be going too far. But I do think we’re much safer and I hope that it will not [happen] in our lifetimes and I don’t believe it will.”

The Fed’s dilemma is simple. Raising rates stifles economic growth – lowering rates creates inflation. They play the con game, with their hidden agenda of maximizing bank profits and enabling government spendthrifts.

The Fed prophets warn us -but – “not to worry; we will protect you.”

Prophet (s) #5 – Politicians galore!

Politicos of all flavors have no limits with their hypocritical, political BS. Reason.com reports:

“The Senate unanimously approved a resolution calling the debt ‘a threat to the national security of the United States’ and calling expected future budget deficits ‘unsustainable, irresponsible, and dangerous.’

…. The passage of a nonbinding resolution…is several steps short of actually addressing the federal government’s addiction to borrowing….”

In January, the House of Representatives introduced House Resolution 981.

“H.Res.981 – Expressing the sense of the House of Representatives that the United States should reduce and maintain the Federal unified budget deficit at or below 3 percent of gross domestic product.”

It has not yet passed.

Politico prophets vociferously fake budget concerns when their opposition is in power and they are running for reelection. They have no intention of doing anything responsible.

 

Prophet #6 – James Turk.

James Turk, warns, Get Ready For Another US Government Default:

“The US government is rushing headlong toward the financial tipping point that will cause it to default on its promises yet again. Its debt load is becoming too big and beyond the US government’s financial capacity to return to its creditors the purchasing power they loaned to the government.”

Prophet #7 – Margaret Thatcher

Margaret Thatcher warned, “The problem with socialism is that you eventually run out of other people’s money.”

Ms. Thatcher overlooks that impotent politicians have no desire to change or improve the system. When they run out of other people’s money, they borrow.

When they can’t find enough lenders, they move to the next step.

The politicos have no problem with the Fed’s highly inflationary policy of “monetizing” (creating money out of nothing) the debt.

There’s almost $7 trillion in unsold government debt currently on the Fed’s books.

But wait! There’s more!

The federal debt, almost $40 trillion, is borrowed/spent money, leaving future generations to pay for their sins. Current debt is dwarfed by unfunded government promises (entitlements). It’s like a monthly payment book of obligations without borrowing the money – yet.

Cato Institute explains:

“The Financial Report of the United States Government raises significant concerns about the country’s long‐term financial health. …. Over the next 75 years, US taxpayers face over $73 trillion in long‐term unfunded obligations.

What’s more, this unfunded obligation is entirely driven by only two federal government programs: Medicare and Social Security.”

The current US Debt clock calculates the unfunded political promises at almost $86 trillion.

Today’s debt equals 31% of the money owed and promised by politicians to the citizens. It all adds up to over $125 trillion.

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Is there any solution?

Opportunist politicos scream “tax the rich.” Medium.com explains:

“If the total wealth of US billionaires were entirely confiscated…it would theoretically…fund the…United States federal government for approximately 13.4 months.

…. After that single year of funding, the federal government would immediately face the same, if not greater, budget deficit problems, requiring the identification of an entirely new source of revenue for all subsequent years.

…. Analysts argue the U.S. Federal government isn’t facing a revenue problem, but rather has a fundamental spending problem that must be addressed with structural solutions, not reliance on finite, one-off wealth transfers.”

This is maddening!

Both houses of Congress introduce resolutions condemning deficit spending and borrowing; “It’s unsustainable, irresponsible, and dangerous.’ It’s a national security threat!”

They acknowledge they are the problem, but “Structural solutions” are nowhere to be found. Dare any politician mention real spending cuts, they are immediately attacked by their political opponents.

NBC News reports:

“24 members of Congress are 80 or older. More than half are running for re-election.

…. In total, this Congress is the third-oldest in U.S. history….”

Congress has no problem governing against the rule of the majority. A Constitutional Amendment for term limits requires 2/3 majority of both houses of Congress. That won’t happen….

Yahoo finance quotes Warren Buffett:

“I could end the deficit in five minutes. You just pass a law that says that any time there’s a deficit of more than three percent of GDP, all sitting members of Congress are ineligible for re-election.”

While Buffett was chuckling, his logic makes sense. (The unpassed house resolution used the same 3% number) When business leaders can’t balance their budgets, they are fired, why not Congress?

Political incentives are the opposite. Worrying about balancing the budget doesn’t cause politicos to lay awake at night. They worry about “Pork-barrel politics & earmarking;” spending as much as possible for their home state, district, donors and political connections. They proclaim responsibility for creating jobs, community projects and free stuff. “Bi-partisan spending bill” is a code name for trillions in waste.

When Elon Musk and others highlighted billions in waste and fraud, they did not expect the backlash, hate and revenge from the political class. God forbid politicos should be held accountable for wasting our money….

Congress is right, this is unsustainable.

Politicos, prophets and the people feel powerless to stop what’s inevitable. When things finally break, the dollar will crash and we will start over. Those owning tangible assets, gold, real estate, etc. will have a head start because they heeded the warnings.

Help keep us online! I love it when readers thank me for “telling it like it is” for providing content they won’t find in the mainstream media. I’ve been sent to Facebook purgatory a few times – they didn’t approve. Free speech isn’t appreciated in all circles. When I started Miller On The Money, I vowed to keep our newsletter FREE! I’ve kept my promise – our weekly letter is an expensive hobby. Donations are our primary source of financial support, and what keeps us going. We don’t peddle your name to anyone. I’ve turned down proposals from advertisers, feeling their offerings were inappropriate for our readers. Readers pitching in to help offset our cost are much appreciated. It’s strictly voluntary – no pressure – no hassle! If you want to help, click the DONATE button below. You do not have to sign up for PayPal to use your credit card. And thank you all!

On The Lighter Side…

This week we drove back to Indiana for the summer. We spent the last several months turning our new Florida home into a comfortable place for us and the family. It was fun scratching off the last item on the project “to-do” list.

For the last several weeks Jo and I found more time for play and enjoying the lifestyle the new community has to offer. We look forward to a nice Indiana summer with family and friends. Next fall, back to Florida to pick up where we left off.

When I was a youngster, our family gatherings were at my grandmothers. My mother had two sisters and collectively there were ten cousins. On my 86^th birthday I was pleased to hear from cousin Robert (95) and Judy (85), wishing me well. Both were a major part of my childhood. We are the only three left.

Our grandmother lived until 100 and my mother’s twin sister lived past 101. We attributed our situation to the lucky gene club. Keep on keeping on and enjoy the ride!

Quote of the Week…

“Learn to enjoy every minute of your life. Be happy now. Don’t wait for something outside of yourself to make you happy in the future. Think how really precious is the time you have to spend, whether it’s at work or with your family. Every minute should be enjoyed and savored.” — Earl Nightingale

And finally…

Friend Tom G. suggests that we can’t do much about politicians, but why not find some humor with them:

Those who are too smart to engage in politics are punished by being governed by those who are dumber. – Plato, ancient Greek Philosopher

Politicians are the same all over. They promise to build a bridge even where there is no river. – Nikita Khrushchev, Soviet Union politician

Politicians are people who, when they see light at the end of the tunnel, go out and buy some more tunnel. – John Quinton, American actor/writer

Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. – Oscar Ameringer, “the Mark Twain of American Socialism.”

A politician is a fellow who will lay down your life for his – Texas Guinan. 19th century American businessman

I have come to the conclusion that politics is too serious a matter to be left to the politicians. – Charles de Gaulle, French general & politician

Instead of giving a politician the keys to the city, it might be better to change the locks. – Doug Larson (English middle-distance runner who won gold medals at the 1924 Olympic Games

I have come to the conclusion that one useless man is a shame, two are lawyers and three or more are the government. – John Adams (1735 – 1826)

I don’t make jokes. I just watch the Government and report the facts! – Will Rogers (1879 – 1935)

I contend that for a nation to try and tax itself into prosperity, is like a man standing in a bucket and trying to lift himself up by the handle. – Winston Churchill (1874 – 1965)

The problem we face today is because the people that work for a living are outnumbered by those who vote for a living. – George Bernard Shaw (1856 – 1950)

And my favorite…

A Government which robs Peter to pay Paul, can always depend on the support of Paul! – Will Rogers (1879 – 1935)

Until next time…

Dennis Miller

“Economic independence is the foundation of the only sort of freedom worth a damn.” – H. L. Mencken

 

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