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Entitlement Gloom

LARRY is on John Batchelor right now. If you miss it, look here to see the podcast. He is explaining the process through which CIA memoranda go from person to person.

Ladies and Gentleman, I titled this image:THEY WHO RULE US ALL.” That sizes it up. These geniuses are supposed to lead the U.S. of A. out of its precarious financial state? I don’t think so. See, I thought we needed a good money manager. Mitt Romney would have had to deal with these people, so his first six years would have been tough. If the Republicans got their act together, I hoped Harry Reid could be defeated. Now we have more Democrats in the Senate, so my idea isn’t going well. But I hope you’ll read the always scintillating John Batchelor. (Listen tonight (9 p.m. to 1 a.m.) – Bronwyn

Senate Majority Leader Harry Reid: “President Obama said that Social Security is not part of what . . . we’re going to do in this. And I agree with him.”

I spoke with Larry Kudlow of CNBC, Sudeep Reddy of WSJ, and John Cochrane of Hoover, to learn there there is no deal to be had in Washington over the threat of a recession that will follow the tax increases and spending cuts that start at midnight on December 31, the infamous fiscal cliff. [See Larry Johnson's Obama's Second Bite at the Apple" and Steve's post, "Moving On To 2016…"]

Senator Toomey of PA tells Larry Kudlow that he knows of no deal in the Senate. Nor does he know what POTUS Obama will says as he departs the White House for a campaign swing in Pennsylvania on the morrow. No…
(The video of the conversation on Larry Kudlow’s program is at the end of this post.)

Spoke Larry Kudlow of CNBC, Sudeep Reddy of WSJ, and John Cochrane of Hoover, to learn there there is no deal to be had in Washington over the threat of a recession that will follow the tax increases and spending cuts that start at midnight on December 31, the infamous fiscal cliff.

Senator Toomey of PA tells Larry Kudlow that he knows of no deal in the Senate, nor does he know what POTUS Obama will says as he departs the White House for a campaign swing in Pennsylvania on the morrow. No deal.

Sudeep Reddy reports that the White House speakers the last weeks have used the word “rates” when talking of increasing taxes, meaning that the Democratic position is that tax rates must climb, that capping deductions is not adequate for a deal.

Senator Durbin of IL tells a think tank today, according to Sudeep Reddy, that the Senate Democrats do not want entitlements on the table in a hasty deal, that entitlements can be dealt with next year, in the new Congress, 2013.

This statement alone is a deal killer, and Durbin and the White House know it.

Entitlement Gloom.

What I learn from Professor Cochrane is that the entitlements that the federal, state and city governments provide — the entitlements that the Democrats refuse to reduce — could very well be part or much of the reason there is such sluggishness surrounding the economy.

Benefits such as unemployment, food stamps, housing subsidies, all healthcare provided by the state, create a ball a chain around the recipient that keep him or her from growth and profit because of arbitrary limitations.

Earn a dollar more than this particular amount, and you lose the benefits; therefore, remain low-income and dependent (or in the gray and black market and dependent). Washington and the state capitols are not providing a safety net, they are maintaining a cage.

Also, the governments must tax for the money to supplement the dependent, and this drains cash from the private economy where it would grow jobs. All this is the entitlement gloom of the last four years. The rise in food stamps is not an expression of helplessness, rather it is a measure of how the growing entitlement drags down growth.

The explosion of entitlements is not a symptom of the recession and despair, it may well be a dominant cause of the same.

– From the blog for the John Batchelor Radio Program, that as I type this, goes on the air in 45 minutes.

  • Woody

    OMG, where did you find the photo of The Four Horsemen of the Apocalypse?

  • MG6

    When Romney called of the 47% he was called a racist. But when the mayor calls out the entitlement problem in Detriot, he is right on.
    http://detroit.cbslocal.com/2012/11/29/bing-said-city-workers-feel-entitled-says-his-job-second-only-to-obamas/

    Don’t hear the lefties call foul here!

  • MG6
  • HELENK2

    http://www.guardian.co.uk/world/2012/nov/29/fiscal-cliff-republicans-geithner

    backtrack and bunch trying to pull another sneak deal

    give backtrack the power to increase the debt limit instead of congress

  • Heather Stein

    “I spoke with Larry Kudlow of CNBC, Sudeep Reddy of WSJ, and John Cochrane of Hoover…”

    What a merry trio of morons that is. Ever notice that Batchelor continually does a lot of name dropping. However, the names he drops are almost always third rate political commentator hacks who have continually been proven wrong.

    So when you say “fiscal cliff” does that mean the economy will fall off a cliff on January 1? Bullshit. More scare mongering to scare Amercans into give up social security, medicare and medicaid. All important programs that the majority of Americans, a big majority, including most Republicans, clearly want to remain intact.

    “Benefits such as unemployment, food stamps, housing subsidies, all healthcare provided by the state, create a ball a chain around the recipient that keep him or her from growth and profit because of arbitrary limitations.”

    That is standard bullshit conservative speak. Many people today that collect food stamps and housing and healthcare subsidies are actually the working poor. You conservative hacks live in a complete bubble. We have had these programs for the poor for many decades and the economy has had no problem growing. There are countries in the world with even bigger social safety-nets and they also have no problem growing.

    “The explosion of entitlements is not a symptom of the recession and despair, it may well be a dominant cause of the same.”
    Actually the growth in benefits to the poor are exactly because of the Bush recession and high employment. How about an little intellectual honesty Bactchelor? Although you and your motley crew of right-wing hack commentators have never been know for that.

  • HELENK2
  • http://www.missmalevolent.com/ Miss Malevolent

    Eh, we’re Greece, now, let’s face it. People think we can just keep magically printing money and if we close our eyes, and listen to the pretty pretty words of our current leadership, it will all be okay.

    Everyone’s a taker now, rich and poor a like, and we are going bankrupt. And we have bankrupt leadership at the helm for 12 years now and for 4 more…

    It’s a shame to see Rome burning like this.

  • DM

    A great number of those who voted for Obama are not the voters who contact their representatives. Obama can campaign in PA and other blue states, but he might as well talk into the wind.

  • HARP2

    I wonder what the media will say when they start rolling their 401k into a new Government run system.

    Democratic leaders in the U.S. House discuss confiscating 401(k)s, IRAs

    http://www.carolinajournal.com/exclusives/dems-target-private-retirement-accounts.html

  • no_longer_a_democrat

    Everything works until it doesn’t.

    And this train is coming to a crashing stop in the foreseeable future. Does not matter what promises were made. They will not be kept for anyone who is under 50 and will be changed/limited for those within a decade of hitting the eligibility age, which will be increased.

    They can confiscate every single “evil” rich person’s wealth, it will not cover the deep hole of entitlements. And as more money is taken from the productive part of society, less jobs, less wealth will be created, after all why create new wealth, jobs, if Barry and his marxist dem minions just want to spread that wealth (taxes) around.

    Maybe a decade ago the choices were more, now the choices are hard and few and it will not be pretty. Try and get out of debt if you can, and try and become as self sustaining as you can.

    as for this blog, thank you to Mr. Johnson and all the contributors, it is more appreciated than can be expressed in words. Will certainly do my best to donate what I can.

    • HARP2

      Time for the Gimme-Dat party to find some other suckers to pay their way.

    • elizabethrc

      Yesterday I read something quite disturbing. A Congressman has stated that the inequities in incomes in this country is ‘unfair’ and needs to be addressed (parapharasing). To me, this is the beginning of a movement which is quite insidious and may well be the opening shot at taking away the wealth and redistributing it to the ‘takers’ among us.
      In Great Britain two thirds of the wealthiest are leaving the country because of the 50% tax. It’s happening in France and is bound to spread to other European countries. It’s also coming to a theater near you!
      It is so incredibly simple a premise which somehow escapes Democrats and liberals completely: if you don’t have the money, don’t buy things. Instead, our government, in whom I have absolutely no confidence, thinks printing more money will solve the problem nicely, thank you very much!
      As one who was on unemployment many years ago (26 weeks was the limit then), I know that it unrealistically dampens the need to try to find work. I am not proud to say this, but it wasn’t until I was nearing the end that my half hearted efforts ramped up in earnest. I was fortunate in that I did get a job but I can say that those payments were somewhat counterproductive.
      As a realtor, I’ve seen so many cases of people using government programs to buy properties they couldn’t afford because they didn’t have to put any money into the deal. I’ve also seen those people lose their homes with a year or two because they couldn’t pay their mortgages, adding these homes to the still huge list of foreclosures. These people felt they had nothing to lose but each home on each of those streets lost 1% of their value because of the foreclosures.
      As long as those mindless entitlements exist without curtailment, Democratic congresspeople will go their merry way because THEY have nothing to lose. Pravda was right: Obama was elected by an illiterate electorate!

  • BronwynsHarbor

    Hey, I wrote a long comment and it went poof. What I wanted to say most is that Larry Johnson started this blog in 2004, and I got involved a few years later. He has written and written and written so many important articles. We all need to give him some kind of a standing ovation. I know most of us have to watch our pocketbooks, and we are all scared about the future. I sure am. Unfortunately, I am stuck with Medicare for a while. Maybe if through some great stroke of luck, I might be able to buy the kind of insurance that Mitt Romney has, or something similar. I would love to do that. It is hard on doctors and hospitals to have to wait and wait and wait to be paid.

    Back to Larry: If we can’t donate to the blog — which would be a wonderful way to show our appreciation to him — we can all write a comment here, or in one of his many posts. Let him know that we appreciate all that he has done to create this blog for so many of us. Many people have come here and gone over the years. A few, like me, have stuck around a long time — for me, it’s been about 7 years.

    Anyway, I am game. I’m going to donate $5. He’ll probably tell me not to do that, but I feel like it. Okay? I’m laughing. $5 isn’t much but it is a small token of appreciation. Merry Christmas, Larry. I hope I can get more for you next year.

  • HELENK2

    many of those who voted for backtrack and do most of the hollering to raise taxes, do not pay taxes

  • http://www.facebook.com/mary.cusack Mary Cusack

    I’m sorry but as long as I’m unemployed they better not cut my lifeline. they destroyed my job they damn better well take care of me

    • BronwynsHarbor

      I’m so sorry, Mary. I hope that you can find work soon. Tell you what … I’ll find your e-mail address and write you a note. I would love to look over your resume and cover letters. I used to write those for all kinds of people in a small home business I had so that I could be at home for my daughter. Eventually, I moved on and worked for some big and small companies … and now I am also in need of help. So it goes, eh? But, Mary, I would be pleased to look at what you have put together. It is probably great as is. But, something i found out while helping all those people is that many, many people do not realize that they have had extraordinary experiences that speak volumes about them. So I would sit and chat with them — sometimes about sports, about the news, whatever — and eventually they would open up a bit, and tell me something, and I’d get excited, and tell the m “Let’s add that to your resume.” Which I did. One small example: Several men, after I chatted with them a while, mentioned that they’d been Eagle Scouts. It takes a lot of discipline, effort, prep and planning to accomplish that. So I’d add it. Or if someone had sung in their church choir for so many years, I’d add that too … because that too takes commitment… those people often had to fix dinner for others, rush to practice, rush home to do housework, etc. And there are many other extracurricular activities like that that should be added to the bottom of a resume.

      It is important to keep them short and snappy, if possible. And to always — always — write a thank you note. I have iffy penmanship, or so I am told, so I’d type a thank you note for myself and also wrote them for many people.

      My big problem with that business was that I never charged enough. I never knew my own worth, financially or in some other respects.

      So let me look you up, and try to send you an e-mail.

      • http://www.facebook.com/mary.cusack Mary Cusack

        Thank you. they say networking is a big important part of a job search. the more people who know my name the better my chances

    • Heather Stein

      So you will continue to be voting for Republicans who want to take away any government benefits you many need at every turn? You are part of the 47% that Romney was talking about.

      • http://www.facebook.com/mary.cusack Mary Cusack

        your comment makes no sense.

  • Popsmoke

    I am disappointed John…..

    • BronwynsHarbor

      What do you mean by that, Pop?

      • Popsmoke

        Bronwyn,
        Let’s just say, John is not the talking head I once knew.

  • Bronwyn

    I am going to turn on John’s show tonight and listen for a while. Perhaps Larry Johnson will be on.

    Say, speaking of Larry, he has worked very hard on this blog for a long time. How about we all let him know how much we appreciate his work, and all the posts he writes, often when he is very tired and has had a long day. He helps many, many people, and he cares a great deal about how other people are doing. One way you can show your appreciation is by writing a comment that he might see — here or in one of his posts. And you can also contribute via the PayPal button below “SUPPORT THIS BLOG.” That button on my computer is to the right of BIll O’Reily’s book about Abraham Lincoln. Speaking of Lincoln, I have seen previews of the new movie coming out, and hope to see it someday. I always wait until the movies are shown on TV on a free channel, usually.

    Last year, my cable company had a free trial membership for Showtime, I think. I finally saw “Fair Game” — yes, I saved it a long time. And I kept it on my system because I want to watch it again, when I am not as tired as I was that night. (Yes, I’m still packing. Thank you to ALL who have helped me. I need some more money, and hopefully wll get sme in the next few days, and then I will relax.

    I did a lot of math last night — addition and subtraction + multiplication too. So, if all goes well, unless something catastrophic happens (and as long as some more funds arrive), I will be able to move into my new home in Seattle. I have a good feeling that it is going to work out. Id you wish to donate, and haven’t yet, find the post titled “Black Friday.” I want as many people as possible to know about my experiences so that you can all avoid the “Medicare Web” that the county hospital and doctors are all caught in.

    I am going to write a post about that in a while, I hope. First I need to eat something. I have no appetite and have to force myself to eat … The doctors and I thought I had GERD last summer. I now realize that it was all nerves, worry, frustration, and being frightened…. slowly, I began planning what I might do about that. It’s a rollercoaster ride — lots of highs and lows. YOU BE WELL. Take care.. more soonest.

    P.S. About the GERD — I haven’t eaten a lot of “real food” in quite a while. A couple times, when I got very hungry, I wolfed down too much food. I now realize that I have to slowly adjust my body to eating more “real food” because it is a drag feeling too full (for me anyway).