It's air tight and cannot be broken:

Friday – December 10, 2010

It’s air tight and cannot be broken:

This is what the President is telling his party about the compromise with the Republicans. The Democrats are fit to be tied that he did not consult with them and in their minds caved. But did he?

This president might be a lot of things, but he is not dumb! The President is playing his card and the politics could not be any more difficult. His presidency is on the line and he will have challengers in 2012, if his hand is beaten by the Republicans. The Republicans, on the other hand, need to be strong and need to be honest with the American people. Going forward, they need to detail and spell out the politics that are being played.

The President is banking on one thing, the Economy! What has this president ever done with regards to real stimulus and real job making proposals? His proposals are full of rhetoric and full of the words that some Americans buy into. His proposals are centered on making people dependent and punishing those whose earnings put them into the upper tax brackets.

The discussion this week on Capital Hill has been over extending the Bush era tax cuts. The Democrats have positioned their argument to make those lower wage earners think the rich are getting new tax breaks. In essence, the extension keeps everything the same. The real stats that no one is talking about are that it took three years for the original Bush Tax cuts to take effect. If you remember after 911, the economy went south and the President needed to stimulate the economy with a tax cut. It took three years to get Companies hiring again. I was one of those statistics.

The tax rates in this country have been the same for the last ten years. The spending habits in Washington are based on the revenue coming in. With this extension nothing should change with regard to revenue, except for one thing. If unemployment remains high, then revenues to the government will shrink because there are less people working and less tax revenue coming in.

The government bases its budgeting on a base line approach. The Democrats were banking on tax hikes so that revenue would increase so they could increase spending in future budgets. The Democrats did not bank on loosing the House in Obama’s midterm election. The Democrats did not bank on Obama failing the progressive liberal mantra of taxing the rich to keep the poor dependent.

So what is the President up to? What are his choices? Where does he go for support? And finally what is at risk? The risk is that he will have challengers and lose a primary or even the election. His support has left him and what is left of it is complaining. The Presidents choices are to remain the liberal he is but also balance the Republicans victories. In other words, be selective in what he is willing to give. He will say it is compromise that makes government work for the people. The President is up to no good because he wants unemployment to remain high, so that in two years he can make the point that the extension of the tax cuts didn’t work and supply side economics is a failure. Remember, it took three years for the first Bush tax cuts to work. Time is on his side. Once again, what has this President really done to improve employment? His record is abysmal at best, because he does not want people to be empowered and fight the government when Democrats want to fuel the baseline budget with tax dollars for their expansion of government.

On this date, in 1690, Massachusetts Bay Colony becomes the1st American colonial government to borrow money!

Faced with an immediate need to pay expenses relating to a military action against Canada during King William's War, on December 10, 1690 the General Court authorized the issuing of £7,000 in public paper currency. This was the first public paper money issued in the history of Western civilization. Previously, all currency had an intrinsic value of gold, silver or copper, much like the value of commodity items used for bartering. Now for the first time, the money itself had no intrinsic value other than the value of the paper on which it was printed. Rather, the value of the money came from the fact that it was backed by the colony. It was legislated as being equivalent to the denomination printed on the bill and would be accepted as the equivalent of hard currency by the colony. Within a few months, it was further legislated that the paper money would be accepted by the government for tax payments at a 5% premium and that on demand bills could be turned into the treasury for the equivalent in hard currency, if the colony had such hard currency available.

As we witness the bartering for position in Washington and as we witness the power play of one side against the other, our history of borrowing and printing had its roots in our early history. What we see today is much different than what our history started. What we see today is a debt that cannot be backed and a debt that is the result of politics. What we see today is the progressive liberal playing the field for a position in two years. What we don’t see is the progressive doing what is right for the country they say they love!

As we wrap up another week and get closer to the season that we share and give of ourselves, we must remember that there are people who are truly in need. It is these people who we need to be compassionate over.

In the year that awaits us, we must pledge of ourselves to be better citizens and become the patriots that our forefathers were and that our forefathers still challenge us to be.

I am ending this week with a quote from the “Father of our Constitution”, James Madison, our fourth President, he said: “In framing a government, which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed, and in the next place, oblige it to control itself.” — James Madison

James Madison, Federalist No. 51, February 8, 1788

Gregory C. Dildilian
Founder and Executive Director
Pinecone Conservatives

A footnote: It is up to us, the governed, to make sure the new Congress is obliged to control itself, because we have controlled ourselves far to long.