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I Know How to Solve the Fiscal Cliff

Posted by Larry Doyle on December 8, 2012 11:39 AM |


How does one spell dysfunction?

W-A-S-H-I-N-G-T-O-N-D-C, that’s how.

While most people in our nation are compelled to develop and live within a budget, the incompetent and ill-advised in Washington strut their stuff with little regard for our nation’s general well being.

The simple fact is many politicians in Washington could not manage their way out of a paper bag yet we expect them to manage our nation’s finances.

Some in our audience would view the recent election results as a mandate for others to “bend over” when it comes to implementing new tax policies. Talk about misreading the tea leaves. A significant majority of Americans (try a 17% margin) are much more interested in economic growth than perceived economic fairness. Yet those with ear plugs in and ego boosters on in Washington would rather take their case to E-News than actually work to solve our nation’s problems. I think it is going to be another long four years.

Not trying to be overly cynical but merely realistic and practical as I see our nation continuing to move down a path of economic decline. But just how might we solve our nation’s fiscal problems? Actually, as I think of it, I believe I know how to solve our nation’s fiscal cliff. How should we do it?

Let’s just divvy the nation up.

Should we divide the nation by North and South, East and West? Why don’t we just allow the states with some of the greatest mutual interests (you know, California, Illinois, New York, Connecticut, New Jersey, Nevada, Washington, Oregon, Massachusetts, and Vermont) to let us know what part of the nation they might like to occupy and then we will cede that to them. They can take all of their fiscal matters and their representative percentage of the federal deficit along with them. One other item MUST be part of the package: they MUST take their representatives in Washington, as well.

Perhaps we could just draw a line right down from the Canadian border along the edge of North Dakota and straight down to Texas and let them have everything to the west of that. I think that is fair. How about you? We can promote some free trade agreements and the ability to move between the two newly developed nations very liberally. I think they should like that as they seem to like most liberal programs. Hell, Washington and Colorado just legalized dope so they are free to make that the new national plant. This might be a lot easier than we think.

Perhaps they might even think of having the new capital in San Francisco or maybe even the entire state of Hawaii. Can we get this done by the New Year so some of those impacted by this initiative may not have to come back from vacation?

Map of United States

I think that sounds fair. How about you? If you like the proposal, might you think about sharing it with your friends and our allies.

Navigate accordingly and have a nice weekend!!

Larry Doyle

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I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

  • Rob Phillips

    Excuse my French, but HELL NO!!

    I live in Texas, and the last thing I want is for the knuckleheads that voted their states into oblivion bringing that mentality here, never mind straight up giving them Texas.

    We’re the 14th largest economy in the world. Why ruin a good thing? Instead, we should make Texas the capital of the conservative, responsible portion of your newly formed non-so-United States.

    Otherwise, your plan is sound.

    • LD

      Rob,

      I am not talking about ceding all of Texas but we may need you to give up the small western most part of the state out by El Paso. I know that this is a sacrifice but work with me on this.

      I am more than happy to consider Dallas, Austin, or Houston as the new capitol!!

      What do you think? Our friends in Utah, Arizona, Wyoming, and Montana are likely to have the biggest gripes. Think you have room for some of these good folks down your way??

      • Rob

        I’m a flexible man, so yes, I could agree to this change in the plan. I’d welcome transplants from the states listed, and to sweeten the deal, we could extradite a liberal Texan for each welcome arrival.

        When do we get started?

        • LD

          Monday…first thing.

          Enjoy the weekend and rest up. We have work to do.

  • Earl

    Hi Larry,

    I have enjoyed following your posts, and sincerely appreciate your perspective.

    Question: What kind of platform or movement is it going to take to expose this never-ending “big-government” hypocrisy and literally begin to hold our elected officials accountable for these streams of lies upon lies that seem to get swept under the rug by even conservative media outlets after a few days of ranting?

    I know the standard answer is “vote them out of office”! I’m talking about holding their feet to the fire while in office and until we can fully perge the disease, which realistically may never happen!

    Totally frustrated with a lying bunch of egomaniacs,

    • LD

      Earl,

      GREAT QUESTION!! What will it take? A groundswell of public opinion which will not come through the dissemination of the message by general media outlets.

      Organized and increasingly animated opinion driven through the blogosphere strikes me as the only means. Make no mistake, those on the other side are beating the piss out of the informed on this front. Romney and the Republicans were beaten badly on this front as well.

      I share your frustration and try to bring a reasoned voice to it via my blog. I hope you will share Sense on Cents with your friends.

      • Earl

        Thanks very much Larry. I will commit to share your blog with all my friends, and continue to pray fervently for that “groundswell of public opinion” to grow quickly into a tsunami of public outrage over the deceitful lies our elected officials think we actually believe!

        Unfortunately too many Americans are not into the truth but into “what’s in it for me” !

        Evil must not only be exposed, it must be resisted, and then it must be overcome! (Romans 12:21) The apostle Paul had it right almost 2000 years ago, now we must do the same!

  • John

    How about the state that is the 8th largest economy in the world, the one that provides 12% of the total US GDP, that state that receives only 50% of the taxes it sends to the Feds, the 4th largest oil producer etc etc…California be allowed to secede from the US..Then all you whacked out welfare queens can stew in your own mindless bullshit?

    • LD

      John,

      Do you promise you will take Nancy Pelosi with you?

      If so, then you have a deal.

      • John

        Absolutely ….But you have to crowbar Romney out of his new SoCal home as part of the swap He’s bringing down the neighborhood. . ;=)

        • LD

          You have a deal. I like your straightforward manner!! Nice.

  • Rick

    not an inch . . . but we can’t have what they won’t give up and can’t take what we can’t wrest from them…the key is really leadership on our side of the ball…we just dont’ have it…

  • Gamma

    Larry – I normally enjoy reading your posts, but respectfully I think this is just plain silly. Agree Washington DC legislative process is a huge systemic risk. Agree that our country’s budget should be balanced. Disagree that the best way to solve those issues is to split things in two.

    When you post information that blames only one of the two blameworthy sides in a problem it devolves into fractured and unhelpful partisan rhetoric. In fact, it is a variation of the exact same theme that is the main source of the problem in our great nation’s capital: extremism.

    You are better than FOX news Larry !!!! Suggest respectfully that you please take a moment to enjoy Chris Christie on the Daily Show with John Stewart the other day – his approach speaks volumes to the concept of negotiation, problem solving, compromise and concession as opposed to name-calling and extremism.

    At that point if you still feel strongly about secession I certainly respect your point of view, and you are welcome to depart our democracy.

    • LD

      The solution is meant to be a weekend satire.

      The poll and reference to the legalization of the dope speak for themselves.

  • Gamma

    Ok, got it, and my apologies if I misinterpreted. Thanks! I think the best satire would be throwing all these bums in DC off a cliff.

    Can you imagine a group of folks trying to design and build a road, and several miles up ahead they can’t agree on design plans for whether it should go to the left or to the right of a big obstacle – so, they just throw up their hands during the design process and draw the road so it goes straight into the obstacle? “ok, let’s start building, we’ll figure that out when we get to it or we’ll force ourselves to hit the obstacle.”

    Sadly, I think we actually went over the fiscal cliff a long time ago, and the current exercise is simply a clusterfucked flailing at a sign-post being observed mid-flight.

    As a nation we need to gradually reduce both taxation and government spending so that the government component of GDP comes back down in favor of increasing private sector component.

    It may be a long and delicate road dialing back government and avoiding interim deflationary pressure, but we can still design the road in a holistic way rather than navigating purposefully into self-imposed obstacles.

    Please keep the commentary coming, I would love to see more information about who (if anyone?) in Washington is displaying balanced pragmatism and non-extremist leadership. Thanks as always!

  • LD

    Anybody care to guess which state this might be?

    Big State Faces ‘Clear and Present Danger’ of Credit Downgrade

    Big State

  • fred

    Dem politicians now believe they have a mandate to help themselves to your money because people with no money and people with huge sums of money said they could.

    The Pubs are now abandoning the Norquist pledge in droves to catch up with the Obama bandwagon. Every day brings stories of emboldened organized labor and other Obama supporters demanding political payback.

    Don’t think for a moment that the truly rich will be the target of the “rape and plunder” because their campaign contributions will ensure otherwise; the real target is/will be the middle class.

    I define the middle class as household’s with taxable income between $50,000-$500,000. What the feds don’t get their hands on, states, locals, banks, big oil/auto and educational institutions will.

    We live in a country with the largest energy reserves in the world, yet we still pay over $3.50 gal for gasoline and will soon pay over $35k for low end cars that meet minimum mileage standards but won’t utilize our abundant energy resources.

    Vital infrastructure is beyond disrepair but our colleges and universites resemble high end resorts with graduates unable to find jobs. Retirees with guaranteed defined benefit plans now outearn and will soon outnumber those responsible for picking up the tab. A country where insurance companies collect ever increasing premiums but have found ways to putback most risk to policy holders and to the public. A country where the central bank purchases the bulk of the publically issued debt by ramping up the printing press then returns the coupon payment to the treasury claiming a net positive.

    So we await the “big” fiscal cliff deal which is supposed to reduce government spending and get our debt and deficits under control. The only thing you can be sure of is that “back end loaded” will rise to the top of popular phrases on Google searches. Can’t wait until Obamacare kicks in, my premiums have already risen over 20% in anticipation.

    BUT, when you cut through all the BS, there is still one HUGE unanwered question, if the fiscal cliff agreement IS back end loaded and public spending continues to escalate, how do we REALLY pay for all this?

    Just last night the nightly news provided a possible answer, my State will soon layoff all the toll collectors and replace them with cameras and direct debit access to people’s bank accounts to collect the tolls. Politicians are already contemplating expansion plans for the toll road “network” and “touting” the cost savings.

    “Thank you sir, may I have another”

  • Bill

    I think the major problem facing the country is not the debt, deficit, terrorism, external threats. Rather it’s this slanted lib media propaganda machine around our necks, of which Joseph Goebbels would be green with envy, and which has enabled much of the dysfunction, including electing and reelecting Obama.

  • fred

    LD,

    No skin in the game.

    Due to entitlement progams and estate planning schemes for wealth transfer, there are more and more Americans with no “skin in the game” who have found their way to the voting booth.

    What do I mean, well Mitt Romney’s 47% remark is already well publicized in terms of paying no taxes, but what continues to fly under the radar are “trust fund babies” and entitlement collectors who often have no idea what it means to EARN a real paycheck.

    Armed with guaranteed monthly incomes and a checkbook, these are the new movers and shakers influencing politicians. Political activism is now populated by persons who either 1)collect money for doing nothing or 2) have nothing better to do with their time.

    Is it any wonder that our preferred method of solving problems has evolved into a reliance on BIG government setting up endless numbers of task forces/meetings that propose more and more social programs requiring lots of new hires and frivoulous spending.

    As a country, we now spend way to much time talking on cell phones, watching movies/sports, playing video games and aspiring to lives of leisure. We have become dependant on holday spending on consumer leisure technology for our future prosperity.

    How do we get off this escalator to nowhere, let’s close a few loopholes, means test entitlements and re-introduce the newly motivated former check collectors, to the mechanics of lawmowers, screwdrivers, paintbrushes, and punch clocks.

  • fred

    LD,

    Let’s shift our focus from the unnecessary political circus in Washington.

    What many people don’t realize is that Obama holds the keys to the solution to our fiscal problems but he has a continuing delemma that has not allowed him to act in the countries best interest.

    To what am I referring? The abundance of energy resouces possessed by this country that the President is holding hostage to green/alt energy initiatives and the american auto workers union.

    Starting in the 1970’s there has been a massive shift in global wealth from the American middle class to the oil producers. The price fixing mechanism was initially OPEC, now it is the President’s failure to build out the energy infrastructure necessary to get our domestic energy resources to the global markets.

    Currently the spread on domestic v. global oil is over 20%. The spread on natural gas much, much greater. These spreads are trillions of dollars in revenues lost to this country on an annual basis. These spreads also result in an unnecessary 20% oil/gas tax on the American consumer.

    The leader of the next legitimate bull market in America is the energy industry, not the financial engineers on Wall St. Mr. President, stop holdng capital markets hostage to your socialistic ideals. Let it happen, unleash the frack attack.

    When green technology is ready to take over energy leadership, it will be price competative not government subsidiized. The Chevy Volt cost > $90,000 to build, the Toyota Prius < $30,000, the timing is off!

    I get the global warming argument, but NG is much cleaner than oil, why not promote NG until even cleaner energy sources are ready?

    • LD

      Fred,

      You are providing an education to all who read this along with a whole lot of ‘sense on cents’ in the process.

      Where is the rub? The political conflict and social vision of those who might make a difference along with the profiteering of those who gain under the current construct.

      Who pays?

      Who “ALWAYS” pays?

      The American consumer and primarily the middle class.

      Thanks for the enlightenment and transparency.






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