Trillions In Federal Deficits – Who’s To Blame?
March 30, 2010
By John Newcomer:
Approval ratings for Congress is at an all time low. With our staggering federal deficits, owing debts our grand-kids will still be trying to pay off, it seems like everyone is blaming our elected officials for this fiscal mess. Well, guest columnist LeRoy Goldman has a different point of view. If you have the courage read on:
By Guest Columnist LeRoy Goldman:
Back in the mid-seventies, when I worked in the Senate, there was growing concern about the increasing size of the federal deficit and the extent to which it was adding to the national debt. That concern led to the enactment of the Congressional Budget Act of 1974. At that time the Federal deficit was about $50 billion and the national debt was about $500 billion. Although the Budget Act has been in operation for 36 years, there is no doubt that it has been a colossal failure.
The projected Federal deficit this year is $2.9 trillion and the national debt will grow to $14.1 trillion. Even when one adjusts these numbers for inflation, it remains obvious that, as a nation, we are inexorably headed into fiscal and economic Armageddon – and soon.
If one digs into the Federal Budget, it doesn’t take long to determine that the main problem is what Washington calls MANDATORY SPENDING. At the present time MANDATORY SPENDING consumes about 60% of the entire Federal Budget. The four largest components of such spending are Social Security ($730 billion), Medicare ($500 billion), Medicaid ($300 billion), and interest payments on the national debt ($200 billion). According to the projections of the Obama Administration, debt payments will increase to about $840 billion a year by 2020. Medicare is projected to be in bankruptcy by 2017. Social Security is projected to be bankrupt not too long thereafter.
While most Americans have no detailed insight into the looming catastrophe, Washington has known about it for decades. Every President, every Treasury Secretary, and every member of Congress, all the way back to the Ford Administration in the seventies, has been clear about the magnitude and the inevitability of the coming crisis. Let’s give it the name that it deserves–a bipartisan conspiracy of denial.
All these politicians that we have elected to serve us have failed, and willfully so. It’s no wonder that today there is such a deep and growing sense of outrage and fury in the nation directed at the incumbents of both parties. There is a very real chance that the election this fall will be a bloodbath for incumbents of both parties. Readers of this space know that I think that will be a welcome outcome.
But, not so fast kemosabe. Such a bloodletting, while necessary, will deal only with a symptom of this problem–not the problem itself. Let’s pause and ask ourselves why it has been the case that all these politicians have refused to deal with a growing national calamity that they knew was coming? What were they all afraid of? The answer is obvious–us.
The hard fact of the matter is that the root of this problem is not the government. It’s you and me. We have allowed ourselves to become addicted to the ultimate free lunch, while we blame the politicians for not fixing it. Would you reelect a member of Congress who called for cuts in your, or your parent’s, Medicare and Social Security? No, you would not. And that’s why the politicians have kicked the can down the road for 35 years.
Well folks, we’re about out of road. Just ahead is the cliff. And we can’t blame Toyota for this stuck accelerator.
As Cassius said in Shakespeare’s Julius Caesar: “the fault, dear Brutus, is not in our stars, but in ourselves”
LeRoy Goldman worked for the federal government from 1964-2001.
Fight Foreclosure: Make ‘Em Produce the Note
March 30, 2010
By Angie Moreschi:
Using the “produce the note” strategy is something all homeowners facing foreclosure can do. If you believe you’ve been treated unfairly, fight back. We have created templates for a legal request, a letter to your lender and a motion to compel to help you through the process. Read the step by step “how to” under the videos.
Special note: In some states, a lender can foreclose on your home without going to court. These are called non-judicial foreclosure states. You can still use the “Produce the Note” strategy in these states, but it takes a few more steps on your part.
Produce the Note – Steps To Follow:
South Dakota: Loan Shark Capital of the World
December 9, 2009
By Terry Smiljanich:
Why this State is to Blame for your
High Credit Card Interest Rates
Bank of America, among others, charges up to 36% interest on credit card debt. How can financial institutions get away with charging consumers such historically high interest? Isn’t it criminal to do so? Isn’t it “usurious?” If not, who’s responsible for letting banks get away with this? Remember when 18% interest was considered high on consumer debt? Remember finance charges of 6%? How did we get from there to here? Enter South Dakota.
Click here to learn the lame excuses South Dakota is offering up for why it’s the loan shark capital of the world. Read more
DirectTV Charges Customers for Unwanted Movie
December 8, 2009
Consumer Warning Network received two inquires concerning “pay for view” fees showing up on DirectTV statements for movies that were not ordered. We looked into it and learned what the problem was.
Warning, apparently there is a glitch in DirectTV’s system that downloaded the movie “Angel and Demons” to receivers automatically whether you ordered the movie or not. Here is the catch; if you watch the movie you will be charged for it. Delete it and you will be o.k. There is no warning that you are about to be charged. You look at your play list and, lo and behold, there is the movie “Angels and Demons”. Hey, it’s on my play list so it must be ok to watch. NO! You will be charged.
DirectTV is working on this problem, but until it is fixed – Beware. Thanks to Consumerist for first reporting this.
CWN Welcomes New Facebook Fans
October 27, 2009
As part of our 2nd birthday celebration, the Consumer Warning Network created a new fan page on the social-networking site, Facebook. To become a fan, click HERE.
Connect with other CWN fans, share your stories and ideas and get the latest consumer information you need to mange your life. From foreclosure help to consumer products reviews, CWN gives consumers the knowledge big companies don’t want you to have, so you can fight back!
Join the Facebook revolution and connect with our Consumer Warning Network Facebook fan page. Tell your friends!
Consumer Warning Network Celebration
October 19, 2009
By Angie Moreschi:
This week marks the 2nd anniversary of Consumer Warning Network. Click here for a special behind the scenes look at our team and what we do.
5 Ways Drug Companies Put Profits Before Patients
September 10, 2009
By Terry Smiljanich:
When it comes right down to it, drug companies don’t look at us as patients, they look at us as consumers. Their primary goal is not to discover new drugs to make us healthier, but rather to make their shareholders happy by keeping short term profits up.
Unfair, you say? But unfortunately, quite true. Let’s look at some big ways the major drug companies put profits ahead of patients. Here are five drug industry tactics that serve to put their bottom lines above the country’s welfare:
Fight Foreclosure: Make ‘Em Produce the Note
September 1, 2009
By Angie Moreschi:
Using the “produce the note” strategy is something all homeowners facing foreclosure can do. If you believe you’ve been treated unfairly, fight back. We have created templates for a legal request, a letter to your lender and a motion to compel to help you through the process. Read the step by step “how to” under the videos.
Special note: In some states, a lender can foreclose on your home without going to court. These are called non-judicial foreclosure states. You can still use the “Produce the Note” strategy in these states, but it takes a few more steps on your part.
Produce the Note – Steps To Follow:
The Foreclosure Judge Who Gets It
August 31, 2009
A State Supreme Court Judge in Brooklyn, New York is on a mission to force mortgage companies to stop foreclosing on homeowners unfairly. Judge Arthur Schack has become a friend to the little guy. Instead of rubber stamping and waving foreclosure cases through his court, he is standing up to mortgage companies who try to foreclose on homeowners without proper standing or proof.
He’s not a pushover, but is diligent about enforcing the law. As a result, he’s tossed out 46 of the 102 foreclosure motions that have come before him in the last two years.
College Saddles Students with Massive Debt & Little Value
August 17, 2009
In these tough economic times, students are turning to online and for-profit colleges in bigger numbers than ever. Unfortunately, what they get in return is questionable. ABC News reporter Brian Rooney reports on one for-profit school which is the focus of growing complaints. Former students of Westwood College say they were strapped with massive debt in exchange for a largely worthless degree. Click here to watch the report.
Banding Together and Fighting Back!
Get your Mortgage Crisis message to your State Attorneys General Office. Read more »CWN Contact Form
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Recalls and Product Safety News- No Specific Cause Found Yet Linking Dry Max Diapers to Diaper Rash
- Toshiba Recalls T Series Notebook Computers Due to Burn Hazard
- Swing Sets Recalled by Kompan Inc. for Repair Due to Fall Hazard
- CPSC Makes Recall Data Available Electronically to Businesses, 3rd Party Developers
- 32-Inch Sharp LCD-TVs Recalled Due to Risk of Injury
- Slow Cookers Recalled by Sensio Due to Fire Hazard; Sold Exclusively at Kohl's Department Stores
