$2.4 Trillion Increase In U.S. Debt Ceiling Passes In Congress

One Day Ahead Of Schedule, But The Benefits Are Negligible

The U.S. Congress has passed a bill raising the debt ceiling by by $2.4 trillion dollars, to avoid the nation defaulting on its many debts. The proposed spending cuts, to take place over 10 years, not to commence until 2013, are weak and insufficient to tackle the national debt. There is also the very high probability the government will spend even more money, via miscellaneous and emergency costs, that will completely derail the entire budget.

The bill is not particularly helpful to the U.S. economy, makes paltry cuts in government spending that will have no real impact on the deficit and lacks the tax increase on the rich, necessary to help financially pull America back in the black.

U.S. President Barack Obama (right) and Vice President Joe Biden (left)

The economic numbers are in for July 2011 and they do not look good. Job creation is going at a very poor pace, leaving 14,000,000 Americans unemployed. U.S. Senator Bernie Sanders insists unemployment is actually at "16 percent" not "10 percent." There was next to no growth in the U.S. manufacturing sector, which is bad, as the nation needs exports as one of several key revenue sources.

As mentioned above, another key revenue stream that is missing from the bill, is tax increases on the nation's wealthiest citizens. It's only fair, if the rich are going to live in America, they should help clean up the financial mess Wall Street's greed spree made on their behalf and that of their bulging bank accounts.

Sensible cuts to the government's budget would have made a great impact, such as closing a number of U.S. bases abroad, selling the land/buildings and equipment to the host countries, saving the nation billions in upkeep costs per year. The defense budget is too big, yet as we have seen repeatedly, terrorists can get into America if they want to and engage in evil acts that need to desist.

President Obama and members of his administration

Therefore, you may as well close many of the bases and bring the U.S. citizens back to America. It is cheaper than keeping them open, which is causing further offense in a number of places in the world. It also seems the cuts in the current bill target the poor and middle class, which is a bad idea. How did Congress get it so wrong again.

For the aforementioned reasonable reasons, the Judiciary Report is not in favor of the bill that was just passed in the U.S. Congress. Any sensible person with moderate views and a grip on reality will realize, it is not going to work and after all that wrangling and arguing it sad that this is all they came up with.

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Billionaire Tells Obama To Resign Over The Economy

Barack Obama

As his poll numbers worsen, U.S. President, Barack Obama, received a dressing down two days ago from billionaire, Jim Rogers, who called for his resignation, over the poor state of the economy. Rogers stated many sound principles the Judiciary Report has as well over the past few years, but the President has not been listening, sticking to an unsafe financial course that spells sailing into disaster.

For example, last week, Rogers warned of something the Judiciary Report wrote of on December 8, 2010 - the possibility of revolt, via violence and rioting erupting in America, if the nation's financial condition continues to deteriorate (Ben Bernake Didn't See The Financial Crisis Coming).

The site wrote this before all the uprisings and riots occurred around the world this year. While the Judiciary Report is not advocating violence, if the situation reaches boiling point in America, problems of a new violent breed will ensue. Rogers stated two days ago, "The administrations failure to cut spending, and halt skyrocketing inflation, will lead to violence and rioting in America, similar to what has been taking place in Greece, and other parts of Europe."

Another point Rogers mentioned on June 26, 2011, is cutting the national budget. The Judiciary Report has written about cutting the budget for years, but Washington apparently thinks it is novel and quaint, when it isn't obscure. It's not a revolutionary concept. Nations and companies have been doing so for decades when things go financial sour.

However, Obama reiterated his position last week and is refusing to cut the swollen budget, ram packed with luxuries and non-necessities. President Obama continues to spend like a gay man at a glitter store and it just is not going to work.

On June 24. 2011, the Judiciary Report stated, "You cannot spend your way out of debt and into prosperity" (A Majority Of Americans Feel They Were Better Off Before President Obama).

A day later on June 25, 2011, President Obama stated, "We can't simply cut our way to prosperity." Paraphrased, that's the exact opposite course of action to what I wrote a day earlier (oh no he didn't!).

Hypothetically speaking, if you have $1 trillion dollars coming in as accounts receivable and you spend $1.1 trillion dollars under the tag of accounts payable, mathematics tells you, that shall leave you in debt and in the red. If you cut the budget (accounts payable), you will have a surplus. Repeat process until the money sufficiently builds up in the black, pardon the pun (hey, I'm black too, so I can write that pun).

There are American companies generating revenues and paying taxes on those profits, but said money is being squandered by the government in Washington, eroding any attempts at rebooting prosperity. This is why many articles this week have proclaimed the U.S. economy is "stalling."

As stated before, the defense budget needs massive cutting. It's not really a "defense" budget, more like a "let's start some doo doo stuff" budget. The Pentagon, DOD, CIA and FBI, use a significant amount of taxpayer money, to engage in adversarial conflicts in the world that are not necessary and completely fruitless.

Their employees have huge salaries, first class accommodations and all the perks. Many of them live like Fortune 500 CEOs - and ironically for a government job that's not bringing in any revenues. The total expenditures for these misguided adventures, costs the U.S. taxpayer billions of dollars per year that could be better used elsewhere.

Many of President Obama's green and solar initiatives, which can wait, are sucking up billions of dollars in taxpayer money and at a very inopportune time. His high-speed rail initiatives can also wait, but he has signed away billions for those projects as well. Let's not forget Obamacare, which has usurped so much taxpayer money, it would give any accountant worth their salt, a very bad case of diarrhea.

A number of people have been offering the President sound advice, but he has tuned it all out, in favor of his agenda that America currently cannot afford. However, the President must remember, at the end of the day, he will be held accountable for his actions in the history books.

STORY SOURCE

Billionaire Jim Rogers calls for Obama's resignation over economy