Country Boy Views

How Could This Be

2013-01-22

1/16/13 How Could This Be You are not in the $200,000 bracket but your tax went up. It seems to me that President Obama failed to make it clear, that the 2% reduction in the FICA tax was only temporary. Did you get a bait and switch deal, the reduction lasted until his reelection. In case you are young and naïve, you will soon learn to pay attention to the fine print, when a Democrat speaks. The reinstatement of the FICA tax will pale into insignificance, when all the hidden tax is revealed, that is in the unaffordable health care act. In 1916 Argentina elected a new President, Hipolito Irigoyen from a new party called the radicals under the banner of “ Fundamental Change” with an appeal to the middle class. It is always the middle class that gets the shaft eventually. He promoted mandatory pension insurance, mandatory health insurance, support for low income housing construction. Put simply, it is President Obama’s hope and change. The government payouts soon surpassed the ability of the tax payers to keep up. Does that sound like any thing that is happening in America? The death of the Argentine economy came with the election of Juan Peron. He and wife Eva aimed their populist rhetoric at taxing the rich , sounds familiar doesn’t it. But soon it expanded to most of the middle class, who became an enemy to be defeated and humiliated. Under Peron, the size of government exploded through massive programs of social spending and encouraging the growth of labor unions. The practice of printing money to pay off its public debt had crushed the economy. Inflation hit 3000%; food riots were rampant; stores were looted; the country descended into chaos. A government controlled privatization effort to rescue the senior’s pensions was attempted, however, by2001 those funds had also been raided by the government, and the monies replaced by Argentina’s defaulted government bonds. Could such a thing happen in America? The treasury secretary is borrowing money from federal employee pension funds until the debt limit is raised. When this country runs out of sucker nations to buy our bonds, that is when something hit’s the fan. Why not try the Galveston County retirement plan. They opted out of social security, and have a plan that pays more than social security and if you die at an early age your family receives the balance of your benefits. On social security, all goes in the black hole of government. If a private company pulled the shenanigans’ that the Government has used with social security, they would be heavily fined and thrown in jail. And you say, what if the stock market collapses, what happens to your retirement, the same thing that happens when the politicians bankrupt the whole country. You are up that well known tributary. Don’t think that America is too big to fail, it has happened other places and it will happen here, unless some one puts a stop to reckless spending.   Richard Feuilly

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