Thread: Sequestering The Working And MIddle Class – The implications of runaway debt.

Sequestering the working and middle class – The implications of runaway debt.

GDP at record levels yet nonfarm employment is 4 million below previous peak.

Trillion dollar coins. Greece unemployment reaches a new record.

Posted by mybudget360 in banks, debt, economy, government

Gear up those printing presses. You might be thinking that some of the policy talk coming out today is from The Onion but no, the idea of a $1 trillion coin is being discussed. The Federal Reserve is already very willing to become a shadow bad bank and take on all the questionable assets from the latest bubble from member banks. As the middle class is crushed, our nation is becoming more polarized. You have a massively large group of people that are now classified as poor in the world’s wealthiest nation. We have over 47 million Americans on food stamps. The average per capita pay is $26,000 much to the surprise of many people conditioned on only getting their data from the mainstream press. Those that deny inflation are not looking hard enough. The purchasing power for working and middle class Americans is being slowly destroyed. Europe is still facing major headwinds with Greece reaching a troubling new record with their unemployment rate. All this rhetoric means the Fed and ECB will continue on their path of quantitative easing and digital money printing.

Sequestering the working and middle class

One of the major stories that was not reported during this crisis is that many companies used the economic crisis as a reason to lay off employees or slash wages. Yet by looking at GDP, you will realize that we are at a current peak yet nonfarm employment is down by 4 million from the previous peak:



In other words we are producing just as much with far fewer people. Where are these people now? Many of them are now on food stamps. Over 47 million Americans are receiving food assistance. Their voice is largely unheard and politicians have little incentive to recite their concerns. We are now stumbling from one crisis to another like a drunkard. Only a few hours after the fiscal crisis was diverted for the short-term we were then talking about the debt ceiling. This even inspired the idea of minting a trillion dollar platinum coin to pay off some of our national debt.

It would be comical if it were not so absurd. The GDP equation is rather simple:

GDP = private consumption + gross investment + government spending + (exports − imports)

We’ve been going hog wild on the government spending portion recently. Take a look at the current government spending and revenues:



After the recession government spending ramped up dramatically to make up for the losses in revenue. But we are still spending at record levels while not taking in enough. We are running gargantuan trillion dollar deficits for as far as the eye can see. Maybe minting a few trillion dollar coins isn’t such a bad idea. We wouldn’t be the first nation to lead this charge. Zimbabwe already went down this road with a trillion dollar note:



Nothing bad ever came from that right? The problem with the road we are leading in is that the US middle class is being crushed. Even projections for this are highlighted in many reports:



For the very wealthy, they don’t mind pursuing this global low wage system where they can squeeze dollars all around the planet. Do you want to work for $1,000 or $2,000 per year? This is the future for many.
There really are no easy decisions. Take a look at a high wage system with cronyism in their government, Greece. They recently just reached a new peak unemployment rate of 26.8 percent:



Youth unemployment (15 to 24) is now up to 56.6 percent. So much for high unemployment suddenly creating a healthier marketplace and a fertile environment for the middle class. This sequestering of the middle class has been ongoing for a few decades now and has happened under both political parties. People need to wake up and pay attention to what is really going on. These massive increases in debt do come at a price. Maybe a trillion dollar coin is our sale price.

Sequestering the working and middle class

THE LAW THAT CAN SAVE AMERICA AND PUT OBAMA IN JAIL
Written by Dr. Jack Wheeler
Thursday, 10 January 2013

Article I, Section 9, Clause 7 of the United States Constitution states:

"No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time."

This is the "Power of the Purse" clause, which Article I, Section 7, Clause 1 makes clear is exclusively held by the House of Representatives:

"All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills."

Actually, there are two "powers of the purse" - to spend money or to deny its being spent. For the US Federal Government to spend any money, one single dime on anything, three things need to happen in this order: 1) an Appropriation must be authorized and passed by the House, 2) such Appropriation must then be passed by the Senate (any differences in the House and Senate versions must be reconciled via joint agreement and passage), and finally 3) be signed into Law by the President.

To deny the federal government the authority to spend any money, one single dime on any program or activity, only one thing needs to happen: the House does not pass an Appropriation for it. Period. Neither the Senate, nor the President, nor the Supreme Court, nor any federal agency secretary or bureaucrat, has the constitutional authority to spend one single dime by themselves, without a majority of the House giving it to them.That is the power of the purse.

There is, however, a problem - a legal problem, not just a psychological one, such as Congressistas being spendaholics or too cowardly to refuse the begging of various constituencies for handouts.

This problem is epitomized by the Senate Republicans' inability to force Harry Reid to pass an annual budget, even though there is a law requiring the Senate to do so. Thanks to Reid's blocking all attempts, the Senate hasn't passed a budget since April, 2009, which clearly violates federal law - the Congressional Budget Act of 1974.

So how come Reid can't be prosecuted? Why can't the Senate Pubs take legal action against him? As Byron York explains, "the Congressional Budget Act of 1974 doesn't have an enforcement mechanism. Lawmakers are required by law to pass a budget each year by April 15, but there's no provision to punish them, or even slightly inconvenience them, if they don't."

So we arrive at what may well be the single most important question to ask in America today.

Given that the current President of the United States seems determined to bypass the House's appropriation authority and spend gigantic sums on whatever programs he wants or enforcing whatever Executive Orders he issues, is there an enforcement mechanism for his violating the power of the purse clauses in the Constitution?

The answer is yes. There is a federal law that specifically codifies the power of the purse clauses, and provides specific punishment for their violation by any "officer or employee of the United States government."

This punishment is "suspension from duty without pay or removal from office," and up to two years in federal prison.

This Federal law is: The Antideficiency Act. The original version was enacted into law in 1884. Although revised occasionally since to make its meaning clear in terms of "modern" language, its purpose remains: to be the enforcement mechanism implementing Article I, Sections 7 & 9. It was last revised during the Reagan presidency, and is codified as Title 31 of the United States Code (31 U.S.C. §§ 1341, 1342, 1349, and 1350).

§1341 states:

1) An officer or employee of the United States Government or of the District of Columbia government may not-

(A) make or authorize an expenditure or obligation exceeding an amount available in an appropriation or fund for the expenditure or obligation;

(B) involve either government in a contract or obligation for the payment of money before an appropriation is made unless authorized by law;

§1342 specifies that the "unless authorized by law" exception in 1341 (1)(B) applies only to "emergencies involving the safety of human life or the protection of property," which does "not include ongoing, regular functions of government the suspension of which would not imminently threaten the safety of human life or the protection of property."

§1349 states:

"An officer or employee of the United States Government or of the District of Columbia government violating section 1341(a) or 1342 of this title shall be subject to appropriate administrative discipline including, when circumstances warrant, suspension from duty without pay or removal from office."

§1350 states:

"An officer or employee of the United States Government or of the District of Columbia government knowingly and willfully violating section 1341(a) or 1342 of this title shall be fined not more than $5,000, imprisoned for not more than 2 years, or both."

There is a lot of brave talk coming from Capitol Hill Republicans on forcing a government shutdown by not raising the debt ceiling until Zero agrees to major spending cuts. Zero is riposting with threats to raise the ceiling unilaterally, invoking Section 4 of the 14^th Amendment - "The validity of the public debt of the United States, authorized by law... shall not be questioned."

On Sunday (1/06), Senator Ted Cruz (R-TX) demolished this argument in a handful of words.

In addition, Zero's bureaucratic goons have issued a blizzard of new rules and regs, while he himself threatens to issue a blizzard of Executive Orders for "gun-control" in overt violation of the 2^nd Amendment.

In other words, Zero plainly intends to spend whatever money he wants, debt ceiling or no, Congressional appropriation or no. If and when he does so, he needs to be prosecuted in violation of the Antideficiency Act.

And criminally prosecuted, for he will have, per §1350, knowingly and willfully violated it. Note, however, that §1349 only requires violation of the act (without the knowing/willful qualifier) for the perpetrator to be suspended and removed from office.

Eric Holder, as the most corrupt and dishonest Attorney General in US history, will of course not prosecute Zero - he will act as his defense attorney. But the House as a whole, individual senators and congressfolk, conservative legal foundations et al, may initiate law suits against the president.

There are 30 Republican Governors now. If a number of them banded together, with their States suing Zero for violation of the Antideficiency Act, then, under the Original Jurisdiction clause of the Constitution - Article III, Section 2, Clause 2: "In all Cases... in which a State shall be Party, the supreme Court shall have original Jurisdiction" - the case must go directly to the Supremes, bypassing all lower courts.

So we don't even need lily-livered Congress Pubs, just Pub Governors, a number of whom do have the moxy.

Granted, since Chief Justice Roberts has become Obama's poodle, the SCOTUS may not find the president guilty. Nonetheless, prosecution of the president under the Antideficiency Act is a far easier way to remove him from office than impeachment.

Impeachment of Obama would be a high bar for the House, and verdict of guilty in a subsequent trial by the Dem-controlled Senate an impossibility. So the only possible way to remove him from office is via Antideficiency Act violations. Further, such violations can put him in jail.

In sum:

*The Constitution explicitly states that the President and the Executive Branch can only spend money first appropriated by the House.

*The enforcement mechanism for violation of this Constitutional provision is the Antideficiency Act, under which the president may be personally prosecuted as an officer of the United States government, and if found guilty, may be removed from office and imprisoned for up to two years.

*Our current president has indicated his intention to blatantly, knowingly and willfully violate the Antideficiency Act.

Therefore, it is incumbent upon Republican leaders in the House and Senate to publicly announce and repeatedly state their intention to seek the criminal prosecution of President Barack Hussein Obama should he violate the Antideficiency Act, in response to the House's refusal to 1) raise the debt ceiling, 2) pass a Continuing Resolution in lieu of a Federal Budget, or 3) provide funding for the implementation of Presidential Executive Orders, particularly those regarding gun-control.

Republican Governors and conservative legal foundations should then join in support.

We have the Constitution and the specific federal law to put an end to the Tyranny of Zero. It's time to go on offense. Mr. Obama must be given a choice: obey the Antideficiency Act or be thrown out of office and go to jail.

http://www.tothepointnews.com/content/view/5284/2/