Myth, Fiction or Falsehood? You make the call!

Conventional wisdom is often untrue.  Consider all of the common misperceptions in our society.

  1. Unemployment:  The so-called “official” unemployment rate is currently 8.8% nationally.  However, the term “official” simply masks a fiction.  The “real” unemployment rate in the US is over 18% when you add up all of our citizens who are out of work.  The “official” number only counts those that are currently on the “unemployment rolls”.  It doesn’t count the millions of folks who have given up looking for work and whose unemployment has run out.
    1. Official US Unemployment: 13,592,191
    2. Actual US Unemployment:  24,259,646
  2. Foreclosures:  Depending on who you believe and what course our economy takes in the next year, there are anywhere between 3,000,000 and 7,000,000 houses that will yet be foreclosed upon by the banks.  There are another 20,000,000 plus homes that have significant negative equity and are at risk of foreclosure.   There were 1,050,000 foreclosures in 2010 and there are projected to be 1.3 million in 2011.
  3. Social Security:  Do you realize that the “so-called” Social Security Trust Fund is empty?  Well, actually there was never any money in it to begin with.  All of the money that is taken out of every single working American’s paycheck (and ALSO the 6% match paid by the employer) goes into the Federal Government’s General Treasury.  The Treasury simply gives the “so-called” SS Trust Fund a “CD-Note” which is nothing more than an IOU.  There is no money in the US Social Security Trust Fund; zero, nada, nothing. 
  4. Inflation:  The way that inflation is measured is beyond myth, fiction or misinformation. It is beyond misleading. It is a joke. The way that our federal government measures “core” inflation is to NOT count energy (gas!) and food. Yes, it’s true. Even though gas and food increases have emptied our wallets of whatever discretionary cash left after paying our taxes last month – we are told that inflation is actually not bad? Click here to see the fictional inflation rate:
    It is difficult to calculate the “real” inflation rate. However, Walmart CEO Bill Simon recently said, “inflation is going to be serious,” during a meeting with USA TODAY’s editorial board. “We’re seeing cost increases starting to come through at a pretty rapid rate.”
    Click here for more:
  5. Oil:  Did you ever wonder why there are so many new technology, drug, clothing and other companies – and not ONE new oil company in the past 50 years?  Most Americans think our oil companies are as American as apple pie.  Nothing could be further from the truth.  The oil companies are very sophisticated monopolies of the worst kind – they are a monopoly that has an unholy alliance (cover) with our very own Federal Government.   Our situation is actually WORSE than in Mexico where Pemex (and the Mexican Government) charge whatever they want.  Here in the US we think we have a free market in oil and gas – in actuality it is an orchestrated monopoly.
  6. Fannie Mae & Freddie Mac:  Both of these GSE’s own about 50% of the mortgages in the US.  But they are both bankrupt not having made a profit in years and both owning us (The Federal Government) over $350,000,000,000 from continuous bailouts.
  7. Current Collective Debt per Person:   Let’s add up the actual debt that is owed by a single Californian:
    1. Federal Debt Owed:  $14,500,000,000, 000 / 315,000,000 = $45,768 per citizen or $128,245 per tax paying US California citizen.

Click on this link:

    1. State (California) Debt Owed: $368,000,000,000,000 / 36,000,000 = $9,837

Total Debt owed by each Californian (not just working adults): $55,605. 

Winston Churchill once remarked that “democracy is the worst form of government
until you consider the alternatives.”  Well that may be true.  But the true measure of our democracy should be how well it has evolved and if it has been self-correcting and improving.  Have our Federal and State governments been improving or declining?  Clearly the numbers prove that our governments have put us into a financial situation which is untenable at best; our decline has been steady and now our very future is in jeopardy. Yet, this dire financial situation can be fixed.  We need to hold a Constitutional Convention and adopt stricture that mandates that from this point forward our Federal Government will do “at least” four things:  1) Balance it’s budget each year, 2) Reform our 54,000 page income tax code to a flat tax of 20%,  3) Limit it’s role to collecting taxes, national defense, national infrastructure (roads, rail, air and space transportation) and 4) Require a majority vote of our states to allow it to take on any new or additional responsibilities.  We must re-learn that the Federal Government exists at the behest of the states – and NOT vice versa.  These reforms are simple.  However, since people mostly only change when faced with outright crisis, it won’t be until 2030 before we adopt these measures or some semblance thereof.

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