Government Malfeasance and The Death of Middle America

The reason you feel that you are losing control every day is because WE have. 

I am not the problem, It is the Pigs in Government

Mismanagement, poor public policy, and even worse negotiation tactics with unions have driven this country, at almost every Public Sector level, into a feeding frenzy for your money.  You can’t work long enough or make enough to stay away from the voracious appetite of the government.  Worse yet, their policies are throwing up roadblocks every time you turn around.  The very sick government that needs more of your money is doing everything possible to make sure you fail.

Plight of Middle America: 

Here are samples of situations that average Americans have experienced over the past 2-3 years and will continue to experience for a generation.

  • Refinancing & The Bank Failures:  In 2008 or 2009 you wanted to refinance you home to switch to a fixed term or lower your interest rate.  You had steady income and could have qualified but your bank went into default and/or was taken over by the Federal Government.  By the time your bank was sold off bought out, you or your wife had been laid off or your small business took a nose dive and you could no longer qualify.  Now you are stuck with servicing mortgage payments that could have been drastically reduced.  This is cutting into your available cash or causing you to have a negative family cash flow.   Your Fault?  NOPE!
  • Small Business Credit Crunch:  You were a small business clicking along with 8-10 employees.  You had a line of credit with your bank that you had been with for 10 or more years or you had a line of credit with American Express or some other institution.  You used your line of credit to bridge receivables for payroll or for seasonal fluctuations.   In 2008 when TARP hit, you immediately received a letter from your old friendly bank or American Express that your credit line had been eliminated or you could no longer access it but you had to pay off the balance.  You went to other sources but found that those had dried up.  Then, your credit card company raised your interest rate somewhere between 24-32%.  You laid off employees and are now up to you neck in bills.  Your Fault?  NOPE!
  • Small Business & Taxes:  Say you were that same small business and you are trying to keep your business running by drawing down on your 401-K.  To start, the stock market crash has devalued your investments by 50-60% or more.  Then, every dollar you draw out, if you are under retirement age,  you get nailed with a 10% penalty plus the withdrawals are taxable income.  If you are at retirement age, you may not be subject to the 10% penalty but the withdrawals are taxable.  Say you draw out $250,000 which is not much to keep a business going, CONGRATULATIONS, Obama considers you RICH!  The IRS and the State you live in are going to nail you to the wall for taxes that you owe just because you tried to keep people employed and your business running.  This part of the house of cards has not fully fallen yet but it is coming and will drive more small business under.  Your Fault?  NOPE!
  • Mortgage Interest Tax Law Changes:  Say you live in a “Rich” state like California, Florida or New York and you were doing pretty well in 2005 or 2006 or planning to buy a place to retire to.  You found your dream retirement home so you went ahead and bought it thinking that you can offset some of the costs by the mortgage interest deduction and you would actively sell your current home as soon as possible.  Home sales were taking place within 90 days in your neighborhood and you had “plenty” of equity.  Then, Congress and Bush pass a tax law change that disallows any mortgage interest deductions for combined mortgages over $1.1M and did not publicize this change real well.  So, let’s say your combined mortgages are $1.6M, you cannot deduct interest on $500,000.  Then, the sub-prime mortgage/Fannie-Freddie melt down starts and you can’t sell your first or second home.  You start dropping your price to get out from under one of the other but you can’t sell them as bad news on the economy, healthcare or government in general continues to pound the news cycles.  You will eventually have to make the decision which house or both, that you will walk away from either through short sale or foreclosure.   When you started, you were fully qualified for both homes and your revenue/income were more than enough to support the purchases.  You always pay your bills on time.  Your Fault?  NOPE!

There are many people who have found themselves in a combination of the above situations.  These are people who NEVER took a dime from government; paid their taxes on time; supported their local communities; maybe sat on a school board or took  volunteer position to help out their neighbors; supported their local churches and charities; in short, normal Americans.  Then, wham!  Years of Government malfeasance; ineptitude by elected officials from City Councils to the President of the United States; greed, graft, and corruption by congress and state legislatures in concert with public sector unions have all led to a “no man’s land” for the average American Citizen.  You are disoriented because you don’t recognize the nation that you are living in.

The saddest part of these stories of human suffering is that the talking heads on TV and certainly government officials do not have a clue what you are going through, or they don’t care or both.  They think you are some dead beat who doesn’t deserve to be recognized as being victimized by your own governmental policies.  You hear them say that foreclosures are getting rid of those who should not have had loans in the first place!  Really?  Or, small businesses will get weeded out and come back even stronger!  Really?  Like we are weeds that need to be eliminated once in a while.  At the same time, the too big to fail crowd like Banks, Wall Street, AIG, General Motors, Unions, States, Counties, Cities etc are receiving bailouts.  Now we hear that banks and Wall Street are reaping record profits and handing out big bonuses.  Really?  Now the Secretary of the Treasury is courting China and other foreign nations so they will invest in buying stock in the New General Motors!   And Obama and the other members of the Ruling Class can’t figure out why we are Mad as Hell and We are Not Going to Take it Anymore! 

We need to start on November 2nd to clean out the pig sties that have replaced our seats of government.  This fight will not be won overnight.  The Progressive Movement has permeated every facet of our society to where we don’t think it unusual that we have 40 million citizens on food stamps; that we can’t afford COLA adjustments for our seniors but can give pay increases to government bureaucrats, Wall Street bankers, postal workers and others who do not create one shred of value to this economy.  This is going to be a long haul and will take at least a generation or more.  The Progressives and Obama will continue to try to drive wedges between different members of our society in order to control us and keep us apart.  They know if we ever band together, they are through.  The Tea Parties are a start but we have to figure out a way to get all of the minority groups and others to understand they are being screwed as bad as we are if not worse.  Unemployment among the blacks and other ethnic minorities are worse than they are for whites.   Don’t look to the media for truth.  The only truth you can believe in is yourself, and your Creator.   Diligence, action and prayer are the three cornerstones to recapturing our nation…

RD Pierini

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