Text 17 Aug 5 notes Glenn Beck is a fool (and so are the Teabaggers)

Every now and again I like to look at Tea Party opinion leaders and have a laugh (and sometimes the occasional heart attack) at the idiocy that they typically spew but this time it’s getting a bit much. I’ve been working at a financial position for the past two months and have learned quite a bit how credit markets work. Whenever I see or hear someone talking about something they clearly know zero about, then it usually requires a lot of self control on my part to keep my mouth shut. It’s not one of my best qualities… I read this post over on Glenn Beck’s blog today and this really got to me…

Here’s Glenn talking about a downgrade from Moody’s on US debt…

The fact is Moody’s has already warned us that no one has put a plan on the table that comes close to solving our long-term problem. Moody’s will downgrade us. This could happen tomorrow, in six months or maybe a year from now, but at some point in the near future it’s
going to happen. And it’s going to hurt. So we must be prepared.

What’s funny is that the S&P downgrade hardly affected the Treasury bond market at all. The demand for US Treasurys (or Treasuries; if anyone can tell me why with this word there is no consensus, I’d appreciate it) actually increased. At the end of the day, the American economy is the safest place. The government will never default on its debt. As moronic and pigheaded as American Congressmen and -women can be, they know that they can’t let the US default. Or let me put it like this: the chances of the US ever defaulting is next to none. The bond markets often rate a company or a country on their own - the agencies react slower than markets, it’s that simple.

Imagine your credit card’s interest rates constantly rising. Imagine high inflation eating away at your savings accounts, retirement funds and salary — if you’re lucky enough to have one these days. Imagine the interest rate on your mortgage rising and compounding until there was no hope of escaping debt. Imagine that fewer and fewer people are willing to lend you any money as your credit rating takes a dive.

If you’re actually paying debt off on a credit card at a significant amount, you are an idiot. I’m sorry to say it, but seriously, you’re an idiot. Learn some basic financing. Get on the Internet and take five minutes to educate yourself. I don’t recall credit card interest rates being variable on any of my cards I had back in the USA, though, so I somewhat doubt one should see credit card interest rates rise on existing debt. It’s been over five years since I actually read a credit card contract. I’ve also never let interest build on a credit card balance (pay it off before the deadline, people, it’s not hard) and it’s been over four years since I used a credit card. 

Anyone with a variable interest rate mortgage that hasn’t refinanced and gotten that rate fixed is also on their own. Sorry, but this is another case of a short phone call with your lender or a trip to their office. Variable interest rates are also usually always a bad idea when you’re a private citizen unless interest rates are sky high and they’re not. If you don’t have a good credit score and you want a house, improve your score and then buy a house. Seriously. If you don’t have the money, don’t buy the house. That’s part of the reason we had the financial meltdown in 2007 that we did.

Those food stamps and green-energy boondoggles Democrats say we can’t live without? Forget it. We won’t be able to afford them.

Clearly Beck doesn’t think much of green energy. No surprise, though. It’s really a shame, however - if the US were to invest in green technologies as a country, that’s a market with plenty of growth that could be creating A LOT of jobs. Things need to be built, sold and marketed. It’s an industry that is still widely untapped in the United States. Certainly costs are high, but with zero interest loans (like here in Austria) from the government to support people investing, costs would come down. There are so many ways to get this ball rolling and Europe has already done a lot of the work. Just copy and paste.

After all, who’s going to send billions in weapons to Egypt’s military regime to help it quell the “democratic” Arab street when we can’t even pay the janitors at the IRS office space?

I really don’t know if Beck is trying to be sarcastic here. If he wants to keep supporting another military regime, though, maybe he should head over there and offer handjobs…

The rest of the blog after that last quote is little more than partisan bashing on the Democrats with a smattering on mainstream Republicans and not really worth reading. This last bit is worth addressing, though.

You cannot spend more than you earn. You cannot run up the largest credit card bill in human history. You want more revenue? Stop chasing income earners overseas by threatening them with higher taxes, stop inflating their energy costs and stop punishing them with never-ending regulations. Mr President, put down your socialist mop! Stop with the Cloward and Piven floor wax.

And then balance the budget, cut back the spending and reform entitlements.

Beck is right - you cannot spend more than you earn. If the majority of the American public followed this simple logic with their own personal finances, there would likely have never been a recession. Unfortunately they don’t and there was. The same is true of the USA. You can’t spend more than you’re earning. The sad fact is, however, is that taxes are the lowest they’ve ever been in the United States. Obama extended the Bush tax cuts and took away another chance of at least maybe trying to hack away at the deficit and the debt. Unfortunately he caved and let the Republicans have what they want. 

You find this a lot in the United States, though, especially in the South: if it is socialism, it is instantly evil and must be communist. For fuck’s sake… the Cold War has been over for twenty years and we’re not living in the 1950s anymore. Look at the countries in the world with the highest quality of life: they’re all a mix of socialist and capitalist ideologies and they’re mostly all in Europe. It is beyond my understanding why Americans cannot look at Europe and envy the life of the average European and not want to have the same things. 

Cutting regulation and taxes doesn’t instantly make the economy better. It’s been proven that Reaganomics do not work. There is no perfect trickle down of wealth. Jobs aren’t created by the millions. Humans are greedy, backstabbing creatures and sometimes we need to realize this and protect ourselves from ourselves. 

  1. americanandertu posted this