By: Wayne Brown
There’s an old adage that someone came up with a few years back that states the premise: ‘when you find yourself in a hole, stop digging.’ That seems to be where Washington is at the moment…in a hole. Of course, there are few there willing to subscribe to the advice that it is time to stop digging and look for ways to fill in the hole with some dirt. On either side of the aisle, there are those who have too much personal interest and too many agendas to ever consider the thought to stop digging.
As I listen to President Obama’s news conference this morning, the first one since May, I thought how poorly this man has communicated for the past 19 months on most of the issues at hand yet continued to doggedly drive ahead to a place where America does not want to go. During that period, he seems to have had plenty time for golf and vacations but could not muster the time for reasonable news conferences. Now the worm has turned and Obama spend 80 minutes today mostly trying to explain what his thinking is to the American public. Unfortunately, the thinking just does not fly in light of the results or the indication of results that have been achieved.
At this juncture, I would ask that you show me a family in America that is in financial crisis that has been able to remove themselves from it by going out and spending even more. Don’t waste your time looking…it didn’t happen and it’s not going to because the concept defies all sane thinking. Oh I know, you’ll point out the old boy who played the lottery with his credit card as an example. I’ll give you that one but I’ll also classify the results under blind-ass luck with no predictable basis for outcome. Families do not spend themselves out of financial trouble; companies do not spend themselves out of financial trouble, and neither do governments. Why, because the underlying issue in all cases is “cash flow”. When the cash is gone and the credit has run out, you’re done. It’s just that simple.
Now the President argues that the results of the initial attempt at stimulating the economy with money have been less than desirable and use that as his basis to solicit even more money from the taxpayer coffers for this insane economics. Where does it become enough? We are projecting a debit ratio at 93% of GDP now with economist saying that anything over the 90% ratio is a matter of national concern and national security. In some circles its called the bottom of the barrel and I think I see wood showing through in places now.
The debt hole that the President and Congress are digging together does lead somewhere. That hole leads to China. That’s no joke. The Chinese are buying up our debt at an alarming rate and like stockholders in public companies, soon they may have something to say about how we run our economics in terms of repaying those debts. If our GDP ratio gets much worse, China will not be a problem because they will look upon our IOU’s as worthless and our ability to repay only a dream. The rest of the world will have cold feet long before that point. Thus, we will be unable to pedal our debt to others to raise cash. Then, all we will have left are the printing presses for our money which the government seems to be able to run at will but at some point, the money becomes worthless just like the debt. Do we need to dig the hole that deep to find out if all this is true?
As a nation, we are at a point in time at which we must look at the hole we have dug and start working on some ways to fill in that hole. Realistically, there not enough dirt available to do that job in a short period even though the President demonstrated that you can dig a mighty big hole in 19 months, the reverse is just not true when it comes to filling it back up. Of course the obvious suggest in terms of filling the hole is to raise taxes, close loopholes, do anything necessary to raise revenue for the government. This is a flawed solution from the start in that the President and Congress cannot keep their hands off of the money that is flowing into the government through these mechanisms. Given increased taxes, etc., our officials will simply let the debt ride and spend the incoming revenue on new ideas. Thus, we don’t have a solution but just another methodology to bilk the taxpayer out of more money.
It is high time for some real legislation from our elected officials. We have to have some constraints imposed that will take the fingers off the purse strings. We have to enact budget legislation that tightens the belt that actually reduces the number of dollars available in each successive budget for a few years instead of just trying to affect “the rate at which we are spending”. For too long now, politicians have sold this concept as a reduction in budget to the American public.
America is more than ready for fiscal responsibility and accountability. As a public, we are tiring rapidly of politicians who want to head to Washington with yet another brilliant give away program designed only to prop up their chances of being re-elected at public expense. America wants to see its Social Security Program fixed and secure. American workers and their employers have paid oodles and gobs of money into this program for years and years only to see it now projected for failure. The failure is projected only for one reason…the money has been totally mismanaged by those we elected to protect it. America wants accountability. You spend our money the wrong way and you go home or maybe to jail if you break a law doing it.
America is sick of hearing some lame elected official charged with ethics problems say that he or she just forgot to pay their taxes. America is tired of watching elected officials skirt every law they put on the books by making themselves exempt from the law. If it is such a damn fine law, try it yourselves! America is tired of seeing those in congress spend one term in office and go home with full retirement and full healthcare provided for the rest of their lives. America is tired of seeing career politicians sit in Washington and feather their own beds pandering to lobbyist while telling the folks back home how hard they are working for them. America is tired and I suspect we are not going to take it anymore. The elections in November should be a fair indicator of the tolerance level of the majority of Americans.
America is in a deep hole and the people who are professing to help us are all showing up with shovels. We need change alright but the change we need does not require anyone we elect to spend massive amounts of money that is beyond the mental comprehension of most Americans. When it comes to wasting taxpayer money, there is no genius mentality at work. As a country, we must resolve to remove the shovels from the hands of these dimwitted politicians who keep digging this hole deeper and start using them to throw some dirt back into the hole. Wake up America!
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