Who Will Blink...

Well, here I am again predicting what I feel is going to be the worst mistake that could ever happen to you and I, if there is no reconciled vote to raise the debt limit.

Most of you know that it cannot be a good thing; you are exceptions to the norm and therein lay the dilemma.  If we don't raise the debt ceiling, it would be the equivalent of you, or I, defaulting on our mortgage payment - foreclosure and a bad credit entry rating!

If it happens, as I think it will, what are your options - there are none!  The dollar will no longer be worth the paper that it is printed upon!  The debt will still be there - more dollars will be needed to pay it off!  The GDP will disappear into the muck never to be rise again in our lifetime, and those that got us to this point in the first place will suddenly realize how irrational they truly are - if that is possible, given the past ten years.

It’s apparent to me that a major reason why things are as they are is the reluctance of the silent majority to stand and defend rational thought processes in solving this issue. We stood by while practices that we knew to be harmful were enacted by a delusional group of individuals incapable doing the math that would have led to a logical conclusion.

You simply can't spend profusely on credit, refuse to balance the budget, and give away what little money that you may have in collectible taxes.  The idea that if you don't collect the need taxes because you want the uncollected taxes to create jobs is ludicrous - proven by the last ten years of giving huge tax cuts to the very people that never asked for them and never used the tax savings to create jobs!

A two year extension of the tax cuts to the rich and big business by Obama will generated no jobs.  The extension, in and of itself, has added an additional 1.4 trillion to the deficit.  How can the continuation of a bad policy be of any good - that is what got us to where we are to date.

Exxon, GE, and many others not only didn't pay any taxes for 2009 - they got million dollar refunds, AND, where on record as making huge profits as well.  It is extremely difficult to justify tax cuts to companies that are out-sourcing American jobs, making record profits, and not paying taxes - where is the logic in this?

One thing is absolute about the current situation... the rich will continue to be rich, even if the dollar goes south in a hand-basket.  How can I say this; you may be asking... John Rockefeller, Art Carnegie, Jay Cooke, and Cornelius Vanderbilt, to name a few, still have the money that they gained as 'Robber Barons' of the Twenties - the years just preceding the Great Depression?  The value of the dollar might decrease, but it will still spend and the more you have the richer you are!

Who will blink?  Who will stand and defend?  I would hope that clear minds would prevail.  I am just not sure if that it will occur!

In a democracy, silence is not golden; it is condonance in the face of injustices; it is fear, where the thought of reprisal fosters control – Rodney A. Davis

Pat Toomey: How to Freeze the Debt Ceiling Without Risking Default - WSJ.com

The insanity of prophesying that the debt ceiling can be maintained by committing the United States to a path that may or may not work properly is beyond ludicrous - massive layoffs and cutbacks in government workers and programs.  You would think... but that theory may just work!

Senator Pat Toomey will very shortly introduce legislation that will, in effect, cut our decades long dependency of borrowing to cover the overspending that has been a integral part of the American economy for the last five decades - the Korean war veterans returning from the Korean conflict created a need to borrow and it has been the accepted thing to do every since.

Only a few months ago Britain embarked on this same surgical procedure with less than disastrous results!  The predictions by some that the British economy would collapse has not occurred, but the jury is still out, since the majority of the cuts won't occur until this time next year.

The Economist posted this article: So Far, so Good in which statistical data shows every indication that the policy is working, but as I said before, they have not gotten to the core of the new policy - massive layoffs and severe cuts in government spending.  The British plan is to make cuts equaling ten percent of the GDP over a four year period.  That is a significant reduction that would theoretically be the equivalent of cardiac arrest to an economy the size of Britain's, but contrary to 'the doom and gloom' that was predicted, the opposite is occurring.

Growth has been steadily improving for the last three quarters in direct contrast to predictions for Britain.  In summary, maybe the good Senator has it right and adopting  Britain's policy may be the right course for America as well.


In a democracy, silence is not golden; it is condonance in the face of injustices; it is fear, where the thought of reprisal fosters control – Rodney A. Davis