The United States debt is outrageous and unconscionable but
is it real? Both political parties have contributed to its growth. Both
political parties have used it as a backdrop in political drama to advocate
their policies or to justify their capitulation to increased taxation of the
people. Both political parties have just completely ignored the debt especially
once they have tapped it for its crises de jour political capital.
Fiscal cliffs don’t disappear when you cut up one credit
card but still use nine others. Debt crises don’t become obsolete just because
the credit company extends your limit allowing you to dig a deeper fiscal hole.
Financial security doesn’t result from cutting the rate of your projected
reckless spending in the outlying years.
Yet Congress apparently wants us to believe that the debt is
only a crisis when revenue flowing into the federal treasury is not enough to
allow legislators to find new ways to waste it. Their talk about balanced
budget amendments is just that, talk. Meanwhile American homes are equally debt
bound.
Consider a woman married to a spend-a-holic husband who has
put their family’s net worth into the red. Let us call them Mr. and Mrs. Smith.
She has tried to curb her hubby’s irrational notion that a credit limit on credit
cards means he can max them out and then apply for new cards and transfer the
debt to cards with lower interest rates and earn them money. She can’t seem to
find the right words to convince him that his running up of their debt is
destroying their future financial stability.
He argues that America’s monetary policy is based on debt
(correct). He argues that you can’t have a good credit rating or expect to
secure a loan unless you incur a debt and show you have made payments on that
debt (correct). He argues that in fact on the two major purchases necessary for
American families, car payments and home mortgage, it is impossible for most
Americans to avoid debt (correct). He argues that even short of declaring
bankruptcy there are many debt companies that will negotiate down your debt
with creditors allowing you to keep your assets while only paying a portion of
what you owe (sadly correct). He argues that even in the worse case bankruptcy
scenario they would be not only be free of debt but that between Social
security, Medicare, Obamacare and a disability claim (such as PTDD or Post
Traumatic Debt Disorder) based on the government allowing new made up emotional
illnesses, they will be fine (very sadly
correct).
As you can see, Mrs. Smith is dealing with upside-down
thinking in an upside-down world. Loans and credit limits are viewed as assets
while those that have paid for all their possessions with cash money are off
the financial radar screen. The sad reality is that those that have been
responsible with their money will eventually pay for the debt of all those
irresponsible, the fact is we are all already paying.
No one in Washington is using their bank accounts to fund
federal programs. They are not using the money in their wallets to pay interest
on the debt. They will not lose their assets if the treasury defaults and
T-Bills become worthless paper. They don’t care because they will just stiff
some creditors (taxpayers and government contractors) while ensuring banks and
investment firms get bailed out.
Why do you think Congress bailed out Wall Street instead of
Main Street? Yes, because these politicians’ portfolios were on the line and
their biggest campaign donor money was on the line, it is just that simple.
We have been told by Washington that the debt is
unsustainable for decades. We have been told that there is a looming crisis in
which the government will default on paying out entitlement benefits. Has
anyone realized yet who will bear the brunt of costs if the government can’t
sustain its debts?
Here is a hint; it won’t be those whose work entails walking
to their mailboxes to pick up their government checks. It won’t be either the
retired or the current politician. It won’t be the ultra rich for they will
just follow their offshore accounts and become an island immigrant.
Yes, there are just two groups of American that will bear
the costs; working men and women and the aged. The working men and women will
be so highly taxed they will be enslaved and the aged, well get ready Grandma
because it is the big government Democrats that will be pushing you over the
cliff to an early grave as a way to save money.
So if the American debt is real and is a real crisis, why
has Congress raised the debt ceiling without any spending cuts? The simple
answer is because they can. Just like the obtuse Mr. Smith that never opts to
stop spending money he doesn’t have and instead is willing to stick his selfish
debts on all consumers, politicians in Washington fear no responsibility.
All high rollers eventually lose and when they lose they
lose big and crash hard. Americans are allowing this President and Congress to leverage
Americans financial well being and it is time we pull the rug from these
deadbeats. The debt is an enormous problem and is dragging down the asset
wealth of all Americans not just the next generation that will be holding the
hot potato.
Don’t let any politician tell you the solution is increasing
taxation or their code terms such as “increasing revenue”. Mrs. Smith knows
what her husband does with her raises and it has only increased their debt.
Washington has neither a ceiling nor a floor, we the people have put them in
charge of our credit cards and they are being morally reckless.
We can run from the debt but we can’t hide. The election of
2014 is not just about Obamacare it is about the future of America from a monstrous
government that will strangle us if left to the spend-a-holic left.
