Tag: Debt (page 4)

What better way to saddle those who have little means, than with a higher cost of living. When the United States Government prints that money to pay the bills, and drives inflation through the roof.

Think not? Its happened before.

If it weren't for modernization and efficiency hiding the termites which are eroding our financial base, the "come to Jesus moment" would have happened already. Farming efficiency has kept us fed (and it has also been subsidized), and mechanical improvements have allowed more product to be built with less labor cost. Energy as well has played into it, as it has been cheap and plentiful.

These things would under ideal conditions, make us ALL wealthy in consumables and lifestyle, yet because of the inflationary effect of increasing debt and fewer actual PRODUCERS of wealth they remain subdued as merely a balancing agent. The neutralization of poor fiscal policy cannot go on forever though. Adding to this, the absence of energy policy that would help this country remain a wealth producer.

For my current argument, there are two types of debt; 1. Stated, and 2. Liability.

Michigan for example, cannot spend more than it takes in. Its the law. It cannot borrow money that is not immediately payable through the budget cycle. If it did, then Michiganders would be stuck with interest payments, yada. There are tricks used to get around this, but unlike the Fed it cannot hold a negative balance year after year.

There is the inability of our leadership to just say "forget about it" when their opponents suggest lifting caps, and spending more of our children's soon to be taxed heavily again inheritances.  There is a weakness when it comes to doing the right thing like throwing out a few babies with bathwater.  There is a real lack of courage coming from our Republicans IMO.

But I am not yet giving up.

Sure, I would like to see the cap held. No more! Stop! Cease!  But in the spirit of "compromise" the house gave a little. In fact, the bill sent through would have still allowed a minimum of $2.5 trillion increase in the debt, adding both principle and of course the expected financing measures.

And the senate said nah, not good enough.

So frankly, to heck with them. Its time that Michigan's congressional delegation simply takes a stand. One that is solidly for NO increase in the debt. None. Nada.

While the pundits attempt to watch the Tea Kettle boil, those liberals in congress who for years have failed their constituents and saddled our youth with decades of unmanageable debt, are seeing their futures as bleak indeed. November 2010 was not a fluke, and will be repeated.

Another has fallen.

To make sense of this statement, we first have to set aside the ridiculous premise that "they've always done it in the past" should guide what Congress does today.

Second, Congress has not always voted to raise the debt ceiling. When they elected not do so in 1995, the sky didn't fall and our economy did not implode. What's really being said here is, "We need to borrow more today so we can begin to have a conversation about saving tomorrow."

And frankly, unless our entire income is outgoing as interest, we will pay our obligations. The threat we will not is absurd. Going forward and adding to that interest burden hardly serves the better prospects of digging ourselves out, unless some have the fantasy that this asphyxiating administration will bring economic prosperity any time sooner, or later.  So shorting the next possibility of balance leaves only one other prospect, and that is collapsing the currency.

The Michigan congressional delegation needs to hear from us, that no more debt is acceptable.  Not now, and not in the future.  

For some perspective, the entire budget for the State of Michigan in one year is about $45 billion.  That is money for things like public education, prisons, and roads.  

In Washington, DC though that is chump change.

First, in January of this year Congress passed a $787 billion "stimulus" bill.  That bill spent money we don't have on everything from ant research to new toilets and on thousands of checks to dead people and convicted felons.

Then, Congress passed President Obama's budget which calls for $9 trillion in NEW debt over ten years.  That's a doubling of the already staggering $12 trillion national debt accumulated since America's founding.  According to this budget, by 2020, each man, woman and child would owe $150,000 in debt.

That's just not fun..  Waiting?

Particularly when someone gets an itch that needs to be scratched NOW, that pleasure of holding what you have bought is sometimes immeasurable.  Its the reward for saving a few dollars, or even knowing that you work hard enough to afford what you are getting, and can sometimes add to the fuel that motors you forward, become more productive and be able to super size your deal the next time around.