Dear Congressmen and Congresswomen;
The deceit and self-centered actions by those in government are truly a disgrace that exposes US hypocrisy for the entire world to see. Debt-related issues exist throughout the developed world. For example, look what Barosso and the European Commission just did in a secret session! They need 2.7 billion euros, and fast, just to keep their boat afloat. Even worse problems exist in demographically challenged Japan. However, dollar hegemony and brain-dead false debates like the one over the debt ceiling will keep the eyes of the world focused on the USA.
Broke governments in Europe, Japan, and the US are desperate for cash, and instead of looking at themselves as the problem, they turn on their citizens to confiscate the money they need to maintain their position, perks, and power. This will not end well – it never does!
I’m an average Joe, and I believe I understand our problems because I passed 5th grade math. Many others around the world also get it, but please indulge me while I elaborate.
If debt grows faster than GDP, then these two exponential functions will grow further and further apart. In other words, the deficit will also grow exponentially – meaning eventually it goes parabolic. The concept of exponents is taught no later than 5th grade, and the negative consequence of an exponentially growing expense is best exemplified by the government’s spending on healthcare, which has been growing around 9.3% per year for over 30 years. Plug 9.3% and 33 years into your exponential calculator and you will understand why we have a budget problem.
Since healthcare spending is one of the biggest reasons for our debt problems (along with Defense), it is appropriate to boycott everything that does NOT reduce the COST of healthcare, including Obamacare and its supporters. Deciding who pays for healthcare DOES NOT solve the COST problem, so stop taking bribes from the healthcare lobby and remove the monopolistic practices in the healthcare industry.
Not only does Obamacare not reduce the COST of health care, it’s predicated on forcing the very people least willing and able to pay to sign up – healthy and low wage/unemployed people. The young people who do have jobs can barely pay their massive student loan bills, much less afford a deductible that they will never use. BTW, the student loan bubble was also caused by Congress, and it is reducing growth due to delayed family formation (not to mention the inferior education produced when too much imprudent debt chases too few good teachers).
If Congress plans to increase the penalty for not signing up for Obamacare, it’s going to realize it can’t get blood from a stone, and further crush the economy. Penalties, just like taxes, take money out of the hands of consumers (the durable goods numbers are proving that discretionary income is continuing to dry up). For those members that falsely believe that deficit spending is a legitimate way to grow a sustainable economy, once again, please permit me to explain.
First though, you should know that many already know that the Treasury borrowed from the pensions of government employees to pretend the debt ceiling was not violated months ago. The hubris of all those in government is truly a sight to behold – both by govt thieves that steal from their own, and the govt employees that believe they are untouchable.
Main Street also understand that spending prioritization could have been intelligently done so Park Service employees were not furloughed and the benefits for deceased service members could have been paid. This is an example of putting your so-called “good intentions” (that have got us on a path to Hell) in the back seat so you can do a fly over to move us down the path to disaster even faster. Incredible!
As disgusting as these frauds are, they pale in comparison to the game of three-card Monte that has been played on the masses (the mark) for over 30 years. Pretending that debt and leverage is actual growth/GDP is a charade that’s destroying the world. Yet, “the shrills” in Congress play along with the dealer (the banks) because the banks finance their campaigns and unsustainable promises that get them elected. It’s the perfect con until someone in the audience highlights the fraud, which might explain why your hands get overplayed and create the most destruction in gun-free cities.
The outgoing tide of deleveraging since 2008 has exposed the two ways Congress pays for promises it can never keep – borrowing and/or printing money. The fact that the Federal Reserve buys bonds with the printed money means that all of your overspending is paid for with borrowed money that has an interest payments attached to it. Why don’t you simply pay your bills with printed money, instead of incurring the interest expense? It wouldn’t have anything to do with bankster banks being your big donors, now would it? At least if the interest expense was reduced, the devaluation of our purchasing power would not be so severe.
The consequences of all your overspending to pretend you can keep promises that can never be kept is that net income for families will continue to decline due to currency devaluation. The never-ending money printing is needed to mask the deleveraging and reduced lending from foreigners, and to pay the mounting interest expense and fraudulent transfer payments (including food stamps, disability, student loans, etc.). You hope and pray that the bread and circus routine will disguise reality until you’re out of office. However, you forget, that rising interest rates, which you can’t control, will blow the top off your disgusting behavior. More importantly, you should recall that just like after WWII, Fascist criminals and co-conspirators can be hunted down no matter where they hide!
If you’ve ever worked in the private sector, then you understand the inefficiencies of bureaucracy. If you’ve never worked in the private sector, as is the case now with the majority of bureaucrats in govt, then you lack the experience for sound judgment. Career politicians, with little value to add in the private sector, are easy to bribe, which is why regulators are a waste of time and why so many idiotic decisions emanate from DC. Jim DeMint even acknowledged this very fact in a recent interview.
The only thing govt bureaucrats know how to do when they screw up is point their fingers and confiscate the private sector’s money. They do everything in their power to keep the light of truth off their incompetencies for fear that they may have to prove themselves in the private sector. Ms. Sebelius should be given this opportunity, but she predictably won’t. This lack of accountability, including the unequal enforcement of the rule of law, is reducing trust and confidence in the USA, particularly with the banking sector, which will ultimately drive capital from our shores.
Big US corporations like Microsoft, Intel, Diebold, all major Telco’s, and others that provide backdoor (and front door) access to our personal data to the NSA will also cause capital to seek safer havens. These sell-out companies will also lose share (and jobs) to foreign companies that can meet the privacy demands of customers. When you look hard enough, anything can be a crime…and the NSA is looking at everything, which drives capital underground. Government largess, fraud and corruption are destroying our country and our people, literally!
The fact is interest payments on debt are destroying western governments because around 70% of most national debts come from accumulated interest, which is the primary reason the Fed has manipulated its rate down to near zero and cannot dare raise it. What Congress (shrills) and the Fed (dealer) fail to realize is the Fed cannot keep market rates down forever. So, regardless of government’s three-card Monte skills, they will lose the game because the invisible hand of markets will alert the masses to the con. Once this happens, there will be no place for the fraudsters to hide. The only thing that can set you free is to tell the truth.
I’m not pretending that our problems are solved by simply reducing spending to within what we are able to collect in taxes. After substituting debt for growth for over 30 years, and with so many foreign countries holding dollar-based assets, our problems also require reforming entitlements, and our monetary system, which was never properly designed nor implemented after Bretton Woods, almost 70 years ago. The final nail was pounded into our monetary system by Nixon in 1971, when he removed the final constraint on profligate spending by snipping any linkage to gold.
Your campaign contributors in the banking sector are no doubt insisting that you implement austerity like Europe (raise taxes and cut benefits) to ensure their interest payments on the debt get paid. Will you choose your career over the further destruction of our economy and society? Even if the G20 thinks they can share data to track down money, the smart money will find a place to hide outside the G20 and under mattresses, further contracting the capital needed for growth. If you forgot the lessons of history all you need to do is study what France is doing right now to see how country’s destroy themselves.
If you care at all about beginning the necessary reforms, then you must unleash the private sector in order to absorb the massive layoff’s that must come in the public sector. Economic growth cannot occur without real capital, not the faux capital supplied by interest-bearing debt and leverage. Capital will not be attracted when it is being hunted down and confiscated, or sucked out of our pocket by Obamacare. There must also be trust, confidence, and the rule of law – factors that are all headed in the wrong direction.
We are addicted to debt, and the withdrawals will be very painful. However, the longer you keep providing the hopium debt, the higher the probability of death – either from an interest over-dose or from a withdrawal of leverage and derivatives. Making the right decision will require sacrificing your donors and your political career. However, for a Statesmen and Patriot, this is far better than sacrificing the USA, and our Constitution. Besides, term-limits of no more than one term should be at the top of your platform, and your bankster donors should already be in jail.