Thursday, November 12, 2009

The Financial Collapse of the United States

Apparently, there are a few grown ups in Congress who recognize that the Trillions in deficit spending, if not stopped, will lead to the financial collapse of the United States sooner than later. At a recent hearing of the Senate Budget Committee chaired by Democrat Socialist Senator Kent Conrad, a group of rebel Democrat and Republican Congressmen and Senators testified concerning the dire financial state of our country. In doing so, these rebels said that there is about $56 Trillion of unfunded liabilities out there waiting to explode on the American people for things like Social Security, Medicare and government pensions. These are entitlements promised to seniors citizens that have been stolen since the Johnson Administration from various trust funds to pay for the government's annual operating expenses. Just where is this missing money going to come from? All that is left in these trust funds are IOU's that are not worth the paper they are written on. And, what is worse is that this unfunded liability and cancer is growing at the rate of $11 Billion a day so much so that this disaster in waiting will grow to about $60 Trillion in the near future. This is on top of the $12 Trillion Dollars that is officially on the books. The Obama Administration is now asking Congress to raise the official debt ceiling to $13 Trillion because of all their deficit spending.

The government continues to borrow to cover this reckless spending. The situation is so bad that rating agencies are now saying that this debt is so extreme that the United States could lose its' triple AAA rating by 2012, which means that in order to borrow more by selling Treasury Bonds, the government will have to pay much higher interest rates because of the risk of default as occurs in banana republics. If all of this continues, 15 years from now every penny of government revenue will go to pay entitlements and interests on the debt. There will not be one dime left for education, infrastructure, the military, the center for disease control, the IRS etc. etc.

To deal with all of this, this handful of rebel grown-ups in Congress is proposing a Budget Commission that would have the authority to set the budget of the United States and put it before Congress for an up or down vote each year. While the intentions are good, this solution will not work because the Commission would be composed of political appointees from both parties subject to the very same influences that have created the mess in the first place. The only way for the American people to stop the fiscal insanity caused by both political parties and drastically made worst by Obama and the Democrat Socialists that control Congress is by Constitutional Amendments. We need term limits to stop the corruption that comes from a life time in office. We need a balanced budget amendment that makes it impossible for the Congress to spend more than it takes in, except in times of declared war or specific national emergency ratified by a majority of the states. And finally, we need a third amendment that would require a majority of the state's approval for the federal government to raise taxes. It is very clear that there must be additional checks and balances on the federal government because our elected representatives have proven that they cannot be trusted to manage the affairs of the United States.

The dollar is collapsing because of the Trillions in deficit spending. As a result, we will see much higher inflation and interest rates in the near future, which will lead to slow growth, even higher unemployment and a lower standard of living for our people. Yet, the Democrat Socialists in power are attempting to enact HealthScare, another entitlement program, that will cost over a trillion dollars in the next ten years and result in 5 million jobs lost. Are they completely crazy or just incompetent or both? And, then they want to pass another job killer bill, CAP & TAX, which will lead to even more inflation because energy costs will rise dramatically for all Americans.

It is time for WE THE PEOPLE to take back our country before our elected representatives destroy it. We have to stand up and JUST SAY NO. We must push for these common sense Constitutional Amendments as the only was to stop the fiscal insanity to save our country that we love and that many have fought and died for in our 235 year history.

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