Sunday, May 22, 2011

Raising The National Debt Ceiling - Time To Say NO

Every so often so that the federal government can borrow our way to bankruptcy,  both Socialists and Republicans have voted to raise the National Debt Ceiling.   To be clear, neither political party has clean hands when it comes to deficit spending and the $14.3 Trillion National Debt.   So once again the dance has begun as supposedly Armageddon will occur in August if the debt ceiling is not raised to allow for more borrowing.   The reality is that Obama and the federal government are borrowing 40 cents for every dollar that they spends.  Of course, Socialist President Obama fully intended to go on spending and spending and spending projecting Trillion dollar deficits each year for the next ten years or longer until the election losses of 2010.  If Obama's economic plan was allowed to prevail to fund all of Obama's Socialist Schemes, theoretically the National Debt would more than double in ten years to $28 Trillion or more. 

However, since Obama never took and passed Economics 101, what the President seemingly does not understand is that the financial markets will never allow the National Debt to reach these levels.  Rating agencies recently fired a shot across the bow, when they threatened to down grade the US credit rating.   If and when that happens, it will mean that the United States will have to pay much higher interest rates to attract foreign investors.   Bonds issued by Greece currently require a 20% or higher interest rate since that country is officially bankrupt.  By comparison, depending on the duration of the US Treasury Bond, US Bonds are going out at 2 - 4%.   But that won't last for long if deficit spending continues. 

If the current level of deficit spending continues raising the National Debt even more, the day of reckoning will come suddenly when the United States puts out an issue and there are no takers.   This is precisely what happened in a two week period when the market for mortgage backed securities collapsed during the financial crisis. If we don't get the National Debt under control, to get investors to invest, the US will have to pay dramatically higher interest rates, which will raise our nation's cost to borrow money crowding out many other expenditures like monies for Social Security, Medicare, Medicaid, etc. etc.

And/or if things get really bad, there could be an insufficient number of investors to fund our country's expenditures and when that happens, the Federal Reserve will just start printing money, which will lead to the collapse of the dollar (already happening) and very high inflation and interest rates and a lower standard of living for all Americans.   In essence, the United States will be no different than Greece and we will see riots in the streets as those used to being on the dole will no longer receive government support.   Don't think it can't happen because it has happened many times in  world history (i.e. Germany between the World Wars and the Roman Empire) and it is happening around the world today.  

So it is time for our elected representatives of both political parties to just say NO to raising the Debt Ceiling unless a balanced budget Constitutional Amendment and or other spending restrictions and significant cuts are part of the deal.  Socialist President Obama and the Socialists in Congress will never make the cuts needed to bring down deficit spending and the National Debt because it is the basis of their power.  And, the tax increases they always propose instead will never solve the problem because tax increases retard economic growth and kill private sector jobs.  Socialists depend on the 50% of Americans, often on the dole, in one way or another to win elections.   Cutting spending would make their PEEP's angry and they may not vote and as such Socialists will bankrupt the country if it allows them to stay in power, if only temporarily. 

We have to take back our country to prevent the bankruptcy of the United States by sweeping these Socialists out of office, including Obama, and electing Conservatives that support free market capitalism, limited government, lower taxes and less regulation, a balanced budget, term limits, real education, energy and health care reform, a strong national defense, including securing our border and fighting Terrorism, the right to bear arms, the sanctity of life and family values that are the foundation of our nation.   This is the platform supported by the majority of the American people and the only way to restore economic growth, create jobs and prevent the bankruptcy of our country.

It is time to say NO to raising the Debt Ceiling without meaningful measures to end deficit spending and pay down the National Debt.  To get this done we must finish the job we began in 2010 by sweeping Socialists out of office and electing Conservatives.   We can do it.   We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.     

No comments:

Post a Comment