Thursday, August 11, 2011

National Debt Congressional Committee - Just More Drama

The National Debt Congressional Committee, composed of 6 Socialists and 6 Republicans,  from both Houses of Congress is just more drama that will accomplish little.   In the next few months, we will see negotiations in secret in an attempt to cut $1 trillion in federal spending over ten years, rather than face an automatic $500 billion in defense cuts and $500 billion in other discretionary spending cuts.   The thinking goes that this committee will come up with some other alternatives, which presumably includes tax increases, if the Socialists get their way, to avoid $500 billion in defense cuts that will be opposed by most Republicans.  Honestly, this really is a side show. 

Based on Socialist President Obama's current deficit spending trajectory, Obama will add another $10 trillion to the current $15 trillion National Debt on the books, in the next 10 years, assuming the markets will ever let it happen.   As it is now,  the Federal Reserve is printing money to buy 90% of the federal government bond issues that come out every month because there are not sufficient investors willing to plop down their money to buy treasury bills.  This is destroying the value of the dollar.   And, don't forget, there is approximately $50 trillion in unfunded liabilities, or promises to pay Social Security, Medicare, Medicaid and federal pension that is sitting out there like a nuclear bomb waiting to explode on our nation. 

So, in the next few months before Thanksgiving, we will see and hear a lot of hoopla about a Congressional Committee deal to cut this additional trillion dollars.    It is chump change and will do little to prevent the bankruptcy of the United States.   The fact is that we need to see an additional $8 trillion in cuts over the next ten years to get our country back on track.   Raising taxes will only make matters worse since tax hikes will retard economic growth and actually generate less revenues to the government.   As such, Socialists rantings about raising taxes on the "rich" so that they will pay their fair share is just more class warfare baloney that will do nothing to prevent the bankruptcy of our country.   Standard & Poors has downgraded the credit rating of the United States because the deal to raise the National Debt Ceiling by $2.4 trillion did nothing to solve long term deficit spending.   It is a joke.  

The only way to get our deficit spending under control and bend the cost curve is to deal with entitlements, Social Security, Medicare and Medicaid in a responsible way.   President Obama and his Socialist pals in Congress will never touch these entitlements because their PEEP's, those that pay no income taxes at all, those on the dole, illegal aliens, public employee union members and favored companies that give to Socialist campaigns will go ballistic.   We cannot get our fiscal house in order as long as Socialist remain in power at both the federal and state levels.     

As such, we must sweep these Socialist characters, including President Obama, out of office in 2012 and 2014.   There is no other way.   We must take back our country to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   Please don't pay too much attention to the National Debt Congressional Committee negotiations.   It is just more drama and a side show that will accomplish little even if they are successful. 

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