Sunday, November 13, 2011

Congressional Super Committee - Just More Washington Baloney

The Congressional Super Committee, put in place to find a compromise to cut $1.2 Trillion, in spending over ten years, is Just More Washington Baloney.   In fact, this amount represents no cuts at all, just slowing down the rate of spending growth.  This Committee has ten days to reach a deal, otherwise, there will be $600 Billion in automatic cuts to Defense and $600 Billion in automatic cuts to social spending.   Big Deal!  At the present spending trajectory, under Socialist President Obama and his pals in Congress,  it is likely that $10 Trillion will be added to the current $15 Trillion National Debt in the next ten years, assuming the Markets will allow it.   Our current National Debt is now at about 100% of our Gross Domestic Product.   Even if our economy grows in the next ten years,  if serious cuts in spending do not occur,  our National Debt will grow to 125% of GDP, or more, again assuming the Markets don't intercede first, which is likely.

The balloon has burst in Italy since their National Debt is now at about 120% of their GDP.   The result is that they cannot roll over their debt by borrowing more money because while the US can currently borrow at 2% related to US Treasuries, Italy must pay a 7% interest rate to borrow more money because of the risk of default.   The United States is heading down the same road to catastrophe.   If the US had to pay 7% to fund our National Debt,  there would be little money left fund Entitlements or Defense.   And, again this is assuming there would be investors willing to lend us more money, which is uncertain given the sovereign debt levels that exist around the world.   Politicians all over the world have been borrowing money to win reelection for years.   The party is over; yet Socialists in power throughout the world just don't get it because none of them understand Economics 101.

So now the Congressional Super Committee is focused on cutting just $1.2 Trillion over ten years.  At $120 Billion a year, this is chump change and will do nothing to change the current spending trajectory to prevent the bankruptcy of the United States.   Of course, Socialists on this Committee just want to raise taxes to deal with this $1.2 Trillion in cuts.   If Republicans accept tax increases again, just liked when they were duped during the Reagan and Bush I Presidencies when we got the tax increases; but never got the spending cuts, then we need to form the Conservative Party of the United States and let the Republican Party die a timely death.  

At a minimum, the Republican position on spending cuts and entitlement reform should be the Ryan Plan that was passed by the House of Representatives that would cut spending by $5 Trillion over the next ten years.  Even that is not enough; but perhaps when combined with tax reform, we can grow our economy enough to achieve additional tax revenues to allow for an end to deficit spending that is bankrupting our country and a Balanced Budget.  Ultimately, the federal government should not spend more than 17 or 18% of GDP, rather than Obama's 25% because this is the level of spending that will allow the private sector to grow and create jobs.        

Instead in the next ten days, we will hear a lot of hoopla about the Congressional Super Committee "deal" to cut $1.2 Trillion in spending; but it is all just a bunch of Washington Baloney.  We have got to take back our country in 2010 and 2012.   While the rest of us go to work and pay our taxes and raise families, or go to school, we have Union Members, Socialist and Communist Mobs, apparently with nothing else to do, rioting on our streets demanding even more entitlements that are bankrupting our country.    We must all stand up and say HELL NO.  

Socialist President Obama and his pals in Congress are destroying our economy and our country.   Obama seeks to divide our country by his Class Warfare arguments because Obama has been a complete failure as President and he has no record to run on for reelection.  We see the end result with the Mobs on our streets.    We have to take back our country in 2012 and 2014 by sweeping these Socialists, at all levels of government, including President Obama out of office.   The fate of our nation depends on it.   We can do it.   We must finish the job we began in 2010 to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   In the mean time, don't pay too much attention related to the Congressional Super Committee Deal.   It is just more Washington Baloney that will do nothing to prevent the bankruptcy of our nation.    

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