Sunday, March 10, 2013

Paul Ryan - Balance The Budget In 10 Years

Congressman Paul Ryan is putting together a Plan that would Balance the Federal Budget in 10 years, by cutting the growth in government spending.  To be clear, government spending would still go up by 3.4% a year under the Ryan Plan, rather than 4.9% a year to get the job done.   In addition, Ryan is proposing to repeal some or all of ObamaCare dealing with Medicaid expansion by going to block grants to the states to provide for providing medical care for the poor.   I am sure Ryan must also tackle Entitlement Reform to save Social Security and Medicare, as part of the process, both of which are headed toward insolvency as 78 million Baby Boomers move into retirement.  Ryan also wants to eliminate fraud in Food Stamp and other programs.   Gosh, could common sense prevail in Washington DC.   Don't count on it.

While this plan, or some version of it, will no doubt pass the Republican House of Representatives, it will be dead on arrival in the Senate, led by Socialist Senator Dirty Harry Reid and it will receive no support from Socialist President Obama because though it provides for a growth in government spending.  They want to borrow and spend even more than the 4.9% growth rate on "investments" to allow their PEEP's to continue feeding at the trough. 

The United States is headed toward economic collapse like a run away train.   Our National Debt is approaching $17 Trillion with no end in sight.   Our National Debt is now greater than our Gross Domestic Product.   We are fast approaching become Greece, Spain or Italy, all economic basket cases.  If the Obama trajectory is allowed to continue, we will add another $10 Trillion to our National Debt in the next ten years.  Of course, the markets will never allow that to occur because economic collapse will occur long before. 

When there are no takers for our bonds, as is already happening, the Federal Reserve will be forced to monetize the Debt by just printing more money, which will cause the destruction of the dollar.  When that day comes we will see very high interest rates, inflation and an even lower standard of living for the American people.   Though interest rates are currently low, we are on track for a train wreck.  It is coming. 

As it is, we face another downgrade of our credit rating.  Our Triple AAA rating is already gone under Obama's watch, which is the result of his reckless and irresponsible spending.   The only reasons there are still some investors buying some of our bonds, though not all, is because Europe and Japan are in even worse condition.   Elected Politicians, around the world, keep borrowing money to buy votes to stay in power.  It is what it is.

While Republicans in Washington DC are not without guilt in creating our mess, at least they are proposing a Plan to stop the fiscal insanity.  However, as long as Socialists control the Senate and the Presidency, we are not likely to see any real progress to deal with the fiscal insanity in Washington DC.   We will all be poorer for it.   And, unless a fix comes soon, we will see the economic collapse of the United States, within 10 years.   If that happens, it will lead to civil strife on our streets as the Takers in our country riot when they are suddenly cut off from feeding at the trough.   Who knows the end of the story; but it can't be good.   

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