Forgetting for the moment who’s in charge, let’s consider what our government has made for itself and what it can do and can’t do with that reality. It’s a reality we are going to live with, right? And we can’t believe the politicians on either side or our one-time professional media, either. So what are the facts on the ground that matter?
First, our government owes more money than we taxpayers can possibly repay even if no interest was charged, but of course, there is interest, too. Our grandchildren will still be paying off our debt. Think how much a businessman whose debts are great can expect to accomplish before his debts are repaid, restoring his credit. Zilch, right? Our economy is facing hauling itself up a mountain with a 250 lb. pack of debt on its back for likely one or more decades. The Chinese won’t loan us any more; we’re now borrowing from our own Federal Reserve, which has no money to lend; it has to print it up first to lend our Treasury so government bills can be paid. For that, suppose your indebted businessman was paying all his bills by borrowing money from a counterfeiter.
Second, our government is keeping its unemployed, welfare cases, retired seniors, most folks needing health care and a bunch of foreign wars and warlets going only with that funny money it borrows, increasing that debt we’re talking about. This amounts to about a third of its spending, or a little more.
To balance the budget, or restore spending to the level matching government income and so stop increasing debt, the government must reduce all the social services that buy votes for politicians and give up all the overseas power trips they enjoy so much. Do you see any politician likely to do that? If Obama, Hillary or Romney did that, their enemies would be no problem; their ‘friends’ would make short work of them before an enemy could get close. So, what will happen?
Your guess is as good as any but here’s mine: President rerun– excuse me, Obama, will go on as he has, raising taxes on increasingly impoverished taxpayers to allow continuing as much spending as possible as long as possible and the House Republicans will continue to fund that. He will start cutting expenditures in areas that won’t infuriate Democratic voters, such as the military but the cuts won’t seriously reduce our government’s power games. And the Fed will keep the money production going like the ever-filled purse in the fairy tales. And this is indeed a fairy tale with an ending right out of King Midas.
The Emperor’s New Clothes had that little boy in the crowd who called out the truth, bringing down the entire charade. Never heard of him after that, for some reason… Anyway, instead of a little boy, we have Europe and possibly, China. But Europe for sure. The Eurofolk have already had to admit they’re broke, all but Germany. Germany is broke too but nobody’s admitting that yet because the rest of the spendthrifts want Germany to guarantee their worthless hides. But the point is, the Europols have actually started to cut spending, calling it ‘austerity.’ The actual cutting is still preliminary compared to what has to come, but its result so far is 25% and greater unemployment in Greece, Portugal and Spain, with Italy and France to come. Then, Germany. Greeks, Spanish and Portuguese are demolishing their streets and property in complaint, as if that might provide their feckless governors more money somehow. Pathetic.
And that, if nothing else, will bring the U.S. economy to reality, demolishing its long fantasy and we will see the same conditions in America, because the entire economic world is now one, integrated place. Some time in 2013 is my guess, but hell, what do I know?