Just as Obama is warning of future years of trillion dollar deficits, and Nancy and Harry are salivating over the prospect of spending more money that we don't have, China has indicated through its economic policies over the past two weeks that it's appetite for buying up US debt is fading fast. So who then is going to buy up all the debt that our government is intent on amassing? The actions of our leaders are reminiscent of a college kid with their first credit card, cluelessly buying cool clothes and partying away, without thinking about the reckoning that awaits.
I'm confused. FDR's big spending on infrastructure did not push the US out of the Depression. Instead, it was a host of other factors, most notably the involvement of the US in WWII, which finally propelled the country out of it's long financial drought. The tax rebates of last spring which put a little spending money in people's pockets, did not curtail the current recession. The $700 billion bailout along with all of the other billions recently spent on nationalizing private businesses, has not had the expected effect of minimizing the pain. So what makes Obama and the Democrats think that doing more of the same is going to do anything more than dig us into a deeper hole? A hole which may be impossible to dig ourselves out of without the aid of Chinese willingness to hold our debt?
This all seems like nothing more than the bad policy of reckless spending and denial which caused the housing bust, but on a much larger scale. Unfortunately, the ramifications could be far more ominous. The US can print more money, but that will only diminish the value of the dollar. If our debtors call in the chips, and the dollar becomes more and more worthless, where does that leave us? It seems like in lean times, it might be worth considering cutting out every bit of fat in the budget. Take the medicine now and stave off a full blown potentially lethal infection later. The problem is that a fiscal conservative's view of wants is a liberal's view of needs. Do we really need to fund cutting edge gyms in prisons, housing for illegal immigrants, private jumbo jets and expensive junkets for members of Congress, and cappuccino makers in schools, when we have NO money? Someone always comes up with an argument why some bit of unnecessary spending should continue, or why some new spending should be initiated. When will they just say "No"? I'll tell you when; when it's too late. When we are in such bad shape that the country becomes like a dying elephant and the scavengers around the globe come and pick our bones. Then people will demand accountability from their leaders.
What scares me is that the people who should know this stuff don't seem to be doing anything to change the direction of our impending wreck.
5 hours ago