...had I not been able to reason.......
.......I might have thought that SPBO (sitting president barack obama) actually understood whereof he spoke.
But that didn't last long.
We still managed to spend more money and pile up more debt, both as individuals and through our government, than ever before. In other words, we have lived through an era where too often, short-term gains were prized over long-term prosperity; where we failed to look beyond the next payment, the next quarter, or the next election.
That's right! The only real and lasting path to prosperity is shedding our debt-centric economy and growing our domestic savings. And the only way to do that is to remind people they have to be responsible for themselves and they can't continue to live at the expense of their neighbors. Let's get rid of Social Security and stop government support of the FDIC and the banking industry. Stop printing money and taking on still more debts to save bankrupt companies. After all, how could we solve a debt crisis by simply spending more money that we don't have?
But then... only a minute or two into his speech... OBAMA! began to promise all of the things every politician promises, namely benefits without any costs. You know the drill: something for nothing. And most importantly, more debt!
The concern is that if we do not re-start lending in this country, our recovery will be choked off before it even begins. You see, the flow of credit is the lifeblood of our economy. The ability to get a loan is how you finance the purchase of everything from a home to a car to a college education; how stores stock their shelves, farms buy equipment, and businesses make payroll.
Wait a minute. While I have borrowed money to buy a house, I have never borrowed money to buy anything else. That's the way I was raised. My parents taught me what their parents taught them: If you want something you have to work hard and save your money to buy it. Isn't that what Americans have done for generations? Isn't that what the hard-working people of Asia are doing right now? And isn't that the real problem? We've spent the last 30 years borrowing money from around the world, to buy things we were too lazy to work for and to save to buy.
OBAMA! went on to repeat the old saw about our dependence on foreign oil. But that's not the real problem: The real problem is our utter dependence on foreign credit. Without all the money we've borrowed from the Japanese and the Chinese, we wouldn't have any cash to buy oil from the Middle East.
And then... at the end of the speech, my favorite part...
How will we pay for all of the spending the government is now promising? The truth is, of course, we won't pay for it at all. We will continue to borrow still more money from foreigners because as a nation we've lost the moral and ethical standards that made us a free people. We tolerate our leaders spinning lies and burdening our children and grandchildren with unpayable obligations. We tolerate our neighbors walking away from their obligations. We allow our government to use the threat of imprisonment to collect tax and then use our capital to support corporations whose managers and owners have acted irresponsibly for decades.
But rather than making decisions based on the sound principles of economics or in the spirit of the American tradition of small government, personal liberty, and personal responsibility, we now have a government that constantly seeks public acclaim and the contributions of special interests. And what does the public clamor for? OBAMA! knows all too well.
In order to save our children from a future of debt, we will also end the tax breaks for the wealthiest 2% of Americans...
We will eat the rich!
Keep in mind, America doesn't currently impose a wealth tax. So... it's not clear what OBAMA! means. But if you want to see an exodus of capital from the United States, try taxing people's net worths. On the other hand, if OBAMA! was speaking of people's incomes (which is much different than their wealth), the highest 2% of American wage earners already contribute about 35% of the government's expenditures. How much more blood can you wring from those stones?
And keep this in mind. OBAMA! is promising to reduce his first year's estimated $1.8 trillion deficit by 50% over the course of his four years in office. But he makes no promise to actually reduce the total outstanding debt, which this year will grow by more than the total government debt in 1982.
Our debts are piling up now at a pace that will leave us insolvent within a generation. We will not cure this problem by taking still more money from the highest wage earners in the country. The more OBAMA! promises, the more money he'll have to print or borrow. (And incidentally, the price of gold will go higher, too – it's already gone from $800 an ounce to $1,000 since the election.)
America is going bankrupt.
Wednesday, February 25, 2009
...had I not been able to reason.......