The Sky Is Falling, The… Or Is The Economy Collapsing?

I have been sitting here on this Saturday afternoon debating writing this post.  I and I’m sure some others, feel like Chicken Little, constantly shouting, “The Sky Is Falling!  The Sky Is Falling!” Everyday that we delay taking action on our national debt, we continue to inch closer to economic doom.

President Obama seems in no hurry to make any fiscal course corrections.  I’m beginning to think this may be by design.  Is it the Presidents wish that our economy collapse?  It would make it oh so easy to establish a Socialist State if that were to happen.  The government would just step in and take care of all our needs.  Right?  From the haves, to the have nots.  Spread the Wealth.   The problem is, that there will not be enough haves to take from, to give to the have nots if the economy implodes.  Actually there isn’t now.  It’s been said that if you taxed the rich at 100%, it would still not cover our current debt.

Keep in mind that socialist states are not very good at supplying very much of anything.  Individuals that do work, do so in a very inefficient manner because they know the government will see that they get their share regardless of job performance.  If you think you stand in lines now for governemnt services or at the store, wait until you are in a very long cue line waiting for a loaf of bread or fresh meat and vegetables.  It will be very stressful, perhaps even volitle, especially if the supply is not going to meet the demand.

Try to think of the national budget on a personal level.  Personally,  you cannot continually spend beyond what you earn.  For a while yes, but there comes a point where you have to increase your income to keep up.  In the case of the government they just increase taxes.  You,  on the other hand,  may have to get another job (parttime or fulltime).  What do you do if you can’t find another job?  Or, if you find another job but continue to over spend, then what?  Sell off some assests?  The point is, there comes a time when you have to deal with your SPENDING Problem.

Unlike the government, you can’t print or create money out of thin air.  Printing more money is not a good idea either because when the government does that, they cheapen the dollar.  it’s worth less.  If they keep printing (there is talk of a third printing as I write this) the dollar for all practical purposes becomes worthless.  Yes, I’m being facetious but there may come a time it could take a fist full of dollar bills to purchase a loaf of bread.  All that printing sends the prices of the goods and services we purchase, higher.  One of the reasons gas is high now, is we have printed (created) money a couple times already.  Oh,  the government doesn’t like it when we say “printing money.”  They call it Quantitative Easing.  Beware of government speak.  It’s a way of telling you what they’re doing without you truly comprehending.  Deceitful?  You make the call.  They did tell you.  Just not in a way the “Everyday Joe” can understand.

Quantitative Easing is the Fed buying up billions and billions of dollars of  bonds from banks.  Note:  The first QE was to be 600 billion dollars……it ended up being 1.8 trillion!!  The Fed hopes that the banks make this money available for loans to businesses and individuals.  They want to get money circulating in the economy.  When the money gets into the economy, it drives up the costs of virtually everything over time.  Let me insert some links here because this is something you should be aware of and I am not that adept at explaining it.  If nothing else, just glance over the articles.  You will learn something.

http://www.thenewamerican.com/economy/commentary-mainmenu-43/7698-is-the-third-time-a-charm-for-quantitative-easing

http://www.npr.org/blogs/money/2010/10/07/130408926/quantitative-easing-explained

http://www.businessinsider.com/quantitative-easing-fail-spectacularly-2010-10

Back to the President.  He is not willing to perform any meaningful cuts in the budget and to compound things, he established another very huge entitlement program.  ObamaCare.  They have said this program would come in under a trillion dollars.  I believe it did BUT with some shady tactics.  Here are a couple ways they did this.  They borrowed, took or cut 500 billion dollars from Medicare and before the program even goes into effect in 2014, we will have paid for it for four years.  That’s right, we are already being taxed on ObamaCare to build up a four year fund for the program, so that they can say, that over a 10 year period it was solvent!  After that, who gives a rats ass because it will be fully entrenched in virtually all our lives.  Another thing, if you’ve thought you have had some long waits in an emergency room or doctors office, wait until Everyone goes for Everything, because it’s FREE!  I predict that ObamaCare, even with their budgetary cheating, will cost more than they are predicting for the first ten years.  Who will pay the difference?

The President and the Democrats have refused to do anything with Medicare or Social Security.  Two of our biggest entitlement programs.  Republican Congressman Paul Ryan has proposed a plan.  I think a good plan.  At least it’s a starting point.  The President and his party failed to even propose a budget for the current fiscal year, even though they controlled the Executive and legislative branches of government.  What the hell was up with that?  Afraid or politicing?  I think both.  But remember, by being afraid or playing politics with the budget, they were only hurting the rest of us.

The current budget controversy is raising the debt limit.  Republicans are balking at this.  They want the President and Dems to agree to spending cuts.  Something like, for every dollar we raise the debt, we cut a dollar in spending.  It’s time to take a stand.  I’m with the Republicans on this one.   If not now, when?  We’ll see what happens.  Obama and Boehner will talk it over on the links this Tuesday.

Today I read that Allen Greenspan, the former head of the Federal Reserve, said he is very concerned about our debt.  He wants us to raise the debt limit, increase taxes and agrees with Congressman Ryans budget proposals.  Cuts and all.  Here’s the Greenspan article:   http://www.cnbc.com/id/43264595

Stephen Moore, the senior economics correspondent for the Wall Street Journal said that the U.S. economy could cave in under a “mountain of debt” if Republican lawmakers “blink first” and agree to raise the government debt ceiling without taking concrete steps to reduce the ballooning deficit.  This article is in Newsmax Magazine.  Here is the link:  http://www.newsmax.com/Headline/obama-debt-ceiling-/2011/06/04/id/398832

This is worth a look too:   http://hotair.com/archives/2011/06/04/quotes-of-the-day-705/

Fred Barnes…telling it like it is.   http://www.weeklystandard.com/articles/obama-economy_573249.html

Is The Sky Falling?  Or in our case The Economy Collapsing?  What do you think?  Just Asking.

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