Day By Day

Friday, March 5, 2010

How bad is it?

A friend of mine emailed me today asking how bad I thought it was. This was my answer

I don't think that the US hasn’t paid its bills since Eisenhower was President. And that’s at every level of Government, everyone bought into the borrowing approach. Maine’s a perfect example, every election we’re faced with all these bonds that are dressed up to look really sexy:

“do you want to spend $75million on road improvements knowing that we will receive $225 million in matching Federal funds?”

People think – whoa I can get the feds to pick up most of the bill, that’s free right? All that wealth redistribution is just found money, there’s no cost. They don’t realize they’re voting to raise both their state and federal taxes and that includes all the hidden stuff, taxes on gasoline, tires etc. And in the end it contributes to driving up the cost of everything we consume because it all rides on the roads.

And we’ve been passing those for as long as I can remember and the roads and bridges are still falling apart. What does that tell you? It tells me that the abundance of cash for these repairs hasn’t paid for quality, instead it’s a gravy train of perpetual construction employment that politicians use to bribe us with. Our own money.

I gritted my teeth at the Bush deficits; doubling that isn’t a solution it’s symptom of greater stupidity. Obama is fiscally insane and he’s allowed the perpetual children of his party, the ones dominating the congress, to run around eating all the candy now. I guess we’ll deal with the stomach ache and the rotted teeth later.

If they push this health care bill through we’re finished because we’re signing up to be the free health care provider to anyone who can crawl across a border into an emergency room. The end result of that, no matter how they name it, will be rationing. And that’s ALWAYS been the goal, to be able to say “you’re old, you smoked, you’re fat, you’re useless, take a pill and f’ing die, you no longer generate revenue for the state”. In the end we’re just revenue generation machines for the elites to manipulate so they can scratch their need to accomplish itch. If I had one wish I’d rid the world of “do gooders”. Any genies out there listening? How many bottles must I rub?

Is it going to get bad? Probably. Expect to see some states first file suit, and eventually secede. We know how that went last time. All I know is we can’t afford what we’re doing now and we certainly can’t afford to take over and then manage the health care of the world.

From what I hear China isn’t buying anymore debt. They’ve put O’man on notice. What I’m reading says that we’ve borrowed all the money there is. Think about that. If it’s true, then credit will tighten world wide and it’s all about to cave it. How the EU handles Greece is going to be the indicator of how bad it really is. If they let Greece collapse into ruin, that’s the future. If they bail Greece out, they’ll have to bail out Ireland and the UK. I’m thinking it’s not going to happen. Either way there is a good deal of pain to be felt; right now the Greek unions, hardcore socialists, are at the edge of rioting over cutbacks. The sense that the government owes me is huge there, and that’s the same dependence that the Democrats have been attempting to build into the US for decades, dependence on a government that will not be able to deliver in the end because there aren’t enough rich people to pay for it all. The irony of that is that the politicians made it possible for those ultra rich to get by without paying taxes, or even paying taxes at even the same percentage rates we pay. As Thatcher said “The problem with socialism is eventually you run out of other people’s money”. All of the first world, that is the west, is about to learn that lesson.

Speaking of other people’s money, the treasury department is putting out feelers on some proposed legislation. They want to federalize our IRAs and 401ks. What does that mean? It means they want to make your 401k into a federally guaranteed annuity. The way it works is simple; they take your money today, and guarantee that when you retire you’ll get annuity payments on it. They get to spend your money today. They get to keep the principal, you no longer own it. That’s over a trillion they plan to confiscate with a promise to pay it someday, similar to social security. Like all the schemes pushed by the Democrats it’s a generational theft, it burdens our kids, grandkids with debt that can’t possibly be managed while at the same time it’s confiscating the wealth of older Americans. It’s our fault after all; we’re part of that evil ‘boomer’ generation. And they’ll pat themselves on the back for not borrowing another trillion dollars to push their social programs. If it happens the guys who bought gold coins and buried them in jars are going to look pretty smart.

It all puts us at risk, because the wolves are at the door, they’re flying airplanes into buildings, blowing themselves up in crowded spots because they want to bring us down. Our success damages their self image. We’re the golden city on the hill and they’re raising goats in tents. So they want to bring us down and they can because we’re risk adverse and soft. We’re entering a time when we’ll need the money and won’t have any. They fight on a shoestring budget, we fight spending more in a year than the GPD of their countries. Who’s going to win? At what cost? Will we like ourselves when it’s over?

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