I will be posting the two sequels to "It's Nitty-Gritty Time," I just haven't gotten to it yet.
Today something happened that really blew my mind.
The Federal Government announced that the budget deficit for fiscal year 2009 will be … $2 trillion dollars. That’s correct, folks. Two TRILLION dollars.
And where will that money come from, do you think?
Well, after soaking the private sector for several trillion, the Fed will simply print more money. Or the Geithner Treasury will try to sell more worthless Treasury securities to a world that is awash in dollar-denominated debt.
In a previous blog post I mentioned that the Obama administration plans to borrow $2.7 trillion over the next 7 months. Frankly, I didn’t believe it. I didn’t believe that the level of mismanagement of our government’s finances could be so egregious. But apparently it is.
You’ll recall that last month, President Obama sent secretary of State Hillary Clinton to China. Secretary Clinton told the Chinese leaders that they would have to keep buying our debt so that we could keep buying their products. Huh? Didn't we used to make those products?
The Chinese already hold trillions of dollars worth of our debt. The entire world knows the United States is bankrupt. Apparently, our Congressional representatives haven’t a clue.
Why would anyone in their right mind buy more US debt?
The answer is that the rest of the world is fed up with the United States’ fiscal policies. We are trading on the fact that the dollar is still the linchpin world currency, to pay our debts by simply inflating our currency. It ain’t going to happen, folks, because the rest of the world has wised up. We are not going to be able to float anymore debt, certainly not trillions of dollars worth.
So what will happen? The Fed will simply create more money to fill the huge deficit spending hole, further devaluing the dollar. Will the government actually reign in spending, as you and I must do when our expenses exceed our income? Nope.
Congress does not even read the bills they pass. That’s how a budget can be passed with a $2 trillion dollar hole in it. If you want to do something about that, go here : http://www.downsizedc.org/etp/campaigns/27
At the same time, Speaker Pelosi announced that the Federal government is looking out for you, by passing legislation that will try to take back around $185 million in bonuses paid by AIG to its executives, after that disgusting bailout last year.
You are planning to borrow and spend TWO TRILLION more than you take in this year, and you expect us to be happy because you’re going after a paltry $185 million?
That is the state of affairs in our country today. Our representatives have gone stark, raving, mad.
The Democratic and the Republican parties are both irresponsible and corrupt. These two parties are killing us, devaluing our currency, our economy, and no one seems to care.
I went to CNN.com, expecting to see the projected government deficit as front page news.
It wasn’t even mentioned. The Fourth Estate is just as irresponsible as Congress.
If you continue to vote Democratic or Republican, you are voting to continue the madness.
I voted Libertarian again, for the 4th election in a row, but my vote doesn’t count. Third party votes aren’t even mentioned anymore. All pretense of an actual democracy has been tossed out of the window. It’s just the “red” gang versus the “blue” gang on the Big Political Map. Reminds me of the Crips and the Bloods feud in L.A. several years ago.
What’s the difference between the old Soviet Union and the United States today? Not much. A huge, corrupt government, fake elections, and an economy that is going down the tubes.
But in the Soviet Union, at least the people KNEW their government was lying.
In the United States, we swallow bigger and bigger untruths and put up with more and more gross mismanagement of our currency and our economy every day, without blinking an eye.