Our nation is in trouble. We are within sight of national bankruptcy with a total collapse of the nation’s economy. The potential disintegration or breakup of our government might well accompany that economic disaster. Why then do politicians on both sides of the aisle encourage the national ignorance and phony arguments that prevent rational analysis of the problem? Are Americans really that ignorant of economics?
Most people seem to believe that the problem can be fixed if we only elect or reelect the right person into the presidency; if only we choose the right leader. But four more years of spending as both Obama and Romney and our present Congress propose will certainly see this nation collapse. Neither they nor Congress proposes meaningful budget cuts. Our $16 trillion deficit will grow under Romney or Obama by $6 trillion in the next four years if everything works as they hope.
And it won’t work as they hope. Today a large part of the world is in a similar plight. Our dollar is a haven of safety as investors move their moneys out of Greece, Spain, Ireland, Portugal, Italy and France. But as investors see that we have precisely the same overspending, overpromising problem as the European nations they will cease loaning to us as well. At best Romney and the Republican members of Congress propose insignificant reductions in the massive growth of the budget. Democrats only propose taxing the rich more.
They fail to appreciate that investors are not fools. Nations and individuals will cease buying US treasuries when inflation begins destroy the value of the dollar. That will seem to occur as if a sudden natural phenomena. When it happens we will be past saving. The FED purchase of more long term bonds will be too little too late. No one will trust that manipulated market again until the bond market has naturally cleared itself of the incredibly over priced inventory.
Both Romney and Obama pretend to believe that the US treasury can continue to borrow money at very low interest in spite of the certain and substantial increases in inflation already baked into the pie. Predictable low interest cannot continue, as they damn well know. When inflation forces interest rates to rise, when the FED can no longer keep rates down by buying Treasury Bonds with phony money, then the US Treasury will be forced to default or begin printing currency that is worth less and less every day. Default, perhaps partial default on all national debt, entitlements and obligations will become the only rational answer. Printing money that no one trusts would insure the destruction of the government. National borrowing will no longer be possible at rational interest rates.
This disaster must occur in the near future if we do not put into office a President who will balance the budget now. Not later. Now.
The republicans and democrats now in power owe their political lives to those who fund their reelection and bring them voters. They repay their sponsors with federal contracts, tax breaks and laws that protect those sponsors (unions, government agencies, government contractors (especially military contractors), etc). They are parasites. To maintain themselves in office they are sucking the lifeblood from the economy, destroying our nation and if allowed to stay in office another year or two they will succeed in destroying us.