The current fight over debt ceiling in the halls of government in Washington D.C. has polarized our trustees in a way that is rarely seen in modern times. With the President of the United States calling for compromise and excoriating his partisan opposition from the bully pulpit, he demonstrates the frustration of his inability to frame the debate and power his agenda into prominence before the debt ceiling deadline arrives and his leadership (despite his favor among the large mainstream media outlets) becomes more of an issue in public opinion than the refusal of Republicans to increase taxes in response to their mandate from the 2010 election and the tea party surge. It is emerging as a battle between opposing Ideologies that have tilted the American ship since the beginning: the left, which seeks to maintain the incremental growth of government size and power, and the right which has awakened from its slumber of strategic compromise to see the precipice of an inescapable economic Rubicon.
- Debt, in terms of government budget, is an accumulation of yearly deficits.
- Deficits are measures of revenue falling short of measures of spending.
- A debt ceiling is a limit on the aggregate bonds that can be issued to cover congress’ constitutionally authorized borrowing on the credit of the United States ,which compensates for spending beyond the budget designed to delineate the funding for government programs and legislation.
These three things are a looming cloud over our fiscal health as American politicians argue over how to continue to spend like it won’t matter tomorrow and still get elected next year.
The Debt is rapidly growing beyond our capacity to produce enough to even pay the interest on the borrowed money.
The Deficits are short –term manifestations of the long –term problem
The debt ceiling is the credit card limit on borrowing to pay what we have already spent.
But the politicians in Washington continue to increase the spending with no hint of realistic compromise on those checks written,(to voters) which represent their guarantee of re-election.
But the productive are finally beginning to see the disconnect between what is earned and what is taken , to be given to others.
Greece has emerged as an example on the world stage of how not to conduct the finances of a modern nation. As the people discover that their entitlements are limited , and the free ride on the backs of the productive in society is coming to a forced close,(manifested in waste cuts ) the “entitled” are beginning to reach out in desperation for the nearest Molotov cocktail to affect the change that will catch the attention of the “keepers of the checkbook”.
Here in America, the waste continues as politicians are only on the verge of coming to any realization that there may be limits to their own fiscal excesses. A looming election year has napes bristled and the juxtaposition of that deadline with an abysmal employment rate and a rapidly approaching debt ceiling deadline has created a political frenzy inside the beltway.
The conservatives (some of them) finally seem to understand their marching orders from the electorate, who demanded in true tea party fashion last November that the compromise with excessive spending government expansion is over. The voters have unleashed their rage at the misappropriation of Federal funds. The waste has caught up with the domestic output. The Credit card bill is too large to ignore. And with the glaring violent example of a collapsing Greece to remind us, the consequences of bureaucratic gluttony cannot be propitiated any longer.
And ,of course, the Liberals in denial and resorting to wealth envy and class warfare to maintain the gravy train, continue to apply for yet another credit extension and decry the evil of those who would try to talk some fiscal sense as “the destroyers of schools and the elderly”, all the while refusing to reduce even the most ridiculous of pork programs. No, all of the “non-stimulating “ stimulus and the new and untested Federal takeover of an entire sixth of the economy (medical care) cannot be tampered with. Never mind those historical government cost over-runs, never mind those historically failed attempts at wealth redistribution and the blatant absence of private sector spending and hiring.
The coming election weighs heavy on the left, and the desperation of the bureaucrats is palpable. Even the President has emerged on television to scold the right for failure to work towards a positive election campaign for the Obama administration. Their new problem is that the people are unemployed and are paying attention to what may affect their possible job status next year. The people are weary of the misspending as it begins to affect the hiring class and the real “trickle down” becomes a pinch between the fear of investing and the coffers to compensate running dry.
The writing on the wall now has translators and the bureaucrats are finding it much more difficult to tag acceptable excuses to the patrons of their grand graffiti.
The scare tactics are backfiring on the political class who, in the past has pitted the rich and poor in a great charade against one another to obfuscate the plunder. But when the bureaucratic tyranny begins to sicken the goose, the golden eggs become more and more scarce. The workers are realizing that having a job working for the “evil rich” is better than waiting on an unemployment check that may never arrive. The Trustees have squandered their trust, and the productive have caught on. When the gravy train approaches the (Laffer ) curve, if the brakes aren’t applied soon enough , the derailment will cause us all to Greece the landing.
July 26, 2011