19 January 2013 –
I am back. I think I shall be back for some time to come.
Here are two quotes from two articles pulled from
Foxnews.com:
“House Republicans say they will allow a vote next week on a
short-term increase in the debt ceiling, a move that could avert a stand-off
with President Obama -- at least for now.”
“More than eight in ten American voters (83 percent) think
government spending is out of control, according to a Fox News poll released
Friday. That’s up from 78 percent who said so in 2010 and 62 percent in
2009. Some 11 percent think spending is being managed carefully.
Next week’s vote to increase the debt ceiling temporarily is
probably necessary to avert the U.S.’s immediate default on its debts. That is important to every person in America,
whether he votes or not, whether she is in personal debt or not, or whether he
follows the news or not. If the U.S. can’t
keep up with its debt repayment schedule and cannot be trusted by lenders with
new debt, then we are busted. Most
important strategically: Others, not
necessarily our friends, will make our decisions for us.
Greece, the cradle of western democracy, is
not sovereign anymore. Now, others, in
Germany, Brussels, and elsewhere, make decisions for Greece, no matter how many
protestors there are in the streets of Athens who think they have a voice. How long America remains sovereign is up to
those who decide how much we spend and where we spend it. This is the single most important strategic
decision the U.S. has to come to grips with.
It is more important than anything else: illegal immigration and borders; the results of the flow of petrol dollars to those who support terrorism; anything else.
Every financial planner I have ever talked to has agreed on
one thing: When they analyze someone’s troubled
personal or business finances, the first thing they look at is where to cut
spending. Increasing revenues never
solves the systemic problems that cause debt and financial insolvency. It is almost never a revenue issue. It is almost always a spending issue. The planners first determine the fundamental purpose of the
company: what the company does. They then cut spending on everything that does not directly contribute to that
purpose. Then, the company can
survive. Then, the company can eventually
thrive because it takes in more than it spends.
We must use that model to tame the U.S.’s insolvency
crisis. What is the U.S.? What are the fundamental missions of the U.S.
federal government, specifically declared in the Constitution? What are the other, universally-accepted programs
or missions assumed since our founding that should be continued? After this
list is written, cut off everything else and reduce our obligations to a level
that can be covered with existing revenues.
Simple to do on the back of an envelope.
Extremely difficult to do in the political arena by pandering
politicians.
How important is it to resolve this fiscal crisis? Well, I grew up poor and not in control of my
future. I know what it is like to have
others dictate what and who I am. I am
convinced that now is the critical time for the
wise judge Deborah to rally our nation’s fiscal forces. She must lead us to cut down the modern-day
Jabins and their Siseras and thereby stop them from overrunning our nation with
their profligate ways. She can still save
our system of government and economy if we act now. Or, should we wait until our weak, effeminate
leaders desperately cry to Cincinnatus to rise up and save us from the Aequians, Sabines,
and Volscians to whom we are in staggering debt? And when the crisis is over, can we trust
Cincinnatus to give up his dictatorial, executive powers and go back to his
farm? Yeah, right. We have a choice. Are we strong enough to make it correctly?
Are we so far removed from the
events of our founding that we no longer care to follow the brilliant wisdom of
our founders: limited federal
government; fiscal responsibility; local solutions to local issues. Cut spending now. Forget about President Obama. He has never built, lived by or understood
budgetary processes anyway. The key is the United States Senate: It must pass a budget for
the first time in five years and live by the consequences of its
restrictions. Until now, it has forced
the country to live with no budget; the results have been a fiscal
disaster. A budget constrains and limits
and appoints accountability. No wonder
the ill-disciplined Senate refuses to pass one.
Enjoy your weekend.
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