Welcome to the last Sunday before the sequester. Based on the philosophical and socio-political differences between the parties and the fact that Washington, D.C. is on vacation, it looks like the sequester is going to happen and draconian spending cuts will go into effect.
I made a point to say that though I am neither grandstanding nor cheerleading for the sequester, it seems as though America has exhausted all other options. The result of the sequester will be somewhat financially tragic, America will survive and this somewhat tragedy is the only thing that is going to get politicians on both sides of the aisle to work together. The good news is I think the sequester will happen, but it will be very short-lived. Both parties in both houses of Congress will be willing to work together and work with President Obama to prioritize; that is restore what we absolutely cannot live without ASAP, say good-bye to what we do not need, and work on the borderline. That’s the way it is, folks. They say it is too late to pray on the day of final judgment; it is too late to debate the deficit issue as America is getting closer and closer to national bankruptcy. If America goes bankrupt, we will all realize how minor the sequester was.
Fixing America is doable; the two questions are (1) at what price? and (2) which political philosophy is incorporated in the chosen solution? Ridiculously high taxes to support a 1789 form of government will get the job done. That will save the nation from bankruptcy, but will spiral 85% of the American people into poverty. If that is the price we have to pay, we are better off being in debt till the end of time. To give credit where credit is due, we Republicans do have to acknowledge that our rival Democrats are right about one thing; you can’t postpone raising taxes forever. Even a 1789 form of government can accrue debt. In 1804, you could buy an acre’s worth of land from the Louisiana Purchase for 3¢. Today, a first class postage stamp costs 46¢. Think about how many first class postage stamps it takes to fill one acre of land. And one service the Federal Government always provided and always must provide regardless of cost is military defense; I know it has been more than a decade since 9-11 but don’t think it can’t happen again. The Catch-22 is that with inflation, unemployment and wage reduction due to laid off full-timers forced to take part-time jobs, most Americans don’t have another spare penny to pay higher taxes. Of the two major parameters being taxes and spending cuts, spending cuts is the only one anyone in government can control at this time.
What does irk me is the continued slow-boating in Washington; not only not getting things done, but when they do get something through, the result is spitting in the wind. Both the sequester and the few alternatives that saw daylight for a little while, in the best case scenario, reduce the deficit by $1 Trillion over ten years. Think about that magic number I put out there in most of my blogs $16 Trillion. If you are going to pay off $16 Trillion dollars by paying off $1 Trillion every ten years, assuming the deficit does not grow (which we know will not be the case), it would take 160 years before we see a balanced budget. Your great, great, great , great grandchildren won’t see it. In fact, I don’t believe any human being will see it; I see Judgment Day coming long before then. Mankind will be completely off the planet. Now do you understand why you can’t get anyone in any class to make sacrifices? At the end of the day, you still don’t have a balanced budget; in fact, you are still very deep in debt. People make sacrifices all the time when they get something in return. But reducing the debt by $1 Trillion here and there is still a lot of debt in the trillions; and no person on Earth has ever become a trillionaire.
The same old tune: limited government such that the only the most essential services survive and with the exception of the military, regardless of how essential, if it can be privatized, privatize it. Also stabilize our currency with gold: 60% Federal Reserve Notes and 40% Gold Certificates. Make the dollar bill worth what it was worth in 1952, a dollar. This alone will reduce the number below $16 Trillion. Bring back a strong, solid, manufacturing base and promote American-made goods. Develop domestic energy sources. And create the most small-business friendly environment possible at the federal, state, and local levels. When one owns a small business, no one can outsource it or take it away from him or her.
Let’s see what’s on The 7 Train March 2nd.