Thursday, February 21, 2013
This chart says it all
*Image found here.
See that? The debt took off at a gallop as soon as Obama took office, and it wasn't growing slowly before that. The Federal Reserve is buying oodles of US debt these days. I don't like that. I don't know what it means, exactly, but I don't trust the Federal Reserve to act in the interest of the American public. Shoot! Racking up debt at all isn't in the interest of the American public!
Think of it this way. The US is spending more money every year "in the interest of stimulating the economy" so they say. All that it means is that the markets won't adjust to reality for longer. The more artificially inflated the economy, the greater the difference between the economy before and after the debt bubble burst.
The harder we'll fall.
If, on the other hand, if we prepare for the eventual inevitable collapse of the debt bubble (similar to the housing bubble in fate) then we'll experience less pain overall because we won't have spent even more and made the collapse more precipitous.
If we elect politicians who are seriously committed to financial reformation then a) we can preserve entitlement like Social Security and Medicare for the future. There is no such guarantee of their existence once the debt bubble collapses. b) it might incentivize a more responsible, efficient government rather than the one full of waste and corruption we have now. And c) we can privatize many elements of government to contribute to the efficiency and effectiveneess of certain programs, likewise stimulating the private sector where all money is made and where the economy grows.
You cannot grow the economy by enlarging government. Government is a leach using up money created in the private sector. It has its place, to be sure, but that place is not in parasitically devouring its host as is its course at present.
Give me spending cuts! Even the sequester doesn't involve real cuts - just cuts to the projected increase in budgets. Every single year since 1974 the federal budgets have increased annually by as much as 10% regardless of revenue or necessity. Any additional funding awarded provides the basis for the next year's budget calculation. Exponential growth.
Needless to say though I'll say it anyway, this is unsustainable (as admitted by the GAO audit/report) without an exponentially growing private sector to support it (which we do not have). Needless to say though I'll say it anyway, all the taxation in the world (taking private sector funds) cannot pay for this kind of spending. It must stop.
Now, the Democrats and their buddies the media won't show you charts like these or do anything other than agree with each other that life is fine with liberals in power (and vice versa), but it doesn't make it true! Don't say you have not been warned. The media's failure to report things that should concern us all as Americans merely makes them not worth your business.