Democrats
and Republicans agreed to the terms of the Budget Control Act of 2011, which
becomes effective on January 1, 2013, in order to avoid shutting down our
government because of a debt ceiling. Without increasing the debt ceiling, the
government could not continue to pay for our extravagant entitlements. We
needed to borrow another trillion dollars in order to continue programs we can
no longer afford. In order to approve the ridiculous proposed budget, Congress
and the President agreed to massive spending cuts and tax hikes. However, the
cuts and tax increases would not go into effect until a year and a half later.
Now that 2013 has arrived they want to modify the terms but cannot agree on how
to do it. And now, we are bumping up against the new debt limit. We are out of
time and money. We are at the bottom of the cliff!
The
only reasonable thing to do is let the current policy, scheduled for the
beginning of 2013, go into effect. Otherwise, the Mayan predictions for the end
of the world will become reality. Our country’s black hole in public finances
must be dealt with now. The irresponsible behavior of our stupid, greedy
representatives has put us between a rock and a hard place. There will be an
unpleasant impact from the tax increases and spending cuts but the deficit will
fall significantly. Yes, we may go back into a recession and economic growth
will temporarily be reduced but we must bite the bullet. Oh, and BTW, please,
no more stimulus packages with borrowed money. They do not help fight
recession. History proves they just make things worse. Happy New Year and good
luck surviving next year.
The Tsar has to plea bargain for jobs, jobs, jobs. The best way in this corrupt society of ours to get the economy going is to prime the pump of jobs. Otherwise, our only alternative is to go after the banks and companies who are sitting on cash while refusing to help. Unfortunately, we have no governments in place willing to do the right thing.
ReplyDeleteHappy new and poorer year,
-TsarPat