Spending by the Federal government is THE economic problem today! Leadership in Washington does nothing to warrant Americans to believe that they even see this as a problem. The evidence, Democrats did not even want to cut the $100 billion from the current fiscal year budget. And the real cuts settled on were miniscule in the $352 million dollar range. We the people see this and we are disappointed, disheartened, disenfranchised and enraged that our elected leaders do not listen to the will of we the people. And who gets left with the bill? Answer, we the people do. And how do they want us to pay for it? Through massive tax increases to pay for things we did not want in the first place.
A larger problem is that we have no representation of the will of the American people. We are no longer heard. We are told we are idiots. We are told to take the medicine and deal with it. But, we the people are saying, we have had enough! We are pushing back at the system that got us into this mess. Keynesian economics is a failed economics system and we the people know it. But our leaders do not know it. So they think we are stupid. This is the economic system that got us into the massive 14 trillion dollar deficits. Do we honestly think it will get us out of them as well? No is the answer.
We are then told spending is the path out of this economic mess. When is the last time your bloated household budget would be benefited by doubling or tripling your debt? Simply put, NEVER!! Only cutting back spending and postponing purchases help get you out of debt. We the people are paying down our debts and living more frugally and postponing purchases until some other time. Oh you can go bankrupt, but then you do not qualify for debt for a number of years. So this too is a way out of debt and not to incur more debt! Our culture is built on debt and not on thrift as our founding fathers knew was the pathway to prosperity. And the America that followed this pathway became the richest country on the face of the earth. But now we owe more money that any other country on the face of the earth. Which is better? Clearly the former sate is better that the experimental debt state.
Americans also look ahead and see doom and gloom. They see the high probability of the dollar loosing it worldwide reserve status. They see oil prices in Euros or some basket of currencies and not dollars. They see that as the demand for dollars declines the prices in America for everything will increase. They see the cataclysmic nature of the dollar default and what it means for them. A dollar default and hyperinflation means that every American looses everything!! And we know it is coming as this is the path our leaders are taking us regardless if they know it or not.
So we the people say do not raise the debt ceiling! Why? Because we want to take a stand and wake up our leadership and shake them mightily. For what purpose? To shake our leaders to see what we the people see and get them to act for once in our interest. Now is the time to extract the needed spending reductions to balance the budget in the next two years.
We the people want everything cut even if it means we loose some of our governmental benefits. This is the way out of the cataclysmic events to come. Cut spending on everything and it must be cast in stone without any chance of being altered in order to raise the debt ceiling even one more dime. Our leaders must have their hands completely tied to not spend anything more and balance the budget in two years. The Tea Party is calling for $1 trillion dollars in spending cuts in the upcoming fiscal year budget. This leaves the fiscal 2012 budget with still a whopping $600 billion dollar deficit based on the Administrations’ February budget proposal. We the people want another trillion dollar budget cut in the fiscal year after this one which has the $1 trillion dollar budget cut. This should get us to a balanced budget. And we want a mandated balanced budget each year after that. The cataclysmic results of dollar defaults, the other result, are just too awful to spell out. This is why we are willing to take the consequences of the debt ceiling cap because the unmitigated spending path Washington is taking will never cease until there are real measures taken to stop it. Case in point: The administration is demanding a debt ceiling raise with no strings attached. So we raise the debt by $ 2 trillion and in a little over one year based on the administrations 1.65 trillion budget deficit proposal for the upcoming fiscal year we will have this discussion all over again. Deficit spending is unsustainable. But this is all words and without proper action they mean nothing, nothing! Action is what the American people want.
But look at what Boehner says about his position on raising the debt ceiling: “Earlier this week I made clear that there would be no debt increase without meaningful spending cuts and budget reforms. As I said on Monday, the spending cuts should be greater than the accompanying increase in the debt limit,” Boehner told reporters Thursday. “Clearly we struck a nerve and the response from the White House has been panic and hysteria.”
More proof that Washington does not understand the looming dollar crisis is provided by an editorial in the WSJ May 14, 2011 entitled “The Coming Postal Bailout WSJ.com – Opinion: The Coming Postal Bailout*. Senators Caper (D Del) and Collins (R Maine) want to provide 50 – 75 Billion to the USPS to underwrite the pension obligation even though the Postal service went private in 1970!!! Under that agreement the costs for pensions and the like were to be borne by the company and not the American taxpayer. This is yet another example that Washington is hooked on the addictive drug of spending and there is no antidote, until it is too late!!
Our Demand: NO increase in the debt ceiling until concrete, irrefutable and unchangeable actions are taken to reduce the deficit in 2 years through spending cuts only and to mandate a balanced budget every fiscal year from then on! We the people will elect representatives, Senators and a President who will listen to us.
Let him who has ears to hear the will of we the people, hear!
About the Author: William J. Michie, Jr. has a BS and MS degree in Chemical Engineering from Drexel University and an MBA degree from Rutgers University. He has had a 32.5 year career in Polyethylene Product Development with Union Carbide and Dow Chemical Corp. and is the holder of a number of patents. H. Marsman and D. Madio also contributed to this article.