07-22-2011: American Economics 101: To Solve a Problem, First Define It

Posted: July 21, 2011 in Weekly Constitution Watch

In Short:
“Spending” is the obvious one word problem definition.
“Stop spending” is the obvious two word solution.
Any other answer is incorrect or a lie.

Another Short Answer:
“Stop voting” for people who are lying to you!”

Factoids:
Portraying Annual Federal Spending in terms of a 24-hour day:
Corporate Jet Loophole – 15 seconds
Oil Company Subsidies – 2.2 minutes
Bush Tax Cuts – 2.4 minutes
Our Three 2011 Wars – 3 hours
Mandatory Entitlement Spending – 16 hours

Please note:  Tax increases or decreases have absolutely nothing to do with the simple fact that our irresponsible House of Representatives spends too much.  These two discussions are not related.  If we quadruple taxes;  does that now mean our Federal government doesn’t spend beyond its means?

Do not be distracted by the discussion of symptoms or vested special interest scare tactics.  The problem is un-Constitutional SPENDING.  Social Security and Medicare are required by Federal law to be paid.  Payment of those mandated entitlement expenses is not a choice as Obama threatens.  Barack Obama and all Progressive D’s and R’s are irresponsible liars.  Believe them, support them and vote for them at your peril.  We cannot remain free and support Democrat Marxist Globalists or Republican Neo-con Globalists.  They all detest your freedom and crave YOUR money – for only slightly different reasons.

Long Answer: The American economic turmoil engendered by inappropriate, unconstitutional, short sighted government policies vis a vis 2011 is not as complicated as we are told by politicians and pundits.  Contrary to Fox News, MSNBC, CNN and other globalist outlets, the United States is not confronted with a mysterious,  irresolvable financial dilemma.  After all, if you’re sinking into debt, are feeling guilty about your irresponsibility or just don’t want to continue sinking into the inevitable quagmire of financial defeat;  you could consider spending less.  This concept would be helpful advice for any adult person, business, city, county, state or country finding itself mired in this foolish circumstance.  You might think that even socially engineered, Harvard and Yale grads could grasp this idea, but apparently not.

Constitutional Fact:
Of our three branches of government, only our House of Representatives has the authority to appropriate Federal spending.  If the United States is bankrupt and is subsequently weakened and beholden to those who hold the credit strings – it’s because our House of Representatives wants our country bankrupt.  Individually elected House Members are violating their oaths of office and are voting for this un-constitutional nonsense, plain and simple.  There is no other reason.  We would do well never to lose track of this simple, Constitutional fact; especially while paddling painfully upstream through the  statist media cloud of dense intellectual fog typically enveloping the mindless sound bites of political obfuscation.  Confusion is an effective means of control.  {You just read a sentence full even if it’s true – which it is.}

The United States is confronted, not with an outwardly imposed, incurable, viral economic infection, but with an internal, political vacuum of honest leadership,  integrity and to some extent, knowledge; all hopelessly addicted to a strident political determination, fully vested in self-political interest,  never to address our self caused, economic dilemma in any real way – ever.  The unconstitutional confiscation of our citizen’s money and its political use in “buying” votes and controlling our behavior is much too valuable to self aggrandizing, career politicians, many of whom should be in jail, not Congress or the White House.  The U.S. debt problem and subsequent depression is completely repairable – providing there is a will to fix it;  which there is not.

To date – politics trumps economics.  This is not a Democrat/Republican problem; nor a conservative / liberal problem.  It’s a case of mistaken identity boxed in completely by corrupt elected officials having competing political ideologies, hell bent on self justification rather than economic reality.  Political greed, lust for power and empty promises can purport to defy economic gravity, but ultimately failure is imminent – and you and I are and will pay for it along with our children.  Continuing to desperately race down this dead end road in full-on, Georgia Overdrive invites certain tragedy and basic indentured servitude.  Traveling this road, no outcome beyond the bounds of economic perdition is possible.  Debt and freedom cannot exist together regardless what the teleprompter claims.

Let’s take a minute to define the economic context here, shall we?  The United States has two (2) realistic alternatives to its existing and burgeoning debt.

  1. Default.
  2. Don’t default.

Any fool including our financially un-educated, Borrower in Chief can handle Option 1.  Stubbornly maintain the status quo, pay lip service to it with meaningless rhetoric and more outrageous promises;  or worse – double down on more spending and up the ante on the Fed’s coming QE 3.  Guaranteed failure for all sides.

{By the way  – Quantitative Easing (QE) consists of nothing more than foolishly printing fiat money with which to buy our own pathetic debt because no one else is dumb enough.  This used to be called “monetizing”our debt and its bad.}  Following Europe’s bankrupt and frequently bloody footsteps is generally not a good idea.

The three (3) Congressional possibilities regarding Option 2 are:

  • Cut spending
  • Increase tax revenues
  • Cut spending & increase tax revenues

There’s our entire list of possibilities.  Any politician or adviser who complicates this further has an agenda we had better identify because it won’t be in our best interest as citizens. The underlying, causative problem itself is attempting to manage a national ( or global for that matter) economy by employing and enforcing political agendas as opposed to employing basic economic principles.  It’s no different than trying to win a baseball game by employing the rules of football.  You’re going to lose.  The opposing baseball team playing by baseball rules will win 100% of the time.

Economics is like gravity.  It doesn’t care what political party you belong to or what ideology you adhere to.  On earth, if you throw a ball into the air, it will rise until the force of gravity equals the upward applied force and momentum (at the apex), after which the ball will begin to be pulled downward – toward the center of the earth – accelerating per the force of gravity.  Throw as many different balls as many times as you want, in as many different ways as you want, as hard or softly as you want;  the result will always be the same.  Your ball or your technique will not obviate the gravitational constant.  To oppose this concept on earth is to be insane.

In the real world, politics tends to override economics.  Progressive Marxists believe otherwise, but they are factually incorrect and history painfully demonstrates this to be so.  We are unfortunately, witnessing this historical occurrence once again.  Political agenda(s) driven by those who seek power over us, always after our money and wealth, would have us believe gravity and economic principles  don’t apply in these United States, nor I suppose anywhere else on earth.  Their current agendas, whether Left or Right, have been thrown into the air, have arrived at their respective apex and are now going to be pulled down.  To oppose this inevitable result is insane.

Gravitationally  speaking, the default option leads directly to economic collapse either in the near term or in the not too distant future.  The result of economic collapse leads directly to currency de-valuation; spiraling commodity costs; shortages of various kinds, including food and gasoline; interruptions in electric and natural gas service; etc.  If Spain, Portugal, Ireland, Greece, Italy and Great Britain, that is most of Europe – our current Administration’s sacred model, are any example – and they are – we will also see civil unrest and hungry, angry neighbors in our own streets.

Most of our politicians, by ignorance or intent, are dueling over perceived, economic symptoms with useless, placebo prescriptions that are in fact poisonous and highly toxic to the well being of our country.  Their own long term,  political career – in itself a problem – causes them to deny economic gravity and drives them to blindly pursue their own selfish interest, which will ultimately damage both them and us.  Our Founders developed a powerful vaccine called the Constitution, to protect us against this eventuality, but we have listened to Progressives, spurned the vaccine and are now defenseless against political snake bite.

Our survival as a healthy nation requires that” we the people” replenish our Constitutional vaccine, revitalize its latent power and use it to encourage and demand that our elected representatives “stop lying and stop spending”.  Even a tiny amount of integrity will carry us a very long way.  If the Progressive spoiling of America is not reigned in soon by rational common sense;  we will learn the true meaning of “bad”.

Any politician or pundit talking flatulently about budgetary “out years” or promising fiscally responsible budgets beginning in 2014 or later cannot be taken seriously and is basically a coward, a liar or both.  George W. Bush may have been a Neo-con Globalist hack and Barack Hussein Obama may be a Marxist Globalist hack, but neither of them had or has the power to spend. Spending is the problem.  Our House of Representatives is the spender.  Stop spending is the solution.

We can plan to spend less as adults or we can remain children and be suddenly forced to stop spending with no plan at all.  Which do you think may work out better for Grandma, Grandpa, you and I and our children’s future?

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