CATASTROPHE

 

We were warned by the man who doesn’t’ pay taxes in the Department of the Treasury, that it will be catastrophic to the USA if the Congress would not increase the debt ceiling. The default of the debt will degrade the credit rate of the federal government and this in turn will bring an increase in the amount of interest we have to pay, plus many other awful things in this great nation.

I have said many times that the catastrophe was already here, that to owe 15.5 trillion dollars is the catastrophe, and now that the Congress increased the ceiling that stupid situation we have been living with will increase to levels we never imagined.

It is a shame that the newly appointed Congressmen who were doing the right thing, at the end as one of the suckers put it “blinked” and gave the hand to Obama. They (the new Congressmen) had leverage until that moment when they voted to accept the “deal”. Now they did a great disservice to those who elected them. First, and maybe the worst thing, they gave Obama the reelection when they lost their leverage accepting this to go beyond the next election. Obama now does not have to deal with them anymore. They are dead. And, what did they win? They think that for the first time there are cuts in the federal government spending. The cuts are less than a Trillion Dollars in ten years of not important cuts that are not by any means the solution to the debt.  Congress appointed a Committee to look for another 1.5 trillion dollars. When was the last time that a committee solved anything? Why did they need a committee? Why not force the cut immediately before accepting the deal? Why not as a condition force the repealing of the Obamacare? This will save almost immediately everything, almost a trillion dollars in cuts, but more important giving the small businesses in this country freedom to hire and with this helping the economy to recover.

The real catastrophe is to have this stratospheric debt of 14.5 trillion dollars (now more than 15 trillion) with payments of more than 40% of the federal government revenue going to pay the interest. The different entities that rate the credit were unanimous in saying that a cut of at least 4 trillion dollars was necessary to bring some sanity to the USA finances. I have said before that increasing the ceiling was like in any individual in this country (and there are many like this) with three credit cards to the limit asking for a fourth one to pay the other three. Or like somebody put it even better: “is like increasing the blood alcohol levels to cure alcoholism.”

One of the many stupid defenders of the spending said that the debt is no problem, as soon as we are in prosperity this kind of spending is of no relevance. I know people right now with deep debts saying the same thing. When they had a job they were saying, no problem we can pay; suddenly they were out of work, and now they are saying, that they need a credit to start again.        

The catastrophe not only came to the Republican party, that now has no leverage against the Obama reelection and some of them are going to loose their jobs, but to all of us who watched how the Washington politicians will continue with their powerful maneuvers to maintain the status quo of spending, spending, spending with no remorse, increasing the debt to new highs, and then with the reelection of the “inexperienced” president more and more of the same (remember 1.9 trillion I just two years) since they (the new Congressmen) gave him a blank check to spend as he wishes.

When are we going to learn that to live beyond our means cannot be maintained indefinitely?  Real businessmen, the ones who made this country great, know that, and are not buying the “deal”, the Chinese know that and degraded the credit rate already, the American people, those who work and do not have their hand extended asking for help to the Federal government, know that, and hopefully are still in the majority and hopefully in November 2012 will send all these people (Obama and those who approve the deal) to their homes. Do you see, I still have faith that there are people with common sense, and unfortunately I strongly believe that the economy is not going to improve with this “deal” and Obama is going to continue doing stupid spending and worsening everything and at the end with a “happy ending” this horror movie will end without around 400 people who are now in this bureaucracy, and hopefully new ones will come with a learned lesson to live within our means.  Remember, “The Chinese are coming”. That will be catastrophic