Debt Default–Now Or Later

Debt Default--Now Or Later

So reopening the government, narrowing our deficit spending, and raising the national debt ceiling is coming together in planned negotiations this week.

Despite all the talk, we continue to spend beyond our national means and basically we must raise the debt ceiling or else the game of borrow and spend is over.

Almost like insatiable gamblers, we use up our money at the table, head to the pawn shop to sell our watch and car to replenish for the next game, and then borrow against our credit card to fuel our addiction to the game some more.

Eventually though the house always wins and the borrower must pay up (or they get their legs broken or something nasty like that).

So while the question posed by the pundits this month is whether the U.S. will default on its debt now, the real question is whether a default is just a matter of time anyway–as we continue to spend more than we generate in revenue as a country.

Sure can we raise the debt limit again–hey, why not borrow more, if others are willing enough to lend to us (and for little to no interest too)?

And can we through sequestration or more surgical spending cuts, decrease the rate of our deficit spending–however actually balancing our budget is not even on the table anymore, as booming entitlements for Social Security and Medicare are expected soon with the aging baby boomers to drastically increase our spending again.

The hope that we will somehow, magically grow our way out is fanciful thinking–almost rising to delusions of national grandeur–that just don’t mathematically add up (since we have a median GDP growth rate over the last 80 years of just over 3%).

Perhaps, we don’t care if we can’t pay our debts, because we are the superpower and what is anybody going to do to us about it anyway?

Or perhaps, we rely as a backstop on our ability to print more money and pay off old borrowed sums with worthless new money galore?

Maybe it’s not a default if no one acknowledges it or we just get away with it…but somehow, someway, no one and no country can spend more than it generates in perpetuity.

If you believe in the endless virtual cycle of borrow and spend, then the mind control program is working just great, indeed. 😉

(Source Photo: Andy Blumenthal)

Government Shutdown – On The Street

Government Shutdown - On The Street

Day #3 of the Federal Government Shutdown.

I am reminded on the streets of D.C. that there are many others hurting and in need.

Pictured here are some hardworking folks striking against “unfair labor” practices.

They’re up early and are standing there ready, presumably willing, and able to work.

At the bottom it says, “Employer refuses to bargain in good faith.”

With news coming again this morning about continued failure in talks on the government budget (and debt ceiling not far behind), we are left wondering when good faith and compromise will bring 800,000 federal workers back to their jobs.

All these people have bills to pay, mouths to feed, and jobs to perform.

I read this morning how the Federal workers are feeling like “pawns” and “marginalized” like never before.

Perhaps, we can get more done by helping people feel a level of control, valued, and with purpose?

The world is still a big and scary place with lots of dangerous actors and challenging problems.

Rather then political polarlization and indecision, we need to stand firm by a definite set of sacred national values (while compromising on the implementation details), project the strength to defend them both domestically and abroad, and stay fair, faithful, and unwaveringly united to perform our vital role in this world.

To solve large global problems, we need to be able to show that we can manage our own house in order first. 😉

(Source Photo: Andy Blumenthal)