Conservative Political Commentary

...anti-socialist, anti-globalist, and usually with an attempt at historical and economic context

Tuesday, August 2, 2011

Is This the Best We Can Do on Debt Right Now?

President Barack Obama confers with Federal Re...Image via Wikipedia
President Obama and Fed Chairman Ben Bernanke

The debt-limit deal appears to be about par for the course of the incumbent federal government:

     1. Cuts that border on being meaningless
     2. Debt-limit increase that will encourage Democrats to demand more spending
     3. Creation of a “super committee” to recommend cuts. Remember Obama’s debt commission?
     4. Postponing actual cuts until after the 2012 elections
     5. Does nothing to make America’s credit rating look any better. If ratings agencies continue their AAA rating for U. S. debt, it just makes the agencies look like they’re in the pocket of the government.
     6. There is very little to encourage the financial markets, outside of forestalling an immediate, formal default – but for how long?

The only Tea Party victory seems to be that there were no new taxes in the measure, and this seriously offends leftists. President Obama says, not to worry, he’ll still demand tax increases, especially on those awful corporate jet owners and those “rich” people earning $250,000 or more per year. This is one area where the House GOP can put its foot down, if it has the will to do so.

The deal, in essence a kick-the-can strategy, is perhaps the best that could be expected with the current Administration in power. As long as liberals are in power, there can be no actual meaningful spending cuts, and there will always be strong pressure for higher taxes. They must fund their beloved projects and keep introducing new ones.

Meanwhile, the “non-political” (but really very political) Federal Reserve continues its secretive strategy of creating from thin air trillions of dollars to eventually bring us hyperinflation. Neither the Obama Administration nor the Fed cares a whit about “transparency,” as they feel their operations are beyond the understanding of the public, who aren’t interested anyway. But that view is becoming less and less justified.

Note the video via The Daily Bail, in which it is pointed out that presidential candidate Obama lied seven times in under two minutes:





Sure, no more secrecy.

Via the same site, a video with some input about the secrecy of the Fed, whose so-called Inspector General seems to know little to nothing about what the agency has been doing, months after the fact of some multi-trillion-dollar transactions. Or if she knows, she’s not talking about it.




Senate Minority Leader Mitch McConnell is correct in saying that the budget/debt/deficit problem will not be solved while Barack Obama is in office.

The only real opportunity to fix this extremely serious problem will happen when Republicans take control of not only the House, as now, but also the Senate and the White House. Even then it will remain to be seen what actual steps will be taken that are more effective than letting the situation fester until we see a currency collapse. But with liberals in charge, such an eventual collapse appears inevitable.

Whoever the GOP nominee turns out to be, he or she ought to listen to Ron Paul and the Austrian School economists on these issues. We have some promising candidates who were not on board with debt limit increase, and who have knowledge of what needs to be done. Michele Bachmann and, of course, Ron Paul himself, come to mind. Either of them would operate within the Constitution far more than the does the current regime. It will take an extremely tough and forthright conservative campaign to drive home the extreme danger of four more years of Obama, and an unfettered Federal Reserve, to the American people.

If the GOP fails, we are in for four more years of massive unemployment, higher prices, out-of-control spending, higher taxes, and an economy that will likely take two or more steps backward for every small step forward, with collapse hanging over America’s head like the sword of Damocles. Also more regulation of everything, more endless wars we don’t win, far less personal liberty, and even further lowered standing in the world.

Other than that, everything would be fine.


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