08-14-2010: U.S.S. Titanic

The Federal government of the United States is the iceberg that has torn a huge irreparable hole in the hull of the country. Just as the unfortunate Titanic sank long before help could arrive; so is the United States. Our country is now at the tipping point where the stern of the luxurious, “unsinkable” ocean liner, strangely without sufficient passenger protection, rose high in the air until finally she broke in half and dropped like a rock to the bottom of the sea. The United States, under failed, corrupt leadership for decades, is about to break in half and there is no passenger protection for “we the people” who have not only indolently allowed this to happen, but actually voted for it. We can blame Wilson, Roosevelt, Carter, Clinton, Bush or Obama, but in every case “we the people” put these integrity challenged sops in the White House and even worse loaded our Senate and House of Representatives with career criminals, whose behavior and lack of honor would shame the lowest mafioso.

Every day now we listen to our elected criminals and foolish, undereducated, overpaid pundits eloquently discussing how this mess should be fixed and whether it would be better to raise or lower taxes and increase or reduce government spending by a few percentage points. They discuss, with a straight face, whether some recycled, low life, Republican career criminal might be better for the country than the current batch of retarded, recycled Democrat career criminals. Are you kidding me? This is the soon to be drowned Titanic orchestra courageously playing wonderful music as their well shined shoes slowly disappear beneath the dark, cold surface of the sea. When we talk about spending stupidly, we’re OK; but when we actually engage in stupid spending, it’s gone.

Depending whose estimate you go by the minimum overall debt committed to by our quite literally insane Federal Representatives is $109 trillion. Lawrence Kotlikoff, a Boston University economist, pegs the overall fiscal gap based on Congressional Budget Office (CBO) data at $202 trillion, more than fifteen (15) times the “official debt level”. Mr. Kotlikoff wrote in Bloomberg recently “Let’s get real. The U.S. is bankrupt.” Mr. Kotlikoff explains that the difference arises out of “smoke and mirrors” accounting practices used in tracking Social Security, Medicare and Medicaid. I would add – accounting practices that would place the officers of any publicly traded company in prison for a very long time. The correct term for this type of accounting is “FRAUD”‘.

Mr. Kotlikoff writes further in his Bloomberg column, “Neither spending more nor taxing less will help the country pay its bills.”
If Mr. Kotlikoff is even close to correct and it is likely he is; the annual entitlement cost to the U.S. is more than $4 trillion in 2010 dollars. “The first possibility is massive benefit cuts,” Kotlikoff says. “The second is astronomical tax increases. And the third is the government simply printing vast quantities of money.”

The voters of the United States can voluntarily come to grips with this reality and begin electing honest representatives who will tackle this head-on; or we can just keep our heads in the pundit sand and make believe it’s all right. We will come to grips either way; it’s just a question of timing and pain level. Continuing to employ the criminal likes of Tim Geitner, Barney Frank and Chris Dodd is the head in the sand route. These people should rightly be in jail, not prancing arrogantly through the posh restaurants of Washington D.C.

Every dollar the Federal government borrows or spends is taken from a private individual. The government produces nothing; it only takes. Taking does not create affluence nor freedom.


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Filed under Main Street Economics

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