Congress Is Strangling America

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I know many folks cruise blogs for that short jibe that appears to say in 10 words what most others say in a book with years of research. But, America is the most complex single organization to ever exist in world history outside of nature herself. The argument that an economic train wreck for our economy is just over the hill cannot be made in 10 words or less. But, this understanding also, could not be more important, nor the emergency, greater.

The stock market's behavior yesterday reminded me of a very human condition. Hope springs eternal until it denies reality, then reality dashes all hope, forcing acceptance.

Ben Bernanke, the Fed Chairman spoke yesterday, and based almost entirely on a short sentence or two, the markets went wild. He said inflation will come in at 2.25 to 2.5% this year, excluding rising food and energy costs, and hence, interest rate hikes may not, may not, continue to rise. The bulls went wild, and shorts began covering their butts. But, this amounts to more than 12% increase in cost of living every 5 years. Are you getting 12% increases in wages every 5 years? Perhaps, but most Americans are not. This is a real problem given that taxes must double in the future to bear the national debt levels now being accrued.

Now, these investor/brokers are looking at things over the next couple months and making investment decisions for today and coming weeks based on this information. This is the way stock and bond markets now work. But, the graphs and pictures regarding our debt and deficits at D.a.n's site, beg that voters look further out, and take remedial actions with their vote now which, can alter a dire future of poverty and suffering if Congress continues down this path of strangling America's future.

Bernanke said it was never the case that our economy could ever grow us out of our national debt. (NO REACTION). Folks, this is the most important statement uttered by Bernanke today, and it gets absolutely no press or attention. The greatest debt load we ever had was after WWII. And the reason we were able to get out from under it, was due to the fact that the U.S. was nearly the only nation on the planet with all factors present to dominate the world consumer market with new and innovative products. We were poised to dominate the world's agricultural, industrial, technological, military, and engineering markets, supplying the world's insatiable demand for new quality of life elevating products and services at a time when population in the world was about to explode.

None of those factors exist for the U.S. today, and the world has dramatically shifted and changed to the point where other nations are now poised to supply world demand for products and services far more competitively than we can. Bernanke was absolutely correct. Growing our economy CAN NOT save us from our out of control spending and debt, as it did after WWII.

Bernanke's statement says, their is no magic wand to wave, that will get us out from under the ever limiting future which our national debt constricts around us. The only way to avoid a future of millions of Americans suffering in poverty, without medical care, homeless and aged, and abused by society which want's the poverty and degradation they represent to go away, is by making tough, stern, belt tightening decisions today.

The baby boom retirement years are going to add dramatically to our already dangerously high national debt, if we choose to avoid nightmare scenarios of aging poverty and abuse, and suffering, not to mention ever higher taxes and diminishing real wages and purchasing power of our earned dollar. And that addition to our debt, will equal or exceed the national debt level after WWII, but, our economy cannot salvage the situation this time. Only fiscal restraint and responsibility timely fashioned in the immediate future, can do that.

But, politicians are caught in the trap of using spending as a means of appealing to constituents to get their votes. And curtailing spending for them is like asking them to voluntarily walk away from their political careers, handing them to challengers who for the asking. They won't do it voluntarily. They will only cut new costly spending if the voters demand it of them and threaten their reelections if they don't.

It is up to us, folks. The future of our nation and our children's work lives, if they can even find work, is in our hands, the voters. It is simple math folks. We are doubling the debt this decade. That means more than doubling taxes in the future on workers to buy down that debt. More because the interest on the debt will grow substantially from its current $370 billion dollars per year.

It is up to us. We cannot, must not, rely on politicians to do this for us, because THEY WON'T. Without a mandate from the voters, cutting spending is political suicide for Congressional politicians. It is up to us to start saying NO to any new legislation that will consume tax dollars. It is up to us to demand as a condition for our vote, that our deficits zero out.

It is up to us. It is up to us.

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This page contains a single entry by David R. Remer published on July 20, 2006 9:21 AM.

Stem Cells - Right Veto, Wrong Reason was the previous entry in this blog.

Political Perversions is the next entry in this blog.

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