Without Significant Budget Cuts, Financial Collapse Looms in Foreseable Future
April 14, 2010 Leave a comment
Isn’t it amazing how every time the republicans try to bring the bills the democrats are aiming to fast track back into the spotlight that they get accused of playing politics? Since when is expressing concern about the financial future of this country comparable to “political games”? The United States is a country that needs to be taken care of. In no way can government officials afford to get compulsive about what it is we supposedly need to be spending. Our economy by the way, has shown no sign off recovery outside of a couple artificial bubbles working their way up through the DOW Jones Industrial Average.
Federal Reserve Chair Bernanke testified that the overall Federal Debt could exceed the GDP of this country by the end of 2020. It’s obvious, and any real common sense person can comprehend that we are on an unsustainable path courtesy of our reckless representation. Everything in the future is going to hinge on how the administration goes about trying to tackle the deficit issue. Unfortunately for America, the track record thus far does not yield an optimistic outcome.
We have a financial overhaul moving through the Senate right now that Harry Reid wants to fast track; however, he may run into possible republican filibuster. The overall attitude among republicans is their demand to be included in the debate on the floor. The republicans, who have been passed off so many times already as naysayers because of their opposition to nearly all of Obama’s fundamentally flawed proposals, really cannot afford to give the left an inch in the reform battle. Look at it this way. If you have a radio that is not working and your friend decides smashing it with a hammer is the solution to fixing (and obviously not), any compromise with his proposal would be like asking him to hit it with the hammer with less force.
The bottom line in all of this is that no compromise can win because the very nature of their proposal is fundamentally flawed.
The financial reform on the floor in the Senate is based on the notion that there does, in fact, exist certain industries that are too big to be allowed to fail. While they claim this reform will rely heavily on large financial institutions rather than on the people for fund, that can only hold true for so long before it completely imploded on itself. Fund have to be drawn from somewhere. No one, not even large financial institutions have an unlimited supply of money. The cost is going to work its way down to the people who can least afford to pay it. If we can’t release the private sector from financial, regulatory or any other kind of government intervention, than our economy will not be able to recover as advertised.
Recovery is only going to come from a significant reversal of the new reforms that have taken hold. Dramatic cuts needed to be made to this countries budget and taxes need to be brought back down to levels we haven’t seen in a long time. It’s going to end up being the difference a couple of years of economic pain and a long drawn out period of recession that could last for the better part of the century, assuming there even can be a recovery if we allow it to get that far. We are forging a dependent society that will not willingly give up social handouts once they are too firmly in place. Health Care Risks turning into a medicare or social security – another long drawn out unfunded liability that we end up being stuck with.
In a Fox News report it seems that the debate that will even be allowed will be put on a very short leash:
Earlier, Dodd angrily accused Republicans of “political chicanery” and appeared on the verge of abandoning talks.
“My patience is running out, my patience is running out,” he said from the Senate floor. “I’m not going to continue doing this if all I’m getting from the other side is the suggestions somehow that this is a partisan effort.”
This is usually a sign that can be interpreted as more of an ultimatum to republicans rather than an expression of any kind of willingness to open up genuine discussions. No significant concessions will be made by the democratic leadership. This is more to provide the allusion to the public that debate was offered between the both of them. Dodd is retiring after he finishes serving his term this year, he has no legitimate drive to give any kind of credence to a counter-argument. I don’t think there has been a time in history when the American people were more cut off from their representation than we are today. Dramatic changes are needed in the relationship between government and our financial system if further crisis can be averted.