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A New National Debt Ceiling? … You’ve Got to be Kidding!
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Disclaimer:
Bob Pritts is responsible for this content, which is not edited by the Wilson County News or wilsoncountynews.com. |
February 5, 2010 | 1 comment
Just yesterday, February 4, 2010, both houses of Congress passed a bill designed to once again raise the ceiling on our national debt. This was hurriedly done just hours prior to the swearing in of the newly elected Senator from Massachusetts, Scott Brown (R). I wonder why that was? Could it be that the bill would not have passed the Senate with a ‘possible’ 41st NO vote on the minority side? Couldn’t be, could it?
Well none-the-less, we now have a new debt ceiling that will supposedly permit the country (us) to carry on well into the future. But, wasn’t that the reasoning when they raised the debt ceiling just 4 months ago in November, 2009? Keeping in mind that the TARP and Stimulus Package, already being spent, are not part of the regular budget, this should give you an idea of how far they are willing to go on their seemingly endless quest to run us deeper into a financial abyss. And, for no possible capitalistic reason! And, please don’t forget the earmarks (payoffs to Congressmen) that total billions upon billions in wasted tax dollars! We need to remember though that when the ceiling was raised back in November they promised us they would cut back on spending, cut earmarks, and cut unnecessary government programs! How’s that workin’ out so far? Must be working out rather well because instead of raising holy hell with our Congressmen/women and Senators when they were about to pass the recent bill, most folks just sat back and got furious about it on the couch in their family rooms!
One thing our government hasn’t bothered to tell us, and hopes to God we never figure out, is that our country has been bankrupt for many years! Unfortunately, most folks get angry about the actual money that is being spent, and in my opinion, spent wastefully. It’s my opinion that that is not the ‘real’ problem we face in the future. We’ve already relinquished our hold on the national debt ceiling but that’s not the end of it. In the very near future our government will be asking you to send more ‘actual cash contributions’ in the form of tremendous tax increases. We’ve not only given them a bunch of monopoly money to play with but they will also require you to send more actual federal reserve notes … an additional portion of your income.
This goes on. What about that monopoly money? Everyone knows that neither you nor the government can use monopoly money to pay bills. So, the new $1.9 trillion dollars they just received on paper must be turned into ‘real’ money before they can spend it. Remedy … the government just prints new money … something ordinary citizens can’t do when they come up short. This little solution to raising actual funds by the government will impact us big time in the near future. When a corporation decides to issue ‘new’ stocks not previously on the market, and afterward finds that their sales do very little to add to profitability they go through a period of ‘dilution’. Since the new, larger number of stocks must be placed against the profitability of the corporation, that usually means that the number being placed against profitability normally creates a ‘dilution’ or downing of the value per share of all outstanding stock prices. Printing money by the government is no different. When they issue (print) new money without any added value to the dollar, it automatically means the value of our current dollars will decrease, at some point, in relation to all the new, unearned dollars now available for use. We call that rampant devaluation that eventually causes inflation. Simply put, if our dollar decreases in value by say 15%, at some time in the future it will cost each of us (the government shareholders) 15% more ‘dollars’ to buy the same products we buy today. For example, if we buy a gallon of milk today for $5.00, when inflation sets in we will pay $5.75 for that same gallon of milk. And, I believe we all know that it’s real unlikely that our bosses will increase our wages to keep up with inflation. This is not fear mongering … it’s an economic fact!
And God forbid that we allow them to pass Cap & Trade. That will add even more cost to your gallon of milk. The additional cost of energy usage to the suppliers (dairymen, truckers, etc.) will be passed along in the form of price increases to your grocers. But, that’s another topic for another time.
The underlying problems associated with all the above pertain to each and every one of us. This is not a partisan issue. There are no ‘liberal’ or ‘conservative’ dollars. Our liberal friends who keep insisting on following our pied pipers in Washington are about to be sadly disappointed. It’s my opinion they have become so enthralled in all the new ‘socialistic’ programs being offered that they’ve lost complete track of the eventual price they will be forced to bear right along with their more fiscally conservative friends … not only monetarily but in the loss of freedoms and the liberty they/we now enjoy.
I would be more than happy to hear from anyone out there who might want to prove me wrong or tell me, and other readers, what I’ve overlooked. |
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| Your Opinions and Comments |
Brent Tubre
Floresville, TX
February 6 at 9:01am
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