THE BIG LIE AND THE DEBT CRISIS

CHICKEN LITTLE

THE SKY IS FALLING!!!
  Despots  throughout the centuries have been adept at manufacturing a crisis, and then rushing in with the cavalry to "save the day,"  seizing power for themselves and their personal constituencies. We are witnessing the BIG LIE tactic, employed  over and over again by virtually every corrupt politician the world has ever known. Remember the dire sounding "Emergency Economic Stabilization Act of 2008" ? Had Rob been a member of Congress in 2008, the bill would be named the COLOSSAL WASTE OF MONEY AND CROOKED POLITICIAN POWER GRAB ON BEHALF OF WORTHLESS LEECHERS ACT OF 2008.

THE BIG LIE!!!

The Left and their conspiratorial allies in the media are creating another crisis and employing BIG LIE tactics again. The US Government is insolvent because it spends (wastes) too much money. 43% of the money it spends is borrowed. None of the budget proposals being debated in Congress reduces spending one nickel, not one plug nickel. Thus, all the rhetoric about reducing spending is a BIG LIE. Even under the most conservative plan, the total US debt explodes from 14.2 trillion (accumulated after 222 years of being a nation) to what will likely be 28.4 billion in just another 10 years.

The SECOND BIG LIE is that the government will run out of money on August 2, 2011. There is plenty of tax revenue in the till to pay the interest on the national debt, plenty of money. Most likely, if the debt ceiling is not raised by August 2nd, the Obama administration will choose not to pay certain bills for political purposes, much like certain Democratic governors in Virginia have closed the DMV and interstate rest stops. This is done deliberately "to piss  people off" such they will cry "do something."

 

The THIRD BIG LIE is that a temporary default in national debt instruments is necessarily a bad thing. Assume you own a $1,000 bond from ABS Widget, Inc. ABC borrows 43% of all of its expenses every year and is by any manner of GAAP accounting insolvent and technically bankrupt. Which would you rather have happen: 1) ABC delays a $1.50  interest payment for a short while, but drastically restructures itself, such that it lives within its means and does not have to borrow money to meet its obligations, or 2) ABC sells more bonds, such that it can pay the interest on its old bonds, greatly increasing its already unsustainable debt? Isn't this what Bernie Madoff did?

Bernie Madoff

If you answered # 1, you possess 150 more IQ points than the average member of Congress and the idiot talking heads in the media. Through short term temporary pain, a problem that absolutely has to be fixed is fixed, as opposed to #2, where you get a $ 1.50 coupon on your $1,000 bond, but your $1,000 bond is almost assuredly going to be worthless in the near future.

In all seriousness, who would you rather listen to? Rob who is always Right, or crooked, lyin, thievin politicians who are always wrong?