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Hi Gang
Well the 535 folks who we sent to represent us in Washington DC once again have put partisan politics ahead of the people’s business.
Yes, I understand that they have fundamental differences in the way they see America and the role of government they believe best serves the people. But I also understand that like the parent who never says no, they now have to deal with a child (us) that thinks because its shiny and they want it, they should have it. That, is just not sustainable.
We need to have additional revenue, at least temporarily, but we also must fix what is broken, pork barrel spending, fraud and waste in many programs, and a better budgeting mechanism. Many have called for zero based budgeting and have been told, rightly, that it is not practical because it is so voluminous. Computers have come along and now, maybe it is time to rethink that. Perhaps we don’t have to zero base every year, but every five might work. Take 20% of the agencies or other budget segments and zero base them every five years. That way we could at least be assured that every line item is looked at and justified every five years. Pretty sure that would make trend line analysis a useful tool. We could spot any segment of the budget that was out pacing inflation and challenge it. This would allow us to fix the problems a lot sooner.
Default. Is it unthinkable that the USA could be unable to pay its bills? Was it unthinkable for a lot of US citizens to be unable to pay their bills in 2007. Yet look at the foreclosures, the bankruptcies and the pain on Main St. USA. No it is not unthinkable, but it is avoidable. They say there are two competing emotions in human kind. Fear and Greed. We need to back off the greed a notch or two and cut the pandering to fear. There is a reasonable solution out there and we will find it. It is just like elephants mating. It happens at a high level and amid a lot of noise. Congress will work it out and do it in time. But if they don’t, the world as we know it won’t end. Just as CARmageddon in CA was much ado about nothing, this will pass quietly into the night also.
What will happen? The treasury will not be able to redeem some bonds that are due to the Federal Reserve Bank. Woo Woo. They should have enough cash flow to handle the everyday things like payroll and Social Security. They may be a day or two late with the bloated payment to a defense contractor or they may have to force government workers to take a few days vacation. But Armageddon, I think not.
But what leverage is there is you can’t scare people? If this “default” happens and Social Security checks go out, the average American is going to lose interest. Then it becomes a political liability for both sides. Where does that lead?
So relax, read a good book and don’t worry, be happy.
