Wednesday, April 13, 2011
Guess what? The Democrats and the Republicans are both lying to us again. So what else is new? The truth is that the great "budget crisis" which supposedly took us to the verge of a government shutdown was just a whole bunch of political theater. Even the Associated Press is declaring that our politicians used "accounting sleight of hand" to reach the $38.5 billion budget cut figure. Not that $38.5 billion was an impressive number to begin with. $38.5 billion would just be one percent of the federal budget. But once you strip away the accounting charades, the real budget cut number is somewhere around 14 trillion dollars. It turns out that the "budget cuts" include money left unspent from previous years, earmarks that were going nowhere, unused census money and programs that Obama was already planning to cut. The more you examine the "budget deal", the more it becomes obvious that the Republicans and the Democrats had no intention of doing anything serious about our debt problems. The U.S. government is still going to run a record-setting budget deficit in 2011 and both the Democrats and the Republicans are to blame.
So should we be surprised that our politicians have been lying to us again?
Of course not.
But if something is not done about our soaring debt it is absolutely going to crash our financial system.
According to the IMF, the U.S. government will have to borrow an amount of money equivalent to 29 percent of GDP this year alone in order to finance its budget deficit and its maturing debt.
That is what you call a crisis.
But neither political party seems the least bit serious about the national debt.
The Republicans are proposing even more tax cuts without saying how they are going to pay for them, and they even tucked an increase in military spending into the "budget cut" deal.
The Democrats don't seem to want to cut much of anything. In fact, most Democrats seem to believe that government debt is not much of a crisis at all.
Our politicians love to talk about "cutting the budget", but nothing ever gets done. Both parties have been promising us "fiscal responsibility" for decades but both parties have never delivered.
Sadly, the American people have not held our politicians responsible for this.
This latest episode just reveals how much of a joke Washington D.C. has become. In the 8 days leading up to the "historic" $38.5 billion budget deal, the U.S. national debt increased by $54.1 billion dollars.
Our politicians are standing by and doing nothing while the financial future of this nation is being destroyed right in front of our eyes. It is now being projected that by the year 2021, interest payments on the national debt will amount to $1.1 trillion dollars a year.