Ever since Obama was sworn into office. There has not been been a budget passed since 2009. Now at the end of the week. The US government is going to run out of money again. This use to be very rare on a few occasions hearing about it in the news of a government shutdown because they ran out of money. Now it has become the norm were congress has to appropriate the funds to keep the goverment running for another month. I wonder how this impacts the world in how they see us. What about our creditors seeing this dysfunction of the government not able for three years coming up with a budget.
I can see if our congress and the President cannot come up with a budget for the years. As a result, I do not see countries buying our treasuries bonds if the goverment cannot get its fiscal house in order because the debt cannot be serviced. I cannot go to the bank and ask for a loan if I do not have a budget. We can see two things that can happen. If countries will not lend to us and the Federal reserve has to print more money to fund the goverment because the deteriorating economy brings greater revenue shortfalls. We can see a currency collapse and the US goverment imploding in on itself because the Washington DC bureaucracy is so bloated and cost too much. I see countries not buying our treasury bonds if the government is likely to default on them if they cannot get their fiscal house in order.
The other options are is really cutting the spending drastically back across the board. That means all these overseas military adventures with wars and occupation of other countries will have to be scaled back or come to an end. The Congress fails to realize our debt and the lack of getting our fiscal house in order is more a national security threat then grandma wearing a diaper at the airport. We have to make the case that bloated military spending does not mean strength. Our expensive foreign policy is what makes us more unsafe. We will have to say no more foreign aid to Israel or any other nations. No more UN dues and no more undeclared wars.
We had the opportunity last summer to take away the ability of the President to barrow anymore money to fund his excessive government spending by living within our own means. We could have scaled back goverment spending back to 2008 spending levels when the congress could said no to raising the debt ceiling. But they have failed because they are incapable of living within their own means. Raising taxes will only put another ball and chain furthering the economic meltdown.
This looming goverment shutdown again is nothing more then pickle smoke and mirrors. If congress was serious about fiscal responsibility. They would have put the dollar back on then gold standard so no more money cannot be printed out of thin air. They would have ended the Federal Reserve Bank bringing monetary policy back under the authority of congress. They would have blocked funding for all these wars Obama started without their approval. This just shows, no matter what party is in power in congress. Nothing changes and always stays they same. The leadership in both house and the White House are dysfunctional, no longer able to govern. This is why sooner and later, the US government will collapse.
The day of reckoning will come when the US government really does shut down. There will be no money left to fund this bloated monster. All the resolutions congress can pass to keep the running month to month will come to an end because we are broke. If the Federal Reserve has to print more money to fund the goverment. Our dollar will become worthless causing a currency collapse that will cause our government to grind to a halt if those government paychecks to all their bureaucrats will be worthless. When the federal government shuts down, it will shut down and would be the best thing these politicians can give us as a gift this Christmas.
I can see if our congress and the President cannot come up with a budget for the years. As a result, I do not see countries buying our treasuries bonds if the goverment cannot get its fiscal house in order because the debt cannot be serviced. I cannot go to the bank and ask for a loan if I do not have a budget. We can see two things that can happen. If countries will not lend to us and the Federal reserve has to print more money to fund the goverment because the deteriorating economy brings greater revenue shortfalls. We can see a currency collapse and the US goverment imploding in on itself because the Washington DC bureaucracy is so bloated and cost too much. I see countries not buying our treasury bonds if the government is likely to default on them if they cannot get their fiscal house in order.
The other options are is really cutting the spending drastically back across the board. That means all these overseas military adventures with wars and occupation of other countries will have to be scaled back or come to an end. The Congress fails to realize our debt and the lack of getting our fiscal house in order is more a national security threat then grandma wearing a diaper at the airport. We have to make the case that bloated military spending does not mean strength. Our expensive foreign policy is what makes us more unsafe. We will have to say no more foreign aid to Israel or any other nations. No more UN dues and no more undeclared wars.
We had the opportunity last summer to take away the ability of the President to barrow anymore money to fund his excessive government spending by living within our own means. We could have scaled back goverment spending back to 2008 spending levels when the congress could said no to raising the debt ceiling. But they have failed because they are incapable of living within their own means. Raising taxes will only put another ball and chain furthering the economic meltdown.
This looming goverment shutdown again is nothing more then pickle smoke and mirrors. If congress was serious about fiscal responsibility. They would have put the dollar back on then gold standard so no more money cannot be printed out of thin air. They would have ended the Federal Reserve Bank bringing monetary policy back under the authority of congress. They would have blocked funding for all these wars Obama started without their approval. This just shows, no matter what party is in power in congress. Nothing changes and always stays they same. The leadership in both house and the White House are dysfunctional, no longer able to govern. This is why sooner and later, the US government will collapse.
The day of reckoning will come when the US government really does shut down. There will be no money left to fund this bloated monster. All the resolutions congress can pass to keep the running month to month will come to an end because we are broke. If the Federal Reserve has to print more money to fund the goverment. Our dollar will become worthless causing a currency collapse that will cause our government to grind to a halt if those government paychecks to all their bureaucrats will be worthless. When the federal government shuts down, it will shut down and would be the best thing these politicians can give us as a gift this Christmas.
I do not see countries buying our treasuries bonds
ReplyDeleteWhat could you possibly know about the sale of US Treasuries? Yes, everyone is allowed an opinion. But everyone should have an INFORMED opinion. Given that you've absolutely zero knowledge on the subject, shouldn't you be sticking to the topics you understand?
There will never be a situation where T-bills aren't being bought. Firstly because of the effects of inflation, and secondly because anything will be bought at the right price- it's just a price less good than the US wants.
It's a subject you clearly have no knowledge of. So why don't you go back to your usual- talk about 911, Putin, and "I dunt needs me no spellin", and let the grownups talk, ok?
Well, I don't know, Rooty. There are some people who I have learned not trust under any circumstances, so I wouldn't buy anything from them no matter what price they offer. I think the US government is approaching that mark.
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