example of political hyperbole is that the U.S. Treasury is ready to default on its debt. An actual examination of the underlying
facts is that the relative purchasing value of the currency has long ago swindled debt holder in U.S. Bonds of their promised
returns. A default defined under this definition is part of the equation. Repudiation of the entire debt obligation is the
real fear. Contrary to all the public scare tactics that the financial world will stop turning, the Federal Treasury has ample
revenue to pay the interests on bonds and notes that come due. The essential issue is whether the new bond lenders are willing
to roll over the debt that is coming due and keep the shell game going.
late conservative journalist, Robert Novak’s favorite president was Calvin Coolidge, he is known for saying, The
Business of America is Business.The real statement comes from a speech
by Calvin Coolidge called "The Press Under a Free Government" which was given before
the American Society of Newspaper Editors in Washington, D.C. on January 17, 1925. The quote is really: "After all, the
chief business of the American people is business." However, Coolidge goes on to say that, "Of course the accumulation
of wealth cannot be justified as the chief end of existence." He discusses journalism and the thought that the business
interests of newspaper owners should not taint reporting. He continues, "American newspapers have seemed to me to
be particularly representative of this practical idealism of our people."
A seminal truth about governments is that they do not function as a
business. Every commercial enterprise eventually needs to pay their bills, since limitless borrowing is not an option for
lenders. Bankruptcy is a favorite technique for repudiating debt, just ask the General Motors bondholders. Every survivor of the 2008 meltdown knows the rules of the
game are now a moving target.
The media invariably seeks to blame
the Congress for bringing the country to the brink. Most narrow in on the Republican Tea party freshmen as unreasonable. Little
criticism is directed towards the intransigent Democratic leader Senator Reid. The reporting by the press no longer mirrors
the standards of 1925 journalism, and the government no longer represents the practical idealism of the people.
recent settlement of the National Football League lockout with the drama of the Beltway National Theater. Both purports to
have a countrywide audience, but only the NFL has avid fans. The government maintains their league through fear and phony
promises. Football plays a man’s sport by dedicated lovers of the game. Presidents, Senators and Congressmen prepare
their playbook to defeat their opponents, the citizens that elect them to office. The NFL is a business rewarded because of
fan support. The Feds are a systemic extortion racket that forces its edicts upon a depressed and financially depleted citizenry.
The reason why the NFL players and owners settled their disputes, agreed
to a decade era of labor peace, and anticipated prosperity is based upon the business nature of the conference. The reality
why the Federal Government refuses to end the culture of deficit spending is based upon the dictatorial appetites of egomaniacs
that serve their financial masters and deceive the public in an endless cycle of staged elections. As long as the State ignores
the intrinsic nature of business principles, the social government will grow the welfare dependent society, as a way to dominate
Tragically, many people know more about the free agency
signing in the NFL, than the political positions of their own representatives. No one should be surprised about this development.
Government is the ultimate monopoly and does not depend upon a free market of choice. Officials see spending as growth. However,
the bigger a bureaucracy becomes, the more the financial lifeblood of business prosperity diminishes.
The will to correct this core failure is nonexistent, within the federal despotic fraternity.
Their talent lies in designing new transfer programs to crony colleagues and constituents, funded by taxpayer levies or inventive
exotic debt instruments.
No, wonder why so many American have totally
given up on the political system. Unfortunately, that withdrawal of consent alone does not eliminate the treachery of career
government officials. The GOP is poised to compromise and accept a dramatic rise in the debt ceiling. Their explanation will
offend the most serious and sincere reformers. How else can the incessant spending end, unless the credit card is taken away
from the addicted shopaholic?The formidable financial sage, Paul Craig Roberts uses a political argument, when he warns about the response Obama might
use to defeat sound business practices, in his article; The Unintended Consequences of Debt Ceiling Intransigence.
US dollar could plummet in exchange value and lose its role as world reserve currency. The US would no longer be able to pay
its oil bill in its own currency, and as its balance of payments is heavily in the red, the US has no foreign currencies with
which to pay its oil import bill. Or its manufactured goods import bill, or any other bill.
are talking about a crisis beyond anything the world has ever seen. Does anyone think that President Obama is going to just
sit there while the power of the US collapses? He doesn’t have to do so. There are presidential directives and executive
orders in place, put there by George W. Bush himself, that President Obama can invoke to declare a national emergency, suspend
the debt ceiling limit, and continue to issue Treasury debt. This is exactly what would happen.
consequences would be that the power of the purse would transfer from Congress to the President. It would be the end of the
power of Congress. Congress, Republicans and Democrats alike, have already given away to the President Congress’ Constitutional
right to decide whether the country goes to war. Now Congress would lose its power over debt, taxes, and the budget itself."
Any sober reader should consider Roberts’ insights. Yet, what else can be done within
the constitutional Federal system of separation of powers to stop the spending binge? The house of cards can no longer support
the burden of the public financing through the fractional reserve fraud used by the Federal Reserve.
The alternative is
for the Treasury to issue government bonds directly to the market. All interested paid to the banking elites that own and
control the private Federal Reserve needs to take a thunderous haircut. This is the only solution to eliminate the curse of
compound interest paid to a criminal cartel, which holds our country hostage.
The insane spending is unnecessary. No one who rationalizes that the federal budget is sustainable can be trusted.
Anyone who refuses to cut and eliminate entire agencies is perpetuating an illegitimate bipartisan regime of coercive corruption.
The convoluted mechanics that will emerge to justify a higher
debt limit will be just one more insult to the hard working citizens that conduct business on Main Street. The total disconnect
of the government class from the most simple requirements of authentic wealth creation is at an all time high. The reason
the Tea Party movement spontaneously erupted over the unbearable taxation demands demonstrates that common sense still lives
in the minds and hearts of real Americans.
mentality that relies on government to supply physiological reinforcement for their personal inadequacies and diminished mental
capacities is no excuse for national betrayal. The Capitol Dome is the most distinctive landmark in this country. The weight
of the burden from all government debt is undeniable. Even a mainstream newspaper like USA Today admits that the U.S. funding for future promises lags by trillions.
"The government added $5.3 trillion in new financial obligations in 2010,
largely for retirement programs such as Medicare and Social Security. That brings to a record $61.6 trillion the total of
financial promises not paid for.
"The (federal) debt only
tells us what the government owes to the public. It doesn't take into account what's owed to seniors, veterans and retired
employees," says accountant Sheila Weinberg, founder of the Institute for Truth in Accounting, a Chicago-based group
that advocates better financial reporting. "Without accurate accounting, we can't make good decisions."
Isn’t that lack of financial reporting, let alone accountability, the forestay
of the political class? Do you really think that a sensible leader in the Calvin Coolidge tradition can be elected today?
America is no longer a country that conducts business. The international banksters, who peddled the debt drug to a spending
addict, own the global empire. The globalists are stealing any wealth that remains in a country of junkies. The political
pimps that pump you full of dependency are masters of the delusion. The overdose leads to a terminal condition. Endure the
withdrawal shock now, before it is too late.
Get your own house
in order. Learn how to do business without debt. There is no signing bonus in this masochistic league of the establishment’s
lie and steal game. The only sport left is to cheer for an early repudiation of the illegitimate public debt.
SARTRE – July 31, 2011
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