Economic Growth Prospects For The United States

5 06 2011

Prospects for Economic Growth in the USEconomic growth for the next few years are not good.  The tools to game the growth are gone.  The Republicans, Democrats and Independents are in a pickle for the next elections.  The typical methods of “Juicing” the economy will not be available.  Taxes can’t be lowered to seduce anyone paying taxes.  Increasing spending is out of the question to seduce those with their hands out.

The national deficit and debt are astronomical.  Unemployment is high.  The economy is sluggish with large and small businesses gun-shy with a potential double dip recession looming.  Real estate foreclosures are not letting up and could increase.  Commodity prices are not coming down.  Uncertainty perpetuates a lack of investment.

As Ronald Regan said, “Government isn’t the solution to the problem, Government IS the problem!”

Until our government spending is under control and the national debt stops growing, the dollar will continue to suffer internationally which helps keep the price of oil and other goods higher.  Domestic energy production has been and is being hampered.  Inflation is real and the cost of borrowing may be going up.

According to CNS News China has now divested itself of 97 percent of its short-term US Treasury Bonds.  The next step for China is to cease buying any long-term Treasury Bonds and stop buying any new long term bonds.  Who wants to be left holding the bag if the US defaults?  Think it can’t happen?

Besides the bond problems with Greece, Portugal, Spain, Iceland and Ireland, here is a list of countries that have defaulted recently on their bond obligations:

Venezuela, July 1998

Russia, August 1998

Ukraine, September 1998

Pakistan, July 1999

Ecuador, August 1999

Ukraine, January 2000

Peru, September 2000

Argentina, November 2001

Moldova, June 2002

Uruguay, May 2003

Dominican Republic, April 2005

Belize, December 2006

Ecuador, December 2008

Some of the situations were cleared up or restructured quickly and others were not.

Is the US too big to fail?  What caused this potential failure?

The big ideas in the US Constitution of limited and separated powers have been altered or ignored.  The beginning of the end was when the Supreme Court allowed Congress to spend on anything is wants for “the general welfare” of the country instead of following Article I, Section 8 of the Constitution.

The tipping point is soon approaching where the US will not have the luxury of honoring all the obligations it has made to taxpayers and bond holders.  The interest rates of the bonds will be going up drastically when the buyers dry up which will further cut into Congressional ability to balance a budget.

If Congressional spending were under control, the lack of bond buyers would not be an issue.  They could simply retire the debt.

Congress and the Executive seem still to have little or no will to do the hard thing.  Both branches fear being voted out of office for making hard choices that will be bitter medicine for the voters to swallow.  Honesty in politics hasn’t been the policy for some time.  Is honesty really the best policy to get re-elected?  The general population has been seduced with unrealistic promises for so long that they are not prepared for what is about to hit them.

What are the solutions?  Cut spending.  Phase out all welfare programs and any activity not listed in Article 1 Section 8 of the Constitution.  Keep taxes basically where they are until the debt is substantially reduced.  Make it favorable for corporations to stay and move to the US.  Foster pro-business policy and regulation in general.   Easy to say.  Tough to do.


Unhealthy Careless

7 08 2009

Health Care?

Ever been to any government run clinics, or facilities?  I haven’t been impressed.  We done have to wait to see what government run healthcare would be like.  States, counties and some Federal programs already exist.  We see evidence of  low quality and a high degree of apathy.  Many veterans struggle to get what they need and the layers of bureaucracy are stifling.  Ever drive by a government run road crew?  9 guys standing on their shovel handles and 1 guy digging.  I worked for a city parks department at one time.  I liked the guys but the motto was = Good enough for Government Work.  The other phrase was = In 100 years who will know the difference.  It simply is the attitude of centralized bureaucratic largess.

I’m not a Veteran but I hear the VA hospitals are usually riddled with problems. Poor quality care, apathy, corruption and no alternatives.

Choice and Accountability:

1.  Choice – Who has addressed the problem of where will the Canadians for their high quality care?  Mexico or Cuba?

2.  Accountability – Imagine trying to sue a doctor for amputating the wrong leg or leaving surgical equipment inside your body.  Ever try to sue the Federal Government?  Wait in line, fill out this form, no there’s no one that can do that, we’re all out of that.  What mechanism would be there to improve things?  A bureaucrat trying to fix another bureaucrat?  Think of all the government departments that you’ve dealt with.  How would you rate their quality.

On July 30, 1965 we let the camel’s nose in the tent – Medicaid and Medicare.  Our step to socialized/communized medicine started then.  Can the people get the government totally out of the business of health care?

Anyone remember Soylent Green?  It is a 1973 movie staged in New York City in the year 2022 staring Charlton Heston.

The Government has total control over every aspect of peoples lives. For example, deadly people mover crowd control tractors and other extreme measures are used  to control riots in the streets.

With food supplies running short a new food source, Soylent Green, has come to the rescue with the new food source.  Real food is outlawed and the black market prices for strawberry jam and other real foods items are astronomical.

Charlton Heston’s character seeks to find the origin of the new food source.  He follows his relative through the government run euthanasia center and discovers that “SOYLENT GREEN IS PEOPLE!” Talk about recycling.

What will we do to ourselves next in the name of emergency?  Watch the full movie here and see what an all powerful Federal Government could be like – running our lives from birth to death.  How long will we allow those who govern our laws have us feed on ourselves?

It’s 1 hour and 36 minutes.

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