Do We Have the Gumption to Take Our Medicine?

Fix it now, or kiss our ASSets bye bye... This ain't rocket science, folks, messy now, or really messy later, or screw it, we're done... Man the heck up, America!

The Democrat party would've atrophied and died a long time ago were it not for excessive taxation and overspending, which are the two methods they have used for decades to buy votes and create a larger dependency class. That's why they fight so vehemently against any tax cuts or spending cuts - without tax money to spend and new boondoggle programs to create, they would simply have no ideas at all, and frankly - no real purpose in America.

There is absolutely no reason to default. The government has a healthy cash flow from tax receipts and the debt ceiling is very high. Not raising the debt ceiling merely means they have to pay interest and roll over debt before they spend more than they were spending a few months ago. Nor do the cuts in spending have to be painful for anyone other than the employees cut. The economy will respond positively to any cuts. Even drastic cuts in discretionary spending would not have a negative impact on the economy. Attributing negative effects to the economy from cuts in spending is a Keynesian fallacy.

The founding fathers knew that only a virtuous people can remain free, c.f. Benjamin Franklin, "Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters..." and James Madison, "To suppose that any form of government will secure liberty or happiness without any virtue in the people, is a chimerical idea." The accumulation of the kind of debt that America now has is at its roots a moral problem. Until it is addressed in those terms, i.e., perhaps by incentivizing responsible behavior and punishing irresponsible behavior, the problem cannot be solved.

What end awaits us? Alexander Tyler, writing on the Fall of the Athenian Republic, had an idea, "A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasure. From that moment on the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship."

As several posts by others have indicated, neither can we correct course without auditing and perhaps abolishing the Federal Reserve, which has done so much to debase our currency. The once-mighty dollar is now a laughing stock. Why? Because we have allowed a cartel of private banks - which is what the Fed is - to steal our wealth via inflation, aka theft via inflation of the money supply.

A vote against raising the debt ceiling will benefit the USA for several reasons and not cause a default.

First, it means Treasury cannot sell any more bonds (i.e., incur more indebtedness). Thus, the national debt will stop rising. A good thing.

Second, it means the Federal Reserve will not be able to create more monopoly money by buying any more Treasury bonds. Thus, the Fed will not be able to continue inflating/devaluing the dollar by its Treasury purchases. This will tend to stabilize prices of gasoline and everything else. This is another good thing, especially for savers and fixed income pensioners.

Third, the Treasury will have to prioritize the expenditure of its 200 billion per month income. Thus, it will first have to pay off Treasury bondholders who submit their bonds for redemption. Next, it will have to use its resources for mandatory expenditures such as Social Security.

Finally, the Treasury will not have enough money to continue supporting a bloated federal bureaucracy, so thousands of layoffs will ensue. Wouldn't it be a good thing to depopulate the offices of EPA, HUD, etc?

Freezing the debt ceiling sounds like a win-win to me.

BRAVO Thomas!!!

Agreed, thomas... time to take away the credit cards and out govt. on a budget, a very strict one. Freezing the debt ceiling is a start.

Blessings are a natural consequence for a nation that does what is right. Even if it is difficult. Taking on debt that is not payable is immoral.

And these people that believe more debt will cure our ills are corrupt pigs stuffing their own pockets with our children's future.

How many poverty stricken people has the government created because their great society welfare?

How many left God's plan of the family to instead depend upon the government, having children out of wedlock to receive more welfare monies from the government. What has our government done to America?

We do not have a choice. We are not able to hold back a tsunami. A natural inevitable economic disaster. It is inevitable. Although we could change our ways, turn back to small limited government before the serious damage comes and wipes us out.

I remember one time, the day before payday, when I took some Coke bottles back to the store and used that money and what little I had left in my pocket to buy a loaf of bread.

The first and last time that was ever necessary.

If I didn't have the money - - - - - --!

And just how did we get into this debt mess? It seems to have been caused by legislators that spend their time fashioning new policies, procedures, programs, agencies and departments.They do this to 'help' those whom they hope will vote for them while disregarding costs. It is Congress that is guilty along with the White House. These clever legislators cause the federal tax code to be as thick as a telephone book while also periodically creating new departments and agencies within government in order to lure voters they claim to help.

But just look at the cost. It was predicable that should there ever be a serious recession such a time would result in a huge debt problem since vastly scaling back benefits promissed to recipients is nearly impossible.

I have to disagree with you, Telluride. Who elected congresses and the presidents that you blame? WE THE PEOPLE are to blame for not voting wisely, being apathetic, and just being ignorant. It's time for us to grow up and do the right thing!

Democracy is doomed once the people realize they can vote themselves money out of the treasury. It's really, really doomed when they give any person or institution the power to create money out of thin air (in our case, the FED), thinking that this will somehow benefit them.

A possible solution, if you really want to preserve "democracy" (I'm not sure I do, seeing that "democracy" is two wolves and a sheep voting on what's for dinner): require a two-thirds supermajority in both houses of Congress to enact any tax increase. At the same time, require only a simple majority to enact a tax decrease. (I steal this idea from the novelist, Robert Heinlein.)

At the same time, enact sound and honest money (that is, gold and silver coin) at the Constitutional level. Define a dollar (as it once was legally defined) as a one ounce coin consisting of 90 percent silver, ten percent copper. Define gold coin along similar lines, using "crown gold" (92.5 percent gold, 7.5 percent copper, which was once the legal definition of gold coin money.) Call gold coins "sovereigns." Do not try to regulate the exchange value between gold and silver coin--let the market do it, as it defines exchange values between all sorts of commodities.

Do this, and the nation will quickly fix itself, economically speaking. There would be a one year, sharp depression with large numbers of bankruptcies, as all the bad investments of our paper money get shaken out and liquidated. After that, you would see economic growth in a free market system, with low taxes and minimal, limited government, as far as the eye can see.

Will it ever happen? Unfortunately, the title of this article says it all: we DON'T have the gumption to take this medicine. It will take a depression and catastrophic inflation to force us to make the necessary changes.

Will we do it? That's where it's all up to us.

The Grand Canyon. Nah. The Marianas Trench. Nope, still too small. Try the Red Spot on Jupiter. That's about the size of the hole. The depth? About the distance to Saturn's rings.

Two problems stand between us and a balanced budget (i.e. spending ONLY what we take in):

1. The main stream media who demonize anything smelling of conservatism.

2. We, the people, who will scream and holler once we realize it is "our" program that is going to be cut out of the budget.

Solve those two problems and we have a chance....!

I don't think so. I think the Ryan Plan is the best thing for country.

I would add a 3rd problem: The Democratic Party's demagoguery on budget cuts. They have shown repeated contempt for the intelligence of Americans.

"Are we going to...leave the mess for the next generation of Americans to address?" It seems to me that putting the problem that way is one of the reasons why the problem has been allowed to grow so much for so long and why it is not going to be solved now. In reality, the mess is probably going to come down on us SOON and will have to be addressed on OUR watch, not that of the next generation. The suggestion that we have ten, or twenty, or thirty years to go before the crisis hits leads to nothing but foolish complacency.

Note To American People

There is not a bit of difference between the folks sent to DC to "do the right thing," and the last batch of do-gooders that proceeded them.

You will see that as the moment when the so-called "debt ceiling" gets down to the wire.

It will be very interesting to see how they explain their votes.

Broother Connor continues to float the idea that he is in favor of a "just" society while watching public employees involved in core functions of governments being stricken from employment. All in the interests of "cutting spending" or so certain kinds of conservatives cry excitedly.

But do you hear many cry "Let us look at all spending. Let us include tax exemptions granted to corporations as examples of spending"? No you don't and that suggests that true believers are not capable of true conservatism.

Is there a conservative so ignorant that he or she would say that a tax exemption is a core function of government as is education? Yes. There is Brother Connor.

You are disqualified by reason of declaring that education is a core function of government.

Happy Easter. Go to dinner and decompress, it must hurt bad to have a head like yours.

Re: "Broother Connor continues to float the idea that he is in favor of a "just" society while watching public employees involved in core functions of governments being stricken from employment." William, what "core" functions would those be? There is very little that the government does that is actually permitted and mandated under the constitution. The federal/state and local leviathan is so huge that it threatens our very survival as a republic because it is so voracious it cannot be satiated - but still you cannot see the need to cut its budget. You want to pay gor the DOE, EPA, DEA, BATFE, FDA, HUD, et al. - do as you please. Just don't expect the rest of us to be follow along, like a bunch of brainless lemmings.

I hope to God the budget showdown isn't over, just because round one finished!

The trouble with Republicans is that we sit on our hands while the radical Left defines every debate.

For example, we let the Left define women's issues a half-century ago, and we just stopped debating, because men were afraid they wouldn't get any between the sheets if they kept up the conversation. Because of this cowardice, the Left now has control over the minds of America children. They held out the shiny bauble of so-called freedom and success to the mothers of America, and in turn they grabbed the shaping of our future generations. Women ought to be ashamed of themselves for abandoning their children, but men should be ashamed for giving up so they could be assured of a little nooky.

They also convinced parents that it was far better to "be an example" for their children, rather than teach them. What a clever way to shut you up and let them tell your children what to think!

In the same way, we are permitting the Left to define us as the "Party of No," and bring up voter's suppressed resentment of their Fathers who wouldn't give them the cash for that new Nintendo.

We have to keep talking out loud and define every debate, from the National Budget, to the raising of children, to the need for women to be married before they have children, and in fact for women to know the purpose of their bodies is higher than a night of pleasure.

All of these issues are inter-related, and we as conservatives know it and should unzip our mouths to let the voters know that we are not just the Party of No!

Clearly the answer is either, "NO", or "NOT YET."

While Ryan has been closest to clarity, no politician has made the case simply enough for the majority of Americans: if we do not reduce the expenditures, those in the future will get NOTHING instead of reduced amounts. There is NO OTHER CHOICE. If that point could be clearly communicated (doubtful, because the media doesn't want clarity...it is not helpful to their ideology), the people would be more likely to accept the coming changes. After all, a smaller meal is better than no meal at all.

But, if the Progressives indoctrination programs in our "educational" system has performed as they hope, none of their acolytes will believe the truth and follow the Leftists right off of the cliff, like the good lemmings they have been trained to be.

Tom, do you expect to be alive when Mr Ryan balances a budget in the 2060s? Will he easily gain an increase in the debt limit (several of which will be needed)? Are you a conservative or a simple true believer?

In order, unless there are remarkable increases in life expectancy, "No," "no" and I was once a Rockefeller Republican and am now an anarchist (the politicals have shown themselves uniformly, regardless of ideology, to be all about gaining power and reducing individual freedom). And you?

When I've gotten myself in over my fiscal head, I've only been able to find one thing that actually works every time. That is to stop spending on everything that is not a true survival need and tough my way through it. Cut out any and all 'goodies', no dining out, no going to the movies, etc. My parents used to do the same thing and said it built character. I strongly recommend it. It's not fun, but it works, and the awesome feeling on the other side of it (once I'm all caught up again) is pretty unbelieveable!

Do I think our government has the cojones to do that? I sadly write, 'Not so much'. The majority of them seem to be more concerned about getting re-elected and continuing their personal 'free ride' or entitlement system to ever concern themselves with the state of the country. I hope and pray this time will be different, while remembering the quote (I can't remember who originally said it and I'm sure I'm paraphrasing) "Those who continue to do the same actions and expect a different outcome are fools".

Doing it right now. Lots of reasons, but you're right. IT'S NOT FUN. On the plus side, I'm down 15 pounds this year (no pun intended).

Obama is an idiot. He continues to defend Obamacare. Under Obamacare if you have more than 50 employees you're required to provide health insurance. What do you think the millions of small businesses with between 40 and 50 employees are going to do? Do you think they are going to hire enough new employees to put them over the 50 threshhold? No way. Think about it, if you are at 48 employees and adding two would cost you on average 5,000 dollars per year, per emplyee to provide health insurance that's an added 250,000 dollars in your cost of doing business. There's no way two more emplyees will add an additonal 250K to your profits to cover it. So, there will be no hiring of new people.

Obama wants to raise taxes on people like him who make over 250K per year. Sounds good to the lower income people who think the evil rich should pay the bills, right? Well what do you think someone who has half of their income from earned income and the other half from capital gains is going to do? It won't be to focus on increasing their earned income by hiring more people to produce more of whatever it is they do. It never works and it won't now. Entrepreneurs are not going to work harder and take more risk to feed the wasteful Government kitty.

Obama want's to "Invest" in Green Energy. What does that mean? Spending tax dollars on things the private sector has already realized are losers.

Ray, do you have one of those 40/50 or > businesses? If not, why are you frightened?

My gut instinct says don't raise the debt ceiling, force spending cuts. However, the reality side of me says that ain't gonna happen with a Democrat Senate and Obama in the White House. So, what's the next best things? In my opinion it's for the House to force Obama and the Senate to tell the truth about growing the economy and creating jobs. This week Obama put out his same old energy smoke screen about needing to invest in "Green Energy" to bring down gas prices and that it might be evil speculators who are causing the problem. Of course it has nothing to do with the fact that his Administration has choked off drilling for new oil.

If the House would pass legislation like they just did for natural gas which states that the United States shall open up all Federal Land and Offshore Leaseholds for drilling of oil and gas for the public good, the Democrats will be forced to show their true colors. With new jobs, new oil, keeping American dollars here at home we can did our way out of this hole. No other means will get the job done. We cannot raise taxes on a declining economy enough to pay the bills. We must have new revenue and energy is the only place we can get it.

We can't raise the debt ceiling or all hell will break lose! Grandmothers and sick children will die! THIS IS ALL B.S.! A person with the common sense of a 10 year old can understand how absolutely insane it is to take on more debt to get out of debt! We must be the dumbest herd of sheeple on the planet!

To directly answer the author's question; No, I don't think so!

So long as we have a Federal Reserve or any other institution with the power to create money at will, the problem will continue.

Until we commit once again to the idea of honest money (gold and silver coin), our economy will continue to go through series of booms and busts, with the busts becoming more and more frequent, leading to eventual complete stagnation.

The "medicine" Connor refers to would be the necessary sharp recession in moving from a funny money based economy, to an economy based on honest money. As Austrian School economists have pointed out, inflationary booms create malinvestments that have to be liquidated, if we are to move on and move to a sound-money economy.

Politicians, ever eager for re-election, will not deliberately administer this medicine. So, instead of a short, sharp recession, we are going to have a prolonged agony of years and years of crumbling collapse.

Congress uses the federal resevre as an excuse to say It not me devaluing the dollar.Do away with the federal reserve and congress would have to do their job and would longer be able to point their finger at someone else.Good post however instead of years and years we are down to months and months now to total collapse.

Jesus Christ is Risen!

He's alive yes He's alive

Yes He's alive and I'm forgiven

Heaven's gates are open wide

He's alive yes He's alive

Oh He's alive and I'm forgiven

Heaven's gates are open wide

He's alive He's alive

Hallelujah He's alive

He's alive and I'm forgiven

Heaven's gates are open wide

He's alive He's alive He's alive

I believe it He's alive

Sweet Jesus

And a good morning to YOU too.

AMEN!