The deal is done! The debt crisis has been averted. At least that is what the left press are saying. Obama came riding on a white horse and reason prevailed. Hogwash!
The artificial crisis came about when Republican congressional leaders decided to use the increase of the debt ceiling as a tool to bring about change. There was much fear mongering among the left. This was made worse by pronouncements from Obama that Social Security checks would not go out if the United States defaulted on its debt. People were led to believe that if a deal was not struck before midnight of August 2nd the government would be in default. Not true. They would only be in default if they could not pay the interest due at that time and could not pay to redeem whatever bonds were not picked up again. There was enough cash flow to prevent that from occurring.
What then would have happened? There would have to be dramatic cuts in the budget so that they would not spend more than they were taking in. It could be done with some sacrifice. Those getting Social Security would more than likely get their checks in the mail. What would have to change is the size of the government that grew under Bush and more so under Obama. It is the expansion of the government that has created a huge debt burden. With the passage of the bill serious efforts to reign in spending can now be put off until after the 2012 elections.
But isn’t there going to be a dramatic drop in spending? I doubt that very much. They are talking about a savings of two trillion over ten years. That would mean that the debt during that same period will grow by at least eight trillion dollars. The crisis isn’t over. It hasn’t been postponed. It is being once again ignored. I remember the talks about the looming debt bomb back in the days of Nixon and every president since. Entitlement programs are grossly underfunded. Will the United States ever get the cajones to deal with this problem? Not until it is too late. In fact, it may be too late already.
A much bigger government. Stimulus plans that don’t work. A debt ceiling that is always raised. If that isn’t bad enough there is Obama care coming in 2012. The government will get even bigger. It will be bloated. I think of a carcass that has been in the water for too many days. This care package is the single greatest reason why the US economy hasn’t turned around. It is the great unknown liability and no one is willing to hire or expand until the full effect is known.
The Tea Party tried to stick to their guns. In the end they were not strong enough to change the course of the country. I know people are talking that it is the best deal under the circumstances. That is a sad comment about how serious elected officials are in saving their own country. It will have to be the main focus of the coming election. A stronger Tea Party faction in the House, more of them in the Senate and the presidency? Fiscal conservatives need to take the helm. They would be the most hated group of people ever elected if they truly want to redeem their country. If the next election is politics as usual, the sun will set and a long darkness will fall over the land. Who knows when the sun would rise again.