Progressives to Unborn You Pay

Aug 3, 2011 by Editor Fred D

There are three statements, in part, that may well cause an awakening or damnation of those to come. “It is incumbent on every generation to pay its own debts as it goes.” “I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.” “The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.” Three quotes that are attributed to Thomas Jefferson.

The Lie

It seems as though everyone is running around saying that the TEA Party has won the debt debate. Most are missing the fact that there is no actual cut no real savings. Washington after a couple years of massive increased spending will now cut from, not real spending, but project spending that based on increased spending from the previous year. An easier way to say it is, we will not be spending what we planned but we will spend more than we did the year before.

There is no actual cut to the previous budget. If they spend $3.6 trillion, this are sample numbers not actual numbers, this year and had planned to spend $4.4trillion next year, they are now saying that well “we are only going to spend $4.2trillion” giving a net savings of $200 billion a year. Thusly, we have a net savings of $2 trillion over 10 year period. In the real world one might say that if you spent $3.5 trillion next year would generate a savings, but that math does not seem to work inside the Washington Beltway.

The Rankers

Standard and Poors, see “Default Downgrade Who Lied,” had already put the United States on its watch list for negative outlook. Moody’s is still a negative outlook. Fitch is stating “as it expected, agreement was reached on an increase in the United States’ debt ceiling and, commensurate with its ‘AAA’ rating, the risk of sovereign default remains extremely low. While the agreement is clearly a step in the right direction, the United States, as in much of Europe, must also confront tough choices on tax and spending against a weak economic back drop if the budget deficit and government debt is to be cut to safer levels over the medium term.”

European counties have caused the rating agencies issues by call in to question their long term ratings. It should not be expected that they will be as easy on the United States as they have some of the counties in Europe. Without a real course correction on United States debt the rating agencies shall downgrade US debt. Never fear though, Treasury Secretary Timothy Geithner is already laying the ground work to blame a downgrade on the TEA Party and the debt-limit debate.

The Bankers

China is now joining Russia and criticizing American policy in regards to the United States debt. Bloomberg News is reporting that “People’s Bank of China Governor Zhou Xiaochuan said China’s central bank will monitor U.S. efforts to tackle its debt, and state-run Xinhua News Agency blasted what it called the “madcap” brinksmanship of American lawmakers.”

If Washington is unable to show real progress with the budget and actual cuts in spending the bankers will have to be paid more in interest and they will start looking other places to put their money. Confidence in treasuries is what will keep rates truly low.

A Son Cometh

You may know someone that is pregnant. That child, right know owes $46,709 to the United States government for services, programs and other that have been financed. That same child owes in unfunded liabilities as a taxpayer $1,027,550.

The generations that are born and present are not paying their debts, these generations are financing their lifestyle at the expense of the yet to be born.

But not to worry the progressives believe that redistribution is the answer. “Socialism works only until you run out of other people’s money.” Margaret Thatcher.  At a point they will leave…

We then may chance those children to a point where they will have no choice but the refresh the tree of liberty. That day may fast approach if we fail to act.

Are you sure you want to do this to your children?