Boom Times for Big Government
(American Conservative Blog) -- by Patrick J. Buchanan
"It’s time to stop worrying about the deficit — and start panicking about the debt,” the Washington Post editorial began. “The fiscal situation was serious before the recession. It is now dire.”
The editorial continued:
“In the space of a single fiscal year, 2009, the debt soared from 41 percent of the gross domestic product to 53 percent. This sum, which does not include what the government has borrowed from its own trust funds, is on track to rise to a crushing 85 percent of the economy by 2018.”
What are the risks of an exploding U.S. public debt?
The Chinese, Japanese, and Arabs still buying that debt will begin to suspect they are holding onto paper on which the United States will default or will cheapen by inflating its currency — as the Germans did in 1923 to avoid paying war reparations.
When they do, they will stop buying U.S. debt and start dumping. The Fed will then have to raise interest rates to attract borrowers, throwing the economy into a tailspin.
Is Congress even aware of what is happening?
Harry Reid is talking about doubling Medicare rolls to include folks 55 to 64. Facing a second straight $1.4 trillion deficit, Congress is moving to raise the debt ceiling by another $1.8 trillion.
And the lead story in the Post Monday began:
“The Senate cleared for President Obama’s signature on Sunday a $447 billion omnibus spending bill that contains thousands of earmarks and double-digit increases for several Cabinet agencies.”
Total cost of the Senate bill passed Sunday was “$1.1 trillion, including average spending increases of 10 percent for dozens of federal agencies.”
Ten percent hikes for federal agencies? What is going on?
Democrats say the money is needed to make up for the neglect of the George W. Bush years. But the Bush years were the fattest years for federal social spending since the Great Society...CONT'D...LINK
Chris Moore comments:
The irony is that all of this “crucial” deficit spending is coming out of the hides of future generations of Americans, and of developing countries around the world as the Empire deploys the garrisons to prop up the dollar at gunpoint.
So all of these Democrats (and Bushcons/Neocons) who go around declaring what a moral imperative it is to spend, spend, spend are actually the most ruthlessly selfish blood suckers on the face of the earth. Not only are they robbing America's youth and yet-to-be born of their very future, but they are extracting blood from the developing world to do it.