VERY Grumpy Old Men

 

 

"What tends to make me grumpy is the steady stream of sophism that comes from our elected officials..."

Some of us still remember the 1993 classic film, Grumpy Old Men. It was a great piece of work staring Jack Lemmon and Walter Matthau. I won't go into the story line except for one scene. In that scene, the guys just found out a friend of theirs had "tipped over" and died from a heart attack. One of the characters muttered to the other, "Lucky bastard."

As I was much younger, I did not fully understand that line. I remember after the movie, I asked a friend of mine (who was much older), what the line meant. He replied, "As one ages, one realizes the inevitability of death. You see some friends die a long a painful death. Given the choice, many of us would like to go out quickly."

This analogy leads me to the point of this article. Right now our economy is dying a slow and painful death. It is like having a cancer which could be cured or a drug addiction which could be kicked. This month, we have the opportunity to take the very painful, yet quick cure. We could refuse to raise the debt ceiling.

Please do no be swayed by the shrill voices screaming to do so would spell doom for us all. It would not. In addition, many believe after the 17th came and went, Congress would evoke the Full Faith and Credit Clause (Article IV, Section 1) of the Constitution to ensure our debts continued to be paid. That clause reads as follows:

Full Faith and Credit shall be given in each State to the public Acts, Records, and judicial Proceedings of every other State. And the Congress may by general Laws prescribe the Manner in which such Acts, Records and Proceedings shall be proved, and the Effect thereof.

 

So in a nutshell, what would happen if the 17th of October passes and the debt ceiling is not raised? Here is my point of view, if I can peer into the future a bit:

• The United States will NOT default on its obligations.
• Tax revenues will continue to come in, and bills will be paid.
• Congress would have to work with the President on emergency legislation which would put our spending and tax collections in line. At least in the short term, spending would be cut and taxes would increase.
• The LONG overdue national discussion on entitlement reform would go from molasses to warp speed. We will have a "souped up" version of Simpson - Bowles signed into law before Christmas.
• Out antiquated tax code will be scrapped and replaced with a flatter, fairer version in which EVERYONE pays something no later than next summer.
• Obamacare will be delayed for one year to ensure the numbers used for long term costs are vetted, and vetted correctly (and non-politically).
• We will survive, people will not die, kids will not starve, Social Security checks will go out, and life will go on. 
• We will donate the National Debt Clock to the Smithsonian, as we will no longer need it. 

 

That is my take just 11 days before "D-Day". I receive Social Security and Navy retirement. I need those monthly checks to live on. Yet, I am not the least bit worried about not receiving them. If for some reason I would not receive either or both of those checks, the finances of our country would be in more dire straights than anyone in Washington has told us.

 

My vote continues to be to fix this beast, take the cure, and do it quickly. Let October 17, 2013 be our next Independence Day - independence from our financial dependence.