Wednesday, October 28, 2015

Are we becoming Thelma or Louise?







"Here we go. Close your eyes and pretend we are all dreaming. We will worry about reality when we wake up..."




It is really nice that our long national nightmare is about over. This stupid thing brought on by the panic merchants about budget discipline. Phooey is what I say to that! Thanks to the outgoing Speaker and our soon to be outgoing President, we can once again spend money we don't have with a clear conscious. Yep - happy days are here again!

And the debt ceiling? Gone for now. Not to reappear until March of 2017. By that time our debt should be somewhere between $19.5 trillion and $20 trillion. Here is the "so what" of this number. With an interest rate of 2.5% to service our debt, the cost to do so now is almost $300 billion a year. That number WILL go up, even if the abnormally low interest rate stays the same. Plus, (and this is the icky part), we do at some time need to address paying this money back. Or - coming up with a scheme on why and how not to.

All the pundits are saying this two year budget deal is a fait-accompli. It is over. The fat lady is singing loudly. Paul Ryan, the one time savior of the fiscal literate in this country, thinks this deal "stinks". You got that right brother! What this deal has shown many conservatives is a reconfirmation there is only a sliver of difference between today's Democrats and today's Republicans. They are all pigs swimming in the same pool of goo.

Immediately after the vote, the President will sign off on the deal. The outgoing Speaker has already been given some going away gifts from his fellow Republicans. The vote for the new Speaker will then be taken, Ryan will be sworn it, and Boehner will ride off into the Ohio sunset. Then what? Are we all going to get horse from singing Kumbaya? Or is Speaker Ryan going to rediscover his fiscal stones and try to really "clean out the barn"?

Many today are saying it really does not matter who is in control of the House or Senate. Government has become a juggernaut. A Frankenstein's Monster. Something so big, we have way too many people dependent upon it. That to even suggest a cut in the growth is looked upon by some as treasonous.

Well kids, we all built this thing. It started to spin out of control during the New Deal. That act, signed into law by FDR, put grease on the tracks. Then in the 1960's, LBJ doubled down on the New Deal by giving us the Great Society. That not only put more grease on the tracks, but also took some of the breaks off the train. Finally, BHO gave us ObamaCare in 2009. That completed the perfect trifecta of financial doom for our once great country. The train wreck now became a certainty.

What has happened this past week was a total capitulation to the system. It was nothing more than a surrender. Fixing this behemoth proved to be way too hard. So instead of fighting the Borg, we have instead allowed ourselves to become assimilated.

Good luck Speaker Ryan. And good luck to all of us. In the movie Thelma and Louise, the cliff was in sight as the car sped up. As is with our economic car. For the time being however, we will just try and enjoy the ride, albeit a short one.   

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