Americans the Real Losers in Debt Ceiling Resolution
The latest crisis in D.C. was just the opening act in the unfortunate last chapter of Obama's America, one that will have a very tragic end for all hard-working Americans.
The House of Representatives' constitutional duty is clear. It is to appropriate spending through spending bills. The process begins in the House, is taken up by the Senate, and is then signed into law by the President.
Simple! Unless you are a D.C. politician.
On multiple occasions during this crisis, the House sent appropriation bills to the Senate so the nation could pay its bills. Harry Reid was to then bring them to the Senate floor, but he refused until bills were presented that might negatively affect his image.
However, the important bills, like funding the NIH so children would receive uninterrupted cancer treatment, and other important government expenditures, reached only the garbage can in Harry's office, not the Senate floor.
It appears we have an Administration and a Senate leader who care less about efficiently running the government and more about political capital.
Mr. Obama and Mr. Reid inflicted enough pain on America that the House finally cried, “Uncle!” and gave in.
After the smoke settled, Mr. Obama came forward and said “there are no winners or losers” in this recent episode of dysfunctional government, adding to the list of his unchallenged lies and distortions.
There was indeed a loser! A big one: every hard-working, tax-paying American.
The day after the “deal” was complete, the dollar took a pounding in the international market, and rightfully so. China downgraded our credit, rating agencies threatened to follow suit, and gold rose over $36. The world knows the ineptness of this president and what the lap dogs at the Fed will do as a result of this surrender by the House.
The Fed will now print billions, at minimum, and more likely trillions of U.S. dollars to fund everything from the $3 billion pork Kentucky dam project to the most expensive entitlement plan in the history of our nation, Obamacare.
We know the Fed has already created at least $5 trillion and has tripled its balance sheet to $3.9 trillion. They are also currently buying $85 billion a month of MBS and U.S. treasuries. I suspect that number will grow higher. Much higher. And any talk of tapering is now but a distant memory.
So how does this make the American citizen the loser?
Every time the Fed creates another billion or trillion dollars, it makes the current dollars worth less. Supply and demand. That is why, since 1912, money creation has reduced the value of a dollar to about two cents. Simply put, the Fed is causing the value of our labor to be reduced by devaluing the money our wages are paid in. It's the only way to support their profligate spending.
Many new congressmen and women know this and want to change it. They are called “radicals,” “hostage takers,” “extremists.” Yet they merely want to defend our money and stop the irresponsible spending. Obama and Reid label them as such, and the press regurgitates the same.
A couple months from now, another “crisis” will unfold all over again, and the same outcome will occur. It will continue UNTIL we send the right representatives to Washington to stop the nonsense. People who will halt the influence peddling and crony capitalism that is the calling card of this administration. People who will take a stand and not back down from the Leviathan that threatens the future of the nation.
As the story of Obama's America reaches its final chapters, the ending is writing itself. The obvious conclusion will be the tragic loss of our reserve currency status. It is then that our country will sadly realize that governments never go bankrupt. Governments simply bankrupt the people.
The $17 trillion in debt and the long-term unfunded mandates totaling $85 trillion all belong to us, our children and grandchildren, for generations as the numbers grow.
It is “We the people” that are on the hook. We owe the money. We didn't spend it, but the people we sent to represent us did. And now we have to pay for it.
So the next time you think the government is your friend, think again.