Without Riots

My own credibility is not important.  What do I know about finance, the economy, investment research or politics?  Not enough to be credible to the “Einstein’s” out there who are truly smart.  Either this plan is plausible or it is not.  I leave that to readers who are truly interested in solving problems.  We are certain of one glaring fact; we cannot sustain the present course without a total collapse of our financial system.  The chart below shows our national debt explosion.  President Obama has continued to propose spending which continues the trend to $24 Trillion over the next ten years!

So, if you decide not to read this, ask a “smart guy” how we can solve a looming financial debacle complete with riots and total anarchy? Ask him/her to offer a political solution which will preserve the political viability of every Congressman while making draconian budget cuts to save our nation?  Ask a “smart guy” if a plan exists to return to the Constitution for absolute legality in action while accomplishing an historic change in direction for our nation.  Can they propose such a plan without creating the riotous reaction from voters experienced in other nations who tried to get finances under control?

Ask a “smart guy” to outline his own plan so we can decide if “smart guys” can cut four to six trillion dollars over ten years and still survive riots and political disaster from voters. I believe the solution exists and I’ve proposed it within this writing.  I urge you to consider –  to consider – what is outlined here.

 The ideas are not new.  I first heard them in the ‘80s when I was appointed to the National Association of Counties Taxation and Finance Steering Committee.  I served with elected officials from all over the nation.  I discussed these ideas with staff of the President (Reagan) who advocated for them.  The diverse needs of states made me realize that national policy can’t fit in every area the same way.  More responsibility and flexibility must be afforded Governors to address the individual needs of their states.  We have no choice.  Action is required.

A gentleman by the name of Porter Stansberry has written extensively on financial problems facing America.  In a supplement to “True Wealth”, an investor research newsletter, he predicts we will see “riots in the streets… arrests on an unprecedented scale… and martial law, enforced by the military.”

At the time of this writing, his full presentation can be seen in a video online at:

www.ENDOFAMERICA2011.com

“We are already at the point where our government's debt cannot be financed at any legitimate rate of interest... and yet our leaders show zero interest in doing anything to prevent this unmitigated financial disaster.”

Karl Denninger of Market Ticker, emphasizes it this way.

“Let me be clear: If you extend the debt ceiling and by doing so allow deficits of this sort to continue for another year, say much less two, you will have placed a loaded shotgun in the mouth of this nation and pulled the trigger. It will go off, and you will splatter this nations’ economic and political system all over the wall.”

Blogger Mac Slavo states emphatically, “We’re literally on the brink of catastrophic collapse. 

(http://www.SHTFplan.com/)

“It is, quite literally, going to be the end of the world as we know it - and it cannot be stopped.

“It’s time for each individual to take steps to prepare for a national debt default and a complete debasement of the US dollar. It won’t be long before we either can’t meet our debt obligations or our creditors finally put a stop to our out of control borrowing. And when they do, the chances are high that we will experience a hyperinflationary monetary collapse, complete with disruptions to the normal flow of commerce, food shortages and out of control prices. The only refuge will be to understand what is money when the system collapses and start preparing now.”  

That’s pretty scary!

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Undertaking a hard challenge always brings loud and angry opposition.  And, you need a consensus of Congressmen to accomplish any change – especially a big change.  This plan offers a big change to “Washington” think.  It is a dramatic change from the direction of 100 years.  Yet, it is consistent with our Constitution and supported by the TEA parties who have been begging for a return to Constitutional Government.  Are we a nation of laws?  Then, our Constitution should guide our every decision. 

Congressional idealism is always tempered by re-election or self-perpetuation.  So, very few proposals to confront hard problems are considered viable.  Political decisions are required to give benefits (“bringing home the bacon”) to perpetuate the careers of our elected representatives.  The solutions proposed must benefit their own careers in order to gain a consensus.  If we must cut funds and benefits to voters, cut regulations to unleash productivity, how can we expect voters to support these same Congressmen for re-election?  Can you imagine the outcry from voters if draconian cuts are even suggested for education, food stamps, health care or welfare?  Would the voters re-elect Congressmen who voted to cut their benefits? 

Republicans have stated the obvious solution to our current dilemma is to cut – not freeze – the federal budget.  They have an unusual opportunity to affect cuts simply because President Obama needs to raise the debt ceiling.  But do they have the courage to accomplish this?   Americans don’t want to give up any benefits.  Cutting Social Security benefits would destroy political aspirations of any US Congressman.  President Obama, the Democrats in Congress and their accomplices in the media are waiting for an opportunity to lambast Republicans for proposing “such hardships” on our most vulnerable segment of the population. 

• Can we cut Medicare?  No!  Republicans want to deprive the poor of needed medical care (death camps). 
• How about food stamps?  Republicans want to starve poor people! 
• Education?  Every solution begins with an educated population! 
• Defense? Ahhhh, now you may begin to get some cooperation from the Administration and from Congressional Democrats. 
• Foreign payments?  Never!  Republicans (racists) want Africans to die from HIV/Aids. 

 It’s really quite a dilemma.  We’ve seen the riots in Greece and England when relatively moderate cuts in entitlements were imposed.  Will Americans riot if Republicans impose cuts in American expectations?  Democrats (having acted irresponsibly for years) are waiting for Republicans to submit their cuts, and being good counterpunchers, they are poised to strike to damage their opponents.  It’s all about power and control. 

 So, we are headed for a “cliff” and there is no political solution which is palatable and supported by Democrats.  Since Americans can’t conceive of a collapse of the monetary system or the coming anarchy, they just don’t believe the cuts to their personal benefits are warranted.  Saying we are bankrupt to the general populace from official government sources will bring about the collapse we are trying to avoid.  When faced with similar concerns, Europeans took steps to control finances and were met with riots and economic chaos.  Can we avoid a similar path and protect political viability?  I think we can.