Thursday, May 28, 2009

Time Bomb in Washington. Tick. Tick. Tick...

With trillions of dollars in debt piling up under the "guidance" of the Obama Regime and its economic "advisors," the United States comes closer every minute to complete economic meltdown. The U.S. debt is larger now than ever, and we have not yet begun to see the unavoidable effects of the coming catastrophe it will bring. It is one of the great ironies of history that the Obama "stimulus" is actually doing just the opposite. The same people who screamed about the obscene spending on the Iraq War are now gleefully spending far, far more than all of the Iraq War spending totalled up. The irony is rich, if less than enjoyable. The U.S. Congress has become like an amphetamine addict; the initial dose makes him feel better, more energetic and more able to carry on. But that dose slow him down when the drug wears off and the euphoria loses its glow. Then he's in big trouble. Sooner or later, the Obama stimulus dose will wear off, and we will be in a world of pain. Like that addict, there is no escape from the inevitable downer. Unlike that addict, the Congress seems eager to overdose. Robert Romano wrote a brilliant summary of the bad situation we've allowed our politicians to get us into. Romano is the Senior Editor of ALG News Bureau and wrote this on on May 28: Last week, Moody’s downgraded Japan’s sovereign credit rating from AAA to AA2. The UK suffered a similar fate from Standard & Poor’s as the medium-term outlook on her Majesty’s debt was lowered from “stable” to “negative.” (Note: "Sovereign debt" is a debt instrument that is guaranteed by a government.) That's worrisome enough. Japan and the United Kingdom are/were strong trading partners of the United States. They are both economic engines that help drive the world economy. Neither of them is nearly as big as the U.S., however, and the U.S. is about to lose its AAA rating too. Amid the ensuing economic and political fallout, now all eyes are turning to the largest sovereign debt in the world. Ever. It is held by the United States government. And, it is a ticking time bomb. With every vote congressmen make to plunge the nation deeper into debt—now more than $11.3 trillion (and growing)—the clock draws closer to zero. Even Barack Obama has to admit that it is “unsustainable,” although in the same breath he proposes another trillion dollar bailout or a vast expansion of the government health care monstrosity. DeRoy Murdoch of the Scripps Howard News Service, offers his take on the U.S. federal spending orgy and it's alleged attempt to "stimulate" the economy. He wrote this on May 28: While Obama is refreshingly realistic, he resembles a man who strolls into a bar, sees that his wallet is empty, and then slaps a round of drinks for everyone onto his wheezing credit card. Rather than use America's rapidly deteriorating public finances to restore fiscal discipline after G.W Bush's deplorable spend-o-rama, Obama is digging America into a deeper hole -- not with a shovel, but with a backhoe. If he continues, the ensuing canyon walls will collapse and crush us. Look how spectacularly Washington squanders your money:... (More at Scripps Howard...) "Stimulus?" I think not. But is it panic time yet? I think not, not quite yet. Today we see headlines that seem reassuring. One, for example, is "US government debt to keep top rating, Moody's says." That's nice, but it doesn't take into account the severe crisis that other nations are going through. Remember that the Great Depression in the United States dragged the rest of the world down. This time around, it may be the other way around. Like that addict I alluded to earlier, we may be basking in the warm glow of a temporary dose-induced high. But all around us, fellow addicts are jittery, and jittery addicts desperate for that next high can be very dangerous. RELATED: Stocks, Treasuries Tumble - Murdock: America is broke - Scripps News Europe Battles a Deep Recession - eGov monitor Tax Revenue Plunges as Obama Deficit Soars - Euro falls despite positive eurozone data -AFP Drop Deepens On Wall Street - Forbes US Credit Rating Not Under Immediate Threat - Wall Street Journal Tumbling towards a sovereign debt crisis? - Edmund Conway - The Telegraph UK Choking on Debt in the Unfolding Anglo-Saxon Bond Crisis - Daily Reckoning World stocks, bonds fall on sovereign debt fears - Reuters Leave a Comment Here... See our cool merchandise... Chicago News Bench RSS Feed Hey! ChiNewsBench is on Twitter