Only in Washington?

Milan Skarka

There is a lot of hoopla in Washington these days. It is all hands on deck, one might say. Obama administration-created financial crisis is blossoming into a full re-election mode and it is relentless. We are borrowing 40 cents on every dollar spent by the Federal Government. The bulk is borrowed from Chinese and the rest is “monitized” meaning that the money is created out of thin air. The mortal danger to the Republic is real and the default has already begun. The unanswered question is when will the stampede for the exit begin.

It appears that liberals, once again, came out with their old, tired winning formula of twisted distortions, intimidation, deceits and outright lies and it seems to be working. The old guard Republicans is muzzling the new Tea-Party class of Representatives in Congress as the back-room negotiations on the increased borrowing limit are coming to light and supported by the malpractice of media complex rubber-stamping. Only in Washington can reduction in the increased budget be called a cut. The dirty little secret here is that the budget is on an automatic increase pilot to the tune of 7-8% annually. If the 2012 budget were to be frozen at 2011 level this would save $9 trillion for the ten-year budget projection. The perceived cuts will of course be done in the out years (meaning never). Instead, even with a new compromise, the budget would be increased by $10 trillion over the same time period. The small class of Tea-Party conservatives in the House of Representatives is fighting a loosing fight. Once again, the taxpayers are fooled into some sort of compromise that will ruin this Republic.

To the eye of ordinary citizen it may appear as a rancorous debate they are quite used to in Washington. The budget agreement maybe heralded as the win in compromise (for whom the bell tolls?) and politicians are getting ready for the summer vacation and things to settle down to the business as usual. However, to the trained eye this is the quiet before the storm…and makes no mistake, the storm is over the horizon.

The next round will be the actual battle of the budget for FY-2012, followed be the knockout round of 2012 election. One can only hope that it will be in favor of the taxpayers. There is a realistic chance that if the spending scourge is not controlled soon third party conservatives will enter the political scene. This could be very painful and the beginning of new era in the American politics.

/from our Washington correspondent/


About Avadoro Worden

This entry was posted in America, Capitalism, Finance and Economics and tagged , , , . Bookmark the permalink.

One Response to Only in Washington?

  1. Milan Skarka says:

    The late Friday downgrade of the US debt by S&P mortifyingly increases the urgency of action necessary to save the Republic. Yet, the experience teaches us that politicians will not do what is necessary. This leaves us with a dilemma: Is the situation bad enough in peoples minds that a severe action will be demanded? Or, will it fizzle out and the Republic will continue to fade away? I personally think the latter.

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