You’re not going to like this.
I don’t care.
Let me make this clear in case the title wasn’t: The Republican Party bears UNITARY responsibility for what is about to happen to the United States economy and political system.
That’s right: UNITARY responsibility.
It’s simple, really: The Constitution requires that all spending bills must originate in The House.
Therefore, the overspending, today is the responsibility of THE HOUSE, which has a Republican majority.
Yes, it used to have a Democrat majority. Then a Republican one before that. But let’s remember how the die was cast here.
- Gramm-Leach-Bliley. All three sponsors were from which party?
- Alan Greenspan allowed “sweeps” which were a blatant attempt to evade reserve requirements. Since that was their only purpose they were intentionally fraudulent edifices. Which political party’s President nominated him to The Federal Reserve?
- Alan Greenspan was responsible for off-balance-sheeting Medicare and Social Security. Which party did that again? (Hint: Someone named “Ronald” was the President at that time and appointed that commission.)
Do not take this to indicate that Democrats are not also responsible for the lead-up to this. They are. The fact of the matter is that both major political parties have serially made promises that cannot be kept.
This is active fraud upon the public and both parties are guilty of it. In a just society the leaders of both parties would be indicted, tried and imprisoned for attempting to run serial Ponzi Schemes on the public. We do not, obviously, live in a just society and the proof of same is that jackals like Reid and Boehner are free to ravage, er, wander amongst the people of this nation.
But that’s then, and this is now.
NOW we need to cut the federal budget not with a knife or a scalpel, but a chainsaw.
Bachmann has said “43%.” There were gasps when she uttered those words.
Sorry, that’s not enough. (Take your heart medication before continuing folks.)
Here’s the math.
Last year (Calendar 2010) we ran a 12% of GDP deficit, $1.7 trillion. This year we are tracking to run about $1.4, but we have three months left. If history repeats as to size it’ll come in around $1.4 trillion, which is approximately 9% of GDP. This is within the rough range of 9-12% of the last three years.
The last year of Bush’s Presidency we ran somewhat over 9% of GDP. Obama has run 11 and 12%, respectively, and this will be ~9-10%, so there’s no change in that regard.
But withdrawing the deficit spending is not enough because the withdrawal of that money, when it runs through the economy, then produces a (gross) reduction in tax receipts. Figure 1/3rd of that deficit spending ultimately returns to the government in the form of taxes in some form or fashion by the time all of the “turns” those funds made in the economy (e.g. from company making the presidential limo to the folks making the alternator to the folks making the copper wire to the mine pulling the copper out of the ground), and subtract that off as well.
So now we need to reduce spending not by $1,700 billion but that plus about another $500 billion for the tax impact, for a total of $2.2 trillion out of $3.7 trillion spent. About $500 billion of our spending at present is interest so this means we have: $3.7 – $2.2 – $0.5 = $1 trillion in total actual federal spending available to us out of an original $3.7 trillion.
Were you sitting down when you ran that number?
To put this in perspective DOD is $750 billion. You cannot pay for both that and any of the “big 5” entitlement programs (Medicare, Medicaid, Social Security, TANF/WIC/etc and Unemployment)
You can cut DOD by 50% and cover one of the big entitlement programs in full. The other four and everything else in the Government gets zeroed.
I know what you’re going to say: That’s impossible – it will collapse everything.
Go talk to the Republican Party folks. They allowed this to continue past August with the debt ceiling vote and they’ve allowed this through passing “continuing resolutions” where they had the ability to stop them in the Senate (since there was no filibuster-proof majority) all the way since George Bush was President.
When George Bush was President the gross reduction (in 2007) to address this was about 25%, not 43%. It was still horrific, but not as bad.
Nobody from either party is telling the truth. It doesn’t matter: Right now responsibility rests with the party that can put a stop to it here, now and today.
That party is the Republican Party.
This is an exponential series and in 2007 the contraction was about 25%. Now it’s up to more than half and if we don’t cut this crap out we’re going to lose the ability to choose what happens at all.
Can we do this “more slowly”? A bit, but not much.
Just remember one thing: So long as the government is running a deficit we’re merely extending how long we have before it all blows up – we’re not changing the outcome.
Yes, folks, it’s that bad. I know people don’t want to hear it or believe it, but just because you don’t want to believe something does not make it untrue.
It just means you’re being an Ostrich and if that’s a hunter you are sticking your head in the sand to “avoid” dealing with you’re about to be turned into dinner.