Congress has been debating the raising of the “Debt ceiling” for months. In Louisiana, The Advocate’s editorial staff (7-1-2011) took the stance the Republican leadership refuses to admit this fact “just about every member of Congress knows has to be done.” The Republicans are in opposition to this without budgetary cuts to “balance” the effect of the ceiling being elevated. This alone puts the lie to the statement.
The entirety of this argument is based on the theory of Keynesian Economics. This is no more than a theory because it removes the valuation of currency from being based on something tangible to being based on the reputation and standing of the governments involved.
Has anybody found any reason to accept the reputation and standing of any government elected on the face of this planet in the last 200 years? That reputation and standing is based on political posturing, self-serving negotiation and the negative amelioration of principles to get a solution for the political entities involved. Nobody said they do this for their people. They do it for their governments and themselves. It enhances their standing in the world community-nothing more. The welfare of the individuals inhabiting the nation is of secondary consideration at best.
This humble writer is not an economist. But, the writer is an observer balancing action against simple common sense solutions oft-times overlooked by the actors.
For all the debate nobody has mentioned the rest of the building we’re commanded to “raise the ceiling” of at any given moment. This building has a foundation, a fundamental platform, on which we add all other segments of the structure -including the ceiling. The foundation, the walls and the ceiling define the confines of the economy in this case. We build upward upon the foundation until we determine how high we want the constraining wall to be. We develop the limits of expansion. At the upper most limit of our confinement, we construct a ceiling to prevent weather intrusions (rain, snow, heat, cold etc). It also keeps our upstairs neighbors from falling into the hole we’d have if there were no demarcation point where our space ends and theirs begins.
Get the picture?
The left wing concept; “there is a need to raise the debt ceiling periodically” is wrong headed but understandable if you have no more to base your economy on than the integrity of the participant politicians.
Think of the economy as a building in an active flood plain. You can do the right thing by constructing and maintaining your house above the highest point the area has ever flooded (i.e. work within a constrained, contained and balanced budget) or stay at ground level and raise the ceiling. If you just raise the ceiling it looks like you’re going to survive but it’s an illusion, a vacuous, vaporous zephyr looking like it’s safe. But, your goods and property are still under water and you run the continual risk of drowning. Nothing changes but the increasing deficit in a morally bankrupt account. This thought seems to escape these stooges in Washington D.C.
The Offal Office throws smoke balloons at the issue and says the Republicans only care about the wealthy and their tax advantages. Obama politicizes the issue and accuses his opponents of what he’s guilty of himself. That comes from “Rules for Radicals”, a political-tactical textbook written by Saul Alinsky to undermine governments through directed rhetoric. Obama’s driving the initiative to develop a quasi-European socialist economic structure assuring people become subservient to a government producing nothing to support those same people. We’re taxed to the limit because of continuing economic/fiscally irresponsible mismanagement conducted by incompetent politicians grabbing power as it falls from one’s grasp to the others’.
Is it wrong to not want to follow policies we see failing all across Europe? Is it necessary we follow the direction of the United Nations, OPEC, the International Monetary Fund or other equally suspect platforms dedicated to the development of Socialist government structures?
Why can’t we behave independently; like REAL Americans, and do it the RIGHT way, the way we know we’re supposed to do it instead of what’s politically expedient?
Thanks for listening.