Cute speech, but “O” already shot his load last year to the tune of $787 Billion which went mostly to pork and pay-offs, and oh yeah, his little “Cushion” fund for the 2012 elections. With the Fed buying back Treasury bonds with phony money ($1.1 Trillion June – August 2010), just to keep the system from collapsing, where in hell does this fool think he’s gonna get the volume of new, fresh money to fund everything in his speech?
Pretty soon, the $400 Billion per year in payments to cover just the interest on the debt will look tiny. Why? Because if no one can or will buy our Government’s treasury bonds at zero interest, then the price (i.e. interest rate) will have to rise. Do the math. A one percent increase on $13 Trillion is $130 Billion. And “Real” interest rates (Like what businesses have to pay to borrow real money) is running around 10 – 11% (If you can get it). So, sooner or later, the interest on our National Debt will climb towards $1.3 Trillion /year. That’s about what the Government would spend annually, if it balanced it’s own budget. Or if spread out over about 100 Million TAX payers (Not per person), equals about $13,000.00 of tax burden each year on each of us (TAX Payers) JUST TO PAY the National Debt INTEREST.
So let’s get real. The last gasp of money available to fund anything was pissed away by Nancy, Bawney, Harry and “O” in 2009. Maybe they could reclaim the roughly $391 Billion that has not been spent yet, but they won’t because they’ll need it to buy votes in 2012. So while “O”s speech sounds all nice and pro business and pro American worker, it rings hollow because he’s out of ammo with no resupply in sight.
Instead of doing the right things in 2009, the lefties did the political thing but didn’t realize that the well would dry up so quick.
My greatest fear has always been that by the time we elect some real, solid leaders – there will be no resources available to make a difference because we are so burdened with debt. This means that no matter who is in office, we’ll either have to kill off a number of crucial social or military funding programs – OR – default in some “Special” way (i.e. the USA declares a year or more of “No” Interest payments, but offers something lame instead). Then all of everyone’s retirement money (That we earned and invested “Safely” in US Securities) will collapse because the confidence is gone the second the USA defaults. No one will EVER buy our treasuries again, and the ones on the books now will trade at a value near dirt. At this point, the whole financial system totally stops functioning. America stops functioning and people take to the streets totally pissed off.
And after all, isn’t that exactly what Osama Bin Laden was trying to do in the first place?
