The Real Financial Crisis

Time for some good old fashioned logical thinking. This debt ceiling debate is all the rage. But, it's time to take the politics out of the discussion, and stick to logic.

We have a national debt. We pay interest on that national debt. The bigger the national debt, the more interest that has to be paid on the national debt. So, logically speaking, allowing the national debt to grow is a bad thing; because eventually the interest will exceed the potential amount of taxes that can pay it. I don't think any rationale person can argue with this logic.

The rational thing to do is to ensure that the interest payments on the national debt do not exceed a certain percentages of "revenues" (as the Democrats call them) or taxes (as the Republicans call them). This means we need to keep our debt rating, so the rate does not go up. It also means that we need to stop increasing the debt; as the more debt, the higher the interest. Again, I don't think any rational person can argue with this logic either.

So, what's the real problem???

Clearly - anything that increases the national debt is a problem. This means that any deficit spending of any kind is a problem.

Here is where the political parties diverge based on their philosophies. Democrats believe the spending is important to "balance society". That is, they want social programs for those who are less fortunate. Republicans, on the other hand, do not want social programs. They like to spend (just like the Democrats); they just like to spend on things like the military.

Over the last forty or fifty years, both parties have been doing significant deficit spending; for all sorts of reasons. As a tax payer, it looks to me like both parties have been having a fifty year orgy with our tax dollars. Well, my fellow Americans, it's time to bring that spending orgy to a close.

Democrats claim that tax cuts are to blame for deficit spending. And, I believe they are right. Cutting taxes without cutting spending is irresponsible and stupid.

Republicans claim that spending is too high. Well, yeah. Then why didn't you cut spending when you cut taxes? Republicans believe that cutting taxes helps the economy. Well, yeah. Putting more cash into any economy will help. The problem is that this cash was "borrowed cash". You can't grow an economy on borrowed cash, just like you can't spend yourself out of a recession; particularly if you are spending borrowed money.

The Democrats know that if the American people were asked to support some (or any) of their social programs via tax increases, the answer would be "absolutely not". So, they don't ask - they just spend.

You can see the problem. The issue of how much taxes, and how much to spend on social programs has completely polarized both parties; to the point where the government is broken.

Now, I am absolutely not saying we should have one party in power. That has been a complete disaster in the past. I am saying that we need to solve the real problem: deficit spending. And, that tax and social program discussions need to be taken out of the debate.

The real financial crisis IS the deficit spending. It must stop, or America is going to be bankrupt. Both parties (Democrats and Republicans) have proven themselves untrustworthy when it comes to managing a budget. Therefore, the only solution to this crisis IS a Balanced Budget Amendment.

It's time to do your part, my fellow Americans. It's time to contact your Congressional representative, your Senators and the President to let them know that deficit spending is not going to be tolerated any longer. And, that We the People expect a Balanced Budget Amendment. We also expect both parties to put aside tax and social program spending discussions until a Balanced Budget Amendment is put in place. Let's go America - Call and Write now!!