Has Washington lost its senses?

Part 2 in the series “Why You Should Not Elect Me President”
….

Have Congress and POTUS lost their senses? I keep seeing texts and articles on the subject of debt ceiling increases and proposed tax increases. I have to question the sanity of our elected officials. How sane is it to look into an empty sack and say there is more in there? Yet that is exactly what Congress has been doing since the surplus of the early 00’s.

Sure. The war on terror was not a planned cost and debt management was already getting uncontrollable when the wars started. Instead of stimulus checks … oh, sorry, tax rebate checks being sent to tax payers, the smart move would have been to use those dollars to bring down the debt accrued by Washington DC. Oops. That didn’t happen.

Instead of fiscal responsibility, Congress voted themselves a couple of pay raises, gave the POTUS a pay raise, and packed on additional spending to placate certain constituencies to ensure their vote in the next election cycle. Wouldn’t that be considered illegal under the RICO Act or any state or municipal code against graft and corruption? Oh wait, it’s the ‘untouchable’ Congress. Untouchable, because they would be the ones to try themselves. Funny how that works.

Instead of fiscal responsibility, Congress and the POTUS continue to reach into an already empty bag while reaching out to others to put stuff in their empty bag, but before it even touches the fabric it is gone. So, instead of shoring up an ailing economy by NOT TOUCHING available disposable and investment income, Congress and the POTUS propose additional taxes on anything that would bolster the economy. Or, flat out blocking opportunity through mandates, bans, and regulation encumbering legislation. This additional spending is at the same time being diverted to pet proposals to reward Congressional representatives with vote getting handouts and increased spending to garner the favor of a misinformed electorate.

To nearly everyone outside of Washington DC’s beltway and Economics departments of universities, sound fiscal management would be to project income, budget against projections; with the understanding that if projected income is not met, necessary spending is reduced by the amount of short fall and discretionary spending is reduced, deferred, or not done at all. It is how most successful businesses run and how most successful households are run.

Debt is only good for the banks and those that feed off the middle. Managed debt is a necessary evil until sufficient capital exists to do away with anything other than short-term, managed debt.

Now, you might be saying to yourself at this point, “Yeah, everybody knows this stuff.” I beg to differ. Since 1913 the USA and those with the resources have become progressively dependent on a system of margins and derivatives. Margins are the hope of making enough to cover expenses then have left overs; derivatives are rolls of the dice in hopes that all things fall just right and you make your options. September 1929 changed things around the world. Faux wealth only appears to be wealth. Everything POTUS Jackson fought to ensure has been given away to financiers more interested in lining their portfolio than depositors or revenue generators. Sad that.

Additionally, the FED … those folks in Washington DC elected and appointed … have been spending to create “stimulus” and argue its successes. FDR was a good POTUS for the trying times of the 30s and 40s, but his spending programs did not pull the USA or the world out of the doldrums of the Great Depression. World War II and its aftermath did that. What? you say. After WWII, the USA was the only major industrial nation not majorly impacted by the war. As such its industrial machine turned on for the war switched gears to supplying a torn apart world. The USA, by default, inherits a 75% market share of the globe and General George Marshall becomes Secretary of State and pushes his Marshall Plan into action, which rebuilds a planet. Nice touch, Mr Marshall.

The failure in current USA business planning is not recognizing the Marshall Plan worked. Europe and Asia are thriving and their share of global economics is coming to par with the USA. The USA no longer enjoys market dominance in all markets. Sufficient planning should be made and costs shared with other global partnerships. The USA cannot and no longer should be expected to bear the brunt of all costs just because we once could and the world couldn’t.

Sound accounting and understanding of how money works seems to no longer be understood or taught in schools. Credit is taught as good, acceptable, and indispensible. While delayed gratification and saving have been disdained as naive and foolish. So, we have those who have been educated in this system of thought feeling the ardent desire to serve their locality, their state, or their nation. They get in those offices and their minds go blank. Is it the sheer numbers and not being able to fathom the dollars because they have never played in that arena before? Perhaps.

It seems to me that very simple accounting has given way to lust of power and making an easy 6-figure income while being lauded as something wonderful and being referred to as “the Honorable” such-and-such whenever you are addressed somewhere. Poppycock!

Does getting elected make a normally sane person stupid? It appears many in Congress and in Austin have been so afflicted.

One more time: income – debt payment – expenses = balance remaining (not less than 0)

C’mon, Washington!
….
Click here to go to part 1