The Economy Keeps Getting Worse, While Washington Fiddles

by Bones
David Bellavia blog, February 26, 2010

America is in a deep financial hole, and it is time to ask if Washington really cares.  This administration is spending hundreds of thousands of dollars per job created, yet refuses to initiate policies which would encourage free enterprise to create those same  job… for nothing.  To make matters worse he is attempting to create new federal programs which will insure the quadrupling of the national debt within the decade.  By refusing to stop spending or cut programs he has sent a message to the world, that it is just fine to be a debtor nation.   But the rest of the world is not ‘buying it’.  China, the nation who holds more of our bonds than any other, has recently refused to purchase more of America’s promissory notes.  Then in an apparent move to boost government owned and run, General Motors and Chrysler, the Democratic controlled congress invited Toyota to Capitol Hill where they all but accused its president, Akio Toyoda, of a second attack on Pearl Harbor.  Make no mistake, they dishonored this man, and to the Japanese honor is paramount.  So in one week China refuses to buy any more American paper, and the congress insults its second largest creditor, Japan.  Is this any way to run a debtor nation?

Can this president hear anything but the constant whining of union bosses to whom he owes an enormous payback for their financial support?  Does he really care about the unemployed?  Does he understand the basics of capitalism, or does he sincerely believe he will be the first to make socialism work?

I am not yet jaded enough to contend that this president is sinister.  But it is time to think outside of the box, it is time for Americans to ask, is he trying to appease his constituency, or save the economy?

Senator Judd Gregg, R. N. H., has made a career out of common sense conservative thinking.  In his interview with the

Financial Times

“We have had China say that they are looking for other places to put their reserves and that is probably a smart decision on their part,” said Mr Gregg, who will not seek re-election in November. “So the warning signs are pretty clear and the path is unsustainable and, at this point, unless we take different actions, unavoidable.” …

Mr Gregg also played down prospects for the non-statutory fiscal commission that Mr Obama set up by executive order last week. “It was just an edict that came from a Democratic president,” he said, adding, that “it’s the only game in town right now”.

Mr Gregg also disputed non-partisan economic studies that showed last year’s $787bn (€585bn, £520bn) stimulus cushioned the impact of the recession. “The facts are wrong,” he said. “I can understand how a Keynesian would make that argument. I find them absurd on their face.”

Mr Gregg also disputed studies that showed the large tax cuts pushed through by George W. Bush, then president, in 2001 and 2003 had added to the US fiscal deficit.

“They were actually paying for themselves,” he said. “If you look at the numbers, they did.”

Wow, imagine that, a politician, albeit one not running for re-election, not only willing to give kudos to China for having the smarts not to buy our bonds, but also for giving us a shot across our financial bow.  Judd is in effect saying that it is obvious to all but this administration that the free enterprise system works.  He contends that there is still time to right the ship… but it will take some belt tightening capitalistic measures, like tax cuts and letting the laws of bankruptcy, rather than lobbyists, determine failure.  Judd’s is a refreshing voice from a man apparently too frustrated to deal with politics any longer.

Source: David Bellavia

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