Ping for later sob inducement. This is very, very scary stuff...
Yes, I have been sick about it for a week. Beck for all of his insanity had this right on the nose almost a year ago and it just defied the rational mind how this could happen until the Federal Reserve turned against the very purpose it has served since its founding, defending the value of US Treasury bonds.
With the introduction of TARP it became an engine to accumulate power in Washington by fiat. It was the lever used to force banks to be consolidated, force the destruction of GM and Chrysler, and so much more. But, on the Government side, they were attempting to lock up the Health Care and Energy sectors using law and regulation and in this they only partially succeeded by passing ObamaCare.
But, there is hope. S&P sounded a shot though it was mild compared to the real jeopardy and the situation is slowly propagating into the conscience of Americans. People weren't ready for strong action even weeks ago, and the Government is going all out to keep the true situation from being reported because their plans can be thwarted by simply banning the Fed from any further "Quantitative easing." If the government must really borrow the money it needs to continue spending, Interest rates will go through the roof, worsening our short term situation but the Dollar's value and ultimately our freedom and economy will be maintained. We get pain now though, but not riots in the streets.
If the Congress begins immediate and drastic cutting in places where there is a real opportunity, ie move the retirement eligibility age from 65 to 68 immediately, this would immediately and significantly cut the increase of cash outflows with the most minimal real pain available as this just prevents the action of more people becoming dependent who are otherwise productive. Revenue is increased, Cost is increased and folks get the signal that Social Security isn't going to be there sooner rather than later.. and begin to make alternate plans and investments.
This seriously sucks but this is the best way to unwind this ponzie scheme. Or we can wait for it to absolutely break and take the whole economy down.
It goes without saying, the Libya adventure gets cut, it is stupid and wasteful and counter-productive and most probably illegal.
And, the US has to commit to Drill Baby Drill with furious abandon. All Oil recovery should be placed into a program like ACES in Alaska and this revenue should be split by the states and Federal Government. And Congress needs to deregulate and unwind the worst of the Green Movement excesses, but also look at all of the previous insane "reforms" to lighten the load without removing cost effective and beneficial regulations, but if this cannot be done because of fighting then Reagan's tactic of wholesale deregulation should be applied. All government regulations should be subject to a post implementation review on a 5 year basis for adverse consequences and the Congress should need to re-authorize the regulation and any plans to correct and reduce these problems.
We should learn the concept of continuous improvement in regulation and a reporting of the pro's and con's and the hearings and re-authorization would serve as a check to the unchecked rise of bureaucratic power that has been created by the ever growing bulk of regulation.
But, for now, it comes down to making it illegal for the Fed to simple print money. This is the first and hardest step.