The specter of a faux default and raising the debt ceiling is a favorite Uniparty game. Such a default is a pretense because soon everyone is made whole. Unfortunately, the charade is unrelated to a balanced budget which is necessary to avoid a bona fide default with an inability to pay what’s due. Congress has no will for balancing the budget. Our elected politicians have the country on an extended glide path to sovereign debt default.
Growing our economy at a faster rate than government accrues debt, making our debt relatively smaller, seems problematic. Government growth, consuming resources, is out of control. Regulatory overreach is unprecedented. Tax cuts are anathema to the Uniparty. Costs of electricity are rising with ruinous energy policies transitioning from affordable, reliable fossil fuels onto unreliable, destabilizing wind and solar.
The window is closing rapidly to balance the budget. At some point, the nondiscretionary spending of the Ponzi scheme called Social Security, the military, and debt interest payments lead to exorbitant deficits that even the Uniparty can recognize. About one decade is left to balance the budget by eliminating discretionary programs, after which Social Security deficits must be funded through general budgets. Another factor is the growing portion within the budget of debt interest payments. When the budget can’t be balanced solely by discretionary spending cuts, then military, Social Security, and Medicare spending must be targeted. More military bases will close. The air force, navy, and army will be pared back sharply. Government payrolls, pay, and benefits will need slashing. It will take bipartisan action to sell off federal lands, offices, and buildings. This is coming.
#AmericanThinker #Money #Finance #Debt #DebtCeiling