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Obviously, under the influence of
Some politicians are not. What is worse, under these circumstances, is that some of our political leaders are still more worried about keeping subsidy for oil companies while cutting social security, Medicaid and Medicare; keeping the tax cuts for the richest while pulling off the healthcare reforms; Tax deductions for corporate and private jets are lot more important then anything else. Is there any limit to this shamelessness? I think not. Why? Because, if you do not have short term memory loss then you must remember that Ronald Reagan, a conservative, Republican president introduced what is now called as Reaganomics. One of the most basic principles of Reaganomics was that deficits don’t matter. Dick Cheney, a conservative, very powerful, Republican vice president for eight years was a very strong believer of Reaganomics and deficits don’t matter notion. George W. Bush, the most conservative president in our history and Republican, took a surplus and turned it into a deficit of trillions of dollars. We had another, one of the worst economic and financial crashes, under Republican and conservative watch, that practically F’ed up the whole world’s economy, still struggling to recover from it. When, the most conservative, Republican, government in our history, did the biggest bail out of over 800 billion dollars, while Bush was deceiving the American citizens, stating that it was not a bailout.
Where was John Boehner and his hard-line anti-deficit army, back then? How the party that did all of that suddenly becomes so concerned about deficit that they would not care about anything, including a national default. If you do not realize the seriousness of a default, yet, you must know that it will downgrade the credit rating of our country and will have all the implications of credit rating downgrading, that you may have, if your credit rating is downgraded. Only difference is that it is going to affect every American citizen and tax payer, including those who may born even a century later. It will increase the interest rate on all money borrowed, including the trillions of dollars already borrowed. Try to calculate the annual increase in the extra interest that we all will have to pay on these trillions of dollars even if the increase in interest is only 0.1%. It will raise the interest rates on all the money borrowed and will be borrowed for consumer and business financing. Bills on all credit cards and loans will go up and due to default it will even harder to get any personal and business loans or credit, in an already a very tight financial market. Can you imagine the damage it is going to cause for already struggling families and businesses?
I mean, in the world, where the European Union is doing everything possible to prevent the default of it’s member countries, because of the potential serious implications for all EU countries, why our so called patriotic leaders are putting us on a serious risk for default. There is no doubt that spending is out of control and need to be limited. But, it needs to be done in a much safer and less damaging way.
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