And So It Begins The Spiral in Debt Death…Unless Congress Does Something NOW

READ the entire article…don’t just skim it.  I have put only a small snippet in here.  Bang the link and read….the things laid out in this article are the ONLY way we are going to keep our nation.

 

To the “Tea Party” that was crowing about how they were “successful”, how does that success taste?  Half of your members in fact defected when it came time to vote, and despite the crows of “success” (which was really nothing more than glee over “beating the Democrats desire to increase taxes”) the bad outcome that you claimed to be trying to avoid happened.  Now what? 

To the Democrats who said this was a “good bill” or even one “we can support”: How does abject failure taste?  Your refusal to admit that you cannot spend more than you take in on a perpetual basis and your incessant demands to spend more and more without any plan to pay for it, despite screeches of “tax the rich” and “fair shares” has gone nowhere. 

To the “mainstream” Republicans who said this was “the best we could do” or even “a good bill”: How are you feeling this morning?  Got out of town in seconds after that vote did ‘ya?  Well gee, that worked out real well eh?  Now what? 

Some more facts – and you’re not going to like any of them:

Within hours of the passage of the bill more than half of the authorized increase in the debt ceiling (the first tranch) was blown and gone as Geithner unwound all the screwball theft games he had played for the previous two months.  More than $200 billion instantly vanished.  The scale and price of his deception was instantly laid bare upon the table, as was our fiscal trajectory, since June is one of the heavy tax receipt months (estimated taxes.)

In calendar year 2007 GDP was $14.3 trillion, more or less.  The actual borrowing increase was $548 billion.  The Federal budget was $2.73 trillion.  To balance our fiscal house we would have had to cut 20% of the Federal government – in 2007.

In the last year GDP was $14.8 trillion, more or less.  The actual borrowing increase was $1,700 billion.  The Federal budget (which was never actually passed and signed, a rank violation of Constitutional requirements) was $3.8 trillion.  To balance our fiscal house we would have had to cut 45% of the Federal government – more than double the 2007 figure.

To bring the economy into balance debt must not grow faster than GDP.  In a time when GDP is shrinking debt must shrink faster, not grow faster.  This is basic exponential mathematics.  15 minutes with Excel will prove this to anyone’s satisfaction.  This has been the foundation of my perspective on the economy and our errors since I started pontificating in public on it in the 1990s while running MCSNet, and has been the foundation of The Ticker as well.  Twice in the last month or so I have posted links to Google spreadsheets for those too lazy to do it themselves, making it even easier to visualize what I’ve been talking about.  Anyone arguing otherwise must be able to demonstrate why the laws of mathematics do not apply and prove they are correct, and if they’re unable to they must be ejected from the debate on the path we take as a nation.

via And So It Begins….. – MarketTicker Forums.