My take on the Debt Deal

I might in the future comment on this post to add/revise some of this information as I will be no doubt reading many articles written by economists that I follow. I confess, many of my ideas that I write about on here come from other people. Many ideas are mine. But most of my views are based in large part on the ideas and beliefs of those that I study. I add/revise them to fit my own belief system. But I study those other guys a lot. Now back to the current Debt Deal.

On surface I am against the compromise. To briefly sum up: Small rise in the Debt Ceiling for small cuts to spending up front to non-defense and non-entitlement areas. All these cuts will be cut over a period of probably 10 years. The debt ceiling rise is immediate. So truly these cuts are marginal at best. Then a committee is formed to determine what other cuts are possible and the President will be able to get another larger rise in the debt if the commission can come up with cuts that are agreed upon. If the committee cannot come up with cuts, automatic cuts take place. Most of these cuts(little more than 50%) will come from defense spending. Other cuts from entitlement programs. Its amazing that Defense gets the largest cut, when off all the major programs, Defense is one of the few Constitutional obligations our federal government actually has. The later vote on a balanced budget means nothing, Democrats will not support it.

The truth is drastic change is needed and needed fast. Our debt is a problem that is growing out of control. The public in America is far too weak to mustard up the courage to allow what needs to happen take place. Senior Citizens (on average the most wealthy amongst us) are too cowardly to accept cuts to their benefits. This, although the great majority of them will receive far more than they ever paid into the entitlement system. Thus, the wealthiest amongst us will be living off the tax dollars of the still working and less wealthy people. Go figure! I love our elders by the way. But lets not act as if they are not to blame for any of this. They were the voters during a time that America grew its government to Communist sizes and thus they deserve a large part of the blame.

There is only one segment of the government that will take the necessary steps needed to deal with the problem. And that segment is roughly 2/3 of 3/5 of 1/2 of 1 of the 3 branches of our federal government. Did you follow that? I am referring to the conservative and "tea" party side of the Republican Party. The tea party members of the Republican party only control the House of Representatives. This is 1/2 of the Legislative branch of our government. The Legislative branch is 1 of 3 branches of our federal government. And the Tea party/Conservatives make up probably just 66% of all Republicans who are true conservatives.

Thus there are 2 situations we have here:

1) On principal as a conservative Libertarian (somewhat in line with many tea party members) I am against this deal and any deal that as Senator Rand Paul says: "Does not balance the budget". To balance the budget would require massive cuts. We borrow about half of what our Federal government spends. I believe we need a non-violent revolution of government principled on Constitutional ideas. I'm glad that the compromise did not include tax raises. To raise taxes on people at this time is ignorant. You can read past blog entries to understand how taxes always end up being paid by consumers, most of which are not rich people. On principal I would vote against the plan despite this positive aspect of the deal. If I were in congress, I would vote against the plan. But I am glad that the deal got done. What you say? Well now for the 2 situation.

2) Our founding fathers set up a form of government that does not allow things to be done quickly. For good reason. It requires that a law be Constitutional (this of course has not stopped past laws from being passed but the courts are highly populated with anti-Constitutional Liberals). A bill has to be passed by both houses of Congress. Then has to be approved by the President. Elections only take place ever 2 years. And it takes 6 full years before each seat of congress has come up for election because Senators serve 6 year terms. Those with my principals again make up a very small part of that government. Therefore this deal might be the only thing that could have gotten done. So in conclusion:

Obey the rule of law and understand that just as it has taken 80 years, beginning with FDR mainly, to cause this problem, it will take years to reverse. In the 2012 elections, win the Presidency with someone like Rick Perry as President. Expand your control in the House and take the Senate by just enough seats this year. All these takeovers need to be done by conservative Republicans who will stand on good principal. Meaning not the same Republicans that were leading during the Bush Administration. If this takes place then serious reform can be accomplished.