I have to wonder at the level of basic intelligence of our elected leaders in relation to the hysteria over sequestering. The last time I checked the total yearly federal budget was in the $4 TRILLION dollar range. The total sequestered is $85 BILLION. The cuts total a little over 2% of the yearly budget. The amount of hysteria would indicate the summary execution of people on Social Security over age 80 has now started!
The total federal debt is now well over $16 TRILLION. The total liabilities of the Federal Government is now over $200 TRILLION. This includes several hundred billion worth of Federal Reserve IOU notes for future Social Security payments. The unified budget act of 1965 includes Social Security payroll taxes into the general fund. The Social Security “surplus” is spent every year.
The idea our political leaders, or the voting public, have the stomach to actually cut current federal spending enough to stop going into debt, much less pay it off is delusional.
The sequester battle is the first skirmish of the debt war and austerity battles. The debt will not be repaid. The political will to do so doesn’t exist. Several hundred thousand people marched in Portugal against austerity measures. The same type of austerity measures that Obama will now have to impose to avoid a currency collapse.
Do not be deceived by the stock market highs. The fundamental reality of the US economy is dismal. It has been dismal for several years now.
There is no pot of gold at the end of the US fiscal rainbow. The pot is full of another substance commonly found in a pasture where large bulls frolic!
We live in interesting times indeed. I will write about the second anniversary of Fukishima in the near future. The political and economic games are rendered meaningless in the context of global radiation.