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PrintApril 13, 2013
Can anyone present a budget that cuts spending?
President Obama and the Senate Democrats finally have a budget. However, it looks to me like just a lot of "cut and paste".
In other words, will we ever see a brave politician who actually proposes a cut in government spending? I mean real spending cuts not cuts in increases.
This is critical because our debt is on a path to hit 78% of GDP in 2014.
The problem with debt is that it comes with interest expenses. The second problem is that interest expense eats up your cash flow and there is nothing left to pay the other stuff.
Greece may have the luxury to go broke but the US, the world's only superpower, can not shut down our Navy or Air Force. We must continue to patrol the world's oceans and air or this planet is going turn into a very nasty place to inhabit.
Yes, our debt is a national security problem.
We've been lucky because interest rates are so low that debt service has not hit us between the eyes. Also, we are still the most attractive place in the world to invest in. People all over are still willing to buy dollar bonds and continue funding our spending habits.
Our luck is going to run out. We are not immune from reality.
They say in baseball that "walks" will kill you. In the world of finance, debt service will kill you too.
It continues to amaze that there is not a politician willing to make the case that we have a spending problem, i.e. we are simply doing too much for the citizens under the guise of compassion.
It's time for our generation to pay our way or stop signing promissory notes that commit our kids to a future bogged down in debt and lackluster growith.
I don't think that it's moral to pass on these debts.
Wanted: A president who will tell us what we need to hear rather than a bunch of poll-tested "hope and change" speeches.
