YOUR MONEY

America - Do what I say, not what I do

 The United States government has been endorsing the austerity programs implemented in Britain and imposed on the near bankrupt countries of Europe: the PIIGS of Portugal, Italy, Iceland, Greece and Spain, and now Cyprus, with Hungary and possibly Latvia and Estonia soon to follow.  European governments are told that they cannot continue to spend excessively more that they get in revenues.  Belts must be tightened and taxes increased and collected!  Central banks and the IMF cannot be expected to provide free bailouts!

Most Americans have watched the ongoing European crisis with a smug smile. After all, the American ethics of self-reliance and distrust of big government have saved the U.S. from such socialist government disasters.

But has it?

Today, the talk on Wall Street and Main Street is about the U.S.  ‘fiscal cliff’ set for January 1, 2013.  On that day, , by a set of laws enacted in 2011, called the Budget Control Act, the U.S. government’s federal budget for 2013 is to be AUTTOMATICALLY cut and taxes AUTOMATICALLY increased (by almost 20%) for a total ‘savings’ of 600 billion dollars U.S.

The feared outcomes include a new recession and higher unemployment. And everyone is hoping that some compromise between Democrats and Republican,  and that President Obama can ‘work out a deal’ to soften if not eliminate the Budget Control Act measures. 

What Americans want, put simply, is to delay or reduce the pain and keep the dream of the ‘good life’ intact.

But while Americans do not live in a socialist European style fantasy, they still live in a country and under governments that have so mismanaged their accounts that they also are at or near bankruptcy!  Think California, whose citizens passed a referendum to INCREASE STATE TAXES!

Between Bernanke printing money on the fly in what is calls “Quantitative Easing” and  governments spending way beyond revenues – for years on end – the U.S. has hit the same financial wall as many countries in Europe!!

Just go to the website, www.usdebtclock.org which uses official government data and see how bad it is - federally and by state (top left tab).  At this moment, the U.S. national debt is a whopping $51,656.00 for every single U.S. citizen and $141,752 FOR EACH TAXPAYER!

Even with prime interest rates at 1% or so, that is an unmanageable debt and a crisis.

And heaven help the U.S.A. if world investors smarten up and no longer buy American bonds and Treasuries at well below real inflation rates. 

While this makes me sound like a Tea Party member or right wing Republican,       I am neither, but the truth cannot be hidden any longer!

                                                               + + + + + +

So, Americans, if President Obama were honest with you, you would be told what is being heard in Europe.  

 

Our government(s) cannot continue spending at this pace and our taxes are way too low to cover the bills.  We too must do what Europe is doing, because we too have been fiscally irresponsible and the day of reckoning will soon be upon us.

The 2011 Budget Control Act is the truth, and what must be done!