As political events in Egypt play out, including likely contagion to other parts of Africa and the Middle East, attention is diverted from the real threat to our country — government insolvency. From Jeff T. Allen, writing in American Thinker:
There will soon be a crisis affecting US citizens beyond any experienced since the Great Depression. And it may happen within the year.
Unlike the Great Depression, however, we will enter such a shock in a weakened state, with few producers among us and record mountains of debt. More cataclysmic is the specter of inadequate food, as less than 4% of us farm …
Political lip service will not solve this problem, only spending cuts will. Yet lip service is all we get. President Obama’s State of the Union address spoke of the problem but not to the problem. Obama offered no spending cuts, while proposing a host of new spending programs. The release of his budget reflects more of the same – phony promises but no real action
President Obama continues to revel in his world of fantasy and duplicity while the economy and world crumbles. Mr. Obama appears delusional and more interested in political posturing than constructive effort.
Newly elected Republicans seek $100 billion in immediate cuts but struggle to get to this level. Smaller numbers elicit calumny from Democrats and the media. Democrat Majority Leader Harry Reid reacted this way to the potential cuts:
“In many cases, these proposals may mean taking workers off the assembly line or taking teachers out of the classroom or police off our streets,” Senator Harry Reid, the Nevada Democrat and majority leader, said.
Characteristically, Reid touches the political hot buttons in an attempt to scare people. While Reid is correct that low-level cuts will be harmful, it is for an entirely different reason than he suggests. Small cuts ensure a government default, civil unrest and economic collapse.
Head-in-the-sand politics must end. Feigned ignorance and cowardice will not serve politicians well. Reality is on the way and they are apt to be run over by it. For politicians like Majority Leader Reid, the remainder of this article may be detrimental to your health. Do not proceed without a cardiac care unit on standby.
John Mauldin, in his recent newsletter, argues that public spending in welfare states has reached a turning point:
Clearly, we are looking at a watershed event in public spending in the United States, United Kingdom, and Europe. Because of the Great Financial Crisis, the usual benefit of a sharp rebound in cyclical tax receipts will not happen. It will take much longer to achieve any economic growth that could fill the public coffers.
Welfare states are faced with life-or-death problems that may not be soluble. To understand the gravity