Sacrificial America

Many states are currently facing a tremendous budget shortfall. According to the Business Insider, California is in the midst of a $15 million dollar budget deficit. As it turns out, voters are not interested in either cutting services or increasing taxes. They are willing to cut pay to politicians, which I am totally on board with. Unfortunately, that is little more than symbolic. The heart of their budget shortage requires some sacrifices; sacrifices that Californians (and Americans on the whole) are unwilling to make.

We live in the midst of a entitlement society. Your friend and neighbor is entitled to anything and everything they feel they deserve; whether they truly have earned it or not. A flunky working at a cashier will purchase the same $10,000 electronics package as the self-sacrificing construction contractor. How is this possible? It's the credit revolution, idiot. Yes, the wide world of complex financial packages has generated a credit system that allows somebody to make a significant purchase on credit seemingly without consequence. Don't get me wrong, financial institutions deserve a large part of the blame here too, but consumers have bought SUVs, HDTVs, boats, kitchen renovations, and more using the credit. And now Congress has instituted a bill to protect consumers from credit; credit cards specifically. Perhaps protection is needed, but protection without consequence is absurd. The standard for credit issuance should be increased, and the liberalism with which credit cards are distributed should be curbed. But no, politicians have painstakingly stamped a bill that gives credit card holders an even longer leash.

The result of all this credit is one bubble after another; mesobubbles. As consumers default on credit, creditors lose money. As creditors lose money, financial markets tighten; the gorging rivers of pretend money disappear. Now, solid and real money is needed to finance projects, services, day to day business, etc. This money is not available, however. We have spent it looking for more pretend money. While Madoff works on his next Ponzi scheme, the bills start coming due. American infrastructure crumbles, and the money is not there. The American education system flails without support, and the money is not there. Prisons overflow with inmates, and the money is not there. Well, the solution is not another bailout. We are on the verge of a "bailout bubble" at this point (Why does China keep financing these bubbles?). Instead, the solution is another war. By declaring war on a ridiculously inferior country without thinking, we can distract the American constituency into supporting a cause. We will send prisoners from the overflowing prisons to fight this war for us. For instance, it seems reasonable to send a convicted heroin addict to the middle of an opiate field in Afghanastan. It is almost assured that the American public will make sacrifices to support this war, which will give everybody a warm, fuzzy feeling all over. American sacrifice; what a concept...

The country is going broke

Every day, the president and congress are throwing more and more money out the window. Money is going to corporations, special interest groups and congress' special projects.

At the same time people are losing their jobs and taking pay cuts. So there is less money being paid in as taxes.

Enough is enough already. Its time to let some companies fail and others take steps to improve their product, quality or service so that they can survive.

All the government is is doing is piling debt onto the next generation(s).