I see Mr. Longhofer has moved from when life begins to the taxes on a GOP donor’s yacht (I guess he forgot about Sen. Kerry trying to dodge taxes on his yacht by registering it in a state he didn’t live in), but enough about Mr. Longhofer and his demonstrations of the intellectual bankruptcy of the left and on to something really important.
In the same issue as Mr. Longhofer’s latest babling drivel about yachts was a very important letter on fiscal responsibility by Terry Todd. I hope all readers read this letter carefully. If you missed it let my try to put some of the most sobering parts of it and some further points into a few simple basic parts. While we all talk about a balanced budget Mr. Todd points out just how far from that lofty goal our entitlements and promises we can’t afford to keep have taken us. Our entitlement promises exceed the entire income of the federal government. Balance the budget tomorrow and you have a small scale back of entitlements and no Army, Navy, Air Force, Marines, Coast Guard and any other government agency including Congress and the President not directly pertaining to the entitlements. Nada. In other words we are on a course to national suicide — the way the Roman Empire died when it could no longer afford its army. The question is where do we go from here?
Well we can’t live beyond our means for decades and expect quick and painless cures. Won’t happen. After the next election we will go one of two ways. I warn you both are painful but one is fatal. Mr. Todd listed many things we will have to do to try to get back in balance but unfortunately we will also have to print money. We have gone too far down the drain to avoid it. The rich have barely a fraction of what we need to dig out of this hole even if we took everything they have and locked them up in camps. And austerity alone won’t be enough as Mr. Todd points out even if we abolished the entire government except for entitlements. So the two options boil down to this. Promote business and energy as Mr. Todd suggests and Obama opposes, make painful cuts in entitlements and many other government agencies as well as abolishing some of them, and hopefully only have to print enough money to give us bad inflation. The other option is continuing with the budgets that Obama has laid out with massive deficits requiring so much money to be printed that you risk hyper inflation like Germany had in the twenties where a wheelbarrow of money was required to buy a loaf of bread. What good is getting your full entitlement of Social Security if it takes $25 to buy that loaf of bread? Hyper inflation creates a death spiral where you finally can’t print the money fast enough to pay the interest on the debt. And while we are on the debt let me close with something really sobering and frightening. Historically 4 percent is not that high an interest rate. We all remember banks paying that not that many years ago. In 2016 we are on track to owe $20 trillion. At 4 percent the interest would be $800 billion. Our national income is only around $2.5 trillion or just over three times that $800 billion interest payment. That’s unsustainable. At that point we would either have to default or print a boatload of money fueling the inflation mentioned above.
We are like the Titanic a mile before it got to the iceberg. If we don’t change course in November you better get to the boat deck and don your life preserver.