Two interesting developments came out of Washington, D.C., this week that I think the average citizen in America wrongly cares little about. First, we have the raising of the debt ceiling; that is, raising the level of debt that the U.S. government is allowed to pile up. Second, we have the massive $1.1 trillion dollar spending bill that president Obama signed into law. Both are disgusting acts of Congress on their own, but when viewed together they paint a scary picture of where this country is headed.
As if the United States wasn’t in debt enough already, the brilliant minds in Washington decided to borrow $290 billion to keep the government afloat for just six more weeks. Were told that the only other option was for the U.S. to default on its obligations for the first time in history, which certainly would have sent the markets into a tailspin. So instead, we borrow more money that we cannot pay back just to pay the loans that we have taken out previously.
Were going further into debt to pay off our debt. That would be like you and I paying our credit card bills with other credit cards; hardly a good financial practice. I wonder, why couldn’t we use that additional $200 billion or so that we “saved” on the bailout program to pay down some of our debt? Oh, that’s right, paying down the debt doesn’t earn any votes for the democrats. Entitlements are the path to reelection!
In the same week that our government had to take a loan to pay a loan, the president signed into law a massive $1.1 trillion dollar spending bill. Were told that this is normal spending that occurs every fiscal year, it’s just that they have wrapped the spending up into one easy -to-pass bill. But if we look closely at the $1.1 trillion spending bill we see that all of the agencies affected by the spending bill received approximately a 10 percent raise in funding.
I don’t know about you, but I didn’t receive a 10 percent raise this year. I bet you could count on both hands the number of private companies handing out 10 percent raises this past year. We’re in a recession, a bad one at that, but our government still feels that a 10p ercent raise is in order. While you and I trim back our lives to fit these horrible economic times, the government continues to grow and increases spending by 10 percent.
Our government continues to fail us on a daily basis. There are many areas in which the government could make cuts, but rather they increase in size. There are pockets of money available to the government today that could be used to help pay down our debt, but instead the government wastes that money, then goes out to borrow more so that we can continue to meet our obligations.
When will the average American citizen wake up and see the damage being done to us by our own government? A five-year old could tell you that borrowing more money to pay back your loans that you cannot afford is a bad idea. Yet Congress thinks it swell, all the while working to pass massive health care legislation that will bring this country to its knees financially.
I wonder which currency will take over when the dollar collapses in the coming years. It’s time to start investing.
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