Kicking the can down the road is catching up with us. It won’t take much to send us over the edge and while Nobama loves to blame the Republicans (and visa versa) for the government shut-down, the truth is the government can’t shut down! Too many people and too many other countries are hooked on the U.S. government teat.
According to ZeroHedge some US banks fearing default are stuffing their ATM machines with 20-30% more cash than usual in case panicked customers decide to withdraw funds en masse. But Obama insists there will be no deal on the debt ceiling.
This is a dangerous game of chicken. European stock markets are down and China has weighed in saying Washington politicians need to learn lessons from history referring to the US credit rating downgrade 2 years ago. But a further look back in history would tell them that no fiat currency, not a single one has ever survived.
Foreign countries’ central banks have have been dumping US debt as fast as they can for fear of when the music stops. This is why any mention of the the Fed ‘tapering’ was a joke. The Fed is the only customer for the US treasury bonds, thus the $85 billion/month of printing.
And yet our politicians just cannot reduce spending. Every single program and give-away is vital. 60 Minutes opines that the Federal Disability program (SSD) may be the first of many federal entitlements to go broke. The budget last year ($135Billion) was more than the Dept of Homeland Security, the Dept of Justice and the Dept of Labor combined. Yet the federal statute reads very clearly,
“If there is any job in the economy you can perform, you are not eligible for disability.”
Watch this and then tell me who is more despicable, the federal bureaucrats who fail to oversee this program or the lawyers who make a nice living (a billion paid to attorneys last year) gaming the system all at the expense of the taxpayer?
Aloha, Mikie ~just a blogger (fightin’ like a girl)