There is no such thing as a free lunch; but politicians are prone to offer free lunches because they don’t expect the bill to come due on their watch. Furthermore, as my friend Brian is oft to say, all debts are eventually paid. They are paid by the debtor or they are paid by the lender. But politicians love to fund their programs with borrowed money because they don’t expect the bill to become due on their watch.
The ObamaCare Free Lunch Ain’t Free
A very small handful of politicians in Washington understand and are willing to fight the “Not on My Watch” syndrome, They are led by Senator Ted Cruz. What a brave and brilliant man. Please bookmark and watch this fifteen minute video of Ted Cruz being interviewed by Candy Crawley. You will see no wild-eyed right-wing nut case. You will see no ranting and yelling. What you will see is what you should be looking for when choosing candidates in the next election cycles: a politician with integrity.
Senator Ted Cruz has been leading a rather lonely fight to defund or, at least, delay, the impact of the worst thought out free lunch ever devised by our politicians, ObamaCare. But this time the ugly truth is arriving on the scene on their watch as the ObamaCare exchanges are being rolled out. And, even in the People’s Socialist Republic of California, Obamabots are getting a rude awakening.
Meet Tom Waschura:
“I was laughing at Boehner — until the mail came today,” Waschura said, referring to House Speaker John Boehner, who is leading the Republican charge to defund Obamacare.
“I really don’t like the Republican tactics, but at least now I can understand why they are so pissed about this. When you take $10,000 out of my family’s pocket each year, that’s otherwise disposable income or retirement savings that will not be going into our local economy.”
Apparently even the rich are getting stung. So, here is a report from one of those low-information types that isn’t so rich, a Ms. Cindy Wilson:
“Of course, I want people to have health care,” Vinson said. “I just didn’t realize I would be the one who was going to pay for it personally.”
Sorry, Cindy! Someone always has to pay. This time it’s you and millions of other low-income and middle-income Americans.reality sucks, doesn’t it, Cindy?
Debts Do Come Due On Somebody’s Watch
Detroit, Michigan and Stockton, California and some other cities and counties have found that out the hard way. There are a number of other cites staring over similar cliffs. The good news is, according to this Fox News story, are taking the lesson of Detroit to heart and are trying to pull back from the edge of the cliff. It is good to see some politicians willing to act while it is still their watch. But our boys and girls in Washington continue to play the “Not On My Watch” game. Following the 2008 financial crisis, our economy was in desperate need of correction from decades of Washington malfeasance. However, Barack Obama, Harry Reid, John Boehner, and Ben Bernanke were not willing to let that happen on their watch
Not On My Watch is the title an excellent article at Monty Pelerin’s World. The author explains the “No On MY Watch” business model in Washington and especially the role played by the Federal Reserve. Here are some excerpts:
The political charade regarding the budget-debt issues currently on-going in Washington is irrelevant to the real economic problem. The resolution of this sideshow has no bearing on a half-century of foolish economic policies that will doom the economy.
The problem appears as an economic problem, but as most economic problems, its roots are political. Government has evolved into a Ponzi scheme dependent on two strategies. The first is spending ever more of other people’s money on themselves and toward their re-elections. The second is pretending what they do has no cost — to the productive, to the economy, etc.
“Manna-from-heaven” government is almost over. It has run out of resources, including its supply of smoke and mirrors. Nevertheless, government ways will not be abandoned willingly.
The Federal Reserve is the only obstacle between us and the massive economic catharsis. Ironically, the Fed is also the prime cause we have reached this point. Think of the Fed as a drug dealer who provided the feel-good past at the expense of current and future health. The economic body is finally succumbing to its overdoses of the money drug.
QE will continue until it can’t (as Herb Stein observed of all unsustainable policies). Its continuation may put off the economic collapse for a while (that time period is indeterminable), but only at the cost of greater dislocation and pain.
Stopping QE is an act of political suicide. Politicians and bureaucrats do not willingly give up their careers. Hence, all want to continue money creation despite the fact that the economy will be made worse off.
Quantitative easing will end in one of two ways — a debt implosion that plunges the economy into Depression or a hyperinflationary blow-off which drives people to barter (and Depression). I suspect the latter, but political miscalculations could lead to the former even though that is what they most want to avoid.
Economic Armageddon will arrive. Only its route and timing are unpredictable.
Did you ever play kick-the-can as a kid? I did. It was great fun. Most of us out grow kick-the can by the time we become teenagers. Not so for the folks in Washington. It is still their favorite pass time.
Well, that’s what I’m thinking. What are your thoughts?