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Wednesday, September 26, 2012

America, wake up and smell the coffee!

America can't survive four more years of Hope and Change. I'm not sure America can survive much longer, regardless of who wins the election.

I hit the snooze bar more than once this morning. Don't you have mornings like that, too? Procrastination is insidious and attractive. Well, I did finally get up about 30 minutes later than I had intended. I knocked on the doors of my two older boys and told them to get ready—and to hurry—because they had less time than usual. I got ready for work and as I was leaving twenty minutes later, neither boy had yet come out of his room. I told them once again that they didn't have much time left, that they'd really need to hustle if they wanted to catch the bus.

I seriously doubt they caught the bus. Luckily, they can probably walk the 2 miles to school in a shorter time than the bus usually takes on it's roundabout journey. They have the same procrastination problem that I do and only worry about the consequences once it's too late. Procrastination is an epidemic, and the consequences for America promise to be profound. This Titanic is roaring full-speed ahead towards a financial iceberg while the pilot is in his bunk hitting the snooze bar.

The Fed has started what they're calling QE3. Taxes are about to drastically increase when the Bush era tax cuts expire, and finally, the much maligned and greatly feared sequestration process is set to begin in 2013. America's credit rating was recently downgraded for the first time in history and it's about to be downgraded again. Yet notwithstanding all of the facts listed, if you believe the broad variety of national polls, it looks as though the November election will be another sleepy push of the snooze bar. Ho hum, what could possibly go wrong? Plenty of time to fix things. No need to hurry, or worry, or hustle. Just kind of lay there in bed and contemplate a hard day of work ahead. Yawn and stretch and yawn some more. Look at the clock...time to get up already?
The Financial Times quotes economist Chris Rupkey of the Bank of Tokyo-Mitsubishi warning, “First S&P and now Moody’s is threatening to lower the boom if Congress does not come up with a credible plan to bring down what the rating agencies think is reckless deficit spending with no end in sight.” The last plan didn’t work out terribly well, what with the farcical “Super Committee” and sequestration and all. And Congress might have called it the “Budget Control Act,” but the federal government still doesn’t actually have a budget – Senate Democrats haven’t produced one in 1,231 days.
If America doesn't change course immediately, this is what's going to happen: Our credit rating will be downgraded to the point where the dollar will no longer be desired as the world's reserve currency. If that happens the price of oil and all other imported goods are going to rise dramatically. This will cause further inflationary pressure—dramatically so when inflation is already ballooning out of control thanks to the the Fed's prodigal and short-sighted inflationary fiscal policy.

What is required at this point is hurry, worry, hustle, and bustle. But all we're getting from our leaders is yawns and elaborate stretching. While they take their languorous sweet time, refusing to be hurried, indeed becoming quite cross about the wake-up and get-to-work impetus in general, the economy is about to crash!

It's at this point that if there were a hickory-switch or a stick in hand and a suitably lazy body in proximity, we would furiously beat them like an angry fishwife. Get up! Get out of bed! Get to work you lazy bum! There's work to do and it won't do itself!

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