By Tom Flake
Mr. and Mrs. American,
We regretfully report the death of your country. It happened on 8/2/2011. The cause of death was economic murder. It was perpetrated by a gang in Washington called the "elite". Witnesses were plentiful but it appears that no one really wanted to get involved.
I am sad today. Sad because the conservatives that were elected in November were rolled. Sad because we've lost our last best hope. 2012 will not be a landslide victory for conservatives. The furor that was building will now ebb as people willing to devote their land, their fortune, their sacred honor to the cause of putting America back on track will feel betrayed, that nothing they can do (like providing the Republican party the greatest political victory in almost 100 years) has any impact.
If things had gone as envisioned right after November, we should be celebrating, there is no reason the Republicans had to do anything. If they had just said, "no" the debt ceiling would have remained in place and today the President and Treasury Secretary Geithner would be forced to make the cuts that the country needs. Instead they rolled our representatives and we've taken a different path.
What does the different path look like? As the country borrows more, essentially increasing the supply of dollars (printing more money) the value of the dollar will decrease. The outcome will not be all bad, US exports will increase and jobs due to exports will increase. Some jobs that have been pushed overseas will come back home, so for the working class there will be some benefit, some of them will have jobs. But for the young opportunity will not be as common. For the old on fixed income EVERYTHING will be more expensive. In fact, everything will be more expensive for everyone, but those on fixed income will notice it more. Think $5 gas within two years. Think $3500 per ounce gold within two years.
The big lie told to seniors, the block that politicians really listen to, was this...We aren't going to cut your Medicare or your Social Security. The shell game, the reality, is this instead what the bankers and politicians have done is agreed to provide those benefits with less valuable dollars. So the unsophisticated citizens think they have maintained their benefits but the reality is they will feel MUCH poorer and not know why.
So we've mortgaged our countries future, scammed the elderly into believing we've protected their interests and will convince the middle class that new jobs are being created, (all the while not noticing that those jobs don't pay sufficient to provide the same standard of living) but pay no attention to the man behind the curtain he's the charlatan who stole your country.
I feel like the ghost of Christmases yet to come.
I've asked Rick to post this early, in the hope that you will contact you congressman and senators and ask them to NOT support either the Boehner bill or the Reid bill. In fact, to support NOT raising the debt ceiling and to work with President Obama to make cuts in the best way possible to spare as many as possible as much pain as possible. The reality is that even under those circumstances, I fear that President Obama will make the cuts as painful as possible in order to score political points.
Never the less it is the right thing to do. Under a circumstance where the government is no longer borrowing, they have to balance the budget. In such a case, the dollar will not be devalued, (in fact the opposite will occur) seniors buying power on fixed income will be preserved. The dollars that would otherwise have been lent to the government will flow to the private sector as "crowding out" is reduced and opportunity for the young will be preserved. Our ability to export will be less than it would have been under a devalued dollar scenario, but our ability to create domestic products will be enhanced AND prices will fall, so that those dollars we do have will buy more.