Sunday, March 3, 2013

Sequester's Here, Now What?...L&C

For those of you who have been reading this blog you know that I predicted back in 2011 when President Obama signed the Budget Control Act that the compromise between the debt ceiling and the budget would lead to Sequester Day. At that time the president said that the Republicans were playing dirty pool in politics. They were unfairly delaying the legal extension of debt, distracting the president's reelection campaign and hurting the nation.
The Democrats came up with the compromise agreement of automatic spending cuts in the budget for a quick debt ceiling extension.
Now, that these cuts are progressing, the name blame takes front page. The real problem, dear reader, is the fact that federal law requires a budget every year and the Obama administration has not gotten one passed in the last four years which is a gross violation of duty, law and leadership.
Two Parties, Two Ideas
on how government should operate. At one time the cultural values of the nation centering around self reliance took center position to which each of the two political parties jockeyed for their modern concept of what that entails.
The Democrats like to lead by spending to which they then classify as demand. More demand is better.
The Republicans like to let an individual develop a market for something to prove that there is actually a demand. Then, they don't care how it operates in regards to the nation. No rules, the wild west influence.
True self reliance does not demand or form a market for a service to which both parties don't like cause less demand is bad in the ultimate equation of government.
Traditional Stance
The Republicans want defense spending. They will spin any adversity as a danger to national security to keep the pump primed.
The Democrats say that they represent the "little guy." This party fought for social security, unemployment benefits and medicare. They don't mention Vietnam, Korea and the two present wars that they voted to enter. They don't mention the fraud in medicare, cell phones and the other 52 tax loopholes that the president just extended when he signed the Payroll Tax Act on 1 January of this year.
Now What
nothing! The actual cuts are small. Remember the committee that gave us the format used a small, compromise edition of the original budget cut plan. For example, the 2% cuts to medicare means .98 cents on the dollar to overpriced medical care. The IRS will suspend any layoffs until summer. Did you actually think that the govenment would take a chance on losing your money?
Both parties will watch each other, the polls and the stock market. The name blame game will rise as the cuts gain momentum. The president will attempt a new spin on his solution that gave the nation the sequester. The Republicans will see if they can hold off the complaints against the sequester due to the fact that it hits defense spending in a larger proportion in the spending cuts. If they can spin the public to their viewpoints, they will cave the president to which is his basic character(all talk, no conviction)and a new compromise will surface to which cuts in entitlements will rise. The biggest influence in all this is...No! Not the public. Neither party represents the citizen. It will be the rise or fall of the stock market. I see a slow downward drift that could crash, depending on how long the new deal takes to develop and the fact that our economy contracted in the last quarter to which the administration pulled some strings and that was changed. It was just revived to a plus from a minus.
Liars and Crooks: goes to the president. We now know why the Democratic big shots got behind him. This goes back to his early entry into politics in Chicago. You may not remember, but Obama lost his reelection bid in the city. When the next election came around, Obama offered everything including the kitchen sink to win. He promises to everyone, but has no conviction, vision or leadership in what he says. The $16.5trillion to our national deficit will climb to over $20t before his term is ended.