Oracle of Liberty

Constitutional Liberty and Economic Common Sense

Negotiation, Entitlements and 2014


Debt-Ceiling

As all the political class and media elites do their best to discern what is going to happen in the next few days relating to the budget and debt ceiling crisis, most are really keeping focus on what they think this a holds for election results in 2014. Clearly the media, who carry the water for Obama, Reid and Pelosi’s progressive army, try to place blame squarely on the GOP they do their best to ignore reality.  It appears that neither the media, senate democrats, the house GOP and obviously the president have never been in a “negotiation” on anything besides which tie or pant suit to wear for their next TV appearance.  When it comes to middle America and the average Joe’s way of life and how they are impacted from this childish game of “it’s my party and I will whine if I want to,” the political class brushes their worries aside. The average Joe is seen inside D.C. as a pawn. An enslaved pawn. And by enslaved I don’t mean of the type this country, along with every other that has come into existence since the dawn of time has had to grapple with during its existence. This average Joe is economically and politicallly enslaved as a victim, in large part, to their own circumstance.  It’s the “victim” part that politicians use to their benefit. So expect the GOP to fold, spinelessly, and waddle back to their constituents this election season saying “I tried to save you from Obamacare but the democrats controlled 2/3 of government and so we need you to vote to elect more republicans in so we can overturn the law.”  Deja vu! This is what the GOP ran on in 2012. How did that work for them?

Entitlements is where the crux of our spending lies and where the sharpest knife will be felt in America’s back. Democrats believe that the public should trust them as stewards of their retirement funds.  Repubicans feel you should have an option.  Government social security as is in place now or a private account that you fund and manage. Keep in mind that in the 1980s a democratically controlled house/senate passed a bill and signed into law by Reagan that allowed congress to raid the social security”trust fund”.  What this did was it allowed congress to borrow the money that was in that “lockbox” and spend it on whatever programs they needed the money for. Essentially dropping treasury bonds, IOU’s, into the account.  Now, as is playing out in front of us now and did in the past couple debt ceiling debates, the president and democrats fear monger that if we, the taxpayer, don’t vote to raise the debt ceiling then grannie may not get her social security check on time and that spells doom for her as she can’t buy groceries, her medications, etc.  What is so ironic about this is that if the government were such good stewards of our retirement accounts then why have they already spent all the money in there and then threaten us with our own money that they, by law, owe us that should have been held in a cash (money-market/cd) account all along earning interest?  Who do they think they are fooling?  Oh yeah, that’s right. It’s us. And they are succeeding at it.  Because “we the people” are so il-informed, so devoid of common sense in the political spectrum that their disinformation tactics have worked just like the CIA director William Casey said in 1981, “We’ll know our disinformation program is complete when everything the American public believes is false.”  Read that again!  So democrats want to control the money they have already spent but use the threat of not returning the money they owe you that is not there against you to leverage your fear into giving them more control and a higher debt ceiling so they can spend more money they don’t have.  Think about that next time you go to the polls. I wrote about this very topic in my blog here.

All this brings us to the real issue.  The 2014 off-year elections. Obama is not on the ticket this time and in a lot of ways it will be a referendum on his policies and if they have worked for America.  Obama was successful in 2012 with his “my policies haven’t had time to work so I need your help for four more years to make them work”.  By November 2014 the American public will have had ample time to review his policies and weigh the successful ones against those that failed.  At this point, the latter is most likely to be the overwhelming majority of the pie.  However, the GOP, if they capitulate on the budget and debt ceiling which looks all but certain at this point, will be raked over the coals and the above statement of “I tried to save you from Obamacare” will be met with hostility and a route at the polls.  But as I read the tea leaves on 2014 here is what I see happening between now and then. First, our economy is sputtering on fumes and the only reason we are still stuck in a rut is because of Bernanke and Obama stimulus.  It hasn’t worked and the slack in the economy is too great that the elasticity is going to break. That will usher in a collapse of the housing industry that they tried to prop up. From that collapse household wealth, artificial and inflated due to the fed chairmans QE programs, will dwindle again to near negative territory, debt will again be defaulted on (as is already happening in the govts “refinance/modification program pushed by Obama) and jobs will be lost in mass. Democrats and Obama will hit the microphones and airwaves to push another round of stimulus spending but this time in larger scale than 2009. The GOP will waffle in empty rhetoric and messaging because they have the worst PR campaign in the history of politics.  But their messsage of “I told you so people” wil begin to gain footing as more and more people wake up that their dollar purchases less, they have less income, less jobs but more debt and more taxes.  That will usher in a groundswell of anger, resentment and grassroots revolution that both parties will suffer from at the polls.  There is not a third party in US politics at this point but a year is a long, long time in politics.  Look for that to drastically change course over the next 12 months as most level headed voters will move to alternative voting options than the two party system. The dyed and true welfare recipients who worship at the alter of free money, phones, food, etc, will always vote democrat because like Harriet Tubman famously said, “I freed a thousand slaves. I could have freed a thousand more if only they knew they were slaves.” These particular voters are enslaved economically and like trying to take away milk from a baby at feeding time, the whining and crying will always grow loud if you try and take away their EBT cards and free stuff.

This serves, in my opinion, that come 2014 we will be living in a drastically different world, with less freedoms, less individual rights, stolen promises and empty wallets.  And well over $17 trillion in debt with increasing interest rates that will serve to begin full dollar destruction as our interest payments begin eating away more and more of our revenues so less for social security, welfare and defense.  Expect this to be felt in 2014 and reverberate well into 2016.  If you think Hillary is a shoe-in for president in 2016, you haven’t even begun to understand the magnitude earthquake this nation will experience between now and the next presdential election.  It’s time for American’s to take their country back. It begins now. It ends when we say it ends.

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This entry was posted on October 15, 2013 by in Obama's D.C. changes and promises, Uncategorized and tagged , , , , , .

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