Under the Covers – Vol. 4

Posted by on Jan 11, 2012 in Under The Covers | 0 comments

An addict by definition (Merriam-Webster); to devote or surrender (oneself) to something habitually or obsessively.

So would any rationale person give an alcoholic a drink, or a drug addict their drug, or a gambler a trip to Vegas, or a drowning person a drink of water? I know this sounds absurd, however isn’t this exactly what cities, states and governments around the world are doing?

In the United States, our National Debt has already accumulated to over 15.1 trillion dollars. That doesn’t include the nearly $7 trillion of obligations from our governments bailout of Freddie and Fannie, or our obligations for underfunded public pensions, medicare, and others. The grand total is approximately $50 trillion.

Does anyone else see a problem? Since the 90’s, we are the largest debtor nation in the world. Being the best doesn’t mean we need to be reckless and irresponsible. So why are our leaders stoking the fire and adding to our debt obligation, or worse why aren’t U.S. citizens outraged with total and absolute financial stupidity?

The Center on Budget and Policy Priorities reported 46 states had deficits for the year 2011, totalling $130 billion, $191 billion in 2010 and $110 billion in 2009. Out of control!

Harrisburg, PA ($300 million) and Jefferson County Alabama ($3 billion) recently filed for Chapter 9 bankruptcies. Jefferson County is the largest filing for municipalities in U.S. history. Is Oakland, CA next?

Again, would you increase the line of credit of someone who clearly has a spending problem and no clear and concise plan to balance their budget? Not just no, but Hell No!

The International Monetary Fund (IMF) has hinted towards assisting with loans to Europe’s debt debacle. Thank God, additional loans from the IMF must be voted on by our U.S. Congress, and we know politicians are notorious for protecting their jobs first.

Fiscal responsibility is required of all of us individually and professionally, we need to demand our local state and national governments do the same.

Until the next time we look under the covers,

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