Political junkies overdose

Posted on November 13, 2013. Filed under: Banking, Business, Congress, Credit, Economics, Fiscal Policy, Government, Government Spending, Health Care, Health Care Insurance, Law, Liberty, Macroeconomis, Microeconomics, Monetary Policy, People, Philosophy, Politics, Tax Policy, U.S. Constitution, War, Weapons | Tags: , , , , , , , , , , , , , |

Political junkies overdose

By Raymond Thomas Pronk

us_debt_ceiling_cartoon

The ruling elite in Washington, both Democrats and Republicans, are addicts with a bad habit.

The ruling elite share many of the common addictions of the American people to alcohol, cigarettes, drugs, food, gambling, games, pornography, television, sex and surfing the Web.

Yet the ruling elite have a unique habit that the American people can no longer pay for or support. The name of this habit is SAD — Spending Addiction Disorder.

The primary symptoms of SAD are massive annual federal government budget deficits, raising the national debt ceiling and blaming others for their addiction problem.

Like most habits that turn into addictions, the ruling elite can no longer control themselves. They are hooked on spending other people’s money.

How bad is the SAD habit? For the past five fiscal years the federal government forced the American people to support their habit by collecting more than $12 trillion in taxes. However, the ruling elite’s habit is much worse. Besides the $12 trillion in taxes, the federal government spent in excess of $6 trillion by running annual budget deficits averaging more than $1.2 trillion per year.

This required the ruling elite to order the Department of the Treasury to issue more new Treasury debt securities in the form of Treasury bills, notes and bonds to finance these deficits that exceeded $6 trillion. As a result the total gross national debt now exceeds $17 trillion.

To put these amounts in perspective, the total U.S. real Gross Domestic Product (GDP) for 2013 is estimated to be about $16 trillion.

President Barack Obama and Congress fear the American people will finally wake up and demand they kick their SAD habit and live within the means of the American people. This would require real cuts in the fiscal year 2014 federal budget spending with the aim of balancing the budget within three or four years.

The ruling elite SAD junkies are lashing out and demonizing American taxpayers who support their habit by calling them anarchists, arsonists, extremists, hostage-takers, kidnappers, terrorists or worse, Tea Party Republicans.

Obama held a press conference on Oct. 8 and warned that if the national debt ceiling is not raised by Oct. 17, the U.S. could default on its national debt and put the U.S. into another recession. Political junkies with the SAD habit have been known to lie in order to get another fix for their habit. On average the American people are currently paying the ruling elite about $225 billion each month in taxes which would more than cover the $35 billion monthly interest paid on Treasury debt, according to the Monthly Treasury Statement (MTS) report. The last thing the U.S. government will do is default on the national debt by not paying the interest when due.

Mandatory spending makes up about 66 percent of all government spending and is required to be paid under existing authorization laws. Currently the federal government collects enough taxes to pay for mandatory spending including interest on the national debt, entitlements (Social Security, Medicare and Medicaid), and income support programs (unemployment compensation, Supplemental Nutrition Assistance Program [SNAP], Supplemental Income for the blind and disabled, earned income and child tax credits).

Discretionary spending makes up about 33 percent of government spending and includes spending for all federal departments, agencies and programs. Discretionary spending must be authorized each fiscal year and funded through appropriation bills.

The reason the political junkies with the SAD habit are panicking is they need to raise the national debt ceiling imposed by Congress by an additional $1 trillion above the existing national debt of $17 trillion to pay for discretionary spending for fiscal year 2014.  In order to get another debt raising fix, Congress must raise the debt ceiling once again.

Cutting federal government spending to balance the budget over a period of three or four years is never an option for the ruling elite junkies hooked with SAD. More and more government spending and taxes is the default solution for SAD political junkies.

The time has come for the American people to put the political junkies hooked on SAD in a rehab job in the private sector. The American people need to elect representatives, senators and a president that are fiscally responsible stewards of the general welfare and insist that all federal government budgets be balanced.

Raymond Thomas Pronk presents the Pronk Pops Show on KDUX web radio from 4-5 p.m. Monday thru Thursday and from 3-5 p.m. Friday and authors the companion blog http://www.pronkpops.wordpress.com.

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