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AMERICA Suffers from Gangrene and the cure is to cut away the ROT

Years of Corruptioon have left America with severe decay to be removed.

America is suffering from a leadership crisis, despite electing one of the most electrifying young president, a senate with the average senator having almost 20 years of service, and House memeber with almost a decade and half of experience. This failure in leadership all points to stagnation instead of experience and comptency for the crisis at hand. A lack of new ideas has led to complency, corruption and de-cay. America’s instution now are infected with graft, greed, and excuses.

This malignancy was born in the great comprise between Tip ONeil and Ronald Reagan. It was that we would cut tax rates–What Reagan wanted– in exchange for increases government spending–What ONeil wanted. This led to the American public getting to eat their cake and have it too for nearly 30 years. This malignant compromise grew with each passing administration and our instutions and people grew accustom to getting a dollar today for a dime. It became the American way to burrow and purchase. Our government did it. Our business did it. Our People did it. For a generation and a half we have lived leveraging our future for today’s Sunny Day. Now the bills our coming do and what is our response. BAIL ME OUT!!!

Not surprising, a country citizens who burrowed their way into an alvanche of debt snowballs elected leaders who only know how to burrow for a crisis. Need more for Education, burrow. Need to fight a War, burrow. Need medicine for the edlerly, burrow. Need a tax cut, burrow. GLOBAL FINANCIAL CRISIS BY DEBT, BURROW-BURROW. Unfortunately, the corrupted leaders that spawn this debt crisis are now firmly entrenched power. Their response has been to think we can burrow our way out of this debt caused recesssion. Do not turn a blind eye. They are about to enslave your kids, their kids, and maybe many more generations to their debts.

 

We all this know graph and see the future. What we don’t realize is the day of reckoning is TODAY not later.

This financial crisis has caused a curious phenomnon. We are burrowing more but paying less in interest than ever before. The chart from zerohedge.com below shows the monthly interest payments made out over all the federal government’s burrowings. As you can see due to different debt structures the government payments fluctuate. The line takes the payments and smooths them as if they all burrowings were one payment on a fixed loan. What you see is the line is decreasing. This is cause by the FED changing our burrowing to more short term instruments with lower interest rate and people rushing to the dollar for safety helping to keep it a seller market.

As zerohedge analysis goes on further in the table below. An analysis of what would happen if interest rates rose. They create different scenarios and analysis what the most likely scenario is. They chose the middle because they don’t believe the world can continue to lend us trillions of dollars and ask for near nothing in interest. The results show just how much a tight wire our government is walking. We are most likely looking at a 8 billion increase in interest payments. That’s a 67% increase with an average interest rate of 3.2% (Still historically low). If we go back to norms of 5% we are looking at an increase of 11 billion. This is just on the interest of the debt. It is not the time for new spendiing or tax cuts but for spending cuts and surpluses. We must stop our burrowing and start paying off the debt before the interest rates set off the alavanche that buries us.

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