Monday, October 14, 2013

It’s all the Republicans

What love is TEA PARTY PLANNING: "a measure passed Oct. 1 by the House Rules Committee — a body, like the House of Representatives itself, with a Republican majority — that essentially prevents House members from calling for a vote to end the partial government shutdown, now reserving that right for the House majority leader."

Thus, this whole matter is pure Republican -- 100 % House controlled ... The President and Democrats are removed from the default process, only the Republican Speaker of the House can prevent USA from becoming the next Greece.

We also need to understand that one of the agencies the Tea Party will default on paying is HOMELAND SECURITY.

Basically, the Tea Party has already, and will continue to, set the stage for the next 9-11 … The borders are virtually open, and, should America go into default on Thursday (14 Oct), it will have daily tax revenues equal to seventy percent (70%) of its daily needs.  Look at another way, it will need to cut a third of its budget – anything which is not in every sense not an immediate priority.

What gets cut?  Interest payments on Treasuries?  Foreign nations and rich Tea Party backers will want their checks, so that’s off the table.  Social Security – an average $500 a month for 62 million Americans, plus the administration cost – Bush wanted that privatized and this will get rid of it … but will in no way withhold collection of the withholding contribution.  In a pay-as-you-go pension system, backed and subsidized by the Treasury Bonds Social Security was required to buy,  will stop.  Withheld funds are embezzled so that China, Mexico and other nations which benefited from outsourcing will get their money, but our elderly will be allowed to  have the electricity turned off and freeze to death as winter temperatures plummet – NOTE, the Tea Party has insisted that and temporary extension end, and default begins, in time for the Winter & Christmas Season.

Then there is the matter of theft -- Social Security funds due from the Treasury Bonds and representing the past payments, plus interest, made by now retired or disabled workers.

THIRTY PERCENT REDUCTION – no more highway work; no more repairs to bridges; a plunge in construction work which will then result in a plunge in tax revenue and so require more cuts.  THIRTY PERCENT quickly becomes FIFTY PERCENT … and America is still in default … as fun has it, as Treasury Bonds mature, there are no funds to pay them (we usually borrow to pay, a function called rolling over the debt) … YEP!  Another cut in resources which will require another cut in “benefits”.

The window is a mere two years.  Then we have the 2016 Presidential Election – no incumbent, open field, who will be blamed?  Does it matter?  The Dollar will no longer be a Reserve Currency, and our credit rating will make Greece look like a secure investment.  China controls the game … it will be the Yuan which becomes the Reserve Currency, and the Yen will be solid.  The world will be in recession.




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