STICKING OUR HEADS IN THE SAND

"The U.S. government must spend its way out of the recession, the Democrats' third-ranking House leader stressed Monday.

Rep. James Clyburn (D-S.C.), the House majority whip, said that trying to find greater savings in the budget, which was released by President Barack Obama this morning, wouldn't help alleviate the recession.

"We've got to make some decisions here as to what's in the best interests of our country going forward," Clyburn said during an appearance on Fox News. "And I think the best interest is to invest in education, control these deficits, while at the same time trying to get people back to work."

"We're not going to save our way out of this recession," the majority whip added. "We've got to spend our way out of this recession, and I think most economists know that."

The Hill

Is it just me or does it seem like Clyburn is talking out of both sides of his mouth? We need to reduce the deficit by increasing spending? Of course, if he was a Republican he would say we need to reduce the deficit by cutting taxes. One looks to government while the other looks to business. Of course, neither look at the root of the problem; self control.

I don't care what the government does to manipulate the economy. We can never take in enough to pay the bills. We could take all of the money from everybody in the country and still not pay the bills. The country is bankrupt.

When a business or an individual goes bankrupt a third party steps in and determines who gets paid and how much. Assets are liquidated to the extent they can be to cover as much of the debt as possible. Some creditors get paid and some don't. When it's over, the person or business is returned back to a financial state that is far more realistic than where they were. And they will stay there for a good long while because hardly anyone will lend them money. They are forced to diminish in size and influence.

A country, because it is a sovereign entity can't go bankrupt in the same way as an individual or business. Bankrupt countries and their economies collapse. If a sovereign state were to accept third party control over its finances it would cease to be sovereign, thus it would cease to exist as an independent state. To retain its sovereignty, its national identity, a country must retain it independence.

An individual or business is considered bankrupt when it can no longer pay its bills, when the money coming in is insufficient to cover the cost of operation. However, it's possible, at least for awhile, to hide this through the use of credit. A bankrupt entity with access to credit can pay bills for a long time using that credit. Obviously this doesn't change the fact that they are bankrupt. It just makes the final collapse that much worse. Because, when the credit finally dries up the debt will be so large that it will be impossible to pay it back, even if all assets are liquidated.

This is the truth that for some reason the American people and our politicians seem to think doesn't apply to our country. But no matter how many times we click together the heels of our slippers and no matter how hard we wish it were different this time, it won't be. Our economy will collapse without MASSIVE cuts in spending. Across the board cuts; no sacred cows. Defense, welfare, healthcare, education, homeland security, FCC, FDA, FDIC, NTSA and everything else. Everything! Or they will be cut for us, through collapse. And if we refuse to make the hard choices right now the chances are that our government will go with them, because a collapse cannot be controlled. We won't have a third party making the choices for us. Because if we do, our country will have ceased to exist.

So what do I think will happen? I think that we will continue to try and spend our way out of the mess we're in. We are using credit cards to live on in the vain hope that things will improve. The truth is that even if things do improve it won't last long because we CANNOT pay our bills. There isn't enough money in the world. America will collapse, probably in the not too distant future.

We don't have to collapse. We can shrink in an orderly and controlled fashion. We can put ourselves through a self imposed bankruptcy court. This would allow us to determine who gets paid and how much. We could determine which assets to liquidate to help retire our debt. And, we could figure out who is just out of luck, the poor guy that thought he made a good loan that won't get paid. Some relationships are more important than others.

We won't be able to influence the world or project power to the four corners of the globe, but we can survive. And most importantly, we could retain our sovereignty, our Constitution and our freedom. We would be forced to return to something much closer to what the Founders designed us to be. We could disentangle ourselves from all of the foreign powers we've cozied up to through the years. We could become truly independent.

We won't shrink because no politician, besides maybe Ron Paul, will speak the truth much less act on it. They'll hide under the covers hoping the problem goes away, emerging only long enough to line their pockets with whatever little bit of wealth they can still find to tax away from us. They are cowards because we are cowards.

So America will collapse.

Pray and prepare because this is all we have left. I don't know when this country will come apart and I don't know exactly how. I just know it's coming because math generally works and the math I'm doing adds up to collapse. We can't afford to live like we do and we will maintain the illusion through the use of credit. The credit is starting to dry up. China is refusing to extend it and the Fed is monetizing our debt. It's just a matter of time.

And Rep. Clyburn will continue to say we can spend our way out.