Thursday, May 19, 2011

Now It's Understood Why The Debt Ceiling Must Be Raised!

Have you ever had someone in your crowd who tried to buy popularity by being the big spender?  That's who  I'm reminded of by President Obama.

For months now the "Arab Spring" has been unfolding, the fight by the people for their rights and freedoms.  Have we played a major role?  No.  What we've mostly done is scold and threaten with no follow through.  At least not one that's timely enough to be of help.

Now the President has decided it's time to reach out once again.  What's the catch?   Aid.  Billions of dollars in aid.  Especially to Egypt and Tunisia, hoping  the other countries will follow suit and become "positive models of change".

So just what is this aid to do?  Read carefully.  It's to finance infrastructure, create private sector jobs and give young adults more opportunity! Oh, yes, and to boost America's reputation.  To what?

Does the whole scheme sound vaguely familiar?  Isn't that what's supposed to be happening here?  Isn't that what the stimulus package was all about?  You know, the one that didn't work.

Okay.  What kind of money are we talking here.  Billions.  One billion in debt cancellation! That of course means we don't get a penny back.  One billion in loan guarantees.  That means if they default we pick up the tab.  Plus billions more, yes billions, from institutions like the World Bank who is busy trying to keep what seems like the entire world financially afloat!
We can barely keep our government running.  We are in danger of default, even though it's against the Constitution to do so.  No one seems to mention that small point. No matter.  We're broke.

So!  That' why we have to raise the debt ceiling!  We can't deliver this largess without doing so.  The catch is just that, however, raising the debt ceiling! Meaning we'll have to borrow it to give it away.  And who do we borrow it from?  A large chuck will no doubt come from the Chinese.

With the Chinese taking a serious interest in the plight of many middle eastern countries, maybe they'd be better off going straight to the source and let what we borrow go to our needs.  That would be novel wouldn't it?

I know many of you continue to think all our troubles are because of the previous administration.  The "Arab Spring" has no connection what-so-ever.  Neither do the decisions the President is making about our involvement.  To me he seems detached until he has to get involved to save face. Throw money at them.  Money talks.

It's what it says and to whom that troubles me.

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