Current Debt Talks Focuses on Taxes

Our government is currently in a debate about what to do with our debt ceiling and how to address of our national debt. I have a solution for our beloved politicians, just raise the debt ceiling and do not waste more time and taxpayers money on this topic. We are dammed if we do and dammed if we don't. The reality is that we are in financial trouble. The good news is that we as a country has managed to get ourselves from worse situations in the past.

The politicians in Washington must stop wasting time in the debt ceiling subject and investing the time in how are we going to resolve our current situation on a long term basis. The raising or not of the debt ceiling is a band-aid on a huge bleeding cut. The band-aid will only contain temporarily the bleeding. Our leaders must put aside their political agendas and pet projects and make decisions for that are the best for the country and its people. So raise the debt ceiling and brew a huge pot of coffee and go back to the "brain-storming" rooms and develop your "strategies on debt reduction".

This country will become the laughing stock if we do not raise the debt ceiling and start failing on our obligations. However, raising the debt ceiling (borrowing) comes at a price; we become indebted to other countries (most likely China). Also, we will see increases in taxes as a method to pay for the increase in debt. Whenever you assume debt beyond your means you enslave yourselves. We should raise the debt ceiling and develop a true plan of action towards the repayment of the debt. This is not the first time this country has raised the debt ceiling in the past; this is the one getting the most media. In recent times we have raised our debt limits in 2002, 2003, 2004, 2006, 2007, and twice in 2008, they were considered to be a necessity and so it didn't get a dumpster's worth of panicky coverage we are getting today.

The financial problem we are in today is beyond some tax increases and tax subsidies that our politicians wants to focus as part of their re-election plans. We have an inherent problem with our fiscal policies. You do not have to have a Phd in Economics to see it. You will notice that since we abandoned the gold standard since the early 70s we have experienced an out of control growth in our national debt (see graph). Politicians discard this notion as nonsense since a real gold standard would make the jobs of the Federal Reserve chairman and his "Congressional Questioners", i.e., manipulating the economy and redistributing wealth, much more difficult. When we have a country where the officials of the Federal Reserve can't explain rises and falls in their own measures of the money stock, we have a problem. The current economic problems goes back to several decades ago; the stagflation of the 70s, the failure of S&Ls in the 80s leading to the
the growing problems in the banking industry itself today. I suggest that we take a closer look this time and consider a fiscal reform: gold.

However, while time goes by each of the major parties continue playing their political games of passing the blame to each other. The truth is that the fiscal irresponsibility of politicians of both major parties have caused this train wreck. So grow up, stop blaming, take responsibility and lets work together towards the true solutions that will solve the current situation.