Support your local sheriff... and your federal debt ceiling
July 17, 2011
– Comments (13)
It should go without saying, but if the debt ceiling holds fast and the government stops borrowing money, it will be a good thing for the economy. The resources that would have been appropriated for use in advancing the welfare/warfare state that produces nothing, or bureaucratic desk jobs that produce nothing, or the corporate muckety-mucks that produce nothing the market wants, and instead spend their time and money lobbying Congress, will all be spent trying to satisfy the wants and needs of paying customers instead.
So government will default on its interest payments? Great! More and more resources will stay in the private sector instead of being spent on the very apparatus that undermines productivity, to wit, the government goon squad.
Social security recipients won't keep receiving their checks in the mail? Not likely. Social security recipients, those people who are complicit in the government's Ponzi scheme and kept voting for it all those years, are the real bondholders of the U.S. government - that is, they are first in line to get paid if the government is bankrupt.
So who really loses if the debt ceiling holds? Lobbyists. Especially the weakest lobbyists. The ones who barely managed to convince Rep. Doofenshmirtz (R-WY) that their clients were essential to his reelection, will see their golden goose cooked. The ones who cost the most money relative to their political clout, including many of the federal employee unions. If they get laid off and have to get jobs in the productive sector, we will see a recovery like you've never seen before. In fact, some of them will get to go back to the unproductive sector, courtesy of the taxes paid by their compatriots. Then we will have balance again, the "third way" that got us here gradually, so that we made it for fifty pretty good years with only intermittent crises.
The overwhelming majority of the country wins if the debt ceiling holds. In fact, even those who "lose" will see very real moral benefit from living in a more honest country. Tell your senator and your congressperson that you don't give a flying fig about promised spending cuts for the future. You want the certain spending cuts from a steadfast, rock-steady debt ceiling.
Also, buy gold and silver, because you need to be prepared when they raise the debt ceiling.
(Disclosure: Iong gold and silver.)
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