Today, Britain failed to successfully auction its bonds due due an insufficient number of buyers. In other words, Britain has committed to spend money it does not have and that no one is willing to lend them. Britain must decide to spend less or print the money. Printing the money will inevitably lead to inflation, making Britain a poorer nation. Will the British government have the guts to cut spending? I wish they did, but I doubt they do.
Britain is not the first to have a failed bond auction. Germany has had two failed bond auctions. Today, the US government had trouble selling $35 billion worth of bonds and only succeeded when the interest rate was increased. With trillions of debt to be sold in the coming years, I can't imagine where it will come from. Will our government have the guts to give up on this bloated spending? Or will it print the money? As with Britain, I fear that the money will be printed and that run away inflation will result. This is the very reason that the Chinese and the Russians are making noises about introducing a world currency that will replace the dollar. They see what our leaders cannot see. The damage to the dollar will be severe and we will be poorer because of it.
3 comments:
I am ready to have the government stop spending beyond its budget. However, it is not just whether or not the government has the courage/guts to do it, is it whether we too have the courage to do it.
Governmental cuts will effect us all. Are we ready for that?
What are we willing to cut drastically or altogether?
I vote for drastic cuts in military spending. There is no longer any reason to maintain bases in Germany or Japan as examples. How about a five year plan? A five year moratorium on federal dollars going to the states for education. Let the states deal with it for 5 years on their own: I'm guessing they will realize that sports have to be the first on the chopping block. No more money for the arts for 5 years. No more money for NASA for 5 years.
Those are my four cuts for starters. And you?
If your list of cuts is included in what must be cut, I am all for it, including the cut in military spending. Let the EU defend itself! Let Japan defend itself! When my family is overspending, the first thing to go is entertainment (the arts, if you will). I was and still am for the balanced budget amendment. The minimum that the federal government must do is defend the country and staff the courts. Most everything else should be done by the states, including fire, police, education, etc.
I am a big fan of NASA, but if it gets us to a balanced budget, NASA needs to be cut, too. Various parties can debate the content of the budget and the level of taxation to sustain the budget, but I say "Let's have a balanced budget!" Borrowing for time without end and amounts without end will only end in disaster for us and other countries.
Our Military would have to pull out of the middle east and Europe all together to have a reason to shut down the Germany miliatry bases there. It's a very pivatol location. Germany bases service some major hot spots in the world. With terroism and maniac regimes in the world today...cutting back on military is not wise and would be one of the last things I would cut back on. What a way to make our selves volunerable to them.
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