Another SOTU is in the books and it went as expected. Nothing of substance from Obama. His solutions for recovery are more of the same that got us where we are. The most important omission from his speech was any attempt of substance to deal with the debt and deficits. However, he is not alone on an island with his thinking. This is even more disturbing than Obama sticking to his wayward ideology. That is a given. The bigger issue as I see it is the conviction of the American people. We talk the talk but aren’t willing to walk it.
A new Gallup poll out reinforces this. It reflects the views of most Americans that we support reducing spending, but wish to keep the third rail intact. We simply don’t want to feel any pain when it comes to entitlements. This is not unexpected, but it is not an option if we ever want to realistically control spending. We also can’t criticize our elected officials for not following through with promises to cut spending if we aren’t willing to accept the fallout.
I don’t think we can possibly over-emphasize just how important this distinction is. The bottom line is that we the people allowed our elected officials to run wild for all these years. Are they blameless? Of course not, but the check and balance put in place to stop them is the ballot box and we didn’t do it. Maybe it’s just not possible. Human nature is working against us here. We fall prey to all those promises laid out by politicians in their efforts to stay in office. Even when we know there is no free lunch and eventually it will catch up to us, we couldn’t resist. Granted, those politicians do a masterful job of marketing and disguising the true cost of entitlements. But this is one of the very things we on the right rail against is the left’s blameless mentality.
The fact is the future is grim. We have the destructive policies of the progressives in place and growing. We have two more years of Obama at a minimum to ensure that our economy can’t recover. The Fed is a cancer that is methodically destroying us from with-in. And to top it all of, we have an ignorant public to enable it all. Sure, there are many of us out there sounding the alarm, but it needs to be stepped up exponentially. It has to start with us. There is no way possible government is capable of doing what it takes on its own.
This is a pivotal year. Many have predicted this to be the year everything collapses. Personally, I don’t carry that view. That’s a problem. The longer it takes, the worse it will be. But I think there are enough “green shoots” out there to give people the mistaken impression that we are on the right track. The stock market is soaring. There is just enough job growth and GDP growth to lull the people into believing we are simply in a slow, but steady recovery. Which is what Keynesian economics does. It delays the inevitable. Bailouts and stimulus only serve to buy time.
The housing market is still a disaster with more to come. The municipal bonds crisis likely won’t be a crash, just more of a steady increase in defaults. Oil is predicted to hit $5 a gallon this year. I don’t see that either. That rapid an increase will trigger a crash and you can bet behind the scenes that it will be averted through whatever means necessary. Of course there are many other disasters in waiting such as pensions and health care costs, foreign debt crisis, food costs, and of course, the debt. No one knows when and where the peaks will come. If enough of them combine at the right time, it could cause a crash at anytime. Or it may still be years down the road. But it’s coming. And we’re still living in la-la land thinking we can hang on to all of our precious entitlements and just fix things elsewhere. Not. Gonna. Happen.