SOTU – fail! American public ignorance – fail!

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.

16 thoughts on “SOTU – fail! American public ignorance – fail!”

  1. Gas rose to over $4 a gallon that fast just a few years ago, right before you woke-up one morning and was told the entire financial system would collapse if the government didn’t spend trillions it didn’t have. In other words, it does happen that fast. It’s all unraveling as we speak. That’s why The Bernanke keeps printing money, trying to hide the inevitable, hoping a miracle happens before it’s too late. When the end comes, and I’m not sure when that is, it’ll happen a lot faster than you ever realized and in untold ways.

  2. I’m cross posting this on our site 5etester. Free free to stop by and respond to any comments. I think it was one of the best posts I have read in a while and I do not have much to add. Great job!

  3. Great post! The time for us to act is now, we can’t sit by and hope that the impending crash is years down the road. The very future of America depends on the American people waking up and realizing that all of these entitlements are unsustainable and must be cut. It won’t be easy but it must be done.

  4. Great post, 5etester. I think the perfect storm is still brewing and when it does come to a peak, it will not be a pretty sight. How to fix the things you have mentioned? I really don’t know, but we have to start somewhere. As you mentioned however, very few people are willing to even talk about doing the right thing, let alone actually take steps and measures to correct the problem. Until we do that, it really is hopeless.

  5. Larry, I didn’t intend to put out a blanket statement and throw everyone under the bus so I hope it’s not taken that way. I just think that even a large percentage of Conservatives don’t realize the depths to which big government is entrenched in our daily lives. Are people ready to do without the school lunch program? The FDA? The USDA? Would you lose trust in the safety of the food supply? Raising the retirement age for SS? Means testing for Medicare/Medicaid? How about simple things like 4th of July fireworks or Christmas-sorry, I mean holiday, displays? We could go on and on.

    The fact is that meaningful cuts will affect virtually everybody. I would like to think that most of us will accept it and adjust accordingly. But realistically, many people will experience a severe shock to the system based on what they are accustomed to. It’s the old recession/depression scenario. Your neighbor loses his job and it’s a recession. You lose yours and it’s a depression. I sincerely doubt many of those calling for cuts will feel the same when they find out just how much life as we have known it will change. I’m very cynical by nature, so I really hope I’m reading this wrong.

  6. Oh no, I didn’t take your post that way. I think you did a good job at pointing out just how realistic we need to be on this.

    Did you see the news that Senator Tom Coburn will be sitting on the Senate Finance Committee? I think that is a positive step for the GOP leadership, given that they are not exactly enamored with him and his views on spending and entitlements.

  7. Yes, I saw that. Paul Ryan chairs the House Budget Committee. Ron Paul oversees the Fed from his sub-committee position. The GOP is getting the right people in the right places. This also means they won’t have any excuses. I hope they don’t throw away the best opportunity for real change in the next two years with the debt limit vote. They hold all the cards here and must capitalize on it. They should absolutely take a hard line stance and hold Obama hostage over it. He has no choice but to cave in and they could get substantial concessions if they just stick together. This will be a strong signal on whether the GOP really wants to play ball.

  8. You are exactly right. They are getting the right people in the right places and they should be able to achieve positive results, if they will stick to their guns. As you said, President Obama will have little choice, other than to cave. The one area that concerns me is the Senate itself, since the Democrats do hold the majority, albeit slim. The GOP will have to negotiate with them to even get their agenda to the floor, much less passed. I am not sure how they will handle that.

  9. Sometimes it takes a raw straight shot of reality to wake people. And this is exactly what this is. Think about Patrick Henry and Thomas Paine. They both used powerful words of truth to wake the colonists up from their deep sleep. I don’t think they had any regrets.

  10. Great post. And you’re right, a lot of people talk a good game, but when push comes to shove, aren’t ready to walk the walk. We’ll find out when the stuff hits the fan here directly.

    Mike

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