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Our Ship of State is ‘sinking’ fast!

May 8, 2012

Watch this accountant’s video to discern why our Government finances create a ‘Titanic Event’

We all now recognize that DEBT and DEFICITS are the problem for Greece and much of the Euro Zone countries. These countries now experience riots and political insurrections daily as their ‘ship’ of State sinks. The bigger issue, however, is America and our ‘ship’ of State. Watch this video to discern our problem:

A great image of our problem might be the following:

What is likely to happen later in 2012 as more Americans become aware of our financial problems? Will we become similar to Greece with riots and insurrections in our major cities? Will Americans finally recognize that our elected representatives are playing with a ‘titanic’ event with no easy solution? Will our politicians continue to deceive and ‘fool’ the public with WORDS and rhetoric that is meaningless? The coming election period should reveal the mood of the American people and their desires…going forward.

Let’s briefly review a few items that will NOT work…going forward:

1. Increasing taxes will NOT work as this just means more funds for our politicians to waste on projects that add nothing to our ‘wealth’ or our ‘prosperity’. Also, increasing taxes reduces incentives for those who desire to invest in projects which would grow our wealth. So forget this option!

2. Decreasing taxes will NOT work either as this just makes our deficits greater and more impossible to repay. Also, countries like China and Japan who have purchased much of our prior government DEBT now have their own issues with growth and are unable to purchase more. So forget this option!

3. Monetizing our government DEBT via QE polices by Bernanke and crew will NOT work as this action will likely destroy investor confidence in our ‘dollar’ and encourage other countries to abandon our ‘dollar’ for any long-term savings or reserves. Also, ‘counterfeiting’ our dollar via QE is creating a ‘moral hazard’ for the Fed and all those who ‘watch’ the Fed and their actions. So forget this option as a longer term policy! 

4. Balancing our budget is now also impossible as current events demonstrate that this will not be viable given the make-up of our current politicians (their mindset). To attempt to fool the American public with some ‘long-term’ budget gimmick that balances the numbers some 10 or 15 years in the future (all on paper) is unlikely to work today. The American people now have access to many contrarian views which would debunk this effort. So forget any effort to balance our National, State, or Local budgets. We have gone much beyond the standard mindset of  rhetorical ‘deception’ and ‘word games’ to fool the American people going forward!

What should we all ask of our political leaders (to do) given the current mess and the coming ‘titanic’ event?

1. The first requirement is really quite obvious. We need to ask our elected representatives to ADMIT the PROBLEM! Our current situation is dire and serious and it can not be resolved without first admitting that we have a serious PROBLEM. Ask your representative in your State to watch the above video and think about the numbers. Then ask them to think about the numbers on this website: If none can give a logical and reasonable answer to these numbers, then they need to admit their addiction (i.e., spending)!

2. Can our financial problems be resolved without any PAIN or discomfort? I would say absolutely NO!


3. After admitting that we have a ‘problem’ and that resolving this problem will require some ‘pain’. We then can get on with a solution. It’s much like a person who has an alcoholic issue. The withdrawal is difficult but it eventually leads to a whole new person with a new ‘mindset’.

Think it over! We must admit the ‘problem’ before any progress can be made!!! Enjoy:

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