Sunday, January 9, 2011

Another Day Older and Deeper in Debt

Will Rogers never met a man he didn’t like, and I’ve never met a tax cut I didn’t like. However, Will Rogers never met Eugene Delgaudio, and we’ve never had federal spending this out of control.

In a double-whammy for the already outrageous budget deficit, the most recent deal between the Republican leadership and President Teleprompter extends the Bush tax cuts and lowers some other taxes, but, instead of reducing spending accordingly, the compromise increases spending by extending unemployment benefits. I liken it to an economically struggling husband and wife who want to purchase different things, and, instead of one giving in to the other, they buy both – on credit. The net result here is a whopping $900 billion increase in the budget deficit, and, sure as Eugene’s hat is orange, inflation is not too far behind. Or worse - look at Ireland, for example.

Don’t get me wrong. I’m all for lower taxes (and I must admit that I get far too much satisfaction in watching Obama attempt to explain how he didn't break another campaign promise), but I’m not convinced that this is a good deal for America. Already, we’re seeing a sell off on Treasuries in response so someone else out there must agree with me.

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