Congress warned about debt; U.S. advised to gain control [of its debt or become a "banana republic"]

The Washington Times ^ | 2009-01-16

[rabscuttle385]

BY DAVID M. DICKSON

The United States will "look like a banana republic" unless it gains control over its budget deficit and federal debt, economist Allen Sinai warned Congress on Thursday.

"The deficit and debt prospects under almost any scenario are daunting," Mr. Sinai, chief global economist for Decision Economics Inc., told the Senate Budget Committee. "This territory is uncharted, with no real historical analogue to this kind of financial situation for a major global economic power."

Asked by committee Chairman Kent Conrad, North Dakota Democrat, whether the U.S. government's creditworthiness is at risk, Mr. Sinai replied, "Unequivocally yes."

. . . . .

Over the next 10 years, debt will be rising faster than GDP, burdening future generations with interest costs and debt repayment that almost certainly will lead to much-diminished U.S. economic growth and a reduced standard of living, Mr. Sinai warned.

"A step down the line of diminished economic power and wealth has been taken," he said.

[mrsmith]

Historically the alternative is war and I see that as the liberals best choice to keep the bread and circuses coming for 8 years.
We may be able to annex Mexico without firing a shot. It’s pretty much a failed state anyway.

But the Dems may surprise me and cut spending. As the saying went “only Nixon could go to China” and liberals could get away with spending cuts that we never could.

[mcshot]

They, the living 0 voters, will chase us down with their free $$ and full gas tanks and try to steal our food, valuables and whatever else we hold dear. They’re gonna challenge our oath to our Country and the TV series “Gangland” identifies his supporters.

[RSmithOpt]

Pretty good summation....all tip top pints and true. Good job. CHECK!!

"Roger that Roger. What's your vector, Victor.' Shirley you can't be telling the truth? Oh forgot. Not suppose to call you surely.

Only the now younger ignorant folk can't see it, cause history was never learned, nor the writings of Jefferson, Adams, Franklin, Aristotle, etc.:

"A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear. The traitor is the plague." -- Marcus Tullius Cicero

"If ye love wealth better than liberty, the Tranquility of servitude better than the Animating contest of freedom, go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you, and may posterity forget that ye were our countrymen." ~ Samuel Adams, speech at the Philadelphia State House, August 1, 1776

"Prudence, indeed, will dictate that governments long established, should not be changed for light and transient causes; and, accordingly, all experience [has] shown that mankind are more disposed to suffer while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But, when a long train of abuses and usurpations, pursuing invariably the same object, evinces a design to reduce [the people] under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security." Thomas Jefferson

"It is also in the interests of a tyrant to keep his people poor, so that they may not be able to afford the cost of protecting themselves by arms and be so occupied with their daily tasks that they have no time for rebellion." - Aristotle

[rod1]

With Daniel Ortega playing the part of Robert Rubin.

[AmericanVictory]

Are we posting in echo chamber here, or not?

We repeat from a post a while back: “Have you driven your banana today?”

[henkster]

Are we going to annex Mexico, or are they going to annex us?

Ronald Reagan defeated soviet communism and won the Cold War, only to have his own country go communist silently and from within. A bitter irony.

[silverleaf]

If you want to see what an effective and pervasive job the left has done to destroy our youth, and to remove from them knowledge about our traditional values, the accomplishments of western civilization, and our magnificent US history check out this issue of Atlantic

http://www.theatlantic.com/doc/current

I glanced at it in library yesterday and was SHOCKED. I don't think I have ever seen such strong self loathing white liberal guilt!

[devistate one four]

yep, And China is already hinting they are about finished lending to us.

[gogeo]

All of the recovery scenarios rely upon US govt creditworthiness.

Imagine the meltdown if US or Fed creditworthiness is called into question. It's not inconceivable.

What's more, I don't see a viable exit strategy from this recovery effort.

[sarasota]

To your first point, there will never, ever, be a “free and fair election” as long as there is ACORN and no requirement for voter registration/I.D.’s.

[Aquinasfan]

Exactly right. The deficit is a symptom of the real disease and it is a distraction to focus exclusively on the symptom.

The great question of our time is do we grow the government or shrink it. Should citizens have more freedom or less? How can you find a compromise in that question?

There is no major party on the shrink side of the question.

Alas. So this is how it ends --not with a whimper, but with a bang. By the time this is over, we're going to be looking back fondly on the days of Jimmy Carter's stagflation.

[RetiredArmy]

Too which the Dimocrats replied, we do not care, let America fall, we want our country to resemble Zimbabwe, and want everyone making $10 a month, living in a grass hut, burning cow dung for fuel, walking or riding a mule or water buffalo, having no electricity, no car, no grocery store, no medical care, living a green life, with only .78’s of a child in a family, and bowing down to their communist masters. That is what the Dimocrats want, total DESTRUCTION OF THE AMERICAN WAY OF LIFE, as founded, by our Constitution.

[anonsquared]

You’ll enjoy this: http://www.wimp.com/thegovernment

[Fox_Mulder77]

We’re sitting on the biggest ponzi scheme in the history of the world. Yet, our elected officials carry on as if every thing’s fine.

Dark days ahead...

[Nanny7]

We will have to cut spending. There is really no alternative. It'll never happen. I don't think politicians will ever be able to cut spending, given the entitlement mentality.

[Nanny7]

Sorry about the bold type.

[RSmithOpt]

Re #35...yes it can happen with leaders who are more patriotic about their country rather than consumed with self interest. Oh yeh, they gotta have some courage and intestinal fortitude.

Question is, who will ever run for office that fits those qualifications?

[dr_who]

They warned about it for decades, now it’s happening.

[khnyny]

Nice informative video.

Too late though - imho, we’re already an Oligarchy. I’ve said it before and I say it now.

[ScottinVA]

“or become a ‘banana republic’”

I think we’re pretty much already there. Look at the increasing regularity of fixed elections.