There’s Politics, then there is the Truth

At the recent “Democratic National Convention,” President Obama said,” you didn’t elect me to tell you what you wanted to hear, you elected me to tell you the truth,” and then continued to tell the faithful exactly what they wanted to hear.

Just so that we can not be accused of political bias, the Republican’s history on truth is no better. Think,” George W Bush and the War on Iraq,” and you get the drift and the current bunch of hopefuls seem to equally, “strangers to the truth,” at least according to Jeff Pearlman, who in a special report for CNN, expanded on alleged cumulative lying from the potential VP, Paul Ryan, throughout his political career.

Returning to the democratic convention, Bill Clinton became the first former US President to endorse a currentUS President, just weeks ahead of a very close American election. Political ethics, if there is such a thing, previously dictated that it’s taboo to comment on the worthiness or otherwise of the sitting candidate, but when did Bill Clinton ever worry about ethics.

During his speech Bill strived to point out that over the past 52 years, 28 of them under republican leadership and 24 years under democrats, the bulk of the US Government funded debt was accumulated under the republicans. Whilst he may be correct in his comment, the more important and shocking fact is spelt out in the bullet points below, which of course is only mentioned by one political stalwart, Ron Paul, he who wishes to ban the Federal Reserve. Benign neglect by Presidents and Congress, regardless of their affiliation, have landed the American taxpayer with a very large liability indeed.

  • July 1971 US Population = 208m & Treasury funded Debt $400BN
  • July 2012 US Population = 313m &  Treasury funded Debt $15,933BN
  • Population 50% higher, whilst Debt 3880% higher
  • 1971 per capita Debt = $1,925, now at $50,900

Obama’s speech went on to include,” As I stand here tonight, I have never been more hopeful about America… I’m hopeful because of you,” going on to use the word “hope” a dozen more times.

Politicians and unelected bureaucrats the world over talk of hope, confidence and other uplifting words as an antidote to the largest financial crisis in history. Ironically, they fail to realise that they are a major part of crisis itself. Government and organs of it have become far, far to large, rising on a sea of debt, a debt level which is no longer sustainable, as can be seen from the following chart.

If one looks closely youcan note that, despite the massive debt stimulus of late, total US credit market debt has seen its first downturn, or deflation in 70 years, hence the market is telling the politicians that the game is up.

Politicians would be better advised to tell their respective electorates the truth of what must be done, reign back big government and the bureaucracy that it has spurned. They may even, in time, be thanked for it.

 

 

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