Has anyone, other than me, ever felt that the right to vote was one of the main reasons our country is imploding from within? Do you realize that our politicians have done a great job of turning the once great United States of America into a land of ”Dependent Junkies?” We have conveniently allowed ourselves to forget the difference between the most necessary understanding of the basic premises of right and wrong; responsible versus irresponsible and saving versus reckless spending. We have allowed ourselves to become so confused that many of the things we accept today as a fact of life or a guaranteed right is nothing more than sanity gone mad; and people this will change, either by choice or out of necessity. Deep down inside, we all know that many of the events going on in our lives today are wrong and will have some very unpleasant repercussions; all because we took the easy way out and believed the politicians whose only intentions are to be elected into power and then be reelected. These politicians have said absolutely everything we wanted to hear and promised to give everything we want or desire. We in essence have sold our souls for the belief, or hope of the belief, that circumstances will get better by taking a route that can only make matters worse. It is an absolute impossibility to give everyone what they desire and want. The problems are country faces are mounting each and everyday. There comes a time when someone needs to stand up and break the truth to the public. Our politicians do not have the answers. It seems to me the major function politicians serve is that of a drug dealer; give the junkie another fix and tell him everything will be OK. Unfortunately, everything is not OK and we are running out of time if we want to correct the problems we have. The answers are not found in creating huge amounts of debt; debt is the reason we have our problems in the first place. You cannot fix a broken arm with a Band-Aid; it has never been done and never will be. When we finally come to realization of this then we can begin to put the pieces back together in a manner that will give our children and their children the same opportunity to screw things up, just like we had and did. I have to believe that they will have learned some very valuable lessons as a result of cleaning up our mess.

So what am I talking about? Just the fact that it is impossible to give everyone what they want and desire. We do not now, nor will we ever live in a perfect world. For us to accomplish our goals we have to get an education, gain knowledge and then go out and work our butts off. There has never been an easy way to achieve success and happiness. These two very precious events can only be achieved with work and dedication.  Politicians tend to be notorious liars. They are so good at lying they even believe their own BS. Every election they promise to create jobs and cut taxes. I get so sick and tired of listening to the same bull, over and over, that I have no choice but to tune them out. Our politicians cannot deliver on the majority of the promises they make. They may be able to deliver on a few but the majority; are just hollow words coming from a more hollow source; and we have bought into their politics for years. Why? Because they are telling us exactly what we want to hear. We want to hear and believe about job creation, more money for the welfare programs, better health care, plenty of cheap drugs for the sick and the hypochondriac and a home for anyone who wants one with an SUV in the driveway. The truth of the matter is, the jobs that do get created are either very low paying service jobs, defense jobs or government jobs funded by the taxpayer whose only purpose seems to put the deficit deeper into the red while avoiding the problems which exist. The true red ink is just beginning to flow and we are being led to believe that we are in the midst of a recovery. What a crock of bull. Why do recessions turn into depressions? Because our politicians refuse to allow or force the consumer to take possession and control of their lives in a manner that is financially sound and long term beneficial to themselves and their families. Instead of facing our problems, politicians do everything in their power to continue moving our country and it’s citizens in a direction that will deliver nothing but disaster. They have manipulated the use of interest rates like a piece of cheese to a rat. We have had declining and dirt cheap interest rates for several years, if this were the true course to pursue in putting the pieces back together, are economy would be growing in leaps and bounds; after three years there should be no doubt about the success of the path that our leaders have led us down. Instead they have destroyed the sanctity of saving and forced all savings into the stock market, bond market and real estate market, in hopes of a better return, where the eventuality of rising interest rates will destroy them forever, leaving those who were betrayed only Band-Aids for their pain and sorrow. The sadistic twist to this nightmare is the fact that the solution to our dilemma is the exact road that our politicians refuse to let us travel. That road is the road of building savings and paying down debt. Becoming dependent upon ourselves again; to take responsibility for our own lives and the mistakes we have made. Unfortunately, paying down debt and, God forbid, saving would put the economy into a recession. Our politicians couldn’t afford a recession.

The path to the good life does not include buying houses that we cannot afford using adjustable interest rate loans or worse yet interest only loans. Believe it or not people, not everyone who wants to own a home should be allowed to buy a home. The simple fact, that has been overlooked, or excuse me, I mean ignored, is the fact that not everyone has the income to buy a home. The path to the good life is created through saving and living within our means. The way we balance our finances today leaves no margin for error. If one of the breadwinners were to be out of work for a sustained period of time the risk of losing our homes is magnified to levels we chose not to even think or talk about today. Worse than this is the fact that many people will not be able to afford their mortgage payments if interest rates were to rise to the maximum allowed by the mortgages, stipulated in the loans on their homes. Denial is a terrible and destructive state to be in. Look around people, open your eyes and think for yourselves; all is not as we are being told. Interest rates are rising, supposedly to ward off inflation, while at the same time our leaders continue to pump record amounts of money into M3. This is one heck of a contradiction. How can the Fed slow inflation when they turn right around and do the one thing that starts it up all over again? I suspect that rates are rising for the sole purpose of maintaining bids to keep the bond market afloat so that our government can continue on their merry way printing paper. The huge supply in M3 can only mean that somewhere in the near future awaits a very negative surprise. I expect the problem lies with Fannie and Freddie; if so then the financial system of the world is about to be challenged in a way that has never happened on a scale of this size. The derivative nightmare is about to unfold and the only thing you need to know is that all the games that have been played within these markets have been TOTALLY UNREGULATED! This means that the same strategies that destroyed Enron and LTCM are about to strike again. The saddest note to this is the fact that the implementation of derivatives has exponentially increased since the debacles of LTCM and Enron; and to repeat myself – all with zero regulation. No one knows what the fallout will be from the next derivative surprise. What we do know for certain is the fact that the dam can only have so many cracks before it totally gives way flooding the entire financial community. The only experience we have in damage control when things go wrong, in this market, is LTCM and Enron. The sad part to Enron and LTCM is the fact that the devastation caused by the two financial fiascos totally destroyed the two empires and their investors. The devastation left behind was all consuming. The shareholders of Enron were wiped out. The devastation by LTCM was less because of the concerted effort, by the boyz, to immediately bail out the mistakes of those financial geniuses. The question is; are you prepared or protected? Don’t take the safety of your money market fund for granted, I feel the possibility exists that your money, the money you thought was safe, has been funneled into the mortgage market so as to get a little extra yield. A small known fact is that when LTCM failed there was a time when certain money market net asset values fell below $1.00 per share. Not many people know this because the boyz stepped right in and made up the difference. They knew at that time the financial system could collapse under the pressure and losses from LTCM. The boyz were successful in staving off nationwide, if not worldwide catastrophes at that time. Luck was on their side; the next time they may not be so lucky. LTCM was small potatoes when compared to the excesses that have comprised the market since the collapse of Enron and LTCM.

I am most disappointed in the politicians who came on TV during the hearings for Enron trying to act as though they were appalled at how the management of Enron could have destroyed their company. They got their 15 minutes of exposure in front of the whole world where they promised to get to the bottom of what happened. So why didn’t they get there? Why didn’t they release to the public the truth about the offshore corporations and the phony accounting policies used to defraud investors? How can fines of $2,000,000,000 be levied against Citibank and J P Morgan without admitting guilt? How come all the phony offshore accounts set up by Arthur Anderson have not been revealed to the public? How come the corporations who have these offshore accounts have not been ordered to close them down? How come laws have not been enacted to keep this from happening again?

Seems to me the answers are simple; but the solution is not. Our politicians had the opportunity of a lifetime to finally do some good; instead they took their fifteen minutes of exposure, put on a good show for their constituents and followed through with more hollow promises. I believe the mess we now have has grown to proportions that simply cannot be unwound. I believe we have reached the point of no return. I believe our government has decided to ride the horse until it drops dead. There is no question that the boyz will conveniently find a scapegoat when it all falls apart and someone must take a fall. The major corporations will be bailed out; but will you and at what cost?

The right to vote has been one of the cornerstones of our country; granted it was not perfect in its inception and we still today have much room for improvement. Our country has grown and prospered for over two centuries. We now have placed its very existence in jeopardy by trying to give everyone what that want or desire without paying any heed to the consequences of those wants and desires.

The time is rapidly approaching when the saying “Full Faith and Credit” will be challenged by our creditors. This challenge will test the true meaning of “Full Faith and Credit.” As citizens we must wake up to the fact that deficits cannot endure forever. We are terribly mistaken if we think that countries and individuals who produce goods and services are going to continue to accept our promise that the IOU’s they receive are true and valuable payment for their hard work and sacrifices. At some point these people will figure out that they are working for nothing. They will eventually have to wonder why they are working when so many receive virtually everything they need, to exist, for doing absolutely nothing. A classic example of this is the speech our esteemed leader made in dealing with trying to make immigration easier to gain into this country. The purpose of which is to guarantee that we have workers to take the low paying jobs that the less fortunate in this country CHOOSE not to take. It seems to me that if people choose not to educate themselves then they have also decided their future professional options shall be as limited as their knowledge. Without knowledge and skills these people have chosen their careers and their future is not bright. These are choices that they make, granted they are poor choices but they are still choices and our society needs to do everything we can to keep choices like this from being made in the future. Fair pay is definitely an issue for a fair days work. One cannot afford a family on minimum wage. The bottom line is to hold people accountable for the choices they make. If the choices they make only allow them to qualify and hold low paying jobs then that is the line of work they are destined to have for a career. We need to take a stand and stop enabling people to be burdens on the taxpayer simply because they choose to be and we choose to let them.

Here again, politicians are doing everything they can so as not to lose votes and to acquire new votes wherever they can. The reality is, these people must be taught, at a very early age, the importance of education and the desperation of those who failed to realize the repercussions of not making the right choice when they dropped out of life. There comes a time when people have to be held responsible for the choices they have made.

Freedom of choice in making poor decisions will eventually influence freedom of choice in making future decisions. The loss of freedom of choice in making future decisions is way more valuable than the inconvenience of dealing with the events surrounding the early choices. Our politicians are failing to help these people understand this issue. By using the word help in the last sentence I too am guilty of recognizing what needs to be done. By having a system that has taken care of people who refuse to accept responsibility for themselves, we are directly responsible for them not taking care of themselves. Children need to understand that very few people can be Michael Jordan or Bill Gates. Life is difficult enough if properly educated. To think of entering the world without the skills necessary to compete is a losing proposition.

Another facet of life that drives me nuts deals with health care and drugs. We are a society that has plenty of vices. Smoking and obesity are two things that have and continue to place enormous burdens on the rest of society. If we would just get up off our rear-ends and do a little exercising we could cut the cost of health care dramatically. Let’s face it, a very large part of society has allowed their health to deteriorate and they feel that the rest of the taxpayers should pay for their treatment and drugs. I know drugs are expensive and for those who truly do need them I feel badly. I feel worse for those who didn’t abuse their bodies and become ill as a result of chance. There is a difference between the two; one group is responsible for their problems and the other is not. My point is the fact that we risk benefits for all by not controlling the problems we have the ability to control. In very simple English, get up off your butt and go out and exercise, stop smoking and concentrate on helping yourself to be more healthy. Eat less and eat more health oriented foods; here again, if you choose not to take care of yourself then you have no right to ask me to take care of you after the damage has been done, accept responsibility for your own actions. If you can’t afford the drugs and treatment that you will need as a result of the life that you live, then I believe it is time for a change in the life you live. I’m not running for office; so I’m going to tell it to you like it is; quit complaining and forget the thinking that someone else needs to pay your bills, you pay them or change your life.

Our founding Fathers did not write our Constitution with the Federal Government as the main driver responsible for every aspect of our lives. The Government and the Fed have become the sole manipulators in our lives. They dictate and we dance. What type of dance will we be doing when we realize that taxes will rise and spending will decrease? Sure we have growth in our country today; with the deficits we are running, how can we not have growth of some kind? It takes $6.00 of spending to give us $1.00 of GDP. How can anyone view this as positive in the long run? We had a terrific economy, for the most part, for the past twenty years. We failed to create a true surplus in that whole span of time. At the end of the Clinton era there was all kinds of talk about surplus and the inevitable retirement of our Country’s debt. Funny thing is, at the time everyone was most pumped about the financial future of our Country, the end had already arrived. They could not have been more wrong! 

In this article there is one last subject that I would like to address. This is a very pressing problem that will affect our lives from here on out. We have a terrific problem with the supply of crude oil and refinery capacity within the world today. What are our politicians doing about it? They are in complete denial! An example of this is the enacting of corporate tax breaks to the buyers of SUV’s. This is a showing of complete ignorance to the crude oil issue. We should be taking steps to conserve oil rather than encouraging the usage of more. I would love to see our government spend some of those dollars, they are giving away, in a manner that will create alternative sources of energy. This would have very positive long-term effects on our economy. There are many excellent articles being written by true experts in the field of oil and gas. Every article I read tells me that we face true problems with the balance of demand to supply. We are rapidly approaching a period in time where one half of the world’s supply of crude oil is gone; in another twenty-five years all the world’s supply of crude will be gone. Think about it, there are vehicles being made today that simply will not be able to be driven because there will be no source of fuel for them in the future. If the articles are correct and the supply will be gone in twenty-five years; just what do you think the price of gas is going to do in the future? You are dreaming if you think the price will fall!

I could go on for hours, but I think you get my point about the right to vote having backfired on us. We need people, running for office, who will make a stand on what is right rather than trying to please the masses in hopes of being elected or re-elected. The needs of our Country are very pressing and must be addressed. We have been in denial for years and the urgency of our problems become more pressing everyday. We must put our own wants and desires aside for the good of all. Life has reached a point where it seems the only things that are important are the things that really are not that important. The stock market, bond prices, traders etc; these are not the important points of life. The political maneuverings, which have gone on for years and continue today; have had the sole function to facilitate “keeping business as usual,” with the end objective of moving the markets to dizzying heights and controlling the flow of money in the direction our politicians choose. All this to create the aurora of wealth and prosperity. Wealth and prosperity which exists only on paper; paper profits which will one day go up in flames; all it takes is a match and that is where rising interest rates come in.

It is a very sad state of affairs when our politicians have used the right to vote as a self-serving means of destruction; sort of a weapon of mass destruction. Like most weapons of mass destruction; very few will see it coming until it is too late!

© 2004 Mike Hoy
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