Irresponsible Economics - One Man's Opinion

As the U.S. mint’s overworked printing presses continue to pour more and more dollars into, not only ours, but the world’s economy, we are in serious jeopardy of losing our role as the international reserve currency.  Reserve currency? Who cares? Why should I worry about it?   

Our status, as the international reserve currency, allows the United States to pay for its debts, purchases, and imports to any country, in U.S. dollars. Since the 1950’s, we have had one of the most stable economies in the world. We were, in fact, the largest creditor nation. Today, the situation is drastically reversed; we are now the largest debtor, having to borrow forty some odd cents out of each dollar our government spends, primarily from China. If every citizen in the United States were taxed at a rate of 100%, we still could not pay off our current and continuously growing national debt and yet the deficit spending continues unchecked!

If we lose our international reserve status and are forced to convert dollars into foreign currency to pay international debts and business transactions, unable to control the rate of exchange, the results could be disastrous. The price of imports and doing business abroad could skyrocket, directly impacting the cost of goods and services at home. The economic recession of 2008 would seem like a “tea party.”

In the history of the world, no nation has ever spent its way out of economic distress and I cannot understand why our government continues its profligate ways. During its heyday, the British pound sterling was the pre-eminent currency of the world. Where is it today? Hitler’s Germany followed the same path to economic ruin. Spain, Italy and Cyprus could be harbingers of things to come. Wake up America!

The loss of the reserve status is not just a possibility but an impending reality. Recently, China and a number of our creditor nations had a meeting abroad, to which the United States was not invited and adopted a pool of currencies, in addition to the dollar, for international transactions. Several countries already limit the amount of dollars that can be exchanged for the local currency, by United States tourists.

We accuse China, our largest creditor, of being a “currency manipulator” when we continue to crank out our unsupported dollars, while artificially controlling interest at record low rates.  Isn’t that the “pot calling the kettle black?” What would happen if China decided that it would no longer lend to the United States or accept our dollars as repayment for our burgeoning debt? The seeds of this disaster were planted long ago, when FDR took the country off of the gold standard, backing our currency with “the faith of the US government.”

Deficit economics has mortgaged not only our children’s future, but even our children’s children, yet unborn.  This administration’s irresponsible “tax and spend” policy has got to end. It is time for taxpayers to take control of our future by getting rid of the spendthrifts who pursue their own agendas to the detriment of those who elected them.

Responsible spending and reasonable taxation should be the goal of our representatives. Honest evaluation of the potential outcomes of proposed laws – “Obamacare” promised a $2500 reduction in medical premiums while current figures indicate that it was nothing but “hot air”- is part and parcel of honest government, not the “political speak” that we get today.  Ask Ohio, which is about to experience a whopping 80% increase in medical premiums, or even our own approximate 20% one here in Florida. President Obama, what happened to those medical cost savings? Did they ever even exist?

At least for the present, we have the power to alter the future by electing responsible representatives.  2014 is closer than you think and our ballot is still our greatest weapon for change in the 2014 elections. Before you vote for the same Congressional candidates, look at their voting record.

Did they support runaway spending? Did they stand up for your principles and address your needs? They are your voice in Congress and need to speak your language, not just toe the “party line.” Get rid of the political vendettas that are crippling our country’s economy. 

Vote for reasonable spending and taxation while you still can. Let’s take back America before it’s too late. Vote for responsible fiscal policies. That’s what I think, but, then again, that’s just one man’s opinion. What do you think?