Wednesday, October 14, 2009

Washington Is Nuts

WASHINGTON - SEPTEMBER 24:   Peter Orszag, dir...

Image by Getty Images via Daylife

By Tony Blankley

Want to hear a real laugher? Despite the current disharmony in politics, there's one policy on which all of Washington agrees. Republicans and Democrats, House and Senate, president and Congress all agree that after last fall's financial crisis, the federal government has to regulate the financial industry more closely to protect our economy from risk of systemic financial collapse.

Here's the joke. As boom- and bust-prone as high finance always has been and remains, the greatest systemic risk to our economy is not Wall Street. It's the growing federal debt (and weakening dollar) being enacted by those Washington politicians -- the ones who want to protect us from Wall Street.

It soon may be not a risk but a certainty of generations-long economic stagnation and hard times as a direct result of "unsustainable" and ever-growing national debt, driven by a federal budget almost half of which is to be paid for each year by borrowing money -- primarily from China -- and already weakening the dollar such that foreigners are trying to get rid of their dollars any way they can.

Don't take my word for it. In June, the Congressional Budget Office published "The Long-Term Budget Outlook," its summary reading in part: "The federal budget is on an unsustainable path -- meaning that federal debt will continue to grow much faster than the economy over the long run. ... Rising costs for health care and the aging of the U.S.  population will cause federal spending to increase rapidly. ...

Washington Is Nuts

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