Marks Blog

I've been watching the government attempt to prop up Wall Street with not just a little bit of interest. My money is there, thus I, probably like many of you, have an extremely keen interest in this mess. After hearing the "plan" that has come out of Paulson/Bernake-land, I am satisfied that there is a plan, that government is making an attempt to right the expensive and expansive wrongs of two administrations (Clinton-Bush), and that it will change the course of our government in a way that should wake America up to the fact that our elected officials in Washington are running our nation into the ground.

Please, don't insult my intelligence by telling me either Obama or McCain will right those wrongs. The only people who can effect change are found in Congress. Every law, whether spending, civil or criminal statute, and state mandate originates in Congress. Presidents suggest laws, then Congress promptly declares those suggestions "dead on arrival" and create legislation they feel is the best way to get reelected. Not reelection for the president, but themselves.

After reviewing the cost of this upcoming bailout, it is clear that our government will be saddled with $1 trillion or more in new debt overnight. Just to make it a visual, check out our current debt here. Within two weeks, there will be a new trillion added to this total, and make no mistake about it: When we roll over the $10 trillion milestone, this should lead us to realize that our public debt will rise from an estimated 60% of GDP in 2007 (Gross Domestic Product is all goods and services produced by a country) to 78% of yearly GDP. 78% of GDP? That means, based on my read, in order to retire our debt, you and I would need to be taxed at a rate higher than 78%. Indeed, since the federal budget is $3.1 trillion (and rising every year), an additional $700 billion will be added to that total, thus approximately 82% of our collective income would need to be taxed in order to retire that debt within one year. This is the breaking point. From this point on, additional debt raises the fact that we cannot pay the bill if our investors feel inclined to demand their money today or tomorrow, as opposed to 20 years from now.

America likes their pet projects. A Department of Education? We need it because of our children. A Housing and Urban Development Department? Sure, home ownership is important and why shouldn't the federal government fund this important program? Department of Transportation? Hey, we need highways, and every congressman loves to fund a new turnpike in their district. Department of Labor? Sheesh, we need someone to keep greedy businesses from employing underage workers.

Face it, folks. Our current federal focus is outdated. Education should be the purview of the states. In the US Constitution, the Tenth Amendment says: The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

Housing and urban development sounds like something States should deal with as well. Labor laws have not been substantially changed in decades, and we already have laws on the books for business processes. Why can't the Department of Justice handle matters of enforcement? Oh, they do already. So what does the Labor Department do? HUD? Education?

Our government is both broke and broken. If we continue with status quo, it will remain so, and the next bailout will cost more than just money.

Congress is the why, and the solution is to get rid of those in Congress who cannot find any reason to reform our government for the betterment of our financial future. Indeed, they continue to feed upon our future, eating our young, so to speak. Our financial crisis is based solely within our obligated debt. Our Dollar sinks faster than our debt rises, meaning inflation will be smacking us in the head in the coming months.

When I bought my house back in 2000, my realtor attempted to sell me a house for $250K. I told her I am not about to go back to eating Ramen Noodles for dinner every night like I did in the Navy. I lived in Southern California and rent was atrocious. It ate up my paycheck faster than the IRS could audit me (trust me on this, the IRS audits very quickly, it is the aftereffects that are lingering). I gave my realtor my maximum asking price, and she reluctantly adhered to my wishes. It is obscenely obvious that our present crisis is fueled by a mindset that clouded reality.

I am not going to make this a partisan issue. If you feel either presidential candidate is better qualified on this subject, perhaps you should read Peggy Noonan's latest article. My point (and I believe Ms. Noonan made it) is that neither matters in this crisis, because we have literally run out of options. Our way of life is about to change, and it is probably not for the better no matter who wins in November.

Yet Congress runs on cruise control...does the American public?

My best guess is "Yes"...