Friday, May 07, 2010

Bailout of Greece is Important to America

For those living in a dark closet, Greece needed a huge bailout from the International Monetary Fund (IMF) and European Union (EU) to avoid declaring bankruptcy. You could say Greece is a microcosm of problems here in America; but I’m getting ahead of myself.

Greece took the path to socialism and has reaped the harvest of such a poor choice. About 30% of their work force is in the pubic sector, government jobs rather than in the private sector, and they have found the private sector can no longer satisfy the unsustainable budget associated with those poor choices. In a nutshell, Greece has been spending more than they take in; their budget is unsustainable. This has been going on for so long they are unable to pay those from whom they borrowed. Begging for and receiving funds from the IMF and EU means they no longer are self governing; agreeing to be “wards” of a world governing body since they can no longer pay their debts.

The United States is supplying 17% of the IMF money handed over to Greece; that’s US taxpayer dollars being spent to keep Greece afloat and money we have to borrow from places like China because we don’t have the money either. I want you to think about that for a moment; we’re borrowing money and going deeper in debt to help another country which is even deeper in debt. What’s wrong with this picture?

Instead of trimming spending here in the United States we are expanding the role of government and entitlements at a horrifying pace; the same as expanding debt and tilting or GDP towards bankruptcy just as Greece already has accomplished. Why would we want to destroy our nation and have to go crawling to the IMF or the Chinese government later on down the road, hand over governance powers to anyone other than its rightful place, “deriving their just powers from the consent of the governed”?

Who or what is the IMF and what do they do? As Yogi Berra would have said, “I can tell you in just one word, ‘wealth redistribution’”.

“The International Monetary Fund (IMF) is an organization of 186 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.”


“The IMF provides loans to countries that have trouble meeting their international payments and cannot otherwise find sufficient financing on affordable terms. This financial assistance is designed to help countries restore macroeconomic stability by rebuilding their international reserves, stabilizing their currencies, and paying for imports—all necessary conditions for re-launching growth. The IMF also provides concessional loans to low-income countries to help them develop their economies and reduce poverty.”

If you wanted to see how a ‘New World Order’ was/is to come about the template can be found in the IMF. Once you owe folks money you are at their mercy and direction until such time as you pay them back in full. In the case of nations owing money to other nations or the IMF, it doesn’t matter what constitutional limits are placed on government because that government is now controlled externally. Can we as Americans continue to permit Congress to spend money we don’t have and becomes as Greece, wards incapable of self governance?

The answer comes back a sound, “No!” We have watched for years how the entitlement mentality has turned into a cancer, a cancer which is swallowing the private sector’s ability to pay and yet we continue to permit Congress’ flagrant abuses to fiscal responsibility as if by turning our heads the problem will go away.

Ezra Taft Benson reminded us of The Proper Role of Government , quoting from the Alabama Constitution:

“That the sole object and only legitimate end of government is to protect the citizen in the enjoyment of life, liberty, and property, and when the government assumes other functions it is usurpation and oppression.” (Art. 1, Sec. 35)

Government; local, state or federal, has never had authority to plunder taxpayers in order to fund entitlements. Such plunder is theft, whether carried out by a robber wielding a pistol in front of his victim in order to obtain his wallet or by the tax collector it is the same. We have traveled down the road to socialism, much as Greece has, and found the private sector can no longer afford to pay the price of such an entitlement mentality populace. We had better face the music now or be prepared for the terrible price we will surely pay eventually; loss of self government and all we have fought for in the name of life, liberty and the pursuit of happiness.

This article has been cross posted to The Moral Liberal , a publication whose banner reads, “Defending The Judeo-Christian Ethic, Limited Government, & The American Constitution”.


The probligo said...

I just want to point out that the problems being experienced in Europe are following a pattern very similar to what was experienced here in NZ during the mid - late 70's. NZ's mortgagees were calling in their loan. There was little prospect of being able to pay. Our "RIGHT" wing PM of the day, one Robert Muldoon, came on tv in a programme interrupter to announce as best he could through several whiskys too many that there would be a general election in two weeks.

Primarily through the force of external influences NZ is facing a path to the same part of the garden once more. Once more we have a RIGHT wing government towing us down the path.

It is not the colour of the politics that makes the problem. Just go back and take a look at the US total deficit over the past 25 years, and plot alongside the party of the President and Congress majority. Makes for interesting reading...

It is who spends more than the available income...

T. F. Stern said...

Probligo, On one thing we are in total agreement, "It is who spends more than the available income..."

Thanks for leaving a comment.

MK said...

I love the way proby pretends that NZ has been led down this path by right wing government, as if it's always been right wing government running NZ. And as if the "LEFT" wing government preceding the current one was a bastion of fiscal conservatism or something. That's some good pot you're puffing proby.

"...look at the US total deficit over the past 25 years.."

Look at the deficit over the little time the obama administration has been in power and the projected deficit going forward, makes for scary reading, which i suppose is why you want to concentrate on the past and ignore the present.

Anyway enough whipping of my favorite adolescent.

What's happening in Greece is exactly where country's like Australia and America are heading.

In Australia, our "LEFT" wing PM is spending and spending his way out of the recession, borrowing and tossing money around like a drunken sailor. We're not at the stage of Greece but if we don't wake up within a few years, we're screwed too.

And an interesting fact emerged out of this whole fiasco, thanks to the leftwing government of Britain, they actually owe more than Greece, wait till the reality of hung parliament sets in!

I'm betting proby doesn't want to pull out his coloring pens and draw any interesting charts on that either.

T. F. Stern said...

Until the idea of cutting back spending takes hold there is no viable solution. When they talk of cutting back here it really means they are not going to add as much as they did the year before; how's that for convoluted thinking...

Starsplash said...

What was it, 98,99 that the right controlled congress and a democratic president had the first budget surpluss in like 50 years?
they started paying down the deficit.
The right forced the president into signing the laws into place. I got no references on that, I am just inferring. Either it was that or Bill Clinton was a whole lot more right than he let on.

Zoorste. Sometimes the character verification looks funny.