On its face the latest report from the Congressional Budget Office is gloomy enough, but careful sifting through it reveals excessive optimism that its predictions cannot hide: rising interest rates, increased healthcare costs thanks to ObamaCare, and the inevitable march of demographics and the aging Baby Boomers.
Two years ago Steve Forbes, two-time candidate for nomination for president by the Republican Party and editor of Forbes magazine, predicted “a return to the gold standard by the United States within five years … [because it would] help the nation solve a variety of economic, fiscal and monetary ills.” It’s now two years into his prediction and articles explaining how such a return would work, and why, are beginning to appear in the media.
The passing of scholar James Buchanan stills the voice of one who understood the fact that men, without Constitutional constraints, will vote themselves unlimited largess from the public treasury due to their own self interest.
Now that President Obama and most of his key congressional allies are safely re-elected and the so-called “fiscal cliff” negotiated, the full consequences of the most recent elections are coming into view. Despite repeated assurances he would not raise taxes on any but the wealthiest Americans, the president (with the grudging support of many congressional Republicans), has — before even being sworn into his second term in office — enacted massive tax hikes that will affect almost every working American.
All the chairman of the Federal Reserve has done in his latest announcement of a new bond-buying program is give himself and his Federal Open Market Committee permission to buy government bonds forever.