Sequestration is supposed to be here, but I don’t feel any different. Except that I am battling a stomach virus, but I think that probably has nothing to do with the sequestration crisis that never happened. The Obama administration might try to convince me that it’s somehow related, and that it’s the GOP’s fault for letting it happen, even though this whole thing was Obama’s idea to begin with. But, I still think that it’s purely coincidental. The stomach virus, that is.
These kinds of “crises” are funny. They remind me of the hysteria surrounding the Mayan calendar and the end of the world. The media didn’t use the Mayan calendar to try to scare anyone though. To them, it was just a source of entertainment. They made fun of it.
But the fiscal cliff, the debt ceiling and now the sequestration are all the same thing. They’re just like those “end of the world” people. And the end result is the same. Nothing happens.
And now, some people like Mayor Bloomberg are changing their tune. All of a sudden, the sequestration is not something to worry about. If it lasts a few weeks, then it won’t be a problem. If it last longer, than maybe. But even then, he said that “it wouldn’t be easy to find the spending cuts that do emerge.”
He agreed that something needed to be done about the federal deficit, but the government could owe an “infinite amount of money,” and we still wouldn’t default. Besides, it’s not like the federal government could ever run out of money. They’ve got the printing presses behind them:
“We are spending money we don’t have. It’s not like your household. In your household, people are saying, ‘Oh, you can’t spend money you don’t have.’ That is true for your household because nobody is going to lend you an infinite amount of money. When it comes to the United States federal government, people do seem willing to lend us an infinite amount of money. … Our debt is so big and so many people own it that it’s preposterous to think that they would stop selling us more. It’s the old story: If you owe the bank $50,000, you got a problem. If you owe the bank $50 million, they got a problem. And that’s a problem for the lenders. They can’t stop lending us more money.”
That last bit about “you owing the bank $50 million” is actually from a quote that was attributed to John Maynard Keynes. Granted, even Keynes said it was “an old saying,” so who knows who coined it (no pun intended).
But’s it’s an idea that is shared by all sorts of liberals, namely Paul Krugman. There is no debt crisis. Debt is good. Deficits are good. We shouldn’t be decreasing spending; we should be increasing it. And that’s why they all tried to scare people about the sequestration cuts. Even though they weren’t actually going to cut anything, any mention of cutting spending is bad because they only want to grow government. They don’t even want fake budget cuts standing in the way of their agenda.