Leave it to the feds to take bankruptcy to new levels

Craig Hall, Publisher

Craig Hall, Publisher

I might not be the smartest businessman on the planet, but I do know one thing. If I keep writing checks my account can’t fund (or my backside can’t keep) my bank will do the simplest of things: It will shut me down. And if I keep writing checks after things are shut down, there’s a darn good chance I’ll end up in jail. So why doesn’t the same apply to our government?

Isn’t that what the whole Obamacare debate on Capitol Hill is all about at its roots? Let’s set aside the fact Obamacare is just one of many programs we can no longer afford. The fact is, Obamacare or no Obamacare, a government in the habit of spending nearly a TRILLION dollars more than it confiscates year after year can be described in one word: bankrupt.

Isn’t that what the government would do to your or my business? If enough people take a business to court to collect on its debts, the court will force that business into bankruptcy. Perhaps that’s one of the reasons it’s impossible to sue the government, because those in charge could foresee this exact scenario. The fact is, the federal government has taken living outside the rule of law the rest of us have to live by to new heights.

The federal government prints and makes up money out of thin air. Then it lends those electric dollars to banks at basically zero interest. The banks lend money back to the government to fund its debt via the Fed and make interest on the loans to the Fed. It’s called monetizing your debt, and in the real world it’s illegal. Think Enron if you need an example, only Enron did it with fake sales dollars instead of fake dollars. The other thing banks do is invest electric dollars in the stock market to make money on money that really doesn’t exist, but take profits before the predictable crash. Sound familiar? It should if mortgage derivatives come to mind.

How about when an actual bankruptcy occurs? We all were forced to sit by and watch as General Motors and Chrysler went “bankrupt.” I use quotations for the simple reason those companies didn’t go bankrupt the way you and I would have to with our businesses. The feds changed the laws so the unions won and guaranteed creditors were left with nothing. This was a case in which the feds just made the rules up as they went along. The same is now happening with all of the wasted and bankrupt dollars in the green energy sector. Folks got loans (with little to no due diligence that you and I would go through) and are then exempt from any personal guarantees on the money the company loses (something impossible for most loans in today’s small business world), even to the point of changing the laws to get their investments out first before a creditor gets a penny.

While I could cite hundreds of examples of just how bankrupt the federal government is in so many ways, I would be remiss in not mentioning the most important way it’s indeed bankrupt: morally. Although we could find a few examples on the other end of this topic, those people are indeed rare — and more importantly, powerless — in Washington, D.C.

Unlike you and I, almost everyone in Washington lives in the world of zero consequences for their actions, all while playing the game of crony capitalism and profligately spending other people’s money. How else can you explain the green energy loan program, bailouts, stimulus, Obamacare, Social Security, Medicare, earmarks, the debt ceiling, insider trading and the myriad other ways Congress ignores the Constitution and the law?

I know there’s an argument to be made that Congress has indeed made all of this legal by making the laws that allow it to perpetrate the crimes it would otherwise be committing were it you or me. But doesn’t that actually make my point more valid?

Perhaps it’s time the largest creditor the federal government has files suit against it. I, for one, would be in favor of the folks who are actually the reason for the United States to have its “full faith and credit,” that the feds run their criminal enterprise upon, file suit to get their money back. And if the feds can’t make the payment on its line of credit (and let’s face facts, do you really think they have the cash on hand for even the worthless pieces of paper in the Social Security lock box?) then it’s time to do what creditors do: Shut it down, break it apart, sell of any assets and take care of the folks who have a legal right to the money. If it works in the free market, it should work in taking apart the mafia-like federal government in making what survives legal and constitutional once again. Solutions exist to fund entitlement programs until we can wean everyone off of them and shut down the unconstitutional programs across the federal spectrum.

Government doesn’t exist to redistribute our money. It exists to protect us so we can. Let’s get this done before the feds completely bankrupt the country, both monetarily and morally.

About
Since June of 2000, Craig Hall has been the owner/publisher of the Grand Valley Business Times. He can reached at 970-424-5133 or publisher@thebusinesstimes.com
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Posted by on Sep 25 2013. Filed under From The Publisher, Opinion. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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