ACH Study Groups
Ben & Fran Gilmore – Cofounders
7659 Gingerblossom Drive
Citrus Heights, CA 95621
October 18, 2013
This is a letter to our friends –
Government Shutdown 101
When thoughts keep coming back, it helps to write about them. My reasoning appears to differ with several legislators whose judgment I respect. However: “Wisdom from above is … easily intreated” [James 3:17]. I am willing to be corrected.
These days everything gets sensationalized. We hardly notice “normal” things. All the emotion and hype often get in the way of sound reason and critical thinking.
Last week the world was going to end, and the worldwide monetary system would collapse, if the Debt Limit was not raised, thus averting American treasury default.
What does simple reason tell us would happen if no additional debt were permitted?
If you are spending more than you take in, you either take in more, or spend less. If you can not earn more income, nor borrow more capital – you must reduce spending! Obama looks into the camera and with a straight face – says, “If we cannot raise debt, we will default on Government bonds." He presupposes that any spending cuts come first from treasury bond holders. I do not think that is true.
Cash is coming into the U.S. Treasury by the truck loads every day. The problem is, more truckloads are leaving every day (redistribution of wealth). A good argument can be made that Article 4 of the 14th Ammendment to the Constitution demands that the bond holders be first in line.
Thus, no default – Rather an improvement in our fiscal structure, since we will have stopped the bleeding by cutting (at last!) some of the waste and graft that has been our problem. The ONLY way to dig out the dead wood is to starve it out by refusing increased funding while insisting upon legitimate expenses.
When will it be easier? Next week – or – next year?
Do what is right because it is right.
Let the results take care of themselves.
In the end – Doing what is right will produce good results.
“When you choose an action
you have chosen a consequence!”
[Mr. Harry Conn]