The latest figures concerning how much of our debt though treasuries we can sell is indeed staggering! In earlier letters to you I had stated that 70 percent of all treasuries issued by the Treasury Department were being purchased by the Federal Reserve. That figure was based on information available during the summer and fall of 2012. Since that time however the ability of the United States to sell its debt has understandably continued to deteriorate.
As of the end of January 2013 around 90 percent of all New Treasuries issued by the Treasury department are now being purchased by the Federal Reserve. In other words 90 percent of all the new deficits from this point on that our Congress conjures up are now being purchased with monopoly money printed out of thin air by the Federal Reserve because we can’t sell it. So under Republican control in the House when we run another 1.6 or 1.7 trillion dollar annual deficit at the federal Level (which we will do yet again this year going on year 5), we will again print well over a trillion dollars of it out of nothing!!!! I ask you Mr. Tipton, in light of the above facts, “What is the strategy of the Republican Party in decisively dealing with this issue!”
Isn’t it obvious, that everything the Republican Party does must be centered on cutting government spending in a massive way? No longer can we just “glide” into a balanced budget. The cuts that must be taken, must be very soon and very massive in size (amounting to a bumpy emergency landing rather than a gentle glide). Understandably there will be people hurt by the cuts taken, but the alternative that no one wishes to talk about is the collapse of our economy and the resulting likely collapse of much of American Civil Society if these spending issues are not rapidly dealt with! Is it not clear that the dollar is at the very heart of virtually everything Americans do; therefore the dollar must be preserved!! All the bills you may sponsor are of little value compared to dealing with this!!!
Like it or not what America may face in the very near future may well be greater than WW 2 in its ugly enormity! For it will most likely be the massive devaluation or even collapse of our currency which will in turn forever change what we now know as America!
Recently a popular radio host stated that we are “stealing from our children with these massive yearly deficits!” This statement surprisingly is incorrect and based on wishful thinking. This is because the yearly deficits that Congress is running are so enormous that runaway inflation and the collapse that will likely come as a result will most probably happen within just the next few years rather than the next few decades, so parents will go through this horror along with their children
Now I realize you are just one Congressman in a vast sea of 500 or so government representatives, therefore your ability to actually do something is very limited. No one is asking that you solve the problem yourself, what is being asked is that you become yet another active voice in Congress who “gets it” and who understands both the mechanism for what may be about to happen along with the magnitude of it!
So I boldly ask one final time, “What is the Republican strategy for dealing with this before all these unthinkable things begin to happen! “ My guess is that the Republicans have no coherent effective strategy and will in fact be reactionary in their approach to what may be comming. Therefore in the end most Americans either grudgingly or willingly will be forced to turn back to God and family in order to make it as there will be little else left when all this comes home. But of course it was God and family that originally made this country great in the first place wasn’t it.