Is America Becoming A House of Cards?
by Of Thee I Sing 1776House of Cards: – “a speculative scheme that depends on unstable factors that the planner cannot control,” (WordNet – Princeton University). While we don’t believe America has, by any stretch of the imagination, yet become a house of cards, we do strongly believe the federal government and state and local governments have been, for a long time, pursuing policies that fit that definition to a tee. And, according to last week’s Rasmussen Poll, two thirds of Americans described as likely voters sense that something is very wrong and, what is worse, could, if triggered by any surprise world event, spin out of control.

They are very worried about the course we are on, and, we believe, with good reason. Notwithstanding President Obama’s lament last week that the public has become disenchanted with the Administration and the Democratic Congress because “we’re hard-wired not to always think clearly when we’re scared,” we believe the people are thinking quite clearly because they know there is really something about which to be scared.
We don’t want to dismiss all that is positive about our economy. As Fed Chairman Bernanke testified before the U.S. House Committee on the Budget on June 9. “Our economy is large, diversified, and flexible; our financial markets are deep and liquid;” and, as Bernanke correctly points out, in the midst of financial turmoil, global investors have continued to view Treasury securities as a safe haven…at least, so far. But we wouldn’t break out the champagne just yet. And we’re willing to bet Chairman Bernanke doesn’t see much about which to celebrate either.
He ended his testimony with the warning (certain to be ignored, at least by the current Congress) “that history makes clear that failure to achieve fiscal responsibility will, over time, sap the nation’s economic vitality, reduce our living standards, and greatly increase the risk of economic and financial instability.”






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