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Federal Indiscipline

Your future depends on a valuable dollar. Whether you are soon to retire or soon to have children, chances are you have made plans with the inherent assumption that the dollar will remain viable. However, many economic signals point to warning signs: the mass production of dollars (an orchestrated practice known as Quantitative Easing) has already led to a loss of purchasing power at home and has prompted overseas investors to look for other currencies in which to maintain their accounts, thereby threatening the dollar’s status as the world’s reserve currency.

The root and sole cause of this is the federal government’s gluttonous appetite 2to spend more than it takes in, which creates what is known as the budget deficit. Somehow the difference still has to get paid. Here’s how it works: The Treasury Department sells bonds to the Federal Reserve. The Federal Reserve creates money from thin air to purchase the bonds. The Treasury Department takes the money and pays the obligations. With an inflated money supply, the dollars in your wallet are now worth less; and with the increased number of bonds, a future generation (your children) will be on the hook to pay back the debt. The federal government is well beyond broke and is treading water with borrowed time.

How does this affect state government? Approximately 2/3 of Oklahoma’s state budget comes from the federal government. Imagine if you had a client who represented 2/3 of your business revenues and you saw this client near insolvency, you would be concerned, right? As state senator I will support efforts to promote a federal balanced budget amendment (like we have in Oklahoma)and lessen our overall dependence on federal dollars. This is one of the reasons why I am against Oklahoma’s participation in state-run exchanges under Obamacare: quite simply, I do not believe it is fiscally responsible for the state to accept temporary subsidies to establish a program that we, in the future, we will be unable to afford. While the federal government has the ability to print money for its deficits, Oklahoma does not.

 

Please review the information on the pages to the left and feel free to contact me with your opinions using the contact link above.

 

 

 

 

 

© 2015 Joe Newhouse for Oklahoma State Senate