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From the Desk of the President & CEO:

CEO

The Theatre of Politics at
the Expense of the People

While many of us believe too much government is counter-productive to the overall well-being of the world, no government has a very detrimental effect as well.  The debacle playing out in our nation’s Capitol, leading to the shutdown of our government, is a prime example of the lack of leadership by all parties and political posturing with no thought to the toll it takes on the people and economy of our country.

If the shutdown is short-lived and an agreement is made to fund our government, the economic impact may be minimal, but the damage to morale is substantial.  The longer this plays out, the worse it becomes.  Mortgage processing will be delayed.  Buyers and sellers will be put in limbo.  Consumer spending will decrease as uncertainty sets in.  Investors will flee the market. All of which leads to a shrinking of our economy, hurting us all.

The next few weeks are even more critical.  Not only do we have a leadership vacuum in Washington where Congress cannot find common ground on how to fund the government, we face another standstill on raising the debt ceiling.  We are set to hit our debt ceiling in mid-October, and the need to raise it will set off another round of political ping pong and possibly force another government shutdown.  If Congress and the White House are unable to reach an agreement on raising the debt ceiling, we will default on our debt as a nation.  The government will be hard pressed to be able to pay Social Security and Medicare, let alone any other bills, and our economy, which is still recovering from the recession, will likely crash.

I stand on principle, and I stand for promoting best practices that support and lift up our great nation, but what is taking place in Washington is political theatre that does, and will continue to hurt the very people the government is to protect.  When government leaders fail to lead, the entire system breaks, and we all pay too great a price.

edsig
Ed Delgado
President and CEO
The Five Star Institute


 

  • Tony Pontikis

    All I know is that our national debt has never been this high AND has never grown as fast! So asking to raise the ceiling even more would be the biggest long term detriment to our financial strength, or perhaps even it’s collapse. And being alarmed about that shouldn’t pigeonhole someone as being a Republican. It’s just basic budgeting.
    (I say) Don’t raise the ceiling and AND CUT BACK certain expenditures – which is what opens the door to debate on what programs to cut back on. Since the powers that be can’t agree on anything, we can’t go about it that way.
    Instead just apply an X% reduction on ALL expenditures to balance the expense budget with revenues….So simple! 🙂
    I also wish I heard more on why we let our representatives continue to earn their wages while everyone else is furlough as a result of those representatives not resolving issues. New legislation should be enacted that mandates that our representatives not get paid during government shut downs. that should keep them invested in finding bi-partisan solutions!

    • Gayle Brown

      Your ignorance is amazing! The debt ceiling is not the budget. It is paying for funds already spent. Take some basic economics before spitting vitriol.

      • Governor

        Wow Gayle. Your judgement on Mr. Tony’s aptitude – pretty strong words. Do you know Tony personally?? Did you guys used to date (past-tense)?? (Robin Williams – did you have a past and now it’s tense?) =]

        Or can you further explain Tony’s “ignorance”?? I thought basic math works just the same in our bank accounts as does with our government. In that there is a budget – and the govt should make one and stick to it.

        Stop spending money that isn’t yours. Debt = Baaaad. Save = Goooood.

        For the president to state unequivocally (definition: in a way that is clear and unambiguous) – we “must raise the debt ceiling without any conditions” = is about as pompous and “ignorant” as a President can get. The issue IS about the debt ceiling and living within a budget. Even, or should I say, especially, for our local districts, for our country, our President, and also in our own personal checking accounts.

        Interesting Factoid: a Pulitzer Prize winning columnist recently stated that when comparing the recession that took place during Reagan’s term – 1 yr out from the end of that recession – Real GDP was almost 8% (7.74%). VS. 5yrs out from the end of the recession with Obama – we have yet and are still struggling to even hit 2% Real GDP (1.67% in 2012). Yet I still hear the echo of “it’s all Bush’s fault”. Basic economics state you can not spend your way out of debt – nor can you regulate into prosperity.

        We need to advocate the reduction in tax rates to spur economic growth, deregulate/stop the out-of-control oversight (Dodd-Frank is 3200+ pages long), and reduce government spending.

        Tony is 100% spot-on concerning budget, debt-celiing, etc. We have to control the spending. Reagan had it right = basic economics Ms. Gayle. Basic.

      • Tony Pontikis

        I apologize I only just saw this response. To Gayle Brown’s claim about me: Had we not allowed unbalanced budgets in the past, for years and years, there would be no reason to ask for a higher debt ceiling. Just like the Futurist’s analogy below. So it’s a direct cause-and-effect relationship. Call it simple math, economics, physics, or whatever you like….they are both interconnected. So maybe your blind or deaf to the matter or simply don’t care, which clearly underscores you being the ignorant one. Or may be you benefit from the excessive entitlement programs and unaccountability that drives the matter 🙂

        Glad to see other smart upstanding citizens post on the matter irrespective of any political affiliations.

  • timherriage

    Well said.

  • FREEDOMANDCONSTITUTIONFOR ALL

    We have a responsibility as citizens of The United States of America, to protect FREEDOM!!!!! Who in Washington is Taking away our FREEDOM!!!! Lets make it clear, FREEDOM is at Stake, THE CONSTITUTION IS at STAKE, We must Protect it All,

    Who is trying to Steal it from us, Are they in our Very own Capital!! We as American Citizens have the right to say, with voting,
    With the Pen. We as the individual persons, collectively together, MUST Make our Voices Heard on the HILL, What we want !!
    I WANT MY FREEDOM AND I WANT MY CONSTITUTION TO STAY THE SAME, JUST AS THE FOUNDERS WROTE IT.
    I WANT MY REPRESENTATIVES TO PROTECT MY FREEDOM WHILE I WORK, I WANT MY CONSTITUTION PRESERVED,
    AND NOT DEFILED BY ANYONE WHO IS CORRUPT AND WANTING TO BE A KING!!!!

  • Futurist

    You might say this is political theater but I disagree that the stand is unimportant. We’ve gone from 8 Trillion to 17 TRILLION DOLLARS in DEBT in just five years and there is NO plan to contain it. It’s like the family takes in $85,000. Spends 142,000 and puts the difference on interest bearing credit cards. How long year after year can you do this without going bankrupt? To ignore this reality is NOT vitriol it is REAL. The debt does not merely go forward without a cost. This is not showmanship – our future is at stake here.

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