Americans refuse to face nation's economic reality.

 AUSTERITY IS ON THE HORIZON

NO MATTER WHO IS IN POWER

We watch as adds bombard us with the threat of cuts to medicaid, actually not part of anyone's policy. Lamentations on the fate of possible laid off government workers. Cuts to foreign aid questioned as unreasonable. I could go on and on with the narrative that any cuts or decisions to reign in federal government spending is inappropriate and unreasonable. The reality is that the United States is a lot poorer than most want to admit. When you have a debt that is approaching 150% of GDP, a GDP that is bloated with financial transactions that do not represent any real increase in wealth and a budget that is financed with near 30% more debt, the reality is that the country is in dire economic straits.

This reality is coming, no matter who the president is, no matter who is in congress, no matter if you want it to happen or not. It is coming by a mix of geopolitical trends that are now out of the control of the United States government and the bill that needs to be paid for 50 years of irresponsible fiscal policy and delusional policies of the Federal government. It will be a hard adjustment to live in a country that can no longer have the lifestyle financed by deficit spending and borrowed money. The United States is going to be forced to live within its means, the die is cast and it is inevitable.

Of course, the political blame game will want to blame the opposition but the reality is that the whole country is to blame for allowing this situation to come to this disastrous point of no return. From buying votes at home, and someone has been willing to be bought, to buying friends and allies abroad, the time of reckoning is at hand. 

The choice is, can we as a nation take the measures to manage this economic reality or will we just hope it will not come while it still effects us personally? It is coming very soon and is in fact happening now.

The U.S. is going to be forced to withdraw support to many other nations around the world, it will be forced to close military bases all over the world. It will be forced to cut government spending dramatically, just to stop the bleeding.

Then for the long term it needs to incentivise a return to a manufacturing economy from the now 11% of the GDP to as much as 30%. Only manufacturing creates real wealth, too much of this economy is non wealth producing activity, paper transactions and of course government employment. No, everyone can not have a government job, with high wages and great benefits, without someone producing wealth to pay for it.

WE are going to have a readjustment of priorities, either by managed unified collective action or the harsh reality that will be a far more painful choice. Someone needs to get out the white board and have a heart to heart with the American people, but I expect they are not ready yet, but would just be so much fodder for political advantage. Maybe only desperation will make reality acceptable.