Saturday, March 21, 2009

DOZENS OF ZEROES

From My Perspective - - -

The International Herald Tribune, The Global Edition of the New York Times features this headline for Saturday, March 21st, 2009 – “OBAMA BUDGET PROJECTED AT $9.3 TRILLION IN NEXT 10 YEARS.” The gist of the article is: “President Barack Obama's budget proposals, if carried out, would produce a staggering $9.3 trillion in total deficits over the next decade, much more than the White House has predicted, the Congressional Budget Office said on Friday. The office's estimates of deficits in the fiscal years 2010 through 2019 "exceed those anticipated by the administration by $2.3 trillion. The deficits under the Obama plan would be $4.9 trillion more than the projected deficits if there were no changes in current laws and policies — what the nonpartisan budget office calls its baseline assumption…”

Several years ago, a crusty and gravelly-voiced Senator from Illinois – Everett McKinley Dirksen – remarked: “A million here, a million there, and pretty soon you're talking about real money.” Also, “I have said, with respect to authorization bills, that I do not want the Congress or the country to commit fiscal suicide on the installment plan.” And, “We are becoming so accustomed to millions and billions of dollars that thousands has almost passed out of the dictionary.” One wonders what this Senator might comment as we head toward “gazillions” (an extremely large, indeterminate number) with very little restraint and/or fiscal discipline. As a matter of fact, rationalization abounds and fiscal denial reigns. Even though “President Obama's budget director, Peter R. Orszag, conceded in a news briefing on Friday that annual deficits of 4 to 5 percent of gross domestic product, as envisioned in the office's report, are ultimately not sustainable", there seems to be no one allowing that bankruptcy is too close to be ignored. As a matter of fact, “Mr. Orszag insisted that administration officials remain confident in what he called the four key principles of the president's budget outline: (1) health care reform, (2) improvements in education, (3) energy efficiency, and (4) reducing the annual deficit in half by the end of the president's first term from the extraordinary levels it has suddenly reached because of the bailout and stimulus spending this year.” Even though “the startling new figures have enormous implications, political as well as fiscal…”, one wonders whether any definitive action will occur when the president's $3.6 trillion budget proposal for the next fiscal year, which begins in October, must be debated and approved.

Consider these things with me - - - Christian Financial Concepts shares the following sound counsel: “What does the Bible say about managing money? The answer can be summarized with a single word—wisdom. We are to be wise with our money. We are to save money, but not hoard it. We are to spend money, but with discretion and control. We are to give back to the Lord, joyfully and sacrificially. We are to use our money to help others, but with discernment and the guidance of God’s Spirit. It is not wrong to be rich, but it is wrong to love money. It is not wrong to be poor, but it is wrong to waste money on trivial things. The Bible’s consistent message on managing money is to be wise.” And to those who desire money but decline to be gainfully employed, Proverbs 6:6-11 declares: “Go to the ant, O sluggard; consider her ways, and be wise. Without having any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest. How long will you lie there, O sluggard? When will you arise from your sleep? A little sleep, a little slumber, a little folding of the hands to rest, and poverty will come upon you like a robber, and want like an armed man. What does this ultimately mean from those who are impoverished and/or deeply indebted? The word of caution is in Proverbs 22:7, “The rich rule over the poor, and the borrower is servant to the lender.” The overall advice that is given by Crown Financial or Dave Ramsey involves (a) find employment that will enable one to pay down debt; (b) eliminate credit cards as an alternative to cash purchases; (c) save to get what you need or want and pay cash for it; (d) stay away from loan/finance companies who assess exorbitant finance and insurance fees (such as, credit life, etc.). Follow a basic rule: If it sounds too good to be true – it is too good to be true! Learn to say “No!” to temptations and irresistible offers. If your outgo exceeds your income, your upkeep will be your downfall. Do your best to avoid debt. The Lord’s promise to supply for all your needs (not necessarily wants) is still operative. He can be trusted!

No comments: