The War of the Roses and The Debt Ceiling, and Voluntary Default...OH MY....

     “Once in a lifetime comes a motion picture that makes you feel like falling in love all over again. This is not the movie”.   So was a review of the “War of the Roses”, a 1989 comedy hit starring Michael Douglas and Kathleen Turner.

     Speed forward to the summer of 2011, and we have the Debt Ceiling drama, which certainly has an all-star cast, but is playing out as a tragedy.

     As we watch our President and our House Speaker John Boehner walk to podiums and dare each other to continue this path to a “Voluntary Default”, we are reminded of the ending of the “War of the Roses”.

     There is greatness to our Democracy, and to our Freedoms. This debate is part of the process. However, could we please see some attempt for a bipartisan solution to the debt ceiling, cost cutting, and fair tax distribution? I believe we are all tired of political grandstanding and theatrics. This is our lives, our money, and our future. We need to do better.  

     In a sound family household or sound business, we know to spend less when we start to run short of money in our savings accounts, or to try and earn more. If spouses fought like our elected officials, marriages would be in shambles, same as it seems Congress is. Democrats and Republicans alike are splintered within their own parties. Surely there is room for compromise and a way to act like United States.

     It would be another discussion if we had no way to avoid default. However, we are talking about a voluntary default. There are options. The world’s eyes are on us, as we are always looked toward for leadership, stability and strength.  Our politicians need to be aware that in their home towns, folks are getting stressed out and irritated.  Do we liquidate investments and go to a cash position, stay in the safety of US Treasuries, buy gold, or stand pat and hope sane minds find the right answer before August 2nd?

     Others are worried about higher interest rates slowing the economy back into recession. Higher rates are not a guarantee, as investors do not have many safer alternatives than United States Treasuries. While the stock market has drifted down this week, the 10yr bond yield is down to 2.88.

     There needs to be a compromise with difficult and intelligent decisions to be made on Social Security, Medicaid, Taxes, Pensions, Wars, Green Energy….we need to find a way to stop spending more than we take in, raise revenues, without stalling the fragile economy and any chance of job creation.  It is a difficult dance to choreograph for sure.

Have we entrusted the right people to come to these solutions?  Can they come to an agreement before August 2nd?  Do they need to see our pain if a large selloff in the stock market occurs for them to find motivation? Do they need more calls and emails from the public, and suggestions like their paychecks should be the first ones frozen if no agreement is reached?  I don't know.  

I do know everyone wants to go to Heaven, but nobody wants to die. 

Let's hope for common sense and resolution over the weekend. God Bless America.