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Steve Lunetta: Economy’s about to go over a cliff

Right About Now

Posted: June 25, 2012 1:55 a.m.
Updated: June 25, 2012 1:55 a.m.

As the dust begins to settle from Moody's credit downgrading of several major banks, including a whopping three-level downgrade for Credit Suisse, two levels for Morgan Stanley, and one level for 13 others, folks in the SCV are starting to ask - what does this mean to me?

Unfortunately, it's just another sign that the U.S. and world economies are hurtling toward a "monetary cliff," according to Goldman Sachs economist Jan Hatzius. Hatzius also goes on to say that if we don't get any good news in the last half of this year, 2013 may be bleak indeed.

Except for one thing: President Barack Obama and his foolish policies will be swept from office and the real work of repairing the economy can begin.

How anyone could think that spending massive amounts of money on a new entitlement program (health care) in a time of severe economic crisis reveals the depth of how unprepared this man was to assume the mantle of president.

Let's think about this. If you lost your job, your wife was pregnant, the car broke down, and the roof is leaking, is this the right time to go to Hawaii for a week? Wouldn't it be wise to save your money, work hard at finding a new job, and only spend money where absolutely necessary?

It's OK since the spending is being done with someone else's money. That is called socialism.

I am not going to waste column space decrying the evils of socialism. Looking at the European economy, one sees the bankruptcy of that failed philosophy. While espousing democracy, many Euro nations moved forward with massive entitlements, crippling economic growth and their very future.

Socialism's tentacles have so badly intertwined into the foundations of democracy that many can no longer see the difference. Public-service-employee unions truly believe that their cause is right and just regardless of the damage their demands have on the public at large. The blame is always elsewhere.

One only needs to look at our nation to see how deeply socialism has penetrated. Social Security is now the national retirement plan - something it was never meant to be. Talk of reforming Social Security is political suicide. We count the days toward our 65th or 67th birthday to determine when retirement begins.

Accepting welfare and food stamps is no longer socially unacceptable. In fact, food stamp programs are given positive names like "CalFresh," and money is distributed on debit cards. No more stigma. No more shame.

Some of the most popular Internet stories on Yahoo are ones that describe how to get free government stuff. We have been conditioned to want our distribution from the public coffers. We very rarely stop to think where the money comes from or whether it is good to accept such handouts.

Sorry. I decried the evils of socialism.

Back to our monetary cliff. Is there a way to steer away from the precipice? The Greeks are finding it very tough to do so. They have become so accustomed to someone else writing the check that they are addicted. Becoming responsible again may be a barrier that they cannot overcome.

I worry about us here in Santa Clarita. Some liberal writers on this Opinion page are fully immersed in the idea that being conservative is tantamount to hating people and that fiscal responsibility is morally wrong.

How does one argue with such reasoning? And when the party is over and our car has driven off the cliff, what then? The liberals will continue to point at conservative policies and refuse to accept the obvious truth: The ideas that got us into this mess were theirs in the first place.

Democrats in both Washington and Sacramento want to raise your taxes. They do not care if you are unemployed, your business is hurting, you are three months behind on your mortgage payments, and your kids need braces. They will take what you have and give it to someone else because that is how socialism works.

The car is almost at the cliff, and Democrats want more taxes. Why not cut taxes, allow people and businesses to keep more money, spurring personal savings and spending, creating sales, business expansion and job creation?

This has always been the formula that works. Barack Obama, however, does not see it that way. More taxes are needed to feed the health care monster.

We have one hope to steer us from the cliff. And his name is Mitt.

Steve Lunetta is a resident of Santa Clarita and is preparing rapidly for the coming zombie accountant apocalypse. He can be reached at



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