There are signs of hope that this transitions era may be moving in the right direction. The two illustrations of this are Pope Francis and the World Bank. The best illustration of this is Pope Francis. Attempts to restore the Catholic Church to its roots via the progressive Vatican II movement began with a bang and soon found itself back in the decline of a conservative hierarchy. I just read the interview with Pope Francis in the America magazine restoring my hope and trust in regaining the momentum towards its core principles.
However, one must always be careful, that the person and that the institution is walking the talk. Talk is cheap and in many instances it is only a means of distracting you from the real agenda. The reassurance is that Pope Francis is walking the talk. A recent interview with Dr. Jim Yong Kim, the new president of the World Bank by Richard Quest on CNN International is a positive realignment of the World Bank direction. These two situations are hopefully the first light of a new dawn for recapturing their purpose in life.
It appears that nature, which applies to all natural order, requires chaos and crises before it gets better. The rule is that labor precedes all new life, whether the birth of a child, an institutional revision, or paradigm shifts. Hopefully, the chaotic and irresponsible behavior of a minority in congress may be this first light. Remember to distinguish between the talk and the walk.
The talk by this radical minority is fiscal responsibility. Yet the walk is sequestration, shutting down the government, and jeopardizing our full faith and credit. Here are some key points – which may challenge the talk.
- The government shutdowns is costing $1.5 Billion a day (S&P)
- The Sequestration has between 0.5 to 1.0 percent negative GDP impacts
- Failure to pay our debts will results in increased borrowing rates, where 1% would cost $120B a year. In 1979 it cost us $12B a year in increased interest. However, the trickle-down effect will apply thus personal credit cards, mortgages; gasoline, consumable items, food, etc. will all increase in cost. It will have a global impact and lead to a recession.
So what is fiscally responsible by the recent behavior? Watch the walk, and ignore the talk