Daniel Henninger has written an excellent piece in the Wall Street Journal that has given me hope! He contends, and I agree, that we may have finally hit the wall on government spending - at all levels.  His assertion is that spontaneous popular revolt coupled with such movements as the Tea Party, have at long last put the feet of politicians to the fire.  From Governor Christie of New Jersey to the election of Scott Brown in heavily democratic Massachusetts, Henninger asserts that those of us who oppose more spending finally have those bums on the run!  I hope so!

If this premise is right, we may (and only may) get out of this looming disaster in one piece. If the president and his cronies feel the fear and abandon all talk of any tax hikes on anything
whatsoever and attack spending instead - we might be alright.  If the federal budget and state
budgets begin campaigns on real reductions in spending and not just little make believe "freezes", then things certainly have the capacity to improve.  If the world financial markets see an America that is really serious about stopping the bleeding, then interest rates might hold steady and growth, real growth and not government growth, might actually resume.

But there are risks everywhere.  For example, every time a spending cut is proposed the special
interests come out in force.  In California, a completely bankrupt state if there ever was one, the public employee unions start threatening damage to everything from our children to our fire protection every time a cut is even discussed.  And every time they do, the state legislature caves in.  The same is true at every level.  Cuts are proposed, unions come out, and the spending goes on and on.

If we start saying no to spending, really reform so-called entitlements including Social Security
and Medicare, and cut taxes we may come through this okay.  If we hesitate, fudge, resist, or try to find new "revenue" (read taxes), then it is the Second Great Depression for sure. The tipping point is here right now.  We have, my guess, until this fall to get it right.  If the Tea Party has a real impact, we are on track!  If not, we are doomed.  There is no in between.