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Washington and Wall Street are Broken; Here's Proof

Jeff7859 Wrote: Aug 18, 2012 10:14 AM
Regardless of who wins in November, unless the bloated federal budget is IMMEDIATELY cut 50% and then balanced to infinity (ain't gonna happen!) we are staring at either default or hyperinflation -- the only two options left. The $16 Trillion debt ceiling (which is a joke, BTW) is only the beginning of our real debt. Add in all the pensions, Social Security, Medicare, Medicaid, plus other automatic spending programs tied to inflation, and promises that cannot be met and you are up to $70 Trillion or more. The feds now spend 25% of the GDP and produce nothing. This is ARITHMETIC, not politics. Any fifth grader knows that two variables moving away at different rates cannot last. Our spending has overwhelmed our income.
inkling_revival Wrote: Aug 18, 2012 10:25 AM
+10.

It is crucial to understand that the collapse is coming, and coming soon, regardless of who's in power.

The left is going to try to blame the collapse on the right. The left is actually responsible for the collapse -- we're reaping the destructive harvest of government acting as God and pretending to be able to meet the needs of all citizens. Even the relatively modest social goals of a pension for everyone and medical care for the poor and aged had bankrupted the wealthiest economy in the history of the world.
bbtruth Wrote: Aug 18, 2012 4:34 PM
On the whole, I tend to agree with you inkling. We simply can't defeat the math. You and I both damn well know there aren't enough people in this country with the proper morality and the conviction to do what is needed.
John5970 Wrote: Aug 18, 2012 10:23 AM
This is easy to say, Jeff. But we have learned with Obama that reacting too quickly leads us to a bad solution that nobody wants and doesn't address the real problems. Cutting the budget by half may sound good, but it throws huge numbers of people out of work - Federal employees, federal contractors, government suppliers, and military among them.

What we need is a long-term strategy we can actually be happy with, will lead toward prosperity, and address our financial needs without hurting our ability to defend the national interest. Simple solutions lead to horrible results.
inkling_revival Wrote: Aug 18, 2012 10:37 AM
Cutting the budget by half is PRECISELY what needs to be done, and done right now. The size and reach of the federal government is the problem. Cutting it is the solution.

Yes, that would throw a lot of federal employees out of work. It would also stimulate such growth as to provide far more jobs than were lost. The lag would be about a year, at my guess.

Now, it would be a lot more effective if the cutting (by half) were accompanied by careful rescinding of the laws and regulations that spawned all those bureaus to manage them. But I take it for granted that any legislation that cuts out departments would also cut the regulations they were enforcing.

Ask any entrepreneur you know and they’ll tell you that raising money is the hardest thing they have ever done. 

Sure there is a ton of money out in the world. That’s why prices for dot coms went way up. And despite the subsequent bust, it didn’t stop money from moving into real estate. And when real estate busted, it hasn’t stopped money from moving into metals, oil and other commodities with astonishing rapidity.

Despite a sluggish economy in the U.S. in the last decade, world GDP had roughly doubled in that time from $32 trillion in 2000 to $63...

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