“No Way Out” of Debt Trap, Gross Says: U.S. Living Standards Doomed to Fall

[Ghost of Cutten]

Quote from S2007S:

There are really only two choices, says Gross. And, neither favors your pocketbook:

* Option #1 – Keep spending and do nothing

* Option #2 – Balance our budgets by cutting entitlements

Wow, poor analysis. Options clearly are:

1. Slash spending
2. Raise taxes
3. Inflation
4. Economic growth
5. Default

or some combination. Way more than 2 options, and his first 'option' is not even sustainable.

 

[1prometheus]

Quote from CaptainObvious:

The best days are behind us for most Americans. Those few at the top have effectively pulled up the ladder behind them ensuring those left behind will not have the same opportunities to advance.

Completely false. There are tons of opportunities to get ahead. Some things may be going from bad to worse, yet there are still many, many chances to get ahead. Just need to learn to play the game.

 

[Kassz007]

Quote from misterno:

VAT will kill America

How do I know?

I came from a country that is impoverished under VAT

Current tax system is perfect that is why rich don't like it

Most other countries have some form of VAT, so get used to it. Warm up to the idea if you live in the USA, because it is inevitable.

 

[misterno]

Quote from the1:

Take a plane ride across the pond and see how much a shirt or pair of pants costs. Prices are insanely high in the UK because of the VAT.

Exactly, that is why VAT is bad

Current tax system is perfect

I love IRS

By the way I am not poor

 

[Grandluxe]

raise taxes or cut military by half. This is the only option

 

[hiptogo]

cut military or go to war.
take over some oil reserves.
cancel unions.

every man for himself!!!

 

[schizo]

Quote from S2007S:

* Option #1 – Keep spending and do nothing

* Option #2 – Balance our budgets by cutting entitlements

And there is the Option #3. Break up the U.S. hegemony and stop acting like an empire. Moreover, quit advancing our own agendas by giving huge sums of money annually on foreign aid.

 

[clacy]

Quote from Kassz007:

Most other countries have some form of VAT, so get used to it. Warm up to the idea if you live in the USA, because it is inevitable.

VAT = political suicide for anyone who advocates it.

There is no appetite for a VAT in the US.

We are a net importer. Our entire economy, for better or worse is based on people spending on goods/services.

Chances of a VAT are far more remote than Obamacare being overturned, which isn't very likely itself.

 

[misterno]

Either

1) Taxes will increase

2) USD will drop

3) Inflation will explode

Or some kind of combination of the above

There is no other way USA can proceed

 

[Kassz007]

Quote from clacy:

VAT = political suicide for anyone who advocates it.

There is no appetite for a VAT in the US.

We are a net importer. Our entire economy, for better or worse is based on people spending on goods/services.

Chances of a VAT are far more remote than Obamacare being overturned, which isn't very likely itself.

I understand nobody has the appetite for it. Who wants more taxes? But when the breaking point is here, what other option is there?

The spending cuts that are necessary are not going to happen. In all likelihood, there will be a combination of higher taxes and lower spending.

Raising income tax rates, corporate tax rates, etc. are also politically damaging. I would think a government would be more inclined to implement something the general public really doesn't fully understand. They will pass it off as for the good of the country, to pay down the debt.

I'm not saying this will happen tomorrow, or even in the near future. But...it is inevitable sometime in the future.