Large US Federal deficit might be almost irreversible

[Mav88]

As far as entitlements being such a large part of GDP, I question the pie chart in the article as previously mentioned, it does not take into account technology. Is it out of the question that you walk into a scanner and the computer tells you whats wrong with you? We have that now I have heard, its ridiculously expensive, like $20k. But for example, my flat screens cost me $1600 apiece in 2004, they are $85 now on Dell Outpost.

Dreaming, but that's ok. The US is a nation where soon 1 in 2 people will be sucking off the government tit, and their medical bills will blow us away. Prescriptions alone would kill us. We are old, sick, fat, relatively uneducated and growing more dependent.

The death spiral is here. Consider that the democrats at this moment are actually trying to expand entitlements. Only another more powerful conservative revolution a la 1994 can save us.

 

[IanMacQuaide]

Large US Federal deficit might be almost irreversible

almost?
This Administration has placed an unpayable amount of debt on every generation to come until America no longer exists.

 

[Scataphagos]

Quote from IanMacQuaide:

"... This Administration has placed an unpayable amount of debt on every generation to come until America no longer exists.

I have a different notion. Future generations will NOT be saddled with our debts. However there will likely be a "financial reset and revolution" which supplants our current 2-party form of government abuse and theft... and which wipes out nearly all current wealth.

Young people who have little or nothing now will still have nothing after the reset. (Of course, they'll have virtually no real opportunities in life, either.)

 

[fkbsuhites]

Your attempt at posting falsehoods is laughable.

Most of current spending ( except for the cash for Clunkers program ) was already inked in by Bush a month before he exited office and passed onto Obama. The Trillions Obama gave to Wall street was money Bush and his Republican buddies in DC had already signed into law. Also Obama reconciled all the Bush war spending which Bush had been billing the nation separately.

Not that I like Obama. Instead of palling around with the unamerican republicans, Obama should have pulled out of both wars entirely and outed Cheney to be the traitor he really is.

Quote from IanMacQuaide:

Large US Federal deficit might be almost irreversible

almost?
This Administration has placed an unpayable amount of debt on every generation to come until America no longer exists.

 

[IanMacQuaide]

Quote from fkbsuhites:

Your attempt at posting falsehoods is laughable.

Most of current spending ( except for the cash for Clunkers program ) was already inked in by Bush a month before he exited office and passed onto Obama. The Trillions Obama gave to Wall street was money Bush and his Republican buddies in DC had already signed into law. Also Obama reconciled all the Bush war spending which Bush had been billing the nation separately.

Not that I like Obama. Instead of palling around with the unamerican republicans, Obama should have pulled out of both wars entirely and outed Cheney to be the traitor he really is.

All of our politicians hurt us every second of every day, no matter their party affiliation.
Laying blame at the feet of one man or party is futile.

 

[maxpi]

Probably nothing can save us and we will cycle into the next phase of the "Total Onslaught" [that's the title of some great videos].. the politicians have sold us out for decades and there is not much that can be done about it.. minor details...

 

[bro59]

Quote from IanMacQuaide:

All of our politicians hurt us every second of every day, no matter their party affiliation.
Laying blame at the feet of one man or party is futile.

Your first post reads like you place the blame squarely on "this Administration."

Clearly no other Administration has ever placed a burden on future generations.

If Americans can never look past this political duopoly in which the either/or blame thing plays out endlessly then the country is doomed to just loop this shit over and over. I can tell you one thing for sure....future generations are gonna default.

 

[IanMacQuaide]

Quote from bro59:

Your first post reads like you place the blame squarely on "this Administration."

Clearly no other Administration has ever placed a burden on future generations.

If Americans can never look past this political duopoly in which the either/or blame thing plays out endlessly then the country is doomed to just loop this shit over and over. I can tell you one thing for sure....future generations are gonna default.

We're broke. Busted. In debt. And you wanna argue about what I've posted, and make a smart-assed remark too!

Our postings on a silly financial chat board won't make a diff.
But your second point certainly has merit. I think we'll continue on this endless loop until there's a true RESET forced upon us via hard facts, not by our own hands.

 

[drsteph]

Quote from makloda:

I've been considering this lately - a lot. Have come to the conclusion that tax rates will unquestionably rise - for high incomes. But if interest rates remain low, which they just may (go back to 1930-1940's with high tax rates and low interest rates) you won't be making much interest on your wealth anyway, which is then even OK since inflationary wealth confiscation isn't happening. Its an interesting flip side of low interest rates - you preserve your wealth, and there isn't much in tax to pay.

I really like the concept of imputed income here - that's who I think will win in such a scenario - no debt, strong balance sheet, not making too much in income off it, therefore not taxed excessively, but doing just fine.

My strategy anyways. Will see how it bears out.





Taxes will rise. Drastically. Not just the US, Europe too.

Especially for high incomes. 70% marginal income tax anyone? I don't think one can't rule it out.

 

[the1]

I don't think you guys have actually thought this thru. Since when does a government check bounce? A government check doesn't represent actual money. It's just a credit(s) system. When the old folks get their Social Security their accounts don't actually increase by 1000 dollars and the government's account doesn't decrease by 1000 dollars. All that happens is a credit to the retired guys account and a debit to the governments account. This can continue until one of two things happens. Inflation goes so high that spending power of the consumer is wiped out or the world loses faith in a government's currency.

Assuming neither of those two events occur the government has unlimited check writing ability, which is nothing more than moving a number from one column of the spreadsheet to the other, and doing the exact opposite in your bank account. The US Monetary system is nothing more than debits and credits and no more complicated than Microsoft Excel.

If a country is in debt in its <b>own</b> currency there is no risk of insolvency because the government can always create more money (debits and credits). If a country acquires debt that is denominated in another country's currency then there is a big problem because they can't create another country's currency, at least not legally. The chinese own what? Dollars. If the US wanted to erase that debt all they have to do is take $1T from one column and move it to another. Presto!