I do not understand, though, that if the debt is the problem, and I agree that the debt IS the problem, that for us to come here and raise the debt by $2.4 trillion is the solution. That just baffles me.
He has an excellent point. If debt is the problem, then accumulating more debt will just make things worse.
And both parties want to keep going into debt. Even the so-called "massive" spending cuts of $4 trillion over the next decade are ridiculous when compared to the $13 trillion (or more!) in new debt that we're projected to acquire over that time period. Neither side wants to reduce spending from today's level... the Democrats want to go into debt even faster, and the GOP just wants to slow it down a little.
And then Dr. Paul said something that neither party is acknowledging.
When a country gets endebted to the degree we're indebted, the country always defaults. This is historic, especially if the country is a significant country. We will default because the debt is unsustainable.
Both sides continue to address the "solution" as "reducing the deficit." If we reduce the deficit, that means we're still running a deficit, i.e. we're still going deeper into debt! And it's the DEBT that will cause massive problems later on. Neither party is addressing this problem and saying what must be said: To solve our problems, we have to ELIMINATE the deficit, turn it into a surplus, and begin paying down the debt! The longer we wait, the worse our problems will be.
But neither party wants to acknowledge that in any real way, so the reality is that we WILL default. Extending the debt limit won't let us avoid defaulting, it will just make the danger a little less immediate. But make no mistake, if we continue on our current course of permanent deficit spending, WE... WILL... DEFAULT. Eventually. And the results will be bad.
There's an awful lot of wisdom residing in Dr. Paul. Now remind me... why don't we want him as our next President?
For the past two weeks...I've seen several business analysts on TV and noted comments around that most now expect two things to occur. First, the bond rating collapse could occur before our 6 August date....anyone of several bond agencies could just take action ahead of time...thus creating a tidal wave of stock sales and 400 point a day drops in the stock market (maybe 1k drop and a shut-down for two days by the President to cool things off). This ought to scare both Republicans and Democrats...but these days...you just can't tell.
ReplyDeleteThen you come to issue two...that they probably won't agree by the date and we stop government operations. Will TSA shutdown airports? Will the military halt operations? Will Medicare system halt itself? Some presidents have had the ability to bring in the experts and react professionally to prioritizing to events....working out what they could and quickly getting players back to the table. For some reason...these business experts I've seen in interviews....don't think the President has that ability. He has shown zero negotiation ability since taking office, and he probably hasn't ever done something this at any point in his life.
So, my advice....if you have a 401K plan...dump to bonds or cash right now. If you have stocks...it might be time to sell on Mon/Tuesday & sit on cash for ten days....as stocks drop drastically. If you were planning a trip around 7 Aug...start an alternate plan right now. If you live off social security...prep up for a missed check possibly at the end of August (that's the max that you might miss in this mess).
As for the election effect in 2012? Here's the thing...these idiots might find some temp fix to get them up to August of 2012...and the President stupidly signs up to this....then we fall into another trap for the election period of 2012. A one topic election? Who knows?
Bluntly, Jefferson would be sitting there...mostly amused at how screwed up a bunch of political dimwits have lowered the US government. He'd likely say we had no business in getting the gov't into the house-loan business, giving everyone health-care, or giving billions away to foreign countries.
Ref:"The US WILL Default On Debt "
ReplyDeleteExactly what the left wants! They have to destroy the dollar for their new 'world' currency. It's all part of their New World Order...I've been preaching this for years and nobody is listening...
Norm'n, BOTH parties have been moving us in this direction for decaudes, by eagerly embracing the perpetual deficit spending model of governance. Even the GOP's "solutions" to our problems right now don't really fix anything... everybody in Washington (with the exception of Dr. Paul) wants us to keep spending more than we have.
ReplyDeleteAnd that's a problem...