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View Full Version : Economics Unsustainable debt and B.O.'s impending folly


The Mad Crapper
01-22-2010, 08:21 AM
Got this off of www.americanthinker.com



How can "unsustainable" debt be cured? One way: by not paying it off. But there are multiple ways to not pay it off.


•The value of money could be inflated away. Creditors would be "paid back," but in dollars worth less.
•"Old age" benefits could be cut, one way or another, just as the baby boom reaches old age. Social Security, Medicare, and pensions are all in trouble. Investments of all kinds (stock market, bonds, real estate) could lose value.
•Our government could try "fixes" like tax increases that would only make economic growth suffer -- a jobless recovery at best, a double-dip recession or depression at worst.


I expect all of the above in varying doses.


The U.S. has been eating its seed corn. We are the country that invented the bomb, put man on the moon, and started the Green Revolution in agriculture, which came close to wiping out world hunger. The bomb was developed sixty-five years ago. Man first walked on the moon over forty years ago. And the Green Revolution happened in between.


Since then, "science" has entered one cul-de-sac after another: string theory, dark matter and energy, climate change, you-name-it. Big pharma and modern medicine, two of the few successes in science in recent years and responsible for my daughter being alive today, are under constant attack by politicians and are on the verge of being dismantled by disincentive.


We are now a hollow country: reduced manufacturing, outsourcing, generally doing each other's laundry. People employed in construction, natural resources, and mining combined make up just 5% of our workforce. People who actually produce goods make up just 14%. On the other hand, government workers are 17% of our workforce, and better paid for it.


Our populace and our education institutions have been dumbed down. We have fewer engineers and scientists and more people writing memos to each other. (We're lucky if the foreign students we educate do not use their new knowledge to kill us. Al-Qaeda seems to have an inordinate amount of western-educated members and sympathizers.)


In short, what does the U.S. have to sell that anyone would want to buy? Even the movie industry is steadily moving out of the U.S. and into Canada, India, and even Romania.


I expect the U.S. to lose its lead role. It is already "just another European country" by many measures. I said that almost two years ago, and Mark Steyn quickly agreed with me. But it is so obvious now that even college professors are starting to agree with me. As the recognition sinks in, it will hurt us more. Even though Europe has its own debt problems, I think the U.S. will suffer more than Europe. We have farther to fall.


I'm not sure if Republican wins will fix things, even if we get genuine conservatives in office, because the necessary actions are also unpopular. We need to cut entitlements -- even get the federal government out of Medicare/Medicaid. If Republicans try that, they will be tossed out. In the current debate, it was Republicans saying "don't cut my Medicare."


Short of Republicans stopping themselves, Democrats will halt everything in the Senate anyway. Either party now needs sixty solid votes in the Senate to make anything happen.


Our politics are polarized and nonsensical because our voters are. The "moderate" middle wants the impossible: all gain, no pain, and no sense of reality. What we have is incoherence -- neither a free market nor a competently managed public sector.


All of the above is about economics and the budget. On national defense, we are also hollow -- not because our military is weak or incompetent, but because our civilian leaders are, and because the country at large now demands immaculate wars. These are wars without ambiguity in purpose or execution, wars in which no one dies and every enemy is greeted with Miranda rights, wars that don't cost anything, wars that end before Christmas-shopping season.


The trouble is that no other country is ready to replace us. When we fall, it will be like Rome falling. The new age will be a Dark Age, with constant warfare among smaller nations and tribes. And now more of us have nukes.


I know...that state of the union is way too gloomy. But our hope does not lie with this or that policy. It lies in a population that genuinely believes in itself rather than the government Wizard of Oz. Show me evidence that a majority of our population believes in itself, and I'll write a whole different State of the Union.


Randall Hoven can be contacted at randall.hoven@gmail.com or via his web site, randallhoven.com.
25 Comments on "The Real State of the Union, 2010"

The Mad Crapper
01-22-2010, 08:27 AM
And in the midst of this crisis, B.O. is still pushing "green jobs" nonsense:

http://www.google.com/hostednews/afp/article/ALeqM5gNtk-82SRaupk5WfzQ7S8seQQeUA

What a worthless turd this guy is.

KC native
01-22-2010, 08:41 AM
You believe everything you read off of right wing site's huh? You're an idiot.

Our debt is not unsustainable at this time (go look up US GDP and our debt levels relative to that through history). Persistent Trillion dollar deficits are but we aren't going to see many more of such deficits.

The Mad Crapper
01-22-2010, 08:47 AM
I'm an idiot..

"The federal budget is on an unsustainable path, primarily because of the rising cost of health care... Medicare's Part A trust fund... will have insufficient funds to pay for covered services starting in 2017"

-Congressional Budget Office

:drool:

KC native
01-22-2010, 08:51 AM
"The federal budget is on an unsustainable path, primarily because of the rising cost of health care... Medicare's Part A trust fund... will have insufficient funds to pay for covered services starting in 2017"

-Congressional Budget Office

:drool:

:rolleyes: Because legislation and taxation are going to remain the same until then.

The Mad Crapper
01-22-2010, 08:52 AM
:rolleyes: Because legislation and taxation are going to remain the same until then.

Uh no... B.O.'s legislation and taxation is going to make it worse. Thanks you jackass!

googlegoogle
01-22-2010, 01:40 PM
I know how it can be cured.

The American people still have the greatest power. It is NOT THE VOTE.

It is MONEY!

The time is probably approaching for an national income tax boycott.

The Chinese would have to be told that we aren't going to pay them back for their Tbills. That would stop all the credit card/deficit spending.

The Mad Crapper
01-22-2010, 01:42 PM
I know how it can be cured.

The American people still have the greatest power. It is NOT THE VOTE.

It is MONEY!

The time is probably approaching for an national income tax boycott.

The federal government can put up internment camps pretty quick.

Baconeater
01-22-2010, 01:55 PM
I know how it can be cured.

The American people still have the greatest power. It is NOT THE VOTE.

It is MONEY!

The time is probably approaching for an national income tax boycott.

The Chinese would have to be told that we aren't going to pay them back for their Tbills. That would stop all the credit card/deficit spending.
ROFL Is he always this funny in this forum? Maybe I need to visit more often.

Otter
01-22-2010, 02:09 PM
Here's some neat visuals for everyone:

http://www.usdebtclock.org/

The Mad Crapper
01-22-2010, 02:13 PM
Here's some neat visuals for everyone:

http://www.usdebtclock.org/

Don't be silly, all we have to do is print some more money! B.O. says we can take some of the stimulus money to pay down the national debt!