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Title: Debt ceiling deal does not solve our fiscal woes
Source:
The Washington Times
URL Source: http://communities.washingtontimes. ... oes-not-solve-our-fiscal-woes/
Published: Aug 1, 2011
Author: Vasko Kohlmayer
Post Date: 2011-08-01 18:35:11 by We The People
Keywords: None
Views: 81912
Comments: 139
Back slapping and smiles abounded as the president and congressional leaders reached a debt ceiling compromise last night. The deal, they said, will save us from falling over the fiscal cliff. Do not believe a word of it. The bipartisan deal does not alter the grim fact that the US government is saddled with far greater obligations than it can conceivably meet. Public debt of $14.5 trillion and long term unfunded liabilities well in excess of $100 trillion are simply an insurmountable burden. To put it plainly, the US federal government is bankrupt. The only reason its finances have not yet collapsed is due to the dollar's status as the world's reserve currency. Debt ceiling (Image: AP). Increase of debt ceiling will not address the heart of the problem. Normally when a country acquires more debt than it can carry, creditors dump its bonds and the currency falls apart. Most of our creditors know that we will not be able to pay our debts. They would love to dump their dollars, but they have a serious problem. There is really nowhere else they can put their money. Consider the alternatives. Should they sell dollars and buy euros instead? But the euro is as troubled as the dollar is. Or should they try the British pound or the Japanese yen? Those too happen to be heavily over-indebted and shaky. There are some currencies – such as the Swiss frank and the Canadian dollar – that are relatively healthy, but they are too small to be considered as global alternatives. The bottom line is that there is at the present time no currency that could reliably absorb the world's monetary reserves. The world is in a currency crisis and holders of reserves – whether national banks or private institutions – have no choice but to stick with the dollar for now. Sensing the train wreck ahead, creditors plead in desperation with our government to do something about its out-of-control spending. Unfortunately for them, American politicians – despite their rhetoric – have no intention of doing anything. Both Republicans and Democrats want the same thing: They want to spend more. The only difference between them is the kind of programs on which they want to spend. Even the fiscal hawks in the Republican party become dovish when it comes to cutting. Paul Ryan's plan The Road to Prosperity, which he released with much noise earlier this year, would not balance the budget for another thirty years. What this really means is that it would never balance the budget, because it is impossible to forecast anything with any degree of accuracy thirty years out. The far-off balancing date in Paul Ryan's budget was only a cop out. That much was obvious. Yet he still got savaged for his supposed fiscal “ruthlessness.” If the mere pretense of wanting to balance the budget makes one a political pariah, then you know we are in serious trouble as a country. If you really want to understand what is going on in our capitol when it comes to money and budgeting, you need to grasp one thing: There is only one party in Washington, D.C. It is the party of Big Spending. This is its modus operandi: The greater our debts, the more it wants to spend. Let us not forget that it was George Bush and the Republicans that set us on the road to never-ending bailouts and soaring budget shortages. Obama took it a step further and the Republicans cried fault. They complain about the deficits, but even the most fiscally “hawkish” among them do not want to balance the budget. Instead they pretend that little cuts around the edges will solve our problems. With an annual deficit of some $1.5 trillion, cutting two trillion over the next ten years is only a drop in the bucket. To have any chance, we would need to cut $1.5 trillion now just to stop the hemorrhage. This will not happen, of course. With such leadership as we have we are headed for disaster. The fact is that we are bankrupt, and we will eventually default. Raising the debt ceiling now only postpones the inevitable. Do not celebrate. Rather prepare for the crash. http://communities.washingtontimes.com/neighborhood/vasko-kohlmayers-globe/2011/aug/1/debt-ceiling-deal-does-not-solve-our-fiscal-woes/
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Begin Trace Mode for Comment # 75.
#7. To: We The People (#0)
This deal us nothing but nonsense. The government will spend 3,700 billion this year. THey will borrow 1,500 billion to do so. This bill will cut a tiny 4 billion out of this year's borrowing. It not even a pimple on the deficit's ass.
For once you've gotten something correct. This BS was nothing more than trying to weaken a POTUS politically.
Why the hell must the welfare of the USA be secondary to the POTUS's commie agenda, weak leadership and sabotage of the country's economy and sovereignty? WHY are we in Libya again? Why did he shut down the US's coal and oil industries?? 0bama is America's Nero.
The position of Drama Queen has already been taken by Captialist Erica...you'll need to battle it out with her...
I'm positive YOU can spin my claim of "the POTUS's commie agenda, weak leadership and sabotage of the country's economy and sovereignty" into...the complete opposite. Even though that spin would be based on smoke and mirrors while utiizing a large BONG. Btw - that Janet Nappy is some hot broad, ain't she?
Actually Obama seems rather Reaganesque
On WHAT planet?? Nevermind.
Nevermind. That's true. He does have a bit to go before he raises the debt ceiling to a percentage comparable to that done by Reagan.
Are you seriously comparing the optimism and shape of the American economy, the trade deficit situation, the value of the dollar, and the growth of the economy during Reagan's Presidency....to TO-DAY?? My word - you really do dwell on Mars. Hey - do the little green men treat your "problem" with dignity?
You think a major banking crisis created by Reagan's policies didn't affect the Reagan economy? Have you received your 'trickle down' yet? LOLOLOLOL
The Reagan Adminstration was romamticized WHILE it was still in progress...why would you believe it would be any different now.
And rightfully so. WHILE it was in progress. Now? Well, the Statist-Leftist virus plaguing the GOP probably wouldn't even allow Reagan into it "Big Tent." War...You voted for Reagan, didn't you? How were the years from 1981-1989 for you?
Yes in 1984 because I hate Walter Mondale...at the beginning of 1981, I was fine but by the end of 1981, I barely had a pot to piss in. In 1989, I nearly lost my job thanks to the blowback from S&L deregulation...and my taxes went up each year that the 1987 tax reform was phased in. My best years economically were 1994-2001. And then again in 2007-2010. This year has been okay.
By 1981 Reagan's agenda had hardly been implemented. How'd you do from '82-'88? Good times or bad? Whether you personally did well or not, we know America was in GREAT relative shape emotionally, financially, socially, and on most counts. Even the culture of music and entertainment was better. As your taxes went up during the Reagn Years, I suppose your earnings did commensurately. 1994-2001 - which goob policies helped or hurt you?
Actually...no...for those three years my income was about $55K but because of the phase out of deductions, my AGI and thus my taxes went up every year...
Which 3 years? Reagan wuz Prez for 8 years. Back in the 80s, an income of 55k was pretty good. And I suppose you took advantage of tax breaks and deduction expenses.
I stated the year that the tax reform began,...1987...
I think we all got whacked on that tax-reform. New capital gains taxation policies hurt the real estate market then as well. And concurrently, Wall St. and you.
By the end of the 80's, anyone attached to fixed income was getting whacked. I used to believe as you believe...Reagan is more myth than man... I will grant you one point...I have ALWAYS been proud to be an American but I wasn't always willing to proclaim that...Reagan made it okay to be proud that you were proud... I remember Robin Williams doing this on some TV program in 82 or 83 and I was very impressed:
#79. To: war (#75)
(Edited)
An elderly friend got whacked to the tune of $150,000 by Charles Keaton and his antics. She had to go back to work at the age of 65, after she found her retirement funds no longer existed. And the Tea Baggers here want to dismantle SS in order put their retirement money in instruments where more sharks similiar to that Charles Keaton can get at it. I did good though. I sold a racehorce to a VP of an S and L, who paid for it on that S and L's petty cash account. Needless to say within six months he was in jail and the S and L was a US Bank. And the horse won at first asking.
I'll drink to that. On me, war.
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#10. To: jwpegler (#7)
(Edited)
#22. To: war (#10)
This BS was nothing more than trying to weaken a POTUS politically.
#25. To: Liberator (#22)
Why the hell must the welfare of the USA be secondary to the POTUS's commie agenda, weak leadership and sabotage of the country's economy and sovereignty?
#28. To: war (#25)
#29. To: Liberator (#28)
#30. To: mininggold (#29)
Actually Obama seems rather Reaganesque
#31. To: Liberator (#30)
On WHAT planet??
#34. To: mininggold (#31)
That's true. He does have a bit to go before he raises the debt ceiling to a percentage comparable to that done by Reagan.
#36. To: Liberator (#34)
Are you seriously comparing the optimism and shape of the American economy, the trade deficit situation, the value of the dollar, and the growth of the economy during Reagan's Presidency....to TO-DAY??
#38. To: mininggold (#36)
#40. To: war, mininggold (#38)
The Reagan Adminstration was romamticized WHILE it was still in progress...why would you believe it would be any different now.
#44. To: Liberator (#40)
(Edited)
War...You voted for Reagan, didn't you? How were the years from 1981-1989 for you?
#51. To: war (#44)
Yes [I voted for Reagan] in 1984 because I hate Walter Mondale...at the beginning of 1981, I was fine but by the end of 1981, I barely had a pot to piss in. In 1989, I nearly lost my job thanks to the blowback from S&L deregulation...and my taxes went up each year that the 1987 tax reform was phased in. My best years economically were 1994-2001. And then again in 2007-2010. This year has been okay.
#56. To: Liberator (#51)
As your taxes went up during the Reagn Years, I suppose your earnings did commensurately.
#68. To: war (#56)
For those three years my income was about $55K but because of the phase out of deductions, my AGI and thus my taxes went up every year...
#70. To: Liberator (#68)
Which 3 years? Reagan wuz Prez for 8 years.
#72. To: war (#70)
I stated the year that the tax reform began,...1987...
#75. To: Liberator (#72)
I think we all got whacked on that tax-reform. New capital gains taxation policies hurt the real estate market then as well. And concurrently, Wall St. and you.
Replies to Comment # 75. By the end of the 80's, anyone attached to fixed income was getting whacked.
#80. To: war (#75)
I will grant you one point...I have ALWAYS been proud to be an American but I wasn't always willing to proclaim that...Reagan made it okay to be proud that you were proud...
End Trace Mode for Comment # 75.
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