RealClearMarkets - Debt Ceiling Delusions: "Democrats had warned that the $85 billion in sequestration cuts slated for fiscal year 2013 (about 2% of the Federal budget) would be sufficient to bring on economic Armageddon. But guess what? We survived. Recently, Senate Majority Leader Harry Reid continued with such rhetoric by declaring that there are no more cuts to be found anywhere in the $3.8 Trillion dollar federal budget. (Apparently he missed last week's 60 Minutes piece on the spreading epidemic of federal disability fraud.) We have to acknowledge what even the Republicans haven't fully grasped. We are in such a deep debt hole that there is no solution that does not involve serious economic pain . . ." (read more at link above)
Realistically, there are only two ways out of our mess in the US (excluding default and other unthinkable options): a) real economic growth at a rate far in excess of the anemic Obama recovery thus far, which, unfortunately, is highly improbable for the foreseeable future; OR b) massive destruction of the value of the US dollar through inflation or paying off the massive indebtedness with freshly printed money at some point in the future--hopefully after I am dead.
In the meantime, how do we delay the day of reckoning? Because delay is about the best we can hope to do for the foreseeable future with the current crop of idiots and clowns in Washington. Over time, we must rein in government spending including downsizing our bloated military-industrial complex, our bloated prison-industrial complex, our bloated redundant federal programs and bureaucracy, reform of entitlements, comprehensive tax reform, and the list goes on -- but do you see ANY of that happening? Not a chance with the current regime.
Tweet Follow @johnmpoole