Skip to comments.Unsustainable Spending (Must Read)
Posted on 02/21/2010 9:14:19 AM PST by mojito
A spectre is haunting Europe, and America -- the spectre of Keynesianism finally gone nuts.
What began, not very innocently, as a suggestion that governments should run deficits in bad times, and surpluses in good times, gradually "evolved." In the next phase, governments tried to balance at least the operating account during the best of times. In phase three, governments ran deficits by habit during the good times, but much bigger "stimulus" deficits during the bad times. We are now entering phase four.
The U.S. national debt now exceeds $12.3 trillion in a $14.2 trillion economy, and the U.S. government is now piling it on with unprecedented new deficits....
Little things, such as the heart of the U.S. space program, are being gutted to make way for metastasizing social security entitlements and debt service payments that will soon swamp the entire federal budget -- thus requiring the elimination of more little things such as the army, navy and air force. At some point the entitlements simply can't be paid, without hyperinflation.
While an optimist would say that we are witnessing the final demise of the welfare state, and good riddance, a pessimist would observe that everything must go down with it....
For our governments have created vast bureaucracies, employing immense numbers whose livelihoods depend entirely (whether they realize it or not) upon the capacity of profit-earning people to pay constantly increasing taxes.
It should have been grasped, decades ago, that the constant transfer of resources from the productive to the unproductive must eventually tip the ship. And when it does, real people go over the side, who get angry when they are thrown in the water. There are consequences to that anger.
(Excerpt) Read more at realclearpolitics.com ...
Hyperinflation is coming....
And there will be consequences...
That in itself will create the demise of our economy.
Without spending cuts the circle of taxation and dependency will prevent overall growth of our economy.
Start anew. Defund/dismantle all collectives.
Sweep ALL out or let them ALL resign and go back to their families. They only understand power. Its time to flex OUR muscle. The soap box doesnt work. They control all of the amplification devices. Its time for the ballot box. Its peaceful. Its powerful.
Banks in CA, IL, FLa, TX are shut down...
Governors: Bad economies in states to worsen...
Report: Taxes prop up ‘dying’ abortion industry
[Could also call this ‘loony left’, but that would be too kind.]
Little things, such as the heart of the U.S. space program, are being gutted to make way for metastasizing social security entitlements and debt service payments that will soon swamp the entire federal budget — thus requiring the elimination of more little things such as the army, navy and air force. ...[snip]
Return to the ‘07 budget and start fair tax.
You’re right. We need to destroy the DNC. We need to undermine their base support. That will take courageous words of truth. Working on the overall strategy. TTYL today. FRegards ....
Just look at this link. It tells you everything you need to know.
This has been a bipartisan effort in the making for decades.
Return to the 2001 budget level then index for inflation. If you cannot afford it then you don’t get to have it.
Spooky to think that maybe a Ron Paul isn't such a nut job actually; find it hard to believe that a mainstream Repub would have the integrity to attempt a solution.
Obama's 2011 budget request includes $1.4 billion granted to the developing nations fighting climate change and limiting carbon emissions when man caused global warming is a total fraud. This one item represent 0.1% of the budget deficit. This one item is a window into the crazy Democrat spending. Government spending needs to be brought under control by deleting the wasteful and unnecessary line items.
Obama created the Bipartisan National Commission on Fiscal Responsibility and Reform to provide cover for a tax increase. The Obama tax increase will be the coup dgrace for jobs in the United States.
Roger that, Radix!!
Maybe they should go to Vegas and put all 14.3 trillion on red. Actually, the problem is surprisingly easy to fix, if only a leader would emerge with balls: www.offgridblogger.wordpress.com.
The formula should be:
In year X the congress gets to budget for year X+1 what it collected in year X-1.
The government should be competent enough to figure out in the middle of year X what they collected in X-1. I realize that in our screwy world even this seems to be beyond their abilities, but this is something we can hold them to.
If they want to spend more money in year X+2 then they will need to get a majority of congressmen to vote for more taxes.
Regardless of the inflation rate or the tax rate or the spending rate, there is a firm figure that they can be held to based on real numbers.
Thanks for posting this article.
Ah yes, Clinton's budgets were soooo wonderful. Not!
His FY01 budget was a disaster that took years to clean up after becuase it gutted defense and still had soaring taxes. After rebuilding our military we were far better off by '07 with lower taxes and shrunken deficit.
The first round came and went, IMO. We’re deflationary now. Strong chance we could slip back into hyperinflation. Crude metaphor = continuing to overwater a plant dying from root rot.
“We need to destroy the DNC.”
You’ve only got half the problem solved in that case......the GOP is the federal governments second best friend, and has to have the same fate.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.