Posted on 03/09/2011 7:41:22 AM PST by EBH
If the country cannot come to grips and cut back on entitlement programs, U.S. debt will continue to grow and governments around the world will loose faith in the U.S. dollar. Foreign goods would become more expensive, says Gross, while our standard of living would drop.
Under the second option, if entitlement programs are cut, many Americans would naturally have to learn to live on less and take a hit to their standard of living.
“There is really no way out of this trap and this conundrum at this point,” says Gross. From an investment perspective his advice is to stay clear of “bonds in dollar denominated terms” and to be “wary of higher interest rates going forward.”
(Excerpt) Read more at finance.yahoo.com ...
The only thing I would add/change is the second option would force people to at first cut back and then if government figures out how to get out of the way....
Producers and productive people will innovate. That has always been the American way...to make money and make something of one's lot in life.
With option two all the programs removed and eliminated would put value back into the system. While it wouldn't lower your taxes, your tax dollars would be working to support the core needs of our nation and pay down our debt.
Necessity is the mother of invention.
I stopped reading right there...
No way - they want it to happen.
Being elitists they don't expect to share the pain.
Thank you.
My buddies have been saying the same but in a different way for about two years now.
They say, "There's no peaceful/bloodless way back from here."
(Some elements of our society will not accept a lower standard, they'll want yours)
Prepare now.
$225 billion debt in february alone.
$2.7 trillion debt just in one year
since the govt typically pulls in $2 trillion in tax revenue... this means we are spending at a rate of almost $5 trillion/yr
WTF
they are doing everything they can to push us deeper into the hole... to insure the country craters
I sincerely hope there's a shakeup in the works for 2012.
The correct word is lose.
I'm curious to know who made this basic error. I'm hoping it was not the author.
I'm amazed that somebody actually has to post this "revelation." Thirty percent of "wages" in America are in the form of welfare payouts. And DC continues to fiddle.
BTW, it's still amazing to me that the government spends more money than any other entity in the history of the world but it's STILL NOT ENOUGH!
You’re right.
They are all sinking into debt even faster than we are (with the exception of the oil states and the ChiComs, who need customers). I think this will end with a backroom deal to support a Big Lie that allows the can to keep getting kicked on down the road.
Thanks for sharing :)
Many of the top blue states support big federal gov tend to send out more money to Wash DC then receive from Wash DC. Don’t these local liberals understand that one way to obtain more income to cover the shortfalls is to have less sent to Wash DC and more kept within state. It means smaller federal gov. If CA, NY, IL, CT and etc were able to cut the amount of fed taxes sent to Wash DC and never returned to state by 3/4 wonder how that will impact their deficits. Threw that cash flow model at some of my complaining liberal friends, and for the first time (recessions do that to people) they seem to ponder on the concept.
Many of the top blue states support big federal gov tend to send out more money to Wash DC then receive from Wash DC. Don’t these local liberals understand that one way to obtain more income to cover the shortfalls is to have less sent to Wash DC and more kept within state. It means smaller federal gov. If CA, NY, IL, CT and etc were able to cut the amount of fed taxes sent to Wash DC and never returned to state by 3/4 wonder how that will impact their deficits. Threw that cash flow model at some of my complaining liberal friends, and for the first time (recessions do that to people) they seem to ponder on the concept.
How about cutting back on being the world's policeman before cutting back on American citizens. We spent the first half of the last century fighting in Europe, the 2nd half wars in the Pacific, started this century with wars in the ME, now lurking is Africa with nods to South America. Constant wars did in England. Time to put American citizens before the 'entitlements' wanted by the rest of the world.
While entitlements need to be addressed, how about starting out with some easy cuts?
Abolish Education. This bureaucracy has presided over a DECLINE in education. Dump it.
Energy. While not producing an erg, it has pissed away billions on “green energy” and similar socialist programs. Dump it.
EPA. Cut funding by 2/3. Pare it back to its original mission. Or eliminate it entirely and let the states do the mission.
Ethanol mandate & subsidy. Dump both.
There’s a plethora of overlapping goobermint programs where we’re pissing away $200 million per year. Eliminate the dupes.
There are thousands of “targets of opportunity” in fedgov. These are only a few suggestions. Shoot for sitting ducks like these first. Then tackle “entitlements”.
The living standard is largely the result of inexpensive imports. China is only one of many many sources of much of the consumer goods purchased .
If the US$ does not remain relatively cheap the prices of imports will rise and the poor won’t have HD TV, computers, cell phones, new furniture, Chilean fruit, Mexican tomatoes and the list goes on and on and on.
To make the point again. American prosperity and living standard is the result of inexpensive imports.
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