Skip to comments.Why the Budget Cannot Be Balanced
Posted on 05/05/2012 6:07:48 AM PDT by pabianice
Why the budget cannot be balanced and the coming riots.
Viewing the video, it seems to be mistiled. He keeps saying that it can’t be balanced, but then he goes on to show you that it can be balanced if you eliminate all discretionary spending. And he says that you can’t balance it because of the “mandatory” spending. But the “mandatory” spending is not really mandatory.
What he means when he says that Congress “can’t” balance the budget is simply that Congress won’t. We already knew that.
The answer is obvious they will monetize:
a) the debt
b) entitlement payments
The plan is already in effect. Someone in the government has a chart of inflation to run at 12 to 20% and a plan to cook the number reported and to manipulate the commodities markets.
Have you been to a restaurant or grocery store lately?
Do you thing that oil prices will come down?
The only reason the budget can’t be balanced is because there is no desire to balance it.
Earlier someone replied that Congress can, it just won't. I would edit that an say "Congress cannot make the necessary cuts and live..."
His point is that the entitlement programs and interest are mandatory. Right now they are required to be paid and there is no way to not pay them.
The laws will have to be changed for the requirement to pay entitlement programs but that won’t be easy. There is no political will to do that.
If there was a sentiment to disenfranchise the parasites, and ban government “employees” from participating in elections it could happen.
But since there isn’t....we’re screwed.
I don’t know if it is a plan as much as it is a fact. The cost of everything but labor is going up like a rocket.
When a 3 year old Toyota Corolla sells for 13 to 15K you KNOW things are high. That one just floored me.
I don’t buy our groceries but I know that pork and chicken have gone up at least double in the last 3 or four years.
I haven’t watched the video, but I would be very surprised if the budget could be balanced by only eliminating all discretionary spending.
It’s going to take cuts from entitlement programs up to and including Medicare and Social Security.
I used to buy quite a bit of canned tuna fish - It was commonly on sale for .59 for a 6oz can. Today the can is 5oz, and it's on sale for over a dollar. I used to buy "Florida's Natural" OJ for about $2.59 for a 1/2 gallon - 64oz. Today the container is 59oz and it goes for $3.69.
>>What he means when he says that Congress cant balance the budget is simply that Congress wont<<
My take on the video. Lays out an underlying case of massive civil unrest if Uncle Sugar truly does what is needed to put this country on a course to financial wellness.
Honoring the unfunded liabilities will NOT happen. So, what’s next? Massive tax hikes, further devaluation of the dollar, painful austerity measures, civil unrest....and on and on.
there shouldn’t have been, and shouldn’t be one dime paid out for anything without a budget.....especially to congress and the administration
Mathematically, it can be eliminated by eliminating all of the “discretionary” spending. But the point is that the “discretionary” spending is not really discretionary, in any real sense of the word. You can’t shut down the military in its entirety. You can’t shut down every branch of the government in its entirety, leaving only the “mandatory” spending, which is not really mandatory.
To call anything mandatory is pure sophistry. If there is no money, then that “mandatory” spending is not mandatory. And if voters won’t let you increase taxes, print money, or borrow money, then there is no money.
So it’s just a question of how long it takes for the voters to get to a point where they demand that politicians stop increasing taxes and printing money, and the markets refuse to loan money to the politicians. It might take a while here, but they’ve already reached that point in Greece and Spain.
I question whether they can monetize the debt without civil disorder. Maybe some of it, over a long period of time, but not the entire debt over the next 10 years or so.
As far as entitlements are concerned, there is no way they can monetize that. It’s estimated that social security and medicare will run a $73 trillion deficit over the next 40 years. Ain’t no way they can get away with printing that much money.
they will create ‘new’ dollars. Old dollars will be treated line confederate dollars.