Clearly.

 

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"we face the most predictable economic crisis in history"

That was the presidents [Obama] own National Commission on Fiscal Responsibility and Reform back in early 2011 and the numbers have only gotten worse since then. But you freaks go on and keep up the arglebarge.




http://youtu.be/Mb5-ZsDtH00

The highlighted area is where you said what I said in response to the solution of raising our GDP.

I agree with you.

Just ten years ago, the CBO thought federal revenue would support entitlement spending and interest payments until 2060.

That is 35 years beyond the current projection.

Currently the CBO projects that by 2025 entitlements plus net interest payments will absorb ALL of our countries revenue.

Based on this we will have nothing left to spend on defense, education, infrastructure, and R&D.

This is not a moral issue on debt for me.

It is a realistic approach to the growth of our debt to our GDP.

Should all expense categories be benchmarked against GDP growth?

Should some grow faster or slower than GDP?

If so, what are the key determinants?

These are vital questions to our next 15 years as a nation.

 

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Returning to 2001 tax rates and modest yearly GDP growth would soon fix the majority of budget problems. It's not an emergency, we aren't broke, we aren't in danger of going broke anytime soon.

Medicare is a growing problem and needs to be addressed, Obamacare is a step in the right direction, now we just need to add a single payer option and that will take care of most of it's issues eventually.

No matter how many "experts" scream that we are doomed, they are wrong. We aren't Greece, not even close. We just went thru the greatest world wide financial crises of the past 70+ years, of course debt increased. Panicking and making things MUCH worse by drastic cuts and short sighted stupidity demanding we "fix it now" is crazy.

Took us decades to get into the situation, we can take a little time to get out of it.

The graph shows a predictable consequence of our current monetary system. I used to be a liberal and believed in a big government model of economics. Then I learned about Austrian Economics and it was like waking up. The reasons for our bad economy and our debt became apparent. It was like looking at a 3d picture that finally popped out. Just like the 3d pictures some people just can't get it.

 

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@Ptilk: Correct. The balancing doesn't have to begin now. And it probably doesn't need to be finished in under, say, 10 years. Generously.

But if you are going to even start getting there, you have to start making every single financial decision against that framework of "mandatory cap and balance" a good 15+ years out. At the very least. Probably more.

So, we are at less than zero, right now, with that fiscal planning.

Now add 6-8 years to even get the constitutional & accounting framework in place.

Now add another 2-4 years to FIX that mess because it won't be quite right.

Now add another 2-4 to start really saving anything or seeing confidence benefit.

Now add at least another 6-8 years to actually bend the curve down sustainably... forget paying anything down.

Now your impoverished kids are thinking about having your grand kids. But they're deciding against, because we're in a trebled debt hole by this point.

Now shoot out at least 10 years past THAT to achieve any measurable beginning of a past-incurred debt pay down.

As any chart will show any sane person, that *is* too long to wait.

 

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I am of the belief that the changes need to begin now.

It takes years for the changes to make actual measurable differences.

With expenses outstripping revenues by a large (and growing) margin, we need to develop an analytical framework for readjusting the countries business model.

Prudence would dictate that we assume below-trend GDP growth and above-trend unemployment, plus rising interest rates.

Although time is growing short, I agree we do have the capacity to create positive outcomes.

 

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Thankfully Santorum has promised to reduce spending on food stamps but not touch a penny of defense spending.

 

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