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Author: kelbon Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 41634  
Subject: Re: Bargain hunting Date: 11/13/2012 6:41 PM
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Perceptions of fairness, trust, and compassion combined with wishful thinking won't solve this problem.

No wishful thinking won't, but cooperation and sacrifice are not such bitter pills to take in a climate of fairness, trust, and compassion.


This country will implode despite fairy dust, the money tree, defense cuts, and taxing the rich.

Fairy dust will help some. The money tree will help some. Defense cuts will help some. Taxing the rich will help some. And, spending cuts will help some. The country won't implode.

I acknowledge that spending because of "entitlements" is the biggest fiscal problem numbers wise, but it has to be dealt with as little hysteria and panic as possible, all the while being mindful of not irreparably injuring the patient.


Democrats proposed to apply band-aids to the face because appearances are important. Republicans proposed to attempt to close up a gash to the femoral artery.

Rather than putting a band-aid on a severed artery (or anywhere else) my slant was more along the lines of treating the whole patient holistically. I don't think it's helpful to look at this mess in such a polarized way; that is, with Democrats and Republicans taking diametrically opposing positions. They both have to take steps in the other's direction at this juncture, and hopefully, the electorate has delivered the message loud and clear.


Which country do you think will bail us out[…]

The U.S. will bail the U.S out. Unfortunately, one consequence might be an uncomfortable rate of inflation.

As you bring up Spain's and Greece's indebtedness, it's worth considering what makes the U.S's situation different. There is no chance the the U.S will default on its debts unless it chooses to. This can't be said of Spain and Greece, because they, by joining a common currency, have given the up the right, and the ability, to print money. The U.S. is able to carry a heavy debt burden and pay very low interest rates to-boot, because borrowers trust that the U.S. government is as good as its word, that is: they will be paid back with interest.


Entitlement spending hasn't accelerated so much because of this administration, or that administration's, generosity or recklessness. It's reached the levels it has because of "the pig passing through the python." Meaning: the baby boomers are retiring and drawing social security and medicare in large numbers that puts a heavy burden on the relatively smaller number of usually younger people who are employed and paying taxes.

This is a logistical problem. Not an ideological one. Not a blame game.

I don't think the Democrats have any delusions that entitlement spending has to be cut at this point. And, I don't think the Republicans have any delusions that tax/revenue increases (however symbolic a drop in the bucket some might see them) can remain off the table either.

This is a problem that has to be solved in as logical and compassionate a way as possible with the minimum amount of mud-slinging and blaming. It's a situation the country now finds itself in because of the graying of America as much as the printing of the green.

kelbon
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