The Debt Ceiling! Crisis or Opportunity

[tech2101]

No but between the two of them they are responsible for about 2/3rds of the debt, If you're really in a blame little Bush mode it was the expansion of Medicare entitlement known as part D which increased not only the debt but obligated us to fund this program into the future virtually ensuring deficit spending for the foreseeable future.

Not to mention that the Iraq and afghan wars were not paid for nor accounted for in the bush debt.

 

[delldude]

Not to mention that the Iraq and afghan wars were not paid for nor accounted for in the bush debt.

Wars are a high cost ticket item that will go away....what about the dreaded entitlements?

Dog food anymore is quite tasty and nutritious.

 

[Dog Wonder]

So the Republicans managed to get the military budget cut.

Can't wait for their next publicity stunt.

 

[delldude]

So the Republicans managed to get the military budget cut.

Can't wait for their next publicity stunt.

I wasn't aware it was passed solely on Republican votes. They control both houses now?

And you're not wrapped up over the largest debt hike in history?

Dems are big on gutting defense......is why Panetta is SECDEF......

 

[delldude]

So the Republicans managed to get the military budget cut.

Can't wait for their next publicity stunt.

Duh....they were voting on the Senate version dog.......I'd say Harry Reid got the military budget cut.....the Tea Party controlled house only accepted it.....

Its all smoke and mirrors anyway...you and I got screwed again by the ruling class.

 

[Dog Wonder]

Would have never happened if the Republicans hadn't gone for a publicity stunt.

 

[delldude]

Would have never happened if the Republicans hadn't gone for a publicity stunt.

Its a beech nowdays, being held responsible by the people who put you in office.

 

[777 fixer]

Wars are a high cost ticket item that will go away....

No they don't.

 

[SparrowHawk]

Now that we have lost our credit rating it will be interesting to see how markets react. Not sure what will happen but from what I can tell is even though we've dropped a bit our credit is better than much of Europe, so it's still a case of "We Suck Less" at this point as the chickens are still coming home to roost.

What is clear is we can not take in 2.2 Trillion and spend 3.8 Trillion for very much longer regardless of who is POTUS. Here are some things I think need to happen near term to show the world we are getting or financial house in order in a big way.

If they are not attached to an Embassy Contingent ALL US Military personnel and equipment home by Christmas. Diplomats will inform their appropriate Governments of this change and offer to provide Military Services on a cost plus profit. If their are any takers they pay up front in Hard currency. The free ride for Europe and Asia is OVER. We can't afford it and it's not in our best interests. Additionally the scope, size and mission of our Military must be defined clearly and concisely so that we may "Right-Size" and provide the weaponery required

Starting at the close of fiscal year 2011 Congress will presented with an accounting of the Exact amount of revenue received during the year. That dollar figure will be the total spend for the next fiscal cycle. Currently we borrow 43 cents of every dollar spent. This means all departments will have their budgets slashed 43%.

Congress tackles meaningful reform of Medicare & Social Security with a goal of solvency for the next 75 years. Once those goals are met the next step is the gradual phasing out of Social Security and conversion to Private or Public/Private retirement system. ObamaCare is repealed as well because as a government we can't afford it. For Medicare one solution is to block grant money to the states on a per capita basis.

To further strengthen Social Security ALL Federal employees not in a union negotiated pension plan will have their
pensions frozen and be integrated into Social Security. This includes Congress and the POTUS. We pay your Salaries and we'll tell you what you'll do.

Next, repeal the law permitting wild-holding income tax from your paycheck. When the individual looks at what they have to save in order to pay quarterly then more citizens will become politically active. If it were up to me Election Day would move to April 16th. Then you would see some fiscal responsibility and citizen induced term limits.

 

[Dilligas]

Diplomats will inform their appropriate Governments of this change and offer to provide Military Services on a cost plus profit. If their are any takers they pay up front in Hard currency. The free ride for Europe and Asia is OVER. We can't afford it and it's not in our best interests.

Brace yourself.

I really liked this post. I find some of your political ideas and worldview opinion much more digestible than your airline chatter.

I even gave you a thumbs up.

 

[Ms Tree]

Starting at the close of fiscal year 2011 Congress will presented with an accounting of the Exact amount of revenue received during the year. That dollar figure will be the total spend for the next fiscal cycle. Currently we borrow 43 cents of every dollar spent. This means all departments will have their budgets slashed 43%.

Every economist I have read says that is a sure fire way to kill the economy. Great talking point for the ill informed electorate but financial suicide.

 

[SparrowHawk]

Every economist I have read says that is a sure fire way to kill the economy. Great talking point for the ill informed electorate but financial suicide.

It's NEVER financial suicide to NOT incur debt. Debt is the enemy to prosperity.

Well every economist you've read helped get us to where we are so F*ck Them.

You know it's funny/ironic but back in 2008 I made about $3800 a month after taxes. got downsized and then made about $2,400 a month after taxes. Numbers pretty similar to the federal governments predicament minus a few zeros. So what did I do? I didn't run to the basement and print off a few thousand dollars to tide me over. I'm a printer by trade and I actually could have but Currency is hard to counterfeit. So I had a monthly "spend" of $3800 but only $2400 in income. so what did I do? I should also note I had about $20,000 in savings.

1. Paid off the Audi saving $456 per month
2. Paid off 12 K in credit card debt lowering my monthly obligation by $350.00
3. Funded my move to a new state/job
4. Doing this dropped my fixed monthly cost from $2000 to $900 per month

Living here I now have $1,500 in disposable income for things like food, gas entertainment and the like. In NJ I had about $1,650. Everything else was so expensive in NJ that now I have no discernible lifestyle differences and I am actually saving money where before I couldn't. When you're debt free you can do a lot of things you couldn't before. Now I live right on the water instead of a mile from it and I'm on target to be able to afford a boat and the slip rental right here at the Condo Complex.

The point is when you're debt free as a person or a society it opens up a lot of doors. With interest on the debt being nearly 10% of the budget, think of the Progressive/Liberal nanny state programs you could fund with that money.

 

[Ms Tree]

Like I said. I have not heard an economist yet who agrees with you. A national economy does not work on the same principle as family economy.

My wife and I did run and print money as you put it. I lost my job and my wife was injured and lost her job. We took out a loan against the house and she went to nursing school. Now we are in a better position to dig our self out. There are times when you have to spend money to make money.

I have heard quite a few arguments that the bail out was not large enough. You cannot prove a negative. There is no way to prove how much worse it would have been had the Fed not put close to $1 trillion into the economy. Had the fed let the banks, auto companies and others gone under I believe it would have been far worse than it is now.

Of course it would have helped if we paid our way before all this crap hit the fan. It also would have been nice if the fed would have raised taxes to pay for the wars instead of getting the credit card out but hey, no one felt that was necessary either.

 

[SparrowHawk]

Like I said. I have not heard an economist yet who agrees with you. A national economy does not work on the same principle as family economy.

My wife and I did run and print money as you put it. I lost my job and my wife was injured and lost her job. We took out a loan against the house and she went to nursing school. Now we are in a better position to dig our self out. There are times when you have to spend money to make money.

I have heard quite a few arguments that the bail out was not large enough. You cannot prove a negative. There is no way to prove how much worse it would have been had the Fed not put close to $1 trillion into the economy. Had the fed let the banks, auto companies and others gone under I believe it would have been far worse than it is now.

Of course it would have helped if we paid our way before all this crap hit the fan. It also would have been nice if the fed would have raised taxes to pay for the wars instead of getting the credit card out but hey, no one felt that was necessary either.

What would have been even nicer is a foreign policy not based on empire building and naked aggression against sovereign nations who pose no threat to us directly. This would equal no war debt, no dead soldiers. This part falls squarely at the feet of Bush Cheney as does the ill advised expansion of Medicare. Obama's primary sin was in perpetuating and expandion the spend thrift policies of his predecessor. The more I dig into this, the more I think Barack Obama, Joe Biden, Tim Geitner, George W. Bush, Dick Cheney and a few others whose names I can't recall should lined up and summarily shot for Treason. Tomorrow would be soon enough for me.

 

[Ms Tree]

Shot for treason? You are batshit crazy.