| 1234 - 5/4/2015 05:53
Most of us who have followed this situation for a while understand and appreciate the very serious implications but what all the commentators never seem to get around to is: "What should be done about it?" If the central bankers take their foot off the QE gas pedal then they themselves initiate the collapse, keep their foot on it and it just gets bigger. Whomever invents a successful, non-catastrophic solution to this situation will certainly deserve the Nobel prize for economics. Well, I'm going to lay out a strategy that would go a LONG way towards significant national debt reduction, as a Nobel prize would nicely adorn my office. A painless solution will never exist, but I wouldn't call my solution catastrophic, although many probably would. So the question is, how much pain can our current and future entitlement recipients endure? How much of the last 40 years of living beyond our means do we expect our kids and grandkids to pay off for us? Personally, I would take a bullet to save my kids and grandkids, and so would have most from my grandfathers generation, and many did. But sadly, most of that generations intestinal fortitude has been lost under our entitlement system. Way too much of the "Don't gore my ox" syndrome going on. The solution is real simple, implement automatic across the board budget cuts of 25 percent, with caps of 2 percent per year inflation increases. All programs, nobody gets a pass. My theory is 75 percent of something is a hell of a lot better than 100 percent of nothing. The savings to be applied to paying down the national debt, if there is any left over after tax receipts. No more borrowing to finance govt. In 10 years, everyone will have adjusted their lifestyle to the new lower govt. handouts. Unfortuntley, our taxes will not be able to go down for 30-40 years, maybe longer, as it will take a long while to get the debt paid down to a manageable level. It's too bad we have placed the brunt of this burden on our kids, as they get a double whammy, in that they will have to not only pay this debt down they didn't create, but when their time comes to retire, they will have to settle for significantly lower benefits. Sucks for them big time. Pretty obvious that anything other than the status quo is going to hurt.
Edited by Boone & Crockett 5/4/2015 08:19
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