Mort Zuckerman, writing for the U.S. News has this to say about the huge financial problem of unfunded debt facing America. Zuckerman says that this problem dwarfs the fiscal cliff as an economic disaster.
A key quote from the piece:
"The greatest fiscal challenge to the U.S. government is not just its annual deficit but its total liabilities. Our federal balance sheet does not include the unfunded social insurance obligations of Medicare, Social Security, and the future retirement benefits of federal employees. Only in the small print of the financial statements do you get some idea of the enormous size of the unfunded commitments. Today the estimated unfunded total is more than $87 trillion, or 550 percent of our GDP. And the debt per household is more than 10 times the median family income."
As Glenn Reynolds (the Instapundit) likes to say:
"Something that can’t go on forever, won’t. Debts that can’t be repaid, won’t be. Promises that can’t be kept, won’t be. Make your plans accordingly."
I am.
Monday, December 31, 2012
Staring At The Cliff
The deadline looms. The President has a news conference. Senators confer.
We are close to a deal, says Politico. There is a framework in place, says Fox News. I hear the plan calls for raising $800 billion in new revenues by ending the Bush tax cuts on those making over $450,000/yr and by terminating the payroll tax holiday. "Shockingly", there are no spending cuts.
As I noted a couple of weeks ago, we've seen this movie before. It wasn't that good the first time.
We are close to a deal, says Politico. There is a framework in place, says Fox News. I hear the plan calls for raising $800 billion in new revenues by ending the Bush tax cuts on those making over $450,000/yr and by terminating the payroll tax holiday. "Shockingly", there are no spending cuts.
As I noted a couple of weeks ago, we've seen this movie before. It wasn't that good the first time.
Thursday, December 13, 2012
Under Barack's Bus
President Obama announced that he accepted the decision by UN Ambassador Susan Rice to withdraw her name from consideration for appointment to be Secretary of State.
As noted in Weekly Standard blog post, the President also criticised the unfounded attacks on her character of recent weeks. Of course, those "attacks" resulted from Obama having sent her out to mislead the public on his behalf.
So now Susan Rice joins the four dead embassy officials as victims of the Benghazi scandal. At least she didn't have to take a real bullet.
As noted in Weekly Standard blog post, the President also criticised the unfounded attacks on her character of recent weeks. Of course, those "attacks" resulted from Obama having sent her out to mislead the public on his behalf.
So now Susan Rice joins the four dead embassy officials as victims of the Benghazi scandal. At least she didn't have to take a real bullet.
Saturday, December 1, 2012
We've Seen This Movie Before
And we know how it ends.
I'm talking about the little dance routine going on between GOP and Democratic leaders over the "fiscal cliff" negotiations. As I listen to Speaker Boehner and Senator McConnell go through their usual rhetorical machinations, I ask myself how guys so easy to roll got to be in top leadership spots. I feel like it is inevitable that the GOP will cave on "revenues" in exchange for some vague and distant spending cuts. And, they'll still get the blame for whatever fiscal tragedy occurs.
It particularly bothers me since the answer is simple. The President's campaign had only one consistent, specific theme. He asked that those making over $250,000/yr. pay "a little bit more" as part of "a balanced approach" to reducing the deficit. The election results came in and it would seem that the people agreed with the President.
As such, the Speaker should announce that "the people have spoken" and the House should immediately pass a bill extending the Bush tax cuts to all taxpayers except those making over $250,000. He should then ask the President to outline the spending cuts which were to be his part of the "balanced" deficit reduction. This would compel the President to put something on the table or be exposed as (to use his term) a "bulls.....r".
The Republicans could stay faithful to their "no tax increase" pledge. Their vote, after all, would be to extend most of a tax cut, not to raise any tax. The President would be left to explain how his campaign rhetoric regarding taxing the rich brings in only $80 or $90 billion and leaves us over $1 trillion short of balancing the budget. That should be interesting.
Unfortunately, I don't think our GOP "leaders" have a clue. If, instead of winning, they cave again, the GOP may be finished, because the Tea Party members and other fiscally conservative Republicans are almost certain to say good-bye.
UPDATE: Here's an interesting article proposing that the GOP adopt the Simpson-Bowles deficit plan as an alternative to the almost certain disaster awiting them as a result of the current "negotiations".
I'm talking about the little dance routine going on between GOP and Democratic leaders over the "fiscal cliff" negotiations. As I listen to Speaker Boehner and Senator McConnell go through their usual rhetorical machinations, I ask myself how guys so easy to roll got to be in top leadership spots. I feel like it is inevitable that the GOP will cave on "revenues" in exchange for some vague and distant spending cuts. And, they'll still get the blame for whatever fiscal tragedy occurs.
It particularly bothers me since the answer is simple. The President's campaign had only one consistent, specific theme. He asked that those making over $250,000/yr. pay "a little bit more" as part of "a balanced approach" to reducing the deficit. The election results came in and it would seem that the people agreed with the President.
As such, the Speaker should announce that "the people have spoken" and the House should immediately pass a bill extending the Bush tax cuts to all taxpayers except those making over $250,000. He should then ask the President to outline the spending cuts which were to be his part of the "balanced" deficit reduction. This would compel the President to put something on the table or be exposed as (to use his term) a "bulls.....r".
The Republicans could stay faithful to their "no tax increase" pledge. Their vote, after all, would be to extend most of a tax cut, not to raise any tax. The President would be left to explain how his campaign rhetoric regarding taxing the rich brings in only $80 or $90 billion and leaves us over $1 trillion short of balancing the budget. That should be interesting.
Unfortunately, I don't think our GOP "leaders" have a clue. If, instead of winning, they cave again, the GOP may be finished, because the Tea Party members and other fiscally conservative Republicans are almost certain to say good-bye.
UPDATE: Here's an interesting article proposing that the GOP adopt the Simpson-Bowles deficit plan as an alternative to the almost certain disaster awiting them as a result of the current "negotiations".
Subscribe to:
Posts (Atom)
