What is going on is that a tax increase, or a spending cut, will take money out of the economy and increase unemployment. It will immediately lower GDP.
In other words, it’s over. There Is No Answer.
They will now reduce all the goals and probably back load them. 2T over 10 years looks like 200 billion/year at first glance, but that won’t be how it is laid out. They will back load it, again with the absurd thought that “the economy will be better later and we can do the cuts then”. So they’ll propose 20 Billion in FY2012 and promise to do more later, and they won’t, or they will but lower tax revenue in the future from worse economy will make it meaningless.
It won’t matter who controls Congress or the Presidency. It’s inevitable devastation. If they endure it now, people will die. If they endure it later, more people will die.
This is absolutely and completely correct and accurate.
To balance the budget today would require a cut of $1.5 trillion. That's 10% of GDP...and when added to the approx $1 trillion of Fed intervention per year, fully 17% of GDP is "borrowed money"...in fact, just printed money. It has been for 3 years.
So how is THIS for a real Great Depression statistic: The Real Economy has been shrinking at a compounded rate of 15-17% per year for 3 consecutive years. At the same time the printed money has increased the cost of every commodity as that's the only place the recipients believe they can preserve ANY value.
If the balance the budget and end Fed intervention, the economy will completely collapse and the citizenry will be able to see the REAL impact of the Wall St./DC/Media mis-handling and fraud which has not only stripped them of much of what they had, but condemned their children to lifelong servitude.
I do not believe this republic would survive such a shock. Cities will burn. Politicians and Bankers will be tried and hung for their crimes.
There would be regime change in the USA.