Posted on 08/20/2008 11:24:35 AM PDT by djsherin
If "An Inconvenient Truth" sounded the alarm on global warming, "I.O.U.S.A.," a new documentary opening in theaters Friday, hopes to do the same for the rising federal deficit.
Backed by Blackstone Group Chairman Peter Peterson, "I.O.U.S.A." follows former U.S. Comptroller General David Walker and the Concord Coalition's Robert Bixby on a "fiscal wake-up tour" across America. In the movie, which is co-written by "Empire of Debt" co-author Addison Wiggin and directed by "Wordplay" filmmaker Patrick Creadon, Messrs. Walker and Bixby argue that unless the government alters its policies and spending habits, the U.S. will be in for a serious financial meltdown.
Mr. Walker, who headed the Government Accountability Office from 1998-2008, exited his official U.S. post five years early in order to head the Peter G. Peterson Foundation and dedicate himself fulltime to fiscal education before, as he says, "we face a real economic crisis." Mr. Walker spoke with The Wall Street Journal about the dangers of the debt and what needs to be done to prevent what he foresees to be an economic catastrophe.
(Excerpt) Read more at online.wsj.com ...
I admire David Walker. But No one would listen.
One has to give Peterson credit for trying to do something about the runaway spending. Unfortunately, most people seeing this will have benefited from deficit spending - the recent tax rebates, for example.
Ronald Reagan won me over with this message more than 28 years ago. It’s sad to see what’s become of the Republican party and it’s leaders since Reagan left office. I wish McCain would pick David Walker as his running mate.
What about the cost of socialist programs? What about what the deficit will look like after 4 yrs of Bambi policy?
“We’re going to have to re-impose tough budget controls — tougher than the ones we had in the ‘90s — because we’re in worse shape. Secondly, we’re going to have to reform Social Security, Medicare, and the entire health-care system. Thirdly, we’re going to have to engage in comprehensive tax reform. And lastly, we’re going to have to look at the base of the federal government, because it’s grown very much out of shape.”
That is so true. We still have time, but not much.
This is my interpretation of what Mr. Walker said, The Federal gov’t will have to cut cost and cut it drastically. Secondly we are going to have to make the public more responsible for their retirement. Along with this we must remove the federal gov’t from the health care system and promote private industry solutions. Thirdly we must create fair tax reform where all are taxed fairly. To repeat we must cut, cut did I say cut spending and gov’t. ASAP.
“The American Republic will endure, until politicians realize they can bribe the people with their own money.”
— Alexis de Tocqueville
More wants more...
We haven’t got a chance when the ‘progressives’ think the government should be in charge of the economy and meet the needs of its citizens.
(Every day on CSpan I hear at least one caller ask for the oil companies to be nationalized.)
Regean said we could loose our freedom in a generation. He was right.
With the collapse of the conservative side of the the Republican party, I don’t think it makes any difference if McCain’s VP was David Walker or a blind monkey. The USA is sinking fast, IMO.
Imagine being in the military and have Obama as the CinC. I think I’d go AWOL.
Well, we all know something’s got to give.
The national debt is about $9 trillion, I think. Then to that, you have to add the unfunded liabilities of Social Security and Medicare, which could be as much as $20 trillion more, from some reports I have seen. This long-term debt is fundamentally the same as a giant Visa/Mastercard bill that the gov’t has to pay off. In recent years, we haven’t even been able to pay the interest on the debt. It just rolls over and accumulates and adds to the total debt.
Either we will see big tax increases in the future to keep up with the debt, big sales of gov’t bonds to other countries to get money to keep pace with it, increases in the money supply to keep pace, which will cause inflation, or some combination of all of these.
A balanced budget and eventual paying down of the debt is a sound business principle to bring to gov’t; i.e. don’t spend more than the gov’t is taking in.
Obama and McCain both should be challenged on this, esp. Obama since he wants to expand gov’t spending. He should be challenged on where he’s going to get the money to “invest” $150 billion in “green” energy programs, when the gov’t is broke to start with and deficit spending is projected even before Obama gets control of the national checkbook.
What are the ramifications for NOT paying back debt? For example, suppose the government says "screw it, we're not paying back the money we owe". If it owes money to another country what are they going to do?
I'm serious cause I'm fairly ignorant about the situation...what's the worst that can happen if they simply refuse to pay?
If past performance is any indication, the gov't will wait until there is a crisis, and then drastically cut whatever is politically easiest to do. I expect it to be the military, and any services to people who are under 30 at the time.
Given that IOUSA compares to ‘Inconvenient Truth’, then I’d bet that IOUSA ‘s version of ‘the sky is falling’ is as scientifically based as ‘Inconvenient Truth’! Another agenda driven rag!
Runaway government spending ping.
Big tax increases can't happen because they will destroy the economy. And significant reductions in spending, especially transfer payments, will have the same effect if made too abruptly. Other countries have caught on to our game, so the most likely track involves increasing the money supply.
Perhaps that's why the Fed doesn't publish M3 statistics any more. Either way, the Feds in New York and their buddies on Capitol Hill in Washington are playing a very dangerous game that may ultimately end with the fall of or significant devaluation of the dollar, to the detriment of anyone holding assets denominated in dollars.
Remember the canal bonds, paper money in the New England colonies before the Revolution, and the saying "not worth a Continental."
I believe most of the debt is not to foreign countries (not to say we don’t owe them significant amounts). Even so, if the government were to say screw you, we would lose all credibility and subsequently I believe the dollar would plummet. People would think something is fishy here and lose faith in the US. It’s all speculation, but I think that is very likely to occur.
***Big tax increases can’t happen because they will destroy the economy. And significant reductions in spending, especially transfer payments, will have the same effect if made too abruptly. Other countries have caught on to our game, so the most likely track involves increasing the money supply.***
Unfortunately I agree with you. Plus the likelihood of government making itself smaller is next to nil. Why cut spending or raise taxes when you can print the money?!
Personally I believe all scoial programs should be eliminated as unconstitutional, immoral, and perhaps most importantly by the virtue of the fact that they don’t work. But yeah, our government doesn’t look like it’s catching on anytime soon.
It used to be that Republicans fought spending. That is not true anymore. The breed that ran the house and senate for so many years spent like democrats. So now we have two parties that enjoy spending like drunken sailors and our kids will pay for it.
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