Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
Posted on 12/23/2009 7:53:40 AM PST by SeekAndFind
If governments continue to pile on more and more debt, when will they reach the tipping point? The Greeks appear to be close to the tipping point, and it is only a matter of time before other European countries, and eventually even the United States, begin their fiscal death spiral.
The Greek government's unwillingness to make the hard choices necessary to put its fiscal house in order in the past few weeks has caused investors to demand a 2.5 percent premium on its government-issued Eurobonds over those issued by the German government.
First, a little background. Eurozone governments have a contractual obligation not to incur annual deficits of more than 3 percent, yet the deficit forecast for 2010 for all major Eurozone economies is far in excess of that number. Greece (12.2 percent), Ireland (14.7 percent) and the U.K. (at 12.9 percent) are even in double digits. As can be seen in the accompanying table, the average Eurozone deficit is projected to be 6.9 percent, more than double the agreed-upon limit.
Greece has reached a crisis stage and, as noted, its debt is now selling at a deep discount compared to other EU countries. Ireland has a bigger deficit, but its total net government debt is only 38 percent, as contrasted with Greece's 95 percent. But the Irish, unlike the Greeks, are instituting a credible plan to cut government spending and get their economy back on the growth track.
The fundamental problem with most of the world's largest economies is that they have allowed government spending to grow faster than economic growth, which can only lead to long-run economic disaster.
(Excerpt) Read more at washingtontimes.com ...
AUTHOR NOTES :
The Obama administration and the Congress are in a headlong rush to push the country over the fiscal tipping point. The fiscal tipping point is the point where the interest that premium bond buyers are demanding to compensate them for the risk of default and/or accelerating inflation causes the total interest cost to be so high that the government is borrowing just to pay the interest. This is equivalent to a family being so far in debt that it is borrowing just to pay the interest on its mortgage, credit cards, etc.
The proposed health care plan and the environmental cap-and-trade scheme will add trillions of dollars to the U.S. debt over the next few years and, in all likelihood, soon will drive the total debt burden to well over 100 percent of GDP. Even if the administration were to tax the “rich” at 100 percent of their incomes, there would still not be enough money to pay for all of these spending schemes.
The following should be known to most members of Congress. The size of the U.S. government is already well over the welfare and economic growth-maximizing rate. Taxes on upper-income Americans are well above the revenue-maximizing rate. Thus, for those in the political class to further increase the size of government and government debt as a percentage of GDP is grossly irresponsible. It is almost as if they had a death wish for the country.
That's the paradigm shift the world needs. But I don't really think it's coming.
Question should be "will" not "can"?
Putting this country on sound economic footing is as easy as common sense (even if it will take some time to accomplish it). That said, do politicians have the courage to stop pandering and do what has to be done?
The biggest problem is what to do with at least 1/3 of sick Americans that support communism because it feeds them. But without leadership down goes the their corrupt ship.
Hummmm. Wow! We got some WORK to do.
Toss in "secure the National borders" and I'm right with you.
L
And take care of the old folks that paid into the system all their lives. Ad that one too.(not talking about the rich)
It seems that 0bama wants to avoid that by greatly expanding spending, and thus, the budget.
Ping
Paradoxically enough, the release of initiative and enterprise made possible by popular self-government ultimately generates disintegrating forces from within. Again and again after freedom has brought opportunity and some degree of plenty, the competent become selfish, luxury-loving and complacent, the incompetent and the unfortunate grow envious and covetous, and all three groups turn aside from the hard road of freedom to worship the Golden Calf of economic security. The historical cycle seems to be: From bondage to spiritual faith; from spiritual faith to courage; from courage to liberty; from liberty to abundance; from abundance to selfishness; from selfishness to apathy; from apathy to dependency; and from dependency back to bondage once more.
“It is almost as if they had a death wish for the country.”
Almost? They’ve practically finished the job of destroying the USA. The communists were right. We will be destroyed from within by our very own communists.
I think the crash is inevitable. the job for patriots is to prepare to survive it, and to thrive on the other side of it. The current system is hopelessly corrupt and ‘saving’ it would mean codemming future generations to living in the toxic, degenerate, degraded society that we see rising up around us. Better to force the failure so that everyone can see that lies don’t work.
How we deal with the guilty in our midst is the real question. The Obama block, public employees, Acornistas, MS-NBC hosts, public employee unionists .... Red States will need to carefully consider the most humanne way to effect the political cleansing that is required.
I have been trying to find stories of Patriotic Germans who hunkered down during Hitlers reign and made it through that storm.
I think it would be interesting to try to build another government right now. Obamoid and his minions will fall and we would be more ready for the aftermath.
I don't like it, but it's not as bad as they had it I'm sure.
I'm hunkered down and gettin' by pretty gut', I guess it's an inherited art form.
"Git 'er done" is, I believe, the proper sentiment.
Related thread:
What Good Can a Handgun Do Against An Army?
http://www.freerepublic.com/focus/f-backroom/2312894/posts
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