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Unsustainable Spending (Must Read)
RealClearPolitics ^ | 2/21/2010 | David Warren

Posted on 02/21/2010 9:14:19 AM PST by mojito

A spectre is haunting Europe, and America -- the spectre of Keynesianism finally gone nuts.

What began, not very innocently, as a suggestion that governments should run deficits in bad times, and surpluses in good times, gradually "evolved." In the next phase, governments tried to balance at least the operating account during the best of times. In phase three, governments ran deficits by habit during the good times, but much bigger "stimulus" deficits during the bad times. We are now entering phase four.

[....]

The U.S. national debt now exceeds $12.3 trillion in a $14.2 trillion economy, and the U.S. government is now piling it on with unprecedented new deficits....

Little things, such as the heart of the U.S. space program, are being gutted to make way for metastasizing social security entitlements and debt service payments that will soon swamp the entire federal budget -- thus requiring the elimination of more little things such as the army, navy and air force. At some point the entitlements simply can't be paid, without hyperinflation.

[....]

While an optimist would say that we are witnessing the final demise of the welfare state, and good riddance, a pessimist would observe that everything must go down with it....

For our governments have created vast bureaucracies, employing immense numbers whose livelihoods depend entirely (whether they realize it or not) upon the capacity of profit-earning people to pay constantly increasing taxes.

It should have been grasped, decades ago, that the constant transfer of resources from the productive to the unproductive must eventually tip the ship. And when it does, real people go over the side, who get angry when they are thrown in the water. There are consequences to that anger.

(Excerpt) Read more at realclearpolitics.com ...


TOPICS: Business/Economy; Editorial; Government
KEYWORDS: debtbomb; obama
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0 will realize his dream: He will destroy the first American republic.
1 posted on 02/21/2010 9:14:19 AM PST by mojito
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To: mojito

Hyperinflation is coming....

And there will be consequences...


2 posted on 02/21/2010 9:17:17 AM PST by Radix (What happened in Massachusetts, is going to be times 10 in a few months.)
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To: mojito
For our governments have created vast bureaucracies, employing immense numbers whose livelihoods depend entirely (whether they realize it or not) upon the capacity of profit-earning people to pay constantly increasing taxes.

That in itself will create the demise of our economy.

Without spending cuts the circle of taxation and dependency will prevent overall growth of our economy.

3 posted on 02/21/2010 9:22:41 AM PST by EGPWS (Trust in God, question everyone else)
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To: mojito

Start anew. Defund/dismantle all collectives.

Sweep ALL out or let them ALL resign and go back to their families. They only understand power. It’s time to flex OUR muscle. The soap box doesn’t work. They control all of the amplification devices. It’s time for the ballot box. It’s peaceful. It’s powerful.


4 posted on 02/21/2010 9:27:22 AM PST by PGalt
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To: mojito

Obama-nomics

Banks in CA, IL, FLa, TX are shut down...
http://finance.yahoo.com/news/Banks-in-Calif-Ill-Fla-Texas-apf-1195100471.html?x=0&.v=12

Governors: Bad economies in states to worsen...
http://www.reuters.com/article/idUSTRE61J26V20100220

Report: Taxes prop up ‘dying’ abortion industry
http://www.wnd.com/index.php?fa=PAGE.view&pageId=125372
[Could also call this ‘loony left’, but that would be too kind.]


5 posted on 02/21/2010 9:29:06 AM PST by Arthur Wildfire! March (Farah: "If [certifigate]'s been settled show us the birth certificate. Simple.")
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To: SeattleBruce; parsifal; Tolik

Little things, such as the heart of the U.S. space program, are being gutted to make way for metastasizing social security entitlements and debt service payments that will soon swamp the entire federal budget — thus requiring the elimination of more little things such as the army, navy and air force. ...[snip]


6 posted on 02/21/2010 9:30:39 AM PST by Arthur Wildfire! March (Farah: "If [certifigate]'s been settled show us the birth certificate. Simple.")
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To: PGalt

Return to the ‘07 budget and start fair tax.


7 posted on 02/21/2010 9:31:40 AM PST by Arthur Wildfire! March (Farah: "If [certifigate]'s been settled show us the birth certificate. Simple.")
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To: PGalt

You’re right. We need to destroy the DNC. We need to undermine their base support. That will take courageous words of truth. Working on the overall strategy. TTYL today. FRegards ....


8 posted on 02/21/2010 9:33:50 AM PST by Arthur Wildfire! March (Farah: "If [certifigate]'s been settled show us the birth certificate. Simple.")
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To: mojito

Just look at this link. It tells you everything you need to know.

http://www.usdebtclock.org/


9 posted on 02/21/2010 9:42:47 AM PST by Sprite518
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To: mojito

Please....

This has been a bipartisan effort in the making for decades.


10 posted on 02/21/2010 9:53:02 AM PST by misterrob (Have you tea bagged a liberal today?)
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To: Arthur Wildfire! March

Return to the 2001 budget level then index for inflation. If you cannot afford it then you don’t get to have it.


11 posted on 02/21/2010 9:53:57 AM PST by misterrob (Have you tea bagged a liberal today?)
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To: Arthur Wildfire! March
Everybody knows Warren is speaking the complete truth and there doesn't seem to be a constructive way out either.

Spooky to think that maybe a Ron Paul isn't such a nut job actually; find it hard to believe that a mainstream Repub would have the integrity to attempt a solution.

12 posted on 02/21/2010 9:55:47 AM PST by Eska
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To: mojito
Obama's policies have sucked up all the investment cash from the economy and obligated future payments to foreign bond holders. Those future obligations payments will bankrupt the nation with no course correction.

Obama's 2011 budget request includes $1.4 billion granted to the developing nations fighting climate change and limiting carbon emissions when man caused global warming is a total fraud. This one item represent 0.1% of the budget deficit. This one item is a window into the crazy Democrat spending. Government spending needs to be brought under control by deleting the wasteful and unnecessary line items.

Obama created the “Bipartisan National Commission on Fiscal Responsibility and Reform” to provide cover for a tax increase. The Obama tax increase will be the coup d’grace for jobs in the United States.

13 posted on 02/21/2010 9:55:52 AM PST by ricks_place
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To: Radix

Roger that, Radix!!


14 posted on 02/21/2010 10:05:52 AM PST by blackie
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To: mojito

Maybe they should go to Vegas and put all 14.3 trillion on red. Actually, the problem is surprisingly easy to fix, if only a leader would emerge with balls: www.offgridblogger.wordpress.com.


15 posted on 02/21/2010 10:27:25 AM PST by grumpa (VP)
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To: misterrob
"Return to the 2001 budget level then index for inflation. If you cannot afford it then you don’t get to have it."

The formula should be:

In year X the congress gets to budget for year X+1 what it collected in year X-1.

The government should be competent enough to figure out in the middle of year X what they collected in X-1. I realize that in our screwy world even this seems to be beyond their abilities, but this is something we can hold them to.

If they want to spend more money in year X+2 then they will need to get a majority of congressmen to vote for more taxes.

Regardless of the inflation rate or the tax rate or the spending rate, there is a firm figure that they can be held to based on real numbers.

16 posted on 02/21/2010 10:43:39 AM PST by who_would_fardels_bear (These fragments I have shored against my ruins)
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To: mojito

Thanks for posting this article.


17 posted on 02/21/2010 10:56:47 AM PST by neverdem (Xin loi minh oi)
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To: misterrob
Return to the 2001 budget level....

Ah yes, Clinton's budgets were soooo wonderful.  Not!

His FY01 budget was a disaster that took years to clean up after becuase it gutted defense and still had soaring taxes.   After rebuilding our military we were far better off by '07 with lower taxes and shrunken deficit.

18 posted on 02/21/2010 11:11:49 AM PST by expat_panama
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To: Radix

The first round came and went, IMO. We’re deflationary now. Strong chance we could slip back into hyperinflation. Crude metaphor = continuing to overwater a plant dying from root rot.


19 posted on 02/21/2010 11:27:51 AM PST by CowboyJay
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To: Arthur Wildfire! March

“We need to destroy the DNC.”

You’ve only got half the problem solved in that case......the GOP is the federal governments second best friend, and has to have the same fate.


20 posted on 02/21/2010 11:42:10 AM PST by RFEngineer
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