This is what I try to get across to people. It's just math. You can't argue with it. Or at least: you cannot win the argument.
Normally, in politics, one person could say "We should tax oil companies" while another might say "Taxing corporations is bad". There is a disagreement there. People feel differently on the topic.
The budget deficit really isn't like that. It's math. We cannot keep doing what we have been doing. We are going to stop. Doesn't matter if we want to or not. We're going to stop. It's just math.
Now, politicians can acquiesce to this sooner, or they can try to delay it. But all of the politicians will come to accept that they need to fundamentally change our vision of what government can do. Because the money is gone.
We gotta 'Spread the Wealth Around'... National Review
Taxation at any level will not solve the problem. Like any home business or government, when liabilities exceed assets and income cannot bring down the liabilities, you have to sell assets. US government needs to sell about 5 trillion in assets to get on solid footing.
Here’s a good technique for going schizo ...
Your financial adviser believes “recovery” is historically just around the corner, as earnings kick in watch the market climb as its recovered from the real estate crash and can only go up.
I do have a degree in economics from a formerly reputable university. My take is complicated. First we should be heading for Zimbabwe levels of inflation already and yet bonds are near historic lows.
Secret: We’re exporting our inflation and may be able to do so for a while longer. As the dollar drops it makes exporting countries goods more expensive so governments around the world have been buying (propping up) the dollar but this has caused inflation in their own economies with food costs (very important for most people) skyrocketing.
Because we’re still the reserve currency people are still buying treasuries largely for two reasons. First, the EU is still borderline flatline with the PIIGS and whether there will even be a Euro in 5 years.
Oh and realistically what sane country will adopt the currency of a totalitarian dictatorship which by definition and historically make their own rules? So China is out. Japan? No. Russian ruble? No - see China above.
The entire world runs on fiat currency - whose to back with real bucks? Just so you know right now I’m backing the US and our good guys cutting our government outlays drastically - it has to be done.
Over the history of the Euro, the dollar has been E1.20 - E1.60 and is rocking around E1.40 - kind of “normal”
BUT! Bad things are going to happen. EU Breakup. USA failure to control debt must bring us inflation - just look at commodity prices over the last two years - our exported inflation is coming back to roost..
Still I am stuck. How do you get into a safe currency without being taxed to death or prevented from moving your assets to another country? What market for equities and bonds? The most straight forward may be the Canadian Loonie and a world-wide basket of ETFs (stock funds) out of Canada.
Any suggestions would be appreciated as SHTF times cannot be too far off. Oh and with bummer in office nobody really knows what could happen tomorrow. ;-(
Your tagline says it all, and yes, it is all about the math. People cannot conceive of the implosion of the American economy, and the dissolution of the United States. But it can happen, and unless many programs and oppressions are terminated immediately, it will happen.
The Obama Administration is a Kamikazi attack force. Preparing to nose over in their final plunge.