Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Debt Fight Headed For "Train-Wreck" On August 2nd
FNS via RCP ^ | June 25, 2011 | Krauthammer on FNS

Posted on 06/25/2011 2:29:24 PM PDT by MontaniSemperLiberi

Charles Krauthammer: "I think Obama and the Democratic Leadership have made a bet. The only way to get out of the November election next year alive is to run against Republicans as the 'granny-killers' who want to destroy entitlements. Medicare and Social Security. The only way to reduce the debt is to do something on entitlements. The Democrats will refuse and I think this is all headed for a train-wreck on August 2nd."

Chris Wallace, host: "Really?"

Krauthammer: "Yes, really. I wouldn't say it otherwise."

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


TOPICS: Government
KEYWORDS: august; debt; krauthammer
Navigation: use the links below to view more comments.
first previous 1-2021-4041-47 next last
To: ngat

SS is running a deficit right now and has been for the past few years. If the SS trust fund had been filled with gold or foreign bonds, then we could have traded them for the goods that the elderly want now. Instead we filled them with US government bonds. The dollars required to cash in those US bonds will either be financed by more deficits or taxes.

Medicare is running a deficit right now and has been since 2007.

Defense spending has increased 44% since 2006.

If this economy ever recovers or inflation kids in, interest payments on the debt will explode.


21 posted on 06/25/2011 4:11:44 PM PDT by MontaniSemperLiberi (Moutaineers are Always Free)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Tolsti2

There are a lot of people on FR who think that we can save this country without making significant cuts in SS, Medicare and Defense.

I’m not worried that Liberal voters don’t want to make the required cuts. I am worried that Conservative voters don’t want to.


22 posted on 06/25/2011 4:15:54 PM PDT by MontaniSemperLiberi (Moutaineers are Always Free)
[ Post Reply | Private Reply | To 7 | View Replies]

To: MontaniSemperLiberi

Why wait.

Crash the trains now and be done with it.

Gotta start somewhere. Might as well be right here, and right now.

Crash ‘em.


23 posted on 06/25/2011 4:17:21 PM PDT by Cringing Negativism Network (BUY AMERICAN. The job you save will be your son's, or your daughter's)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Pearls Before Swine

SS and Medicare are running deficits now.


24 posted on 06/25/2011 4:18:00 PM PDT by MontaniSemperLiberi (Moutaineers are Always Free)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Longbow1969

The Five Stages of Grief

1) Denial
2) Anger
3) Bargaining
4) Depression
5) Acceptance

I think most, even on FR, are somewhere between 1 and 3. Then again, I don’t think we hear much from those at level 4.


25 posted on 06/25/2011 4:22:16 PM PDT by MontaniSemperLiberi (Moutaineers are Always Free)
[ Post Reply | Private Reply | To 12 | View Replies]

To: ngat

Do your research and you will find that they are negative. Both are running deficits right now.


26 posted on 06/25/2011 4:24:19 PM PDT by MontaniSemperLiberi (Moutaineers are Always Free)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Cringing Negativism Network

Do we rip the band aid off now or wait for someone else to do it?


27 posted on 06/25/2011 4:27:48 PM PDT by MontaniSemperLiberi (Moutaineers are Always Free)
[ Post Reply | Private Reply | To 23 | View Replies]

To: MontaniSemperLiberi

Count of three:

Ready, ok one... tw (OUCH!)

I say freeze the debt ceiling here, and let’s get this started.

While we’re at it, import tariffs too. Big ones.

We need to really hit the reset button, there quite literally is no way to avoid it. None, whatsoever.

Now is as good as later.


28 posted on 06/25/2011 4:30:54 PM PDT by Cringing Negativism Network (BUY AMERICAN. The job you save will be your son's, or your daughter's)
[ Post Reply | Private Reply | To 27 | View Replies]

To: ngat

It’s all explained in the following lyrics:

When you wish upon a star
Makes no difference who you are
Anything your heart desires
Will come to you

If your heart is in your dream
No request is too extreme
When you wish upon a star
As dreamers do


29 posted on 06/25/2011 4:34:36 PM PDT by USFRIENDINVICTORIA
[ Post Reply | Private Reply | To 8 | View Replies]

To: cc2k

I recall recent testimony from a Medicare trustee. It will actually default and end in 1223 because it is exclusively funded by its Trust Fund and that fund will be empty. The law does not allow borrowing money from elsewhere.

Dems want to tie retirees to a locked in failure.

Because SS is a ponzie scheme it will just pull from general revenue and increase debt.


30 posted on 06/25/2011 4:38:03 PM PDT by KC Burke
[ Post Reply | Private Reply | To 16 | View Replies]

To: MontaniSemperLiberi

Bingo.


31 posted on 06/25/2011 4:38:37 PM PDT by GlockThe Vote (The Obama Adminstration: The flash mob who wonÂ’t leave.)
[ Post Reply | Private Reply | To 22 | View Replies]

To: KC Burke

2023?


32 posted on 06/25/2011 4:40:01 PM PDT by Cringing Negativism Network (BUY AMERICAN. The job you save will be your son's, or your daughter's)
[ Post Reply | Private Reply | To 30 | View Replies]

To: cc2k

I recall recent testimony from a Medicare trustee. It will actually default and end in 1223 because it is exclusively funded by its Trust Fund and that fund will be empty. The law does not allow borrowing money from elsewhere.

Dems want to tie retirees to a locked in failure.

Because SS is a ponzie scheme it will just pull from general revenue and increase debt.


33 posted on 06/25/2011 4:42:06 PM PDT by KC Burke
[ Post Reply | Private Reply | To 16 | View Replies]

To: Pearls Before Swine; cc2k; Repeal The 17th

You miss the point of the original post. Everyone knows that with the surge of “baby-boomers” taking SS retirement benefits, and medicare, the system is threatened at the current level of medicare and SS taxation. If, in this down economy, SS actually nuns a deficit this year, who am I to argue with a writer for NPR? Hadn’t heard any big reports being made by the trustees about that. Likewise we all know of the trust fund accounting with the IOU’s and all. The point is, the politicians want to take discretionary spending, defense spending, and entitlement spending, mix them all up, decide without any input from the people on how we would want this money distributed. In this way, they get to do a complete makeover, hide their past bonehead decisions and skulduggery, come up with a NEW New Deal, and shove it down our throats.


34 posted on 06/25/2011 4:46:55 PM PDT by ngat
[ Post Reply | Private Reply | To 19 | View Replies]

To: ngat; Pearls Before Swine; cc2k

“...You miss the point of the original post...”
-
Your original post (#4) had no point; and #34 didn’t either.


35 posted on 06/25/2011 5:01:14 PM PDT by Repeal The 17th (Proud to be a (small) monthly donor.)
[ Post Reply | Private Reply | To 34 | View Replies]

To: KC Burke

OK, this is 2011, so we have 12 years during which we fix the medicare system by which we provide health care to the elderly. If we do run negative on SS benefits, we can fix that for, say the next 12 years by a combination of means-testing, slight raise in age to obtain benefits, raising maximum income subject to the payroll tax, and 1% or 2% hike to payroll tax. Then we do not get voted out of office by the hordes of furious voters for coming after peoples medicare and SS benefits, like it appears Paul Ryan wants to happen. Ergo, we clearly show how bloated the rest of the Federal Government really is and cut THAT spending, thus drastically downsizing the Federal Government and freeing the people.


36 posted on 06/25/2011 5:01:38 PM PDT by ngat
[ Post Reply | Private Reply | To 33 | View Replies]

To: Repeal The 17th

Sure it did. You njust can’t wrap your mind around a real solution that saves Medicare and Social Security.


37 posted on 06/25/2011 5:03:12 PM PDT by ngat
[ Post Reply | Private Reply | To 35 | View Replies]

To: ngat

They are unsustainable, unconstitutional, illogical, and they can not be “saved”.
Wrap your mind around that.


38 posted on 06/25/2011 5:06:35 PM PDT by Repeal The 17th (Proud to be a (small) monthly donor.)
[ Post Reply | Private Reply | To 37 | View Replies]

To: ngat

I don’t think we have 12 years.

Most people think that default become inevitable when the (privately held) Debt to GDP ratio gets greater than 90% to 120%. We are at (about) 66% now and running deficits of about 11% of GDP. This leaves us three to six years to straighten up.

A growing economy pushes that out a bit BUT we would need to grow faster than China to successfully avoid default without making significant cuts to SS, Medicare and Defense.


39 posted on 06/25/2011 5:13:25 PM PDT by MontaniSemperLiberi (Moutaineers are Always Free)
[ Post Reply | Private Reply | To 36 | View Replies]

To: MontaniSemperLiberi
While “something” must be done to reduce entitlements, the Republicans are fumbling the ball yet again IMO. I think most Americans would like to have seen a big roll back of all the new government agencies and Czars. Reverse all the new spending programs.

Then reduce the size of Government. Start by combining each department with another. Eliminate the heads of these agencies (50% reduction). Eliminate staff, cut benefits, and freeze or reduce salaries. This is what private enterprise has to do when they have financial trouble.

Cut congressional staff and salaries wages and benefits. No special retirement for Congresscritters - let them depend on Social Security too. Betcha they can “fix” it then.

By attacking entitlements first, they are handing the advantage back to the Democrats.

40 posted on 06/25/2011 5:23:57 PM PDT by greeneyes (Moderation in defense of your country is NO virtue. Let Freedom Ring.)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-47 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson