The Real Cliff: The staggering debt from decades of continuous borrowing is about to come due

Weekly Stsndard ^ | 12/28/2012 | Christopher Demuth

[Nuc 1.1]

Monetizing the debt is not really a solution. It allows the government to pretend it is paying its bills. Inflation is the cruelest of taxes. I don’t believe cap & trade will pass. However, I will admit it is a possibility. Our people’s foolishness is depressing. Happy New Year FReeper. Ay The Lord bless you and yours

[Nuc 1.1]

The process improvement component would reward federal employees for saving money. Say ten percent of what they save? Bet we would have an army saving federal money. The PMP Plan basically freezes spending at current levels (no more baseline budgeting). Then reduces actual spending one percent per year until the budget is balanced. Assuming average growth, the proponents claim a balanced budget in five years. At least as I recall. Throw in the elimination of capital gains and corporate taxes and I would bet we could balance the budget in less than four years. Of course the dims and RINOs can’t destroy the republic if we fix the problem. So this will neve happen. Happy New Year FReeper!

[William Tell]

upchuck said: "... both Medicare and Social Security are earned entitlements."

You can't "earn" that which is derived from fraud. Social Security is a fraud called a "Ponzi scheme". Early "investors" are rewarded using the payments of later suckers. When the geometric nature of the required participation rate is discovered, one must finally conclude that the program is unsound.

Unfortunately, the government is determined to allow the fraud to continue by simply printing money to cover the shortfall, effectively taxing those who hold dollars to make the payments. This will not end well.

[upchuck]

Your suggestion to prevent this “fraud?”

[William Tell]

upchuck said: Your suggestion to prevent this “fraud?”

Immediate reduction of all "entitlement" payments by 5% followed by the same percentage reduction over the next twenty years. The final remaining third of present payments to then be eliminated. In twenty years the entire program is gone.

Payments into social insecurity will remain as is except that they may be reduced when no longer needed to make scheduled payments.

[upchuck]

I doubt anyone currently receiving Social Security will agree with your plan. Simply because SS is an earned entitlement.

I think your plan would be super for all the unearned entitlements like food stamps and SSI.

[William Tell]

upchuck said: "I doubt anyone currently receiving Social Security will agree with your plan."

Perhaps not. But hyper-inflation and the growing awareness by the younger generation that the well will be dry when they arrive may well result in the same outcome. I can hardly imagine what our grandchildren are going to be thinking when they contemplate the burden we have created for them.

Also, I am on Social Security and I agree with my plan. It's a start.