“We are in such a deep debt hole that there is no solution that does not involve serious economic pain. “
Pretty much. It’s a rare politician that will bring accept the pain on their watch rather than kick the can down the road further. That’s the interesting thing that failing to raise the debt ceiling would accomplish very quickly: instant balanced budget. Which is the reason why the chances of it NOT being raised are very low: our kakistocrats are not at all interested in that happening on THEIR watch.
The problem with that strategy is that sooner or later, you’re going to have to pay the piper. We can pay the piper soon and suffer some pain, or continue on and in the end destroy our currency. Sadly, I expect it to be the latter.
-——that there is no solution that does not involve serious economic pain-——
Yellen is.
Inflation will be. It will be administered in a painless, in fact, stuporific manner that will feel good.
Incomes will rise at an ever increasing rate that will make the rise in prices palatable. There will be universal healthcare the cost of which will be lost in the inflation. It will not be a penalty or burden.
The pain will be felt by the debt holders. The value of their debt assets will decline in real $$. The debt in new $$ will become manageable and disappear as a problem. They have been paid for the loss in advance. Their gains to date are an alowance for the financials asset devaluation that is coming
That’s the plan. Everybody (that matters) knows it except the wacko conservatives trying to wreck the train.
The poster describes the plan that can quite plainly be seen but does not agree with it.
Pretty much...
No, economic pain isn't the problem, we're talking political pain. We had a far greater debt problem at the end of WWII and everyone sang doom'n'gloom. What happened was America proceeded to prosper even while it paid off the debt, rebuilt Europe/Asia, and took on the cold war. Doubting America's strength is for idiots.
Just the same the political pain was enormous because Washington had to abandon both its tax'n'spending and its war on business. It's what we need to do now but the last time we did that kind of political shift it took dropping a few nukes somewhere.
“We are in such a deep debt hole that there is no solution that does not involve serious economic pain. “
There is the understatement of the century. How about there is no solution that does not involve economic collapse.
I see the feds raiding 401k’s in the not too distant future.