“...reducing promised payouts to retirees is not an event of default. “
People who have had their money stolen for all of their lives won’t see it that way.
Politically, you post that the US can just shove entitlements off and not suffer for it is a VERY sad joke. The masses depending on that won’t tolerate it. And the productive class can’t pay for it anymore.
It might even be technically correct, but realistically, it is the most uninformed comment that ignores humans and their natures. The whirlwind that would be unleashed will tear this nation apart. And who will the elites blame? Who will be their scapegoat? Who ever it will be, they won’t have caused this.
Politicians LYING has caused this, along with the FASCIST FED.
Pretending away an UNsustainable debt has brought us here, and you advocate more of the same. That is NO solution at all.
I'm not saying our government would simply shove entitlements off. It doesn't have to in order to stay solvent. All it has to do is tweak them a little. For example, raising the retirement age to 70 plus limiting Medicare and Social Security benefit growth to the rate of inflation would do the trick.
It might even be technically correct, but realistically, it is the most uninformed comment that ignores humans and their natures. The whirlwind that would be unleashed will tear this nation apart.
I assure you that the whirlwind that would come from defaulting on our actual liabilities, namely, Treasury securities, would be orders of magnitude worse. Reducing entitlement benefits would not cause a global financial meltdown. Defaulting on Treasury securities would.
And who will the elites blame? Who will be their scapegoat? Who ever it will be, they won’t have caused this.
Unfortunately, the people to blame for this are mostly dead: LBJ, FDR and the politicians who passed Medicarea and Social Security, two disasterous programs that should never have been created in the first place.