The Debt Ceiling Debacle Is Only The Beginning Of A Major Fiscal Crisis

the Business Insider ^ | 7/28/2011 | Grace Wyler

[taildragger]

If you think the current debt ceiling circus is bad, just wait for the real debt crisis. Peter Coy at Businessweek writes today that the debate over raising the debt limit ignores just how ailing the nation's fiscal health really is. Here are the highlights from his piece: The national debt is only a small part of U.S. liabilities. Failure to raise the debt ceiling would hurt the global financial system, but the threat is minimal compared to the real danger: Sharply rising healthcare costs combined with the aging baby-boomer generation. The U.S. is in danger of reaching a generational tipping point at which older Americans have the clout to vote themselves benefits that sap the strength of the younger generation—benefits that can never be repeated.

[Jim Robinson]

Damned rights I said it with a straight face. And pretty soon the public is going to have to face the reality too. We’re broke! Headed for a major depression. The big spending socialists, progressives and RINOS must be stopped before the country goes under!

[redgolum]

It is quite simple. It will not happen.

Wishes are not reality. The Boomers will not have a pleasant end.

[CharlyFord]

We agree on where the Country is headed and what's causing the problem. But, I don't see a voting population that is capable of electing the leadership that's needed.

The last time we got in trouble like this, the 1930s, the Country elected a socialist, FDR. The Country was saved by FDR having to turn to private industry to build the war materials for WWII. The voters didn't save us. War did.

Why can we expect voters to do a better job this time?

[Rennes Templar]

“all Liabilities are in the 211 Trillion Dollar Range.’

And what are the assets range?

[socialism_stinX]

If you ask me we reached a generational tipping point about 20 years ago. Older Americans have been financially screwing over younger Americans for decades by receiving far more in social security and medicare benefits than they ever paid into the system, even when adjusting for inflation and a return on investment. There will have to be reductions in benefits for affluent seniors, or this country will go bankrupt and we’ll see serious inflation as the government debases the dollar to tax everyone heavily through inflation. When will Pelosi and Reid start to tell the truth about entitlement spending?...probably never.

[Grumplestiltskin]

“I am not sure we can get out of this.... “

There will be a resolution, though you won’t like it.

See what’s gonna happen here:
http://www.youtube.com/watch?v=TYKAbRK_wKA

Just sayin’....

[Cronos]

excellent excerpt. Thank you

[Cronos]

we need to cut, cut a lot, but how do we handle people who are so used to feeding at the trough? I believe SS, Medicare need to be eliminated completely. Obamacare should be killed off immediately. Cut 60% of departments, kill off the EPA, etc.

But how to handle the people who are used to getting their bread and circuses? There will be war... but there will be war when we default as well.... dang it, there is no way to avoid that.

[Cronos]

Nice link. But those folks aren’t chinese, they look Thai :)

[EternalVigilance]

To heck with the "balanced budget amendment" - I want the Thomas Jefferson Amendment