Blink! U.S. Debt Just Grew by $11 Trillion

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    Aug 09, 2012 4:07 PM GMT
    This is one of the primary reasons Obama does not deserve re-election as he plants future Americans with an impending fiscal crisis he has not only done nothing to stop but made it overwhelmingly bad when the day of reckoning finally comes.

    Of course there remain those holdouts here who would claim that there isn't a problem that the US will somehow miraculously deal with these problems. Of course these same individuals have an absurdly poor grasp of simple math.

    http://www.bloomberg.com/news/2012-08-08/blink-u-s-debt-just-grew-by-11-trillion.html

    When fully retired, 78 million baby boomers will collect, on average, more than 85 percent of per-capita gross domestic product ($40,000 in today’s dollars) in Social Security, Medicare and Medicaid benefits. Each passing year brings these outlays one year closer, which raises their present value.

    Governments, like households, can’t indefinitely spend beyond their means. They have to satisfy what economists call their “intertemporal budget constraint.” The fiscal gap simply measures the extent to which this constraint is violated and tells us what is needed to balance the government’s intertemporal budget.

    The answer for the U.S. isn’t pretty. Closing the gap using taxes requires an immediate and permanent 64 percent increase in all federal taxes. Alternatively, the U.S. needs to cut, immediately and permanently, all federal purchases and transfer payments, including Social Security and Medicare benefits, by 40 percent. Or it can mix these terrible fiscal medicines with honey, namely radical fiscal reforms that make the economy much fairer and far stronger. What the government can’t do is pay its bills by spending more and taxing less. America’s children, whose futures are being rapidly destroyed, are smart enough to tell us this.
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    Aug 09, 2012 4:23 PM GMT
    From the same article:

    "This fantastic and dangerous growth in the fiscal gap is not new."

    "Part of the fiscal gap’s growth reflects changes in policy, such as the Bush and Obama tax cuts, the introduction of Medicare Part D, and the expansion of defense spending. Part reflects “natural” growth of existing programs, including growth in Medicare and Medicaid reimbursement rates."

    One could argue the Republicans do not deserve re-election, for the same reason.
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    Aug 09, 2012 4:33 PM GMT
    Solution: Don't vote for Obama OR Romney.

    They're both fiscal nightmares.
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    Aug 09, 2012 4:40 PM GMT
    paulflexes saidSolution: Don't vote for Obama OR Romney.

    They're both fiscal nightmares.


    Or you could vote on the basis of their non-fiscal policies.
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    Aug 09, 2012 4:41 PM GMT
    lol, it wouldn't matter if the US was 11 trillion in the black, Riddler would still be screaming for 'entitlements' (what is bare survival for many he apparently considers plates of plums for the lazy) to be cut and boomers to be given the big fat boot.

    icon_lol.gif
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    Aug 09, 2012 6:19 PM GMT
    It doesn't matter when it comes to fiscal issues, both major parties have conspired and it's all about keeping themselves in position.

    Our path, at the rate it's been going for AT LEAST the past 11 years, is not one that can be sustained. Without drastic cuts in spending and a drastic tax increase none of the other issues either of the major parties support are going to matter.

    It should not be republican vs. democrats, it SHOULD be citizens vs. the state of our government. They all need to be voted out.

    Government of the people or for the people by the people means dick to these fucks running and ruining our country.

    Stop buying their bullshit and stand up for the citizens.
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    Aug 09, 2012 10:37 PM GMT
    meninlove said lol, it wouldn't matter if the US was 11 trillion in the black, Riddler would still be screaming for 'entitlements' (what is bare survival for many he apparently considers plates of plums for the lazy) to be cut and boomers to be given the big fat boot.

    icon_lol.gif


    Don't you think entitlements should at least be affordable? Or does math simply not matter in your make believe world of fiscal restraint?
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    Aug 10, 2012 1:21 AM GMT
    Now who is Obama going to blame for this if he gets reelectedicon_question.gif
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    Aug 10, 2012 4:26 AM GMT
    riddler78 said
    meninlove said lol, it wouldn't matter if the US was 11 trillion in the black, Riddler would still be screaming for 'entitlements' (what is bare survival for many he apparently considers plates of plums for the lazy) to be cut and boomers to be given the big fat boot.

    icon_lol.gif


    Don't you think entitlements should at least be affordable? Or does math simply not matter in your make believe world of fiscal restraint?


    First and foremost, "entitlements" should be effective with the lowest overhead possible. Then build revenue around it.

    The purpose of Medicare is to treat people, not treat what we want to pay for.
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    Aug 10, 2012 4:49 AM GMT
    CABucky said
    riddler78 said
    meninlove said lol, it wouldn't matter if the US was 11 trillion in the black, Riddler would still be screaming for 'entitlements' (what is bare survival for many he apparently considers plates of plums for the lazy) to be cut and boomers to be given the big fat boot.

    icon_lol.gif


    Don't you think entitlements should at least be affordable? Or does math simply not matter in your make believe world of fiscal restraint?


    First and foremost, "entitlements" should be effective with the lowest overhead possible. Then build revenue around it.

    The purpose of Medicare is to treat people, not treat what we want to pay for.


    That's rather Canadian of you, and what my generation did back in the day when interest rates climbed up into the high teens. You can bet the government invested our taxes and made hay.

    What Riddler doesn't get is that the social entitlements that are in place are a legacy from those of us paying high taxes. We gladly paid the taxman with the knowledge this was to also be there for those coming after us. It's not just about us; it's about each other.


    warmly,

    -Doug

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    Aug 10, 2012 4:57 AM GMT
    meninlove said
    CABucky said
    riddler78 said
    meninlove said lol, it wouldn't matter if the US was 11 trillion in the black, Riddler would still be screaming for 'entitlements' (what is bare survival for many he apparently considers plates of plums for the lazy) to be cut and boomers to be given the big fat boot.

    icon_lol.gif


    Don't you think entitlements should at least be affordable? Or does math simply not matter in your make believe world of fiscal restraint?


    First and foremost, "entitlements" should be effective with the lowest overhead possible. Then build revenue around it.

    The purpose of Medicare is to treat people, not treat what we want to pay for.


    That's rather Canadian of you, and what my generation did back in the day when interest rates climbed up into the high teens. You can bet the government invested our taxes and made hay.

    What Riddler doesn't get is that the social entitlements that are in place are a legacy from those of us paying high taxes. We gladly paid the taxman with the knowledge this was to also be there for those coming after us. It's not just about us; it's about each other.


    warmly,

    -Doug



    Well put, Doug

    Do people in Canada use ridiculous terms like "entitlement programs?"

    A universal healthcare system protects the entire risk pool from illness and injury.

    National Defense protects the entire risk pool from foreign adversaries.

    Law Enforcement protects the entire risk pool from criminals.

    Why don't we call the military and police "entitlement programs" as well??
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    Aug 10, 2012 5:15 AM GMT
    riddler78 said
    meninlove said lol, it wouldn't matter if the US was 11 trillion in the black, Riddler would still be screaming for 'entitlements' (what is bare survival for many he apparently considers plates of plums for the lazy) to be cut and boomers to be given the big fat boot.

    icon_lol.gif


    Don't you think entitlements should at least be affordable? Or does math simply not matter in your make believe world of fiscal restraint?


    They're completely affordable if the wealthy and corporations pay their taxes. icon_rolleyes.gif