Originally posted by generalissimo
are you on coke again?
Here we go again. Its the Generals drama focused at me when you should be asking if your law makers are the ones on coke. Here is what Ben Bernanke has to say regarding the current deficit situation.
"A particularly worriesome aspect of this projection and similar ones is the implied evolution of the national debt and the associated interest payments to government bond holders. Minor details aside, the federal debt held by the public increases each year by the amount of that year's unified deficit. Consequently, scenarios that project large deficits also project rapid growth in the outstanding governmnet debt. The higher levels of debt in turn imply increased expenditures on interest payments which in turn adds to subsequent deficits. According to the CBO projection that I have been discussing, interest payments on the governments debt will reach 4.5% of GDP in 2030, nearly three times their current size relative to national output. Under this scenerio, the ratio of federal debt held by the public to GDP would climb from 37% currently to roughly 100% in 2030 and would continue to grow exponentially after that. The only time in US history that the debt to GDP ratio has been in the neighborhood of 100% was during WW2. People at that time understood the situation to be temporary and expected deficits and the debt to GDP ratio to fall rapidly after the war, as in fact, they did. In contrast, under the scenerio I have been discussing, the debt to GDP ratio would rise far into the future at an accelerating rates. Ultimately, the expansion of debt would spark a fiscal crisis, which could be addressed only by very sharp spending cuts or tax increases, or both..........To summarize, because of demographic changes and rising medical costs, federal expenditures for entitlement programs are projected to rise sharply over the next few decades. Dealing with the resulting fiscal strains will pose difficult choices for the US. However, if early and meaningful actions is not taken, the US economy could be seriously weakened with future generations bearing much of the cost. The decisions the congress will face will not be easy or simple, but the benefits of placing the budget on a path that is both sustainable and meets the nation's long run needs would be substantial."
So 2030, eh? It is only 20 years away. What say you, are you as concenred as Bernanke? Will President unsustainable change his ways? His only response to this point has been to increase medical entitlements.
A few people tried to blow the whistle on the whole credit crisis and they were ignored. I wonder if these warnings will likewise be ignored. The problem is, as with the coming credit crisis, there are too many people making money to even bother with reform. All you have left are outsiders who are not benefiting from the dysfunctional government way of doing business screaming their heads off in vain. Perhaps they too will be referred to as coke heads.