The fiscal cliff is not the problem
This is all bad news, but it is not a crisis. If we go over the cliff, it simply means the economy will grow a bit slower and politicians will spend a bit more money. And the sequester actually would be (modest) good news, since it means the burden of government spending would be “only” $2 trillion higher 10 years from now, rather than $2.1 trillion higher. …
The real crisis is the ticking time bomb of entitlement programs and the welfare state.
This bomb won’t explode this year or next year. It may not even explode for another 20 years. But at some point America will experience a Greek-style fiscal collapse if these programs are not reformed.
It’s a simple matter of math due to an aging population. According to both the Bank for International Settlements and the Organization for Economic Cooperation and Development, the future burden of US spending will climb so high that we’ll be in worse shape than Europe’s welfare states.
Blowback
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Oh come on. The debt will be well over $20 trillion by the time Obama is out of office. Maybe $22 trillion. In 20 years, $50 trillion? $100 trillion? It’s so ridiculous. I’d think $20-$22 trillion is the number where people stop lending us money. Then it’s printing money, and inflation, and just plain suffering across the board.
Paul-Cincy on December 3, 2012 at 1:40 PM
obama is the problem.
Pork-Chop on December 3, 2012 at 1:40 PM
LOL
Greece exploded when their Debt/GDP hit 120%. We will hit 120% within 6 months and by some measures, we’re already well past it.
And no, having your own printing press does not delay the inevitable by much. Just ask Argentina.
Norwegian on December 3, 2012 at 1:54 PM
It isn’t the fall off the that kills you…
It is the sudden stop at the end.
LegendHasIt on December 3, 2012 at 2:06 PM
Cliff.
Left out ‘cliff’ in the middle of that first sentence.
LegendHasIt on December 3, 2012 at 2:07 PM
So feel free to “kick the can” for another 19 years…/s
Clink on December 3, 2012 at 2:10 PM
Of course not – we is just fine.
Schadenfreude on December 3, 2012 at 3:10 PM