[sreeb]

[quote=briansd1][quote=sreeb] Demographics are stacked against us as the baby boomers start to retire. [/quote]

Immigration is a great way to grow the population and the economy. Assuming we freeze spending growth, large scale immigration can provide the economic kick necessary to pay down the debt.

We could also start selling US citizenship for $1 million each. Not that rich people would want to live here, but a US passport is a good travel document and a good insurance policy againsts unrest around the world.

My bet is that baby boomers will find themselves cared for by imported immigrant nurses and health care workers. Imagine the anti-immigrant folks of today being spoon fed by new immigrants.[/quote]

Unemployment among young, low skilled, or poorly educated American citizens is very high. If you are referring to illegal immigrants, you are basically advocating importing poor people (likely more ambitious and harder working than our native poor but still poor and under educated). I don’t believe we have a shortage and I don’t think they are an economic benefit as long as we maintain a welfare state.

I favor allowing more skilled and educated immigrants.

[sreeb]

[quote=permabear]Defense spending needs to be cut drastically – at least back to Clinton levels. It is insane right now, and is the single item bankrupting the U.S. – not SS or Medicare or anything else. The 2009 U.S. military budget accounted for approximately 40% of global arms spending. That’s over SIX TIMES larger than the military budget of China.

Seriously, just look at this:

http://en.wikipedia.org/wiki/List_of_countries_and_federations_by_military_expenditures%5B/quote%5D

I think China gets more bang per dollar spent so it isn’t quite so lopsided as that suggest. Nevertheless, we can’t afford it so it has to go.

Eliminating our entire military would not come close to balancing the budget. Social Security, Medicaid, and Medicare along exceed our income.

[sreeb]

[quote=permabear]Defense spending needs to be cut drastically – at least back to Clinton levels. It is insane right now, and is the single item bankrupting the U.S. – not SS or Medicare or anything else. The 2009 U.S. military budget accounted for approximately 40% of global arms spending. That’s over SIX TIMES larger than the military budget of China.

Seriously, just look at this:

http://en.wikipedia.org/wiki/List_of_countries_and_federations_by_military_expenditures%5B/quote%5D

I think China gets more bang per dollar spent so it isn’t quite so lopsided as that suggest. Nevertheless, we can’t afford it so it has to go.

Eliminating our entire military would not come close to balancing the budget. Social Security, Medicaid, and Medicare along exceed our income.

[sreeb]

[quote=permabear]Defense spending needs to be cut drastically – at least back to Clinton levels. It is insane right now, and is the single item bankrupting the U.S. – not SS or Medicare or anything else. The 2009 U.S. military budget accounted for approximately 40% of global arms spending. That’s over SIX TIMES larger than the military budget of China.

Seriously, just look at this:

http://en.wikipedia.org/wiki/List_of_countries_and_federations_by_military_expenditures%5B/quote%5D

I think China gets more bang per dollar spent so it isn’t quite so lopsided as that suggest. Nevertheless, we can’t afford it so it has to go.

Eliminating our entire military would not come close to balancing the budget. Social Security, Medicaid, and Medicare along exceed our income.

[sreeb]

[quote=permabear]Defense spending needs to be cut drastically – at least back to Clinton levels. It is insane right now, and is the single item bankrupting the U.S. – not SS or Medicare or anything else. The 2009 U.S. military budget accounted for approximately 40% of global arms spending. That’s over SIX TIMES larger than the military budget of China.

Seriously, just look at this:

http://en.wikipedia.org/wiki/List_of_countries_and_federations_by_military_expenditures%5B/quote%5D

I think China gets more bang per dollar spent so it isn’t quite so lopsided as that suggest. Nevertheless, we can’t afford it so it has to go.

Eliminating our entire military would not come close to balancing the budget. Social Security, Medicaid, and Medicare along exceed our income.

[sreeb]

[quote=permabear]Defense spending needs to be cut drastically – at least back to Clinton levels. It is insane right now, and is the single item bankrupting the U.S. – not SS or Medicare or anything else. The 2009 U.S. military budget accounted for approximately 40% of global arms spending. That’s over SIX TIMES larger than the military budget of China.

Seriously, just look at this:

http://en.wikipedia.org/wiki/List_of_countries_and_federations_by_military_expenditures%5B/quote%5D

I think China gets more bang per dollar spent so it isn’t quite so lopsided as that suggest. Nevertheless, we can’t afford it so it has to go.

Eliminating our entire military would not come close to balancing the budget. Social Security, Medicaid, and Medicare along exceed our income.

[sreeb]

[quote=Arraya]The empire is in terminal decline. Information moves to fast for a slow collapse like Rome. This baby is getting cued up for a doozy. There is no recovery per se, only collapse and rebirth. I say we hold a collapse party. Really who needs banks anyway – It’s just collective stockholm syndrome[/quote]

It could take a while (maybe months, maybe years) for thing to go south, but when it starts, it will be very fast. All it will take it a loss of confidence that the US will be able to repay its debt.

I personally don’t see any reason for a thinking person to believe the US will repay. The debt, including promises like SS, Medicare, and Medicaid, is too large. Demographics are stacked against us as the baby boomers start to retire. The rest of the world is becoming a much stronger competitor.

Once doubts prevail, there will be a rapid ramp up in interest rates ala Greece and Ireland. Since our borrowing is very short term (less than 4 years average), our interest payments will quickly explode to perhaps half of the budget putting the deficit in a death spiral. At that point, the only options will be printing money (hyperinflation) or direct default on both debt and entitlement promises.

I view this progression as inevitable unless we make radical changes and make them very soon. We have a window while there is still confidence and interest rates are low. Once confidence is lost, there will be no quick and easy way to get it back.

Actions I would like to see during 2010 to avert a debt crisis:

1) End expensive overseas wars.
2) Close most overseas military bases, particularly in places like Germany and Japan that can fund their own protection.
3) Cut at least 1/3 of the military.
4) Cut 20% of all federal workers.
5) Cut salaries of the remaining federal workers to a level close to similar private sector workers.
6) Default on the Social Security “Trust Fund”. Going forward, SS payouts are limited to SS tax income.
7) Start raising the current retirement age now to limit the participants drawing on the SS tax pool.
8) Cut regulations in hopes that we can make our industries more competitive. Maybe a 3 year sunset on all current regulations.
9) Cut federal involvement in all areas that can be handled locally. Education comes to mind.

I don’t expect any other these actions to occur in the next year or before it too late.

I’m preparing for the worst and investing accordingly. I don’t expect to increase my consumer spending….

[sreeb]

[quote=Arraya]The empire is in terminal decline. Information moves to fast for a slow collapse like Rome. This baby is getting cued up for a doozy. There is no recovery per se, only collapse and rebirth. I say we hold a collapse party. Really who needs banks anyway – It’s just collective stockholm syndrome[/quote]

It could take a while (maybe months, maybe years) for thing to go south, but when it starts, it will be very fast. All it will take it a loss of confidence that the US will be able to repay its debt.

I personally don’t see any reason for a thinking person to believe the US will repay. The debt, including promises like SS, Medicare, and Medicaid, is too large. Demographics are stacked against us as the baby boomers start to retire. The rest of the world is becoming a much stronger competitor.

Once doubts prevail, there will be a rapid ramp up in interest rates ala Greece and Ireland. Since our borrowing is very short term (less than 4 years average), our interest payments will quickly explode to perhaps half of the budget putting the deficit in a death spiral. At that point, the only options will be printing money (hyperinflation) or direct default on both debt and entitlement promises.

I view this progression as inevitable unless we make radical changes and make them very soon. We have a window while there is still confidence and interest rates are low. Once confidence is lost, there will be no quick and easy way to get it back.

Actions I would like to see during 2010 to avert a debt crisis:

1) End expensive overseas wars.
2) Close most overseas military bases, particularly in places like Germany and Japan that can fund their own protection.
3) Cut at least 1/3 of the military.
4) Cut 20% of all federal workers.
5) Cut salaries of the remaining federal workers to a level close to similar private sector workers.
6) Default on the Social Security “Trust Fund”. Going forward, SS payouts are limited to SS tax income.
7) Start raising the current retirement age now to limit the participants drawing on the SS tax pool.
8) Cut regulations in hopes that we can make our industries more competitive. Maybe a 3 year sunset on all current regulations.
9) Cut federal involvement in all areas that can be handled locally. Education comes to mind.

I don’t expect any other these actions to occur in the next year or before it too late.

I’m preparing for the worst and investing accordingly. I don’t expect to increase my consumer spending….

[sreeb]

[quote=Arraya]The empire is in terminal decline. Information moves to fast for a slow collapse like Rome. This baby is getting cued up for a doozy. There is no recovery per se, only collapse and rebirth. I say we hold a collapse party. Really who needs banks anyway – It’s just collective stockholm syndrome[/quote]

It could take a while (maybe months, maybe years) for thing to go south, but when it starts, it will be very fast. All it will take it a loss of confidence that the US will be able to repay its debt.

I personally don’t see any reason for a thinking person to believe the US will repay. The debt, including promises like SS, Medicare, and Medicaid, is too large. Demographics are stacked against us as the baby boomers start to retire. The rest of the world is becoming a much stronger competitor.

Once doubts prevail, there will be a rapid ramp up in interest rates ala Greece and Ireland. Since our borrowing is very short term (less than 4 years average), our interest payments will quickly explode to perhaps half of the budget putting the deficit in a death spiral. At that point, the only options will be printing money (hyperinflation) or direct default on both debt and entitlement promises.

I view this progression as inevitable unless we make radical changes and make them very soon. We have a window while there is still confidence and interest rates are low. Once confidence is lost, there will be no quick and easy way to get it back.

Actions I would like to see during 2010 to avert a debt crisis:

1) End expensive overseas wars.
2) Close most overseas military bases, particularly in places like Germany and Japan that can fund their own protection.
3) Cut at least 1/3 of the military.
4) Cut 20% of all federal workers.
5) Cut salaries of the remaining federal workers to a level close to similar private sector workers.
6) Default on the Social Security “Trust Fund”. Going forward, SS payouts are limited to SS tax income.
7) Start raising the current retirement age now to limit the participants drawing on the SS tax pool.
8) Cut regulations in hopes that we can make our industries more competitive. Maybe a 3 year sunset on all current regulations.
9) Cut federal involvement in all areas that can be handled locally. Education comes to mind.

I don’t expect any other these actions to occur in the next year or before it too late.

I’m preparing for the worst and investing accordingly. I don’t expect to increase my consumer spending….

[sreeb]

[quote=Arraya]The empire is in terminal decline. Information moves to fast for a slow collapse like Rome. This baby is getting cued up for a doozy. There is no recovery per se, only collapse and rebirth. I say we hold a collapse party. Really who needs banks anyway – It’s just collective stockholm syndrome[/quote]

It could take a while (maybe months, maybe years) for thing to go south, but when it starts, it will be very fast. All it will take it a loss of confidence that the US will be able to repay its debt.

I personally don’t see any reason for a thinking person to believe the US will repay. The debt, including promises like SS, Medicare, and Medicaid, is too large. Demographics are stacked against us as the baby boomers start to retire. The rest of the world is becoming a much stronger competitor.

Once doubts prevail, there will be a rapid ramp up in interest rates ala Greece and Ireland. Since our borrowing is very short term (less than 4 years average), our interest payments will quickly explode to perhaps half of the budget putting the deficit in a death spiral. At that point, the only options will be printing money (hyperinflation) or direct default on both debt and entitlement promises.

I view this progression as inevitable unless we make radical changes and make them very soon. We have a window while there is still confidence and interest rates are low. Once confidence is lost, there will be no quick and easy way to get it back.

Actions I would like to see during 2010 to avert a debt crisis:

1) End expensive overseas wars.
2) Close most overseas military bases, particularly in places like Germany and Japan that can fund their own protection.
3) Cut at least 1/3 of the military.
4) Cut 20% of all federal workers.
5) Cut salaries of the remaining federal workers to a level close to similar private sector workers.
6) Default on the Social Security “Trust Fund”. Going forward, SS payouts are limited to SS tax income.
7) Start raising the current retirement age now to limit the participants drawing on the SS tax pool.
8) Cut regulations in hopes that we can make our industries more competitive. Maybe a 3 year sunset on all current regulations.
9) Cut federal involvement in all areas that can be handled locally. Education comes to mind.

I don’t expect any other these actions to occur in the next year or before it too late.

I’m preparing for the worst and investing accordingly. I don’t expect to increase my consumer spending….

[sreeb]

[quote=Arraya]The empire is in terminal decline. Information moves to fast for a slow collapse like Rome. This baby is getting cued up for a doozy. There is no recovery per se, only collapse and rebirth. I say we hold a collapse party. Really who needs banks anyway – It’s just collective stockholm syndrome[/quote]

It could take a while (maybe months, maybe years) for thing to go south, but when it starts, it will be very fast. All it will take it a loss of confidence that the US will be able to repay its debt.

I personally don’t see any reason for a thinking person to believe the US will repay. The debt, including promises like SS, Medicare, and Medicaid, is too large. Demographics are stacked against us as the baby boomers start to retire. The rest of the world is becoming a much stronger competitor.

Once doubts prevail, there will be a rapid ramp up in interest rates ala Greece and Ireland. Since our borrowing is very short term (less than 4 years average), our interest payments will quickly explode to perhaps half of the budget putting the deficit in a death spiral. At that point, the only options will be printing money (hyperinflation) or direct default on both debt and entitlement promises.

I view this progression as inevitable unless we make radical changes and make them very soon. We have a window while there is still confidence and interest rates are low. Once confidence is lost, there will be no quick and easy way to get it back.

Actions I would like to see during 2010 to avert a debt crisis:

1) End expensive overseas wars.
2) Close most overseas military bases, particularly in places like Germany and Japan that can fund their own protection.
3) Cut at least 1/3 of the military.
4) Cut 20% of all federal workers.
5) Cut salaries of the remaining federal workers to a level close to similar private sector workers.
6) Default on the Social Security “Trust Fund”. Going forward, SS payouts are limited to SS tax income.
7) Start raising the current retirement age now to limit the participants drawing on the SS tax pool.
8) Cut regulations in hopes that we can make our industries more competitive. Maybe a 3 year sunset on all current regulations.
9) Cut federal involvement in all areas that can be handled locally. Education comes to mind.

I don’t expect any other these actions to occur in the next year or before it too late.

I’m preparing for the worst and investing accordingly. I don’t expect to increase my consumer spending….

[sreeb]

[quote=sdrealtor]While raging good times are not on the horizon, fear of systemic collapse has passed. A continued sense of fear is paralyzing for many, I hope they can get past it.[/quote]

My fear of systemic collapse has not passed. I still believe we are headed toward a debt crisis which will result in either outright default or hyperinflation. It could take months or years but we won’t get through another decade unscathed.

I also see perpetual unemployment problems as we continue to lose our manufacturing sector.

If you want to see our future, look to Europe. Then factor out any chance the IMF will bail us out.

[sreeb]

[quote=sdrealtor]While raging good times are not on the horizon, fear of systemic collapse has passed. A continued sense of fear is paralyzing for many, I hope they can get past it.[/quote]

My fear of systemic collapse has not passed. I still believe we are headed toward a debt crisis which will result in either outright default or hyperinflation. It could take months or years but we won’t get through another decade unscathed.

I also see perpetual unemployment problems as we continue to lose our manufacturing sector.

If you want to see our future, look to Europe. Then factor out any chance the IMF will bail us out.

[sreeb]

[quote=sdrealtor]While raging good times are not on the horizon, fear of systemic collapse has passed. A continued sense of fear is paralyzing for many, I hope they can get past it.[/quote]

My fear of systemic collapse has not passed. I still believe we are headed toward a debt crisis which will result in either outright default or hyperinflation. It could take months or years but we won’t get through another decade unscathed.

I also see perpetual unemployment problems as we continue to lose our manufacturing sector.

If you want to see our future, look to Europe. Then factor out any chance the IMF will bail us out.

[sreeb]

[quote=sdrealtor]While raging good times are not on the horizon, fear of systemic collapse has passed. A continued sense of fear is paralyzing for many, I hope they can get past it.[/quote]

My fear of systemic collapse has not passed. I still believe we are headed toward a debt crisis which will result in either outright default or hyperinflation. It could take months or years but we won’t get through another decade unscathed.

I also see perpetual unemployment problems as we continue to lose our manufacturing sector.

If you want to see our future, look to Europe. Then factor out any chance the IMF will bail us out.

[Author]

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