"Standard & Poor's on Monday downgraded the outlook for the United States to negative, saying it believes there's a risk U.S. policymakers may not reach agreement on how to address the country's long-term fiscal pressures. " Or you can read the statement straight from S&P. Note this downgrade happened in 1996, but now America faces a much grimmer situation. This is one more warning from a reputable source: military leaders, congressmen, hedge fund managers, the Secretary of The Treasury, the CBO, and others of where America is headed. (I would have posted some of what the statement said but the copy and paste feature is not working properly.)
One third of all U.S. wages come from the government. An unprecedented amount of American's are dependent on government money to meet their most basic needs. The majority, 40%, of American's don't pay federal income tax. Food, shelter, and other basic physiological needs, the very base of Maslow's hierachy of human needs, are more addictive than any drug out there: if you don't get these needs you die. The vast number of Americans are not going to easily give up these basic necessities. This is exactly what will be required for meaningful economic reform to take place. If this reform takes place, social cohesion will be lost. America has been headed down this path for a long time. A cultural revolution will have to occur before America can reverse course.
Read the sobering statement about the economic reality that America faces. The next couple of years is going to an important inflection point that determines whether America's and the world's economy is going to survive or crash in the coming decades. (I am already convinced of which outcome this will be. All you have to do is look at American culture.) Get educated about economics and stayed informed by keeping abreast of economic news so that you can come to your OWN conclusion--you must know what you believe. A good easy book to read is "Economics In One Lesson". Invest your money wisely, pay down your debts, brush up on survival psychology--not that things are going to get to the point where society will completely collapse-- by knowing terms like analysis paralysis, inattentional blindness, the 10-80-10 rule and other terms as your life stands to be turned upside down; get a couple month's worth of food supply; and be weary of people that promise a magic solution to your economic problems. Or the easy thing to do is to just ignore everything and continue with your life.
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"Everybody's going to have a cut, no matter how worthy your program is or how much wise you'll be with the money or the great things you'll do. Get ready, because everything's going to get cut," Pryor, D-Ark, said (foxnews.com)
ReplyDeleteA little good news? Some dems might be seeing a glimmer of light. I already know that Jeff will slam this as a meaningless and negligible attempt at addressing the problem.
All hope is lost. Stop looking for meaningless bits of hope. No, I am jesting. I only point out what I read and reality as I see it. I think there will be some budget cuts with the 2012 budget and maybe even as a condition for raising the national debt limit, but they won't be significant enough. I think that the quote you used above is one thing that does point to the fact that politicians and the American public are waking up to the reality that the national debt is a major issue that needs to be addressed and this is a good thing thing if it represents a trend, but is a not enough and it too late. But when I see articles like this that point to the fact that 78% of Americans oppose making cuts to medicare http://hotair.com/archives/2011/04/20/great-news-78-of-americans-oppose-cutting-spending-on-medicare/ , then I still have doubts that the public is willing to endure some very painful cuts. Also a majority of Tea Party people oppose cutting social security. Americans support cuts as long as it doesn't affect them. Do you support cutting your GI Bill and the cheap gov health care you have? Of course not, you have earned it just like the people on social security and medicare etc.
ReplyDelete"US households are now getting more in cash handouts from the government than they are paying in taxes for the first time since the Depression." http://www.foxbusiness.com/markets/2011/04/20/government-cash-handouts-exceed-tax-revenues/
"The myth of government is breaking down around the world. For those with 20-20 vision, the Emperor is already seen sans clothes. " http://www.americanthinker.com/2011/04/its_all_coming_apart.html
The economic situation is going to end up pushing American into some new world order. A new world order has come about several times in the last couple hundreds of years so this is nothing new. An interesting question is, "Will the top down managed economy, on the world scale and the local community implementation he[President of the world bank and see the IMF's statement on global trends] proposes, simply create opportunity for less benign practitioners to pervert it to their own evil ends on a much grander scale?"
http://www.americanthinker.com/2011/04/guide_to_the_new_world_order.html
Even the Paul Ryan plan is not effective enough in addressing the debt problem. http://mises.org/daily/5222/Uncle-Sam-Busted
And even if cuts are made they could be overturn by future politicians as S&P stated.
When I state that the economic will have a crash of sorts I am stating my opinion as I see the facts. I believe the global economy will have a reset in the coming decades. Look at them yourself and come to your own conclusion. Just because the economy will has a crash of sorts or a reset does not mean it is the end of the world or your life.
Actually, I would easily give up my G.I. Bill money. As long as the funds would be given back to the tax payer instead of being diverted to some other social program. The VA is too bloated.
ReplyDeleteI had a solid job before school and I believe that I could easily get that job back. The guy they hired to take my old position (which is one of the toughest swing positions in the portland zone) was fired because he couldn't handle it. I still get text messages from my old boss asking me how things are going.
Not a big deal, but honestly, I would embrace the slashing of my VA benefits.
Lets hope there are more people out there that think like you.
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