Mr. Walker concludes that “We face large and growing structural deficits largely due to known demographic trends and rising health care costs.” Further, “GAO’s simulations show that balancing the budget in 2040 could require actions as large as cutting total federal spending by 60 percent, or raising federal taxes to two times today's level.” -David Walker, ex-Comptroller General of the US.
There's only one way out of this mess, and it ain't gonna be pretty: "Mr. Sulu, fire up the printing presses at warp factor six. Engage!"
(H/T to SurvivalBlog.)
16 comments:
I believe this is all part of the Cloward Piven strategy. When the dam breaks we are in for a hell of a ride.
Dave Walker has been preaching Fiscal Apocalypse for some time now. His numbers and assumptions look pretty solid to me.
It is amazing how the media can pick up on a guy like Al Gore and label him a prophet, and anyone who questions him a delusional "denier," whereas a very well-credentialled guy like Walker, arguing from sound numbers to a much more plausible (I would say at this point almost inevitable) melt-down, doesn't get the time of day.
This links to a short web video produced by Walker's outfit that is well worth a watch:
http://www.iousathemovie.com/
A day will come when we dream of the stable currency of 2009, just as the people of 1977 in their $58,000 average houses dreamed of the 1949 stable currency and $12,000 average houses.
Yes, our money has lost well over 90% of its value in sixty years.
I find it interesting that one of the conclusions regarding balancing the budget in that quote, there, is raising federal taxes by 200%.
That is a recipe for complete fiscal collapse, as anyone who knows anything about egregious tax rates could tell you. It's properly viewed as a complete transfer of production to the state, with little or no personal gain to be had from the fruits of one's labor. People quit working for advancement, since they have nothing to gain from it, except, of course, for the politicians who thump that Big Gummint Bible.
The ONLY way to balance that budget is to cut the fucking spending, R.F.N!!!
End of story.
Well, aren't you just a freakin' ray of sunshine!
Seriously, though, I'm holding out for the apocalypse, zombie or otherwise. I wonder if there's a massive tax revolt in our future? Will our descendents celebrate Treasury Day the way the French celebrate the Bastille?
Mixing up your starships there a bit.
architect:
Go watch the movie I linked above and see what Walker is really saying.
He isn't saying "I think it's a great idea to raise taxes 200%!"
He is using the projected 200% tax hike as a kind of apocalyptic nightmare figure to illustrate how bad our fiscal situation is.
If you watch the movie, he specifically says we will never get to that Apocalyptic Marginal Tax Rate because the economy will have completely melted down long before then.
Walker is no dummy on economics or accounting. Go watch the f'ing video.
PS - I do think Walker is a lot better economist and accountant than he is PR guy. He throws out a figure like a 200% tax hike to quanitfy an impending economic nightmare, and I think a lot of liberal/statists just say, "OK, well then, let's start raising taxes."
There IS a "way out" suggested by author Lewis: "To regain our economic viability we must regain our moral viability."
Can't say I'm exactly sanguine about the prospects of that happening.
There is only one problem with the inflate-our-way-out-of-this scenario.
A lot of the new debt is "inflation protected." Expect to see more of that in future.
I keep expecting a generation to tell the "greatest generation" and the Boomners that they aren't willing to pay for promises they didn't make. Hasn't happened yet..
alath,
I get it, and I'm not aloof about what he's saying or why.
Your assumptions about the liberal/statist is right-on. They hear someone say something along the lines of raising taxes, and the FIRST thing they think is, "We'll get right on that!"
Best to NOT even say those sorts of things around anyone whose mental wattage is low, and whose Dunning (incompetence) Factor is high. Seriously, people with that kind of intellectual myopia do not need any kind of negative influence put before them, even if done as a humorous jab.
That's because it's not about absolute wealth - it's about equality. Better we all live like we're in the 1850's than let some of us be richer than others. Plus, it's better for Gaia. Especially when those squalid living conditions and (comparatively) exorbitant food costs end up killing off a goodly percentage of people.
The irony of the collapse scenario is that so many people from all over the spectrum seem to be rooting for it.. from the libertarian end wanting to see the Federal yoke wane to the leftist end wanting an old-style Communist Revolution. And then there's those who just want a crisis for the opportunity to grab power. *ahem*
I can't help but think it's the Statehouse where most "make a difference" folks might want to look to... if (when) the Federal beast starts to stumble over it's weight, there will be two places folk look for legitimacy, a power vacuum not remaining long unfilled - state gov't and international gov't. God help us if it's the latter.
So...stock up on gold, alcohol, tobacco, firearms, food, and water (or water purification)?
cj: Just the firearms and ammo. You have those, all other items become negotiable.
"cj: Just the firearms and ammo. You have those, all other items become negotiable."
...and I guess you wonder why so many people want stronger gun control...
Inflation protection is a joke. When the creator of the currency, the definer of the terms ("costs" or "price index"), and the writer of checks are all the same entity...
"Sure, social security is ten thousand a month! Next month, twenty!"
Zimbabwe, baby. Happening right now, and there's no revolution, people starve first.
Post a Comment