fan_from_texas;1327225 wrote:As a mathematical certainty, unless we experience dramatic GDP growth in short order (which seems incredibly unlikely), we will need to perform major overhauls of entitlement programs and raise more in tax revenue. Raising it on the "rich" (however we want to define that group) won't cover the shortfall. Everyone will need to feel the pain to bring this problem under control. Lots of people will be screwed, and the longer the day of reckoning is put off, the tougher it will be.

My hope is that the negotiations over the fiscal cliff result in meaningful entitlement and tax reform.

When the pool of willing lenders dries up, the scheme will reach its end and the final bubble will explode. Without lenders, the U.S. government has only two appalling choices, default on debt or hyper-inflate the dollar.

Option one is to default on all debt. Essentially declaring bankruptcy to renegotiate all obligations. This would create a severe financial shock as the dollar collapses and loses its status as reserve currency. This would lead to a sharp increase in the cost of nearly everything, as more US dollars would be needed to pay for imports, resulting in a catastrophic economic impact for every American. The government will be forced to cut spending dramatically. A broad range of government payments would have to be stopped, including military salaries, Social Security and Medicare payments, unemployment benefits, tax refunds, etc. Companies would be crushed by a US consumer that would no longer have any buying power. In addition, credit would dry up virtually overnight, which would force untold numbers of companies to shut their doors. Unemployment in the country would spike to obscene levels. Interest rates would rise significantly forcing millions of families with adjustable mortgages to go into foreclosures.

Option two is to have the Federal Reserve create trillions upon trillions of dollars out of thin air. This creates an illusion that the debt is being paid back, but in reality the dollars issued to pay the debt would become increasingly worthless, turning rapid inflation into hyperinflation. This would actually create a much worse scenario then the first option as hyperinflation will be even more economically destructive for the average American. Prices would soar to unimaginable levels, unemployment would skyrocket. The average American would be forced to work overtime just to put food on the table, that is if he or she is lucky enough to still have a job.

It’s worth mentioning that it is highly unlikely that the U.S. will choose default (option one). Even though hyper-inflation is by far more destructive for the American people in the long term, the government will most likely try to print its way out.

ccrunner609;1327379 wrote:First off, race has nothing to do with it. Lets replace what you call greed, selfishness and replace it with freeloading and laziness

ccrunner609;1327399 wrote:BS and you know it.

ccrunner609;1327429 wrote:you are ****ing crazy.

WebFire;1327443 wrote:And who's the one that always brings up race? :rolleyes:

WebFire;1327444 wrote:It's awesome that idiots like isadore think that Americans are somehow exempt to what happens elsewhere around the world. We get closer everyday, yet they never believe it can happen to us.

isadore;1327457 wrote:the rich and their stooges will use any kind of excuse to defend their greed, selfishness and racism using any excuse they can find to protect their wealth and privilege.

WebFire;1327468 wrote:Your comments have nothing at all to do with this thread or the article posted. You just spew the same bull**** over and over. You are an idiot.

ernest-t-bass wrote: I seriously cannot believe that we have four more years of Obama, who is IMO the anti-christ. Laugh, scoff... don't care, but that's my opinion.

isadore;1327487 wrote:gosh I have found myself on the side to decency and tolerance in support of our first African American President.

Manhattan Buckeye;1327491 wrote:Tolerance and support doesn't mean fealty and servitude. His race (which is a joke, he's not African-American, he had a Kenyan father and lived in a privileged, White household). doesn't make him immune from criticism. He's done a poor job. Our country is in poor shape, but at least he's working on his golf game!

WebFire;1327490 wrote:Why do you always say our first African American President? You must be racist. I just see a President.

BoatShoes;1327335 wrote:Good Thread. Will read again when none of this comes to pass. (Again) :laugh: