An article in Reuters points out something that absolutely no politician in America wants to say (unless of course it's a boring Ron Paul monologue), America's entitlement spending is sending it into collapse. This article is in reference to the $250 checks for old people to keep them from making trouble:
Two examples — one ridiculously expensive, one just ridiculous. But both reveal a nation completely unwilling to deal with current trillion-dollar deficits or long-term shortfalls many multiples of that number.But who cares about the long-term economic stability when you can demonize Fox news for another news-cycle to distract the public. Politicians could care less about long-term viability and only seem to give two shits about pleasing their pet interests so they have campaign cash for the next go-around. But sooner or later, we have to blame ourselves for continuously electing these yahoos.
What confidence should dollar investors have that America will really cut entitlement spending? Very little. Instead, we are more likely to see huge tax increases that could cripple productivity, or further dollar neglect, or a central bank that turns dovish on inflation. Or perhaps all three.
If Washington doesn’t care to support the dollar, why should investors?
See what the others have said:
4 comments:
I know I'll get pounced on here for saying this, but why not cut some of the DOD budget? It's almost half of the FY 2010 budget... $671,100,000,000. DHS and DOE are about $77B and $47B respectively with around $100B additional coming in from the Recovery Act.
How much of our GDP do we spend on the military, and what exactly is our return on that investment? Why do we still need to borrow money from China to fight a war when half of our tax revinue is going to the DOD?
NateSF Nice try. All military is 24% of the budget. Its the largest part of the discretionary budget, but smaller than the entitlement programs.
The services are actually hurting for dollars, after a 10% haircut. Our ships are being run down, without proper maintenance. And we've proved over the years that ramp down leads to a needed, but more expensive ramp up latter.
http://www.usgovernmentspending.com/obama_budget_10.html
And if you are going to be a strict Objectivist, do not forget that the upper tier get more entitlement dollars than do the lower.
We suffer a mistaken notion that entitlement programs benefit only the poor and downtrodden, but this is not so.
"that entitlement programs benefit only the poor and downtrodden"
Quite frankly, the.gov subsidizes transportation & infrastructure costs for big business. Big business consumes the most welfare!
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