If it were only so easy. Democrats are loathe to cut spending and Republicans are loathe to raise taxes, hence our current fiscal dilemma.
Americans have a lot to decide this November when the choose between Obama and Romney. Since neither candidate is serious about confronting our debt, we'll have to vote for the lessor of two evils.
Things obviously must get worse before we can break out of this impasse. The question is whether or not that will be too late.
Everyone from elementary school math students to Nobel laureate economists realize that BOTH reductions in federal spending AND tax increases are necessary to begin chipping away at the morass that is our debtload.
ReplyDeleteBut there is another option: print lots of money. That is what they have done and what they'll continue to do. Uncle Sam is a one-trick pony. Guess who the biggest holder of US bonds is? Not China (anymore). It is the US federal reserve bank i.e. the money printer. The printing press is what's buying our debt.
It's already too late man! Buy gold FTW!