Unfortunately, that part at the end of the assessment about reducing debt and cutting expenses runs very much against the dictates of political necessity. Chances Mr. Obama and the Congress are inclined to reducing debt and cutting budget lay out there in the world of slim and none. As the politicians are very much in charge of leading us out of the swamp they have lead us into, reason offers little hope for optimism.
Faith, the other hand, is were it’s at, so long as it is faith in God. It’s all we have left.
1. The United States can raise revenues (raise taxes) and cut expenses (Federal spending) in ways not available to ordinary people.
2. Unlike ordinary Americans the Government can print money. Doing so on a large scale for a long period is extremely dangerous as it would debase the currency and cause a sharp uptick in inflation. But it is an available option.
Beyond this of course the study does not address many of the long term underpinnings of the principal sources of revenue for the government. Short term those are horrible. The recession is going to hit the tax base very hard. But long term they remain among the best in the world. By the middle of 201 (being pessimistic) we will be in a recovery. As the economy starts back up the tax base will significantly improve.
That combined (one hopes) with some fiscal restraint after the recovery begins, will start to see some reduction in the level of the national debt. Sadly the Bush Administration has left the country’s finances in very bad shape as they made no attempt to limit spending or raise revenue to cover it during their tenure in office.spending.
That seems like a accurate assessment to me. Fair credit rating, not good or bad. Time will tell if it will move up or down the scale.
Unfortunately, that part at the end of the assessment about reducing debt and cutting expenses runs very much against the dictates of political necessity. Chances Mr. Obama and the Congress are inclined to reducing debt and cutting budget lay out there in the world of slim and none. As the politicians are very much in charge of leading us out of the swamp they have lead us into, reason offers little hope for optimism.
Faith, the other hand, is were it’s at, so long as it is faith in God. It’s all we have left.
Two (of many) factors which this did not address…
1. The United States can raise revenues (raise taxes) and cut expenses (Federal spending) in ways not available to ordinary people.
2. Unlike ordinary Americans the Government can print money. Doing so on a large scale for a long period is extremely dangerous as it would debase the currency and cause a sharp uptick in inflation. But it is an available option.
Beyond this of course the study does not address many of the long term underpinnings of the principal sources of revenue for the government. Short term those are horrible. The recession is going to hit the tax base very hard. But long term they remain among the best in the world. By the middle of 201 (being pessimistic) we will be in a recovery. As the economy starts back up the tax base will significantly improve.
That combined (one hopes) with some fiscal restraint after the recovery begins, will start to see some reduction in the level of the national debt. Sadly the Bush Administration has left the country’s finances in very bad shape as they made no attempt to limit spending or raise revenue to cover it during their tenure in office.spending.