"There is danger from all men. The only maxim of a free government ought to be to trust no man living with
power to endanger the public liberty." - - - - John Adams

Wednesday, August 15, 2012

The United Bankrupt States of America

Bi-Partisan Insanity  -  The bankrupting of the United States
  • Like a drug addict, both parties are addicted to massive government spending in order to buy votes from the people back home.
  • Democrats are certifiable lunatics.
  • But even the so-called "Conservative" Paul Ryan budget plan will add $4 to $6 Trillion to the national debt over ten years.

By Gary;
The United States is bankrupt.  We are living off the wealth created by past generations, off pretend monopoly printing press money and off loans from other nations.  Someday soon the money teat will run dry and the shit will really hit the fan.  (That is a technical economic term.)

Even the Socialist confiscation the wealth of the upper classes would do almost nothing to cover the insane bi-partisan spending of Congress.  Both parties have their assorted supporters lining up to drain the US Treasury.  It's all for the public good you know.

Congressman Paul Ryan has become the latest hero to so-called deficit hawks. Twice now, the Republican-led House has embraced his austere budget plans.  But it is all smoke and mirrors no matter which party is proposing a budget.  Spending is beyond the out of control stage.

The Ryan plan would not balance the federal budget for another 28 years at least, according to an analysis by the nonpartisan Congressional Budget Office.

That means the federal debt would continue to rise every year.  That's partly because the tax cuts take effect right away while the Medicare cuts kick in later, as people now 55 hit retirement age.

Even the GOP Ryan budget projects to add another $4 to $6 Trillion to the national debt over ten years.  Why is it considered a "Conservative" budget plan when the debt is still piling up to the moon?

And if you believe that Congress can control its spending for decades into the future to meet Ryan's or anyone else's budget goals then I have some swamp land in Florida to sell you.
Ryan himself concedes that his plan would not balance the budget this decade, predicting it could be balanced by the "mid-to-early 2020s" because his plan would ignite rapid economic growth.

Like his onetime mentor, Jack Kemp, the 1996 Republican vice presidential nominee, Ryan argues that the key to economic growth is not balancing the budget but lowering tax rates, but at the same time Ryan admits the national debt will keep growing.

But what happens if economic growth does not happen or is only very modest? What if there is little to no increase in tax revenue?  Japan is experiencing that type of sluggish economy combined with endless demands for more government spending.  The Japanese national debt keeps increasing.

Under Ryan's plan, which has passed the Republican-controlled House twice in slightly different versions, the Internal Revenue Service would tax the wealthiest Americans less, but many of the poorest ones more; Medicare would be transformed; Medicaid would be cut by about a third.
Mitt Romney has made a point of saying that he's running on his own budget, not Ryan's, but even before choosing him as a running mate, he had adopted much of Ryan's plan. Romney's tax plan would reduce tax rates by less, but closely resembles Ryan's, and so do his plans for Medicare, Medicaid and other safety-net programs.

Even though national bankruptcy is here, the eternal Democrat vs Republican spending wars keep going on and on.  Each side is doing its best to reward members of their voting blocks with money taxed from other people.
(Boston Globe)           (Los Angeles Times)

Ron Paul on the Paul Ryan budget plan
Paul points out that the national debt will increase by trillions.

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