0
Anvilbrother

Possible short term positive, guaranteed long term negative.

Recommended Posts

We have a spending problem
Not a revenue problem



It rather goes beyond that. To say that we have been spending money like a drunken sailor is an insult to drunken sailors - when drunken sailors run out of money, they stop spending.

We are in the unenviable position of a gambler who has been given an open bar and unlimited markers. Upon regaining consciousness, our unfortunate wastrel is likely to discover that the losses are much more than can ever be repaid.

Given that our economy is dependent on "growth" and an unfettered trade deficit, the reality is that this model is ultimately unsustainable.

Put another way, we are beyond fucked.

The image keeps coming to mind of John Cusak in "Fat Man and Little Boy," where he plays a physicist who gets a massive dose of radiation. Going to the blackboard, he works out the numbers, looks up and says "I'm dead!"

Our economy is on life support, and the only question is when it will prove insufficient or be cut off.

If we were to balance trade today (and I am ignoring the tab we have so far run up), we would go from 20,000,000 barrels of oil a day to 4,700,000 right off the bat - assuming oil produced here is not sold to foreign buyers with money that has any value.

Our "Strategic Reserve" would cover our needs for a period of time conveniently measured in minutes, but then we would revert to what we produce and get to keep.

What people do not realize is that this does not mean there would be 1/4 as many cars on the road - there would be effectively NO cars on the road. Our minimum petroleum infrastructure requirements (power, industrial, transport) are greater than our net production, and civilian gasoline production is only part of what we import.

The size of the economic catastrophe we face is as unprecedented as it is unavoidable.

Enjoy yourself - it's later than you think.


BSBD,

Winsor

Share this post


Link to post
Share on other sites
What is (according to the IRS) the lowest yearly reported income in the 1% of all earners bracket?



2009 $343,927 is what I'm seeing.

James



Cool

Next question

What percentage of federal income taxes are paid by the 1% ? (those who have an income of the number you posted and above)



36.73 it appears. It will need to be more as will the percentage that the rest of us pay. Along with that spending will need to be cut if we are to get out of this mess. It sucks bigtime, but it is the way it is. I guess the other option is to become a conquering nation and take what we want from the rest of the world.

James



No, it does not need to be more

We have a spending problem
Not a revenue problem



There is no doubt in my mind that we have a spending problem.

Maybe you can change my mind about the revenue side of things. How much are you going to cut spending and where to not only balance the budget, but also provide a reasonable pay back period for our debt?

James

Share this post


Link to post
Share on other sites