Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (34831)	6/9/2003 11:16:44 AM
From: energyplay	Read Replies (4) of 74559

Jay - Future obligations of US Fed GOVT - Most of this can easily be solved by 1) Modest amounts of inflation. 2) A Consumer price index which undercounts inflation. 3) Baby boomers working a few more years until retirement. 4) Some degree of means testing to tax the benefits of the retired rich. If you have a fixed obligation, and percentage based tax structure, moderate inflation will increase revenues to obligation. If you have a progressive tax structure - moderate inflation or higer incomes results in bracket creep and enough money to begin to pay down debt, like late 1990s. The Consumer Price index has already been 'fixed' Health care for the elderly will be rationed or limited to means to pay in some form. Working longer is a powerful fix - generates more revenue, postsponneds consumption AND limits the numbers of years of consumption. US Economy is 10 Trillion. How long a time period are they using ? 20 years won't be a problem.

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