"Unless the policies are drastically changed, we will not come out of it either."
I keep hoping Obama will discover how bad his advisors have been and kick them out. While it's true he walked into an almost impossible situation, I think many have been disappointed by his administration's response to the inherited mess.
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But we agree, here: "Unless the policies are drastically changed..."
I don't think people understand what is meant by "Draconian measures". Examples:
[1] Pull the US out of all military exposure. Iran and Afghanistan, out. Now. "Sorry, we're outta money." Cut military spending. Why should the US fight the Taleban? Let the Chinese and the Russians do it... or not. After all, the problem is on their borders, and the US is fighting their potential enemy. Close hundreds of bases worldwide. Mothball ships, subs and planes. Keep the bare minimum necessary for continental defense.
[2] Eliminate non-essential spending. Wind down NASA.
[3] Impose an immediate 10% VAT, solely directed to debt repayment.
[4] Reestablish pay-as-you-go budgeting.
[5] Replace Geithner with Volcker.
[6] Eliminate duplicative programs; rationalize government spending.
[7] Eliminate government subsidies, including agricultural.
There are many other possible steps that could be taken. Harsh? Yes. But the options still exist, and implementing them would restore much international confidence in the US.
Face the facts.
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"In any event, one should not expect a speedy recovery."
Absolutely correct! The market is delusional, right now.
Jim |
