The fact is that RIGHT NOW is never a good time in the US. We have run deficits for decades and we aren't going to run a surplus any time soon, if ever. So wanting and wishing won't make that any different, regardless of who's in power. Both parties are big spending parties that have no clue how to balance a budget. We had a brief moment in time when Clinton, the rarest of all birds a fiscal conservative and Democrat, and Gingrich came together in a bipartisan effort to roll back the welfare state, raise taxes, and balance the budget. It worked and we ran a surplus for the briefest of moments.
It turns out that was a miracle baby that we may never see again. I think the probability is higher that we'll have a fiat monetary collapse due to debasement, before we see a surplus again. Put another way, I think the next time we see a surplus will be after our fiat currency has been replaced with a hard, commodities based convertible currency. Historically speaking, all fiat currencies have had a limited shelf-life. Countries who employ fiat currencies can make it last a long time through proper fiscal management and a regime that goals their central banks on price stability. However, eventually the central bankers always end up printing money as far as the eye can see. When that happens, fiat currencies die. It appears Bernanke is hastening the day to the USD's expiration of value. We still have a chance to replace him with someone more like Volcker, but with Obama in power, we're more likely to get Geithner as the next Fed Chairman, than to get a Taylor or Volcker or some other monetary conservative. |
