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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (587352)	11/8/2015 2:34:09 PM
From: i-node	2 Recommendations Recommended By skinowski Stevefoder Read Replies (1) \| Respond to of 793927

Well, there was also a pretty massive tax increase in the early 80s. That system would have died a long time ago had Reagan not been willing to massively increase the payroll tax. But he did so with a caution: ~"You have got to work on this over the next 20 or 25 years or it will end up right back where we were." >> We can leverage finances now to the point that nobody can project what is really going to happen. I think there is a great truth in this. It is the reason we've gotten into the soup we're in today. But I don't buy that it rolls on forever. There is, quite literally, nothing else the Fed can do; as a result, the slightest little economic blip can quickly become a crisis. It all looks like the gathering of the perfect storm to me. We are, today, reliant on Mutually Assured Destruction in our fiscal situation. A similar situation occurred between Brazil and Citibank a few decades ago; if Citibank didn't continue lending money to Brazil with which to pay interest on the debt to Citibank, Citibank would have to write off all the money Brazil owed it. Obviously, that was never going to work out. I don't know how long we can stretch out the fiscal balloon but at some point it is going to be over.