Wednesday, July 27, 2011

The Boat Is Sinking...............

The boat is sinking.We have and are taking on too much debt.We should be bailing water-cutting the budget- but are leaders in Washington are debating on how much to enlarge the hole in the bottom of the boat to take on more debt,because only in Washington Bizzarro World is the solution for existing debt is to add on more debt on top of that debt.

From The Market Ticker;


  • S&P says it must be FOUR TRILLION.  Four is greater than two - by 100%.

  • Therefore, no matter what sort of crap the Democrats spew, until and unless they put a credible plan on the table that achieves four trillion in actual deficit reduction neither party is serious.
    No, this is not a pass for the Republicans.  They haven't put forward a credible plan either.
    The fact of the matter is that both parties are well-aware that addressing the problem will cause an immediate contraction in GDP.  If you get rid of deficit spending it's an immediate 12%+ hit.  If you cut in half it's 6%. 
    Pick one - there's no resolution that actually fixes the problem and avoids this.
    Either come up with a $4+ trillion plan which is still going to produce a monstrous amount of damage and will only extend the time before we blow up - not fix it - or shut up and go home.
    The markets are done with the bullcrap - they know the Democrats and Republicans are lying and they're not going to believe either of you any more.  Either cut it out Reid - and Boehner - or watch the markets crash and, once the downgrades come, you will risk getting too close to the critical point in the gravity well at which point disaster is inevitable.  
    Buy Gold! Pretty soon our money wont be fit to wipe our own @$$ with.

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