Here is House Budget Committee Chairman Paul Ryan (R., Wis.) explaining the nature of the debt crisis in the United States, on Fox News.
There are two crises facing Social Security. First the program has a gigantic unfunded liability, largely thanks to demographics. Second, the program is a very bad deal for younger workers, making them pay record amounts of tax in exchange for comparatively meager benefits. This video explains how personal accounts can solve both problems, and also notes that nations as varied as Australia, Chile, Sweden, and Hong Kong have implemented this pro-growth reform.
One cannot reform a Ponzi scheme by making it more expensive or less lucrative, and the dearth of new participants dooms a Ponzi scheme of any sort. The only real solution is to give workers control over their own funds and to keep them away from Congress.
Quantitative Easing II (or QEII), the pumping of $600,000,000,000 into the economy without any wealth creation, was, I think intended to get companies to spend the cash they are sitting on while they wait to see what the rules (taxes) will be before making any projections or planning how to use it. I’m quite sure that the knowledge their money will depreciate in purchasing power by 20% in the next few months will cause them to at least rethink their positions. Whether it will actually stimulate spending is less certain.
One thing is sure. It is going to infuriate anyone we owe, bondholders, those holding dollars, or that we have promised money. And as it trickles down to the general population and they notice everything is 20% higher there is going to be a lot of finger pointing going on in the political class. Hopefully it will cause that “screwy idea”/sarc of auditing the Federal Reserve to come to fruition. You do notice that the official announcement was held until after the election?
Here are some links to “enjoy”/sarc:
WASHINGTON (Reuters) – New claims for jobless benefits unexpectedly rose last week, hardening the view the central bank will pump more money into the economy in hopes of boosting growth and lowering unemployment.
Insanity: doing the same thing over and over again and expecting different results.
Congressman Paul Ryan continues his efforts to advance an adult conversation on the urgent need to protect Social Security. Wasserman-Shultz continues not to listen and interject “Wall Street…Wall Street” as though that were the only other option. FICA stands for Federal Insurance Contributions Act and had that money been treated as as insurance reserves, it wouldn’t be in trouble. But the Dhimmicretins had to find money to pay for LBJ’s “Great Society” so they took the money out and replaced it with IOUs and have continued that process with Rethuglican accomplices ever since. Enron execs and Bernie Madow learned from those crooks , did the same thing and went to jail. We need to send some congresscretins there too.