US Debt

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ras777's picture
ras777
Status: Member (Offline)
Joined: Apr 15 2008
Posts: 2
US Debt

Chris,  Great series! In the debt clip you say there are only

two ways out, to default or to inflate.

There is a third, means testing on SS, medicare, increasing

the age of eligibility.  

If SS, medicare was turned  into a "safety net" for the poor and the

age was raised to 70, what could the future look like?

cmartenson's picture
cmartenson
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Joined: Jun 7 2007
Posts: 5570
ras777, Thanks for the
ras777,

Thanks for the comment.

I would consider changing the rule on retirees after-the-fact to be a form of default. There was an agreement, it was changed without consent, and hence we have a default.

Leaving that argument aside, the question is "is there some combination of minor tweaks that would allow us to preserve the intent of the social contract without much pain.

No, there is not.

Consider that the US net position has sunk into the negative mire at the rate of more than $30 trillion over the past 10 years. Or, roughly $3 trillion/year regardless of economic growth during that year.

What would the future look like? Well, I cannot image where we would find an additional $3 trillion (with a "t") a year to simply prevent the current US federal situation from deteriorating further. I am wide open to ideas.

Chris Martenson, PhD.

Doug's picture
Doug
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Joined: Oct 1 2008
Posts: 3125
Re: US Debt

Chris

Quote:

Consider that the US net position has sunk into the negative mire at the rate of more than $30 trillion over the past 10 years. Or, roughly $3 trillion/year regardless of economic growth during that year.

Could you explain the $30T figure?  The Federal debt is supposed to be a little over $14T, and that has accumulated largely over the last 30 years since the Reagan administration took office.

Doug

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