I'll always take the worst case scenario in a discussion because the only direction is up. What is fact, we as a country just can't keep printing money to cover all problems because we are truly
broke.
Anyway, the point is there is no possible way in our lifetime we'd be able to pay off the debt. The economy is stagnate, there is no new job growth, unemployment is at it highest in decades, there is a gluten of empty homes, and the markets have not recovered to the 97 level. So instead of the government making cutbacks, they print more money to insure temporary confidence.
We need leaders right now to make tough decisions, but they'd rather argue on who's getting the bigger shrimp at the buffet table and ignore the fact, they're sailing on the titanic or maybe not? We are not too big to fail because sooner or later they'll have to be cuts because we can't keep printing money.
Our government won't explain a solution for the biggest crisis here and now. As of Jan 1, 10,000 Baby-boomers a day are retiring and will continue for the next 20 years. Most Americans haven't a clue on how big this problem truly is. Meaning, in the next 10 years the entire population of Canada comparatively, will be receiving SSI and subsidized health benefits.
Besides the fact, millions of these retirees lost their 401's in 2008 we don't even have a solid plan and can't afford to pay them, accept by printing more money. One side says, we will NOT cut spending as the other side says, we will not raise taxes. Solution, raise the debt limit, and print more money!
Wig is one of the brightest guys on this board financially, but I am leaning towards DWB opinion. If we don't do something right now and cutback on all social programs, spending, and increase taxes, we'll wake up to a market crash. Why? we keep printing money causing a weaker dollar that erodes investor confidence.
You see it's not just about how much gold or oil you control, it's always been about confidence in the system. People feel afraid, they won't buy, this causes more inflation and unemployment. Currently, the government is producing a false confidence when in fact, more people are discovering we are in serious trouble.
IMO, we are buying time. Why? Green technology at best, is a decade away and there is no new market innovations. Right now I believe we are at a standoff with EU in hopes the Euro fails. Matter of fact, I believe we are banking on it because if they split, there will be lot's of new markets to exploit because no one trusts the Chinese.
If we fail, we are worse then broke and fail to see why States like Texas, Arizona, or any other red state would not consider succession. This means the EU won.