I posted this today.
Quote:
Originally Posted by Paul Markham
This applies to the UK, but it's interesting reading. http://news.sky.com/home/business/article/16041913
Quote:
Britain's economic recovery will be "bumpy and uneven" and families will be £1,500 ($2400) worse off over the next five years - but the Government is on the right track.
That is the view of the International Monetary Fund (IMF) in its latest health check on the state of the UK economy.
It backed Chancellor George Osborne's spending cuts and tax increases to reduce the deficit despite households having an estimated £35bn less to spend.
This will follow 10% being wiped off the "tangible value" of property by 2016.
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And all they want to cut is £35bn ($56bn) now think in terms of a trillion dollars. No need for a calculator, it's 28.571428 times larger. $68,568.
If you think the poor, old, infirm, etc can repay that. You're fooling yourself.
And the effect will roll down to everyone. Even people here. |
The US has a mountain to climb without ropes. To get out of the mess left by Bush and continued by Obama there needs to measures on 3 fronts.
Cuts in Government spending, not just the poor and infirm, but all the schemes and people employed by Government. It cost less to have someone on benefits, than in a non profitable job. Like shuffling paper. Or stationed overseas.
Taxes, they will have to rise. No if ands or buts. The Bush tax cuts didn't do a lot to stimulate the economy. If they had, the US would be in better shape.
Production and export, the US imports too much. It needs to produce more goods for home consumption and export.
The size of the US economy. Is the same as the debt.
And in 10 years if everything goes to plan, it will have been cut by $1 trillion, leaving only $13.5 trillion to go. At that rate, maybe it will be gone by 2160.
