Too Bad the Deficit Commission Didn't Go Straight For the Fed Instead
Looks like grandma is going to be eating Alpo a tad longer than we initially thought.
A presidential commission’s leaders proposed a $3.8 trillion deficit-cutting plan that would cut Social Security and Medicare, reduce income-tax rates and eliminate tax breaks including the mortgage-interest deduction.
The co-chairmen of the panel appointed by President Barack Obama suggested reducing Social Security spending by raising the retirement age to 68 in about 2050 and 69 in about 2075. The plan also would slow the rate at which benefits grow. The savings would come between 2012 and 2020.
“This country’s out of money and we better start thinking,” said co-chairman Erskine Bowles. Without “tough choices,” he said, “we’re on the most predictable path toward an economic crisis that I can imagine.”
As a Fedbasher who believes the Fed is the root of all evil and, subsequently, the root of all economic malaise, the most obvious solution to our debt problem would be to eliminate the central bank and start over with a self-regulating monetary system based on everyone's favorite barbaric relic, gold. But obviously that was beyond the scope of the debt commission's report. Hate to break it to everyone who would love to bitchfight about this proposal for the next several months or years but accomplishing that much would relieve our debt problem, force fiscal control in Congress and remove the constant political posturing over who gets a bigger piece of pie that dominates DC. All while Zimbabwe Ben sits in his marble temple sharpening his claws and writing out checks to Congress.
While some argue that their proposals are "crazy", JDA is happy to go on record as saying they may be far too optimistic. Raising the Social Security age to 69 in 2075 does absolutely no good if the Social Security Trust Fund is insolvent now. In 2050, I'll be 70 years old (assuming the Fed hit squad doesn't take me out before then) and I have all but given up on the idea of there even being a Social Security for me. Hell, I'd given up on there being a Social Security for my mother when she was ready to retire but lucky for her she escaped the evils of this world and caught the first train to Heaven earlier this year and will not have to worry about such things.
Instead, I get to watch my grandparents get gypped again on a SS allowance raise (so we can give billions to GM and the banks but not an extra $20 a month to grandma? Shame) and listen to this nonsense about pushing the Social Security age higher 50 years down the road. The obvious motive behind all this is that the "inflation is too low to warrant a Social Security increase" argument can only last so long, and definitely won't fly once the unwashed masses catch on to the true story of food inflation.
Let's be real about this entire thing: I can't name a single individual in Congress or the White House or anywhere in the entire DC Metro in the business of running the government who would actually support this. And frankly it just doesn't go far enough.
Anyone stupid enough to endorse this already saw what happened on November 2nd and Congress will turn into a revolving door built upon petty revenge and immature bitchfighting. Oh wait, it already is!
Do I have a better solution? I believe I put it at the beginning of this post. I guarantee a large chunk of our problems - and most importantly, the problem of the bubble syndrome that keeps us all strapped to the yoke of perpetual debt to feed the Fed - would melt away. Sure, not instantly (we didn't get here overnight and it isn't going to be wishful thinking and a snap of the fingers that gets us out) but eventually, the clouds will clear and suddenly fiscal restrain will be feasible without an eager debt-pusher lurking right there, conveniently, at 20th and Constitution with a hot press and unlimited fake money to lend.
Remember, we do have to pay them for that. And servicing our debt is no longer something in our capacity to do.
Whose fault is it? Well that answer should be all too clear at this point.