John Fund Warns About America's Perilous Future 22 comments
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Before the financial crisis began to unfold in the spring of 2007, plenty of allegedly knowledgeable people were happy to go along with the pre-Hurricane Katrina approach to preparing for the inevitable worst. That is, since nothing really bad had happened up until that point, that meant the coast was all clear for the foreseeable future -- hence, no reason to do anything at all.
Even worse, that sort of thinking was encouraged by incompetent regulators and clueless politicians, many of whom were beholden to their paymasters on Wall Street and in the corporate world.
However, not all of our public "servants" -- nowadays, one has to use that term loosely -- were oblivious to the risks that were brewing on myriad fronts. One obvious example is Rep. Ron Paul, who has long warned about the serious trouble we were getting ourselves into. Another is the nation's former auditor-in-chief, who is the subject of the following interview by WSJ.com columnist John Fund, entitled "Warning: The Deficits Are Coming!":
The former head of the Government Accountability Office is on a crusade to alert taxpayers to their true obligations.
David Walker sounds like a modern-day Paul Revere as he warns about the country's perilous future. "We suffer from a fiscal cancer," he tells a meeting of the National Taxpayers Union, the nation's oldest anti-tax lobby. "Our off balance sheet obligations associated with Social Security and Medicare put us in a $56 trillion financial hole—and that's before the recession was officially declared last year. America now owes more than Americans are worth—and the gap is growing!"
His audience sits in rapt attention. A few years ago these antitax activists would have been polite but a tad restless listening to the former head of the Government Accountability Office, the nation's auditor-in-chief. Higher taxes is what hikes their blood pressure the most, but the profligate spending of the Bush and Obama administrations has put them in a mood to listen to this green-eyeshade Cassandra. "He's so unlike most politicians," says Sharron Angle, a former state legislator from Nevada, "his message is clear, detailed and with no varnish."
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So you must REALLY be pissed at the Bushco for starting an unnecessary war that spends billions each month and results in death for Americans and Iraqis. Billions have been stolen (in cash sometimes) and no-bid contracts given to companies that are friends of Cheney and others resulting in work that has been incompetent and resulted in American soldiers dying while showering.
Oh wait, a defense budget that is larger than the REST OF THE WORLD"S. Does that cost annoy you?
How about corporate welfare and American companies hiding profits offshore. Problem? Capitalism - what a concept.
Billions going to religious organizations. Okay with you?
An RX program for seniors by Bush that did not negotiate with pharmaceutical companies to save Americans money. Nah, the corporations need it more.
And, no real regulatory oversight that might have prevented our current financial problem by Bushco.
No one is sure how this crisis will play out but something apparently had to be done and Obama did it. Am I happy with all of it? NOPE.
But to rail against the only two names in your post, Reid and Pelosi is absurd. And to complain about the "welfare state" and the "nanny state is also absurd and shows you have NO empathy for anyone but yourself. Screw the vets and their injuries. We don't need no stinkin VA, right? Socialism to take care of people. What a waste of good money that could go to some needy corporation!
Oh, I forgot. Sorry. You are one of those " I got mine, you get yours and the "free market is god" types.
Obviously an ideolgue.
I know. Corporations that send jobs overseas, screw their employees (Enron, etc) and want only high profits are obviously GOOD. Sorry.
On Sep 06 01:08 PM bill clintoon wrote:
> obama, a.k.a. Pinhead, is attempting to hijack the health care industry.
> This future influx of over $ 500 billion will be another short term
> fix. The money will come in and quickly be dispersed. We are a welfare
> country. As a nation, we have rewarded the non-productive, while
> assailing the productive. We have been brained washed to believe
> that only government has the correct solution. We as a people no
> longer feel independent and willing to pull our own weight.
> Our standard of living is in a free fall and we have become the laughing
> stock of the world.
There is, of course, the potential economic disruption of the H1N1 "swine flu" virus, or some other variant strain (viruses do mutate, then the vaccines don't work, and a new solution must be found), is expected to inject globally. Potential costs range dramatically (as well they should) because we won't know what sort of damage is done until it actually hits.
I realize that scientists in Spain have uncovered what they claim to be the source of Colony Collapse Disorder (CCD) that has already led to the deaths of billions of the world's honey bee population (over 35% of total bee population as of last spring). But, what if the Spanish answer is not the real answer or is only the answer for the local problem? What if (and this is not a huge stretch due to the variety of symptoms recorded) there are other causes that spread? In three years (since 2006) we lost 35% of the bee population. In another three years a similar loss could be catastrophic, leading to widespread shortages of food, even in the U.S. I think that would qualify as divine intervention.
The point is that there is much that we do not control. It is also curious to me that such a major potential problem such as the dying of bees (needed to pollinate most agricultural crops around the world) has gone almost unnoticed by our society. I guess we are not on the brink, yet. Therefore, it must not really be news. Thank you, MSM, for keeping us informed about the potential names for babies of the stars (obviously, far more important that a potential for global starvation).
And I don't think that raising taxes while including loop holes for certain segments of society is the answer. It leaves too many behind and becomes regressive. We really need to rethink the entire tax system and come up with something that really works for everyone, not just the super-rich or well-informed (sorry, that should read: well-connected). A system that provides incentives to start new businesses rather than regulating and taxing them out of existence would be a good start. A system that allows our businesses to become more competitive in the global economy rather than encouraging them to ship jobs and production overseas would create a better, more lasting foundation for our economy. A system that exempts the poor from taxation and encourages people to move up the economic ladder instead of encouraging the poor to stay put would be refreshing.
In short, we need a whole new Congress that can think outside of the established system that they created (and likely will defend to the bitter end). We need real reform. We need real vision. We need real representation of the values that made our country great. We need to return to honesty, integrity, hard work, and transparency in government and business (especially banks).
Your final paragraph suggests what you feel is necessary. Never happen. This country is run by corporations (banks, RX, Wall Street, etc). They and the corporate party, repubs, don't want it. They like it this way so the greedy can continue their "capitalist" ways without any oversight. The current healthcare viciousness is proof that people don't count - only company profits do.
It's over and has been for sometime.
On Sep 06 01:47 PM Mark Bern wrote:
> CautiousInvestor - The divine intervention you mention is coming but not in the form for which is hoped. It may be divine or it may not be, but we are in for some very negative shocks to our economy over the next months and years. Some are economic in source others are from Mother Nature, or divine.
-------------------
Again, very well written. Regarding your last paragraph and solution, that will come after a collapse of the government and an end to so much of the spending that has caused voters to keep the status quo for fear of losing what they get.
The shift of power from developed nations to emerging markets is going to continue to have a profound effect on the U.S., its government and voters for decades to come.
On Sep 06 02:39 PM RECESSIONPROOF wrote:
> 50 americans states will break to rich states and poor, rich states
> will join the euro, poor who knows
On Sep 06 01:08 PM bill clintoon wrote:
> obama, a.k.a. Pinhead, is attempting to hijack the health care industry.
> This future influx of over $ 500 billion will be another short term
> fix. The money will come in and quickly be dispersed. We are a
> welfare country. As a nation, we have rewarded the non-productive,
> while assailing the productive. We have been brained washed to believe
> that only government has the correct solution. We as a people no
> longer feel independent and willing to pull our own weight.
> Our standard of living is in a free fall and we have become the laughing
> stock of the world.
A change in the status quo, would mean those in power now, giving up their power and stepping aside. Aint gonna happen! There will be a second revolution of sorts - either bloodless or bloody - who knows? However, I'm afraid there is a smell of gun oil and powder in the air.
You mean going to your secular messiahs pork projects???!
The sole way out of the thicket is to cut taxes and hope for a major surge in output. That leaves only the problem of who buys it.
Keep going, you might get there.
There should be some kind of a claw-back provision not just for bankers but also for politicians. Because this would put their interests alignment with the long-term interests of the public and the whole country.
The stimulus program was proclaimed to keep the unemployment under 8% -now we are already at 9.7% and rising. So all the money has been wasted. But the foolish politicians and their paid economists will not admit it. Their response is either - without the spending it would have been worse, or things are getting better, or if things don't get better we will spend even more. So is essence we will keep spending - despite the fact that we are flat broke. Yes US is broke - we are the largest debtor nation in the world. Our debt is the highest ever in the world - but we continue to claim ourselves as rich and smart.
Hay, lets save a few billion by cutting off the UN. We give most of the money and troops to run it and they take political pot shots at us.
The Recusant
Ideologues both reps and dems never really see the problems they create do they?
On Sep 06 06:19 PM A. Nony Mouse wrote:
> billions going to religious organizations????? what the...?
> You mean going to your secular messiahs pork projects???!
On Sep 06 01:08 PM bill clintoon wrote:
> obama, a.k.a. Pinhead, is attempting to hijack the health care industry.
> This future influx of over $ 500 billion will be another short term
> fix. The money will come in and quickly be dispersed. We are a
> welfare country. As a nation, we have rewarded the non-productive,
> while assailing the productive. We have been brained washed to believe
> that only government has the correct solution. We as a people no
> longer feel independent and willing to pull our own weight.
> Our standard of living is in a free fall and we have become the laughing
> stock of the world.
One of the reasons the poor are poor is that the rich health-care industry has been robbing them blind for years. Over 60% of this years bankruptcy filings were related to medical emergencies.
And we KNOW why many of the nation's unemployed are unemployed. Because the wonderful successful rich bankers destroyed their own financial system by trying to squeeze blood from a turnip. Greed is not a blessing; it is a curse.
Selfishness is not a blessing.
We are one nation. We are not a nation of the majority to be used for the enrichment of the minority.
On Sep 06 04:20 PM The Recusant wrote:
> Ah, yes, those unproductive, lazy, uninsured ones you refer to must
> be part of the 15% uninsured and 16.8% underemployed or unemployed
> part of the nation. Heaven forbid that we red-blooded, patriotic
> Americans should assail the bonus enriched bankers who caused this
> mess to pay more taxes. Yes, we have become the laughing stock of
> the world, and as I recall, they laughed most after Bush was re-elected
> and they cheered after Obama won. Get over the partisan biases and
> begin to pull together to save our country if you really care. Would
> you REALLY want an entirely Republican or even Democrat country?
> Time to compromise, dude.
On Sep 06 02:39 PM RECESSIONPROOF wrote:
> 50 americans states will break to rich states and poor, rich states
> will join the euro, poor who knows
In short, we need a whole new Congress that can think outside of the established system that they created (and likely will defend to the bitter end). We need real reform. We need real vision. We need real representation of the values that made our country great. We need to return to honesty, integrity, hard work, and transparency in government and business (especially banks).
Can we do this without a revolution? I don't know. Politicians are masters of using rhetoric to defuse issues and maintain the status quo. I can here Obama, McCain, Biden and Palin all saying this exact same thing, before they go off the the country club for their lunch with the bankers.
The Great Deflation that has begun WILL change the world for the better.
On Sep 06 01:47 PM Mark Bern wrote:
> CautiousInvestor - The divine intervention you mention is coming
> but not in the form for which is hoped. It may be divine or it may
> not be, but we are in for some very negative shocks to our economy
> over the next months and years. Some are economic in source others
> are from Mother Nature, or divine.
>
> There is, of course, the potential economic disruption of the H1N1
> "swine flu" virus, or some other variant strain (viruses do mutate,
> then the vaccines don't work, and a new solution must be found),
> is expected to inject globally. Potential costs range dramatically
> (as well they should) because we won't know what sort of damage is
> done until it actually hits.
>
> I realize that scientists in Spain have uncovered what they claim
> to be the source of Colony Collapse Disorder (seekingalpha.com/symbo...)
> that has already led to the deaths of billions of the world's honey
> bee population (over 35% of total bee population as of last spring).
> But, what if the Spanish answer is not the real answer or is only
> the answer for the local problem? What if (and this is not a huge
> stretch due to the variety of symptoms recorded) there are other
> causes that spread? In three years (since 2006) we lost 35% of
> the bee population. In another three years a similar loss could
> be catastrophic, leading to widespread shortages of food, even in
> the U.S. I think that would qualify as divine intervention.
>
> The point is that there is much that we do not control. It is also
> curious to me that such a major potential problem such as the dying
> of bees (needed to pollinate most agricultural crops around the world)
> has gone almost unnoticed by our society. I guess we are not on
> the brink, yet. Therefore, it must not really be news. Thank you,
> MSM, for keeping us informed about the potential names for babies
> of the stars (obviously, far more important that a potential for
> global starvation).
>
> And I don't think that raising taxes while including loop holes for
> certain segments of society is the answer. It leaves too many behind
> and becomes regressive. We really need to rethink the entire tax
> system and come up with something that really works for everyone,
> not just the super-rich or well-informed (sorry, that should read:
> well-connected). A system that provides incentives to start new
> businesses rather than regulating and taxing them out of existence
> would be a good start. A system that allows our businesses to become
> more competitive in the global economy rather than encouraging them
> to ship jobs and production overseas would create a better, more
> lasting foundation for our economy. A system that exempts the poor
> from taxation and encourages people to move up the economic ladder
> instead of encouraging the poor to stay put would be refreshing.
>
>
> In short, we need a whole new Congress that can think outside of
> the established system that they created (and likely will defend
> to the bitter end). We need real reform. We need real vision. We
> need real representation of the values that made our country great.
> We need to return to honesty, integrity, hard work, and transparency
> in government and business (especially banks).