Oregonrain

Design A Country Rescue Package Here (Comment Competition)

To be sure what is being done now is monetary insanity. At the same time I do not see another option other than letting everything fail. Perhaps in the long run this will be shown to have been the best course in the long haul. But...as Arete says...it is counter-intuitive.

At the same time, it is essential that there be plans in place to pull back the levers of the throttles on the speed printer going on at the Fed. It will take higher taxes and cutting social security and other retirement plans and of course the medical programs. That is the only place where you can pick up the kind of money you need (hundreds of billions) in short order. Everything else in the Federal Budget (other than the pentagon which we will need and interest on the debt) is not worth the effort. It just simply does not get you the savings you need fast enough.

The people who argue that it can all be done with either tax increases or spending cuts simply do not understand the issues. As people say, "for every complex problem there is an easy and simple solution." It just happens to be wrong.

To the extent money is spent it has to be directed at high pay back areas. Education, R&D and infra-structure. As Jeremy Grantham says..real wealth is measured in the will of a nations people, the knowledge they hold and their resourcefulness. it also helps to have good land and water. We are still a rich nation.

On the Calif situation....I think they will need to make some major cuts to their budget. I think the number I heard is $23.0 billion short fall. Maybe some small "bridge loan" makes sense given how large a part of the national and international system it is. But, the people of that State have spoken. "No New Taxes." Ok...good on them. Time to cut the services...no more messing around. Once the pain becomes unbearable and it will.... it might be time to consider the loan. Until then....No.

The problem in the country has been that the demigods have told the public you can have it all. Huge tax cuts...all the services and wars you want..no problem.

This can be solved. It just takes reality...not slogans and the scapegoats like 'welfare." The idea you can cut taxes to ZERO as one commentator expresses and "solve" the problem shows you how far this kind of lack of thinking has gone.

I will admit that letting it all fail is an option. Let the real crisis begin. It is an intellectually defensible position. I just do not think the nation or the world for that matter would be a nice place for a long time if we go there.