Intermarkets' Privacy Policy
Support
Life of Pi...this is not a movie review, eh [Journolist] | Main | There's Some College Football Game on TV
November 24, 2012

Analysis: Default Is Coming, But We'll Call It Reform

Something which can't be sustained, won't be.

One way or another, then, entitlements will be cut. Don't call it default. The correct term is entitlement reform.

You saw this day coming and saved for your own retirement. Don't call it default when Washington inevitably confiscates some of your savings, say, by raising taxes on dividends and capital gains. Taxpayers accept the risk of future tax hikes that may make the decision to save seem foolish in retrospect.

According to economists Robert Novy-Marx and Josh Rauh, state and local taxes would have to increase by $1,385 per household immediately to make good the pension promises to state and local workers, including firefighters and cops. That's not going to happen given all the other demands on taxpayers. Default, in this case, is the proper word for cities and states using bankruptcy to repudiate their pension obligations.

...

Now let it be said that inflation isn't fundamentally a solution to the entitlement problem, but the Federal Reserve is being led by increments to accommodate inflationary financing of future deficits. Don't call it default. Inflation is a risk savers are deemed to have accepted by putting their faith in the U.S. dollar.

Here's what you weren't told about Medicare during the presidential debates. Under the Paul Ryan plan, the affluent would pay more. Under the Obama plan, the affluent would flee Medicare to escape the waiting lists, shortages and deteriorating quality as Washington economizes by ratcheting down reimbursements to doctors and hospitals. Don't call either default. You don't have a legally enforceable right to the free care you imagined you were promised.

A big thing that's lurking beneath our politics -- which most people don't see yet -- is that there is going to be a mad scramble between "investor classes" in the coming US managed bankruptcy, with Obama insisting his coalition be paid off first and Republicans demanding their constituents be first in line to collect the very limited of dollars salvageable from the concern. Four or five dollars have been promised for every dollar actually available.


digg this
posted by Ace at 08:15 PM

| Access Comments




Recent Comments
Your friendly Danube River Guide: "342 Posted by: Kreplach at October 21, 2014 04:15 ..."

Costanza Defense: "Who's up for some jew-hating black people? Fre ..."

rickb223[/s][/b][/I]: "But I do have a make (my teenage nephew) to dispat ..."

Golfman in NC: "Posted by: Nevergiveup at October 21, 2014 04:16 P ..."

Duke Lowell: "SC nominees would require 60 votes for cloture. P ..."

Bob's House of Flannel Shirts and Wallet Chains: "I can't think of any who are aging gracefully..... ..."

Your friendly Danube River Guide: "344 If Mississippi doesn't want Thad rest assured, ..."

Kay Hagan: "I've been considering plastic surgery to make me l ..."

Nevergiveup: "This is true, But in a lame duck session anything ..."

Joe Manchin: "I swear Kay Hagan has never spent the night on my ..."

BackwardsBoy, who did not vote for this shit [/i][/s][/b][/u]: "[I]Plenty of folks on the EBT rolls who despise be ..."

Mallamutt, RINO President of the Sheena Easton Fan Club: "If Mississippi doesn't want Thad rest assured, we ..."

Recent Entries
Search


MuNuvians
Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
News/Chat
Archives
Powered by
Movable Type 2.64