Debt Downgrade
S&P has spoken. The same agency that allowed stinky mortgage based securities to have higher than justified ratings until it was too late is wrong again. To compare the current US debt problems with what is currently happening in Europe as of the August 8, 2012 is over blown.
The debt problem is overblown what is not overblown is the country's political response to it's fiscal problems. A pox on both your houses. The Ryan Plan to deal with funding issues related to medicare financing was DOA after Republicans realized the political headaches it would cause. The Democrats coulda, woulda, and shoulda beaten them around the head with policies that would have raised costs for the elderly poor that already made other plans based on current medicare promises.
Sadly and I think S&P is correct in saying that the political situation in the country is not positive when dealing with this situation. The brinksmanship of the debt ceiling deal was unnecessary at best. John Boehner's comment that he got 98% of what he wanted is a political victory that will make it harder for this country to get out of this recession. The democrats have their issue with Medicare. Political issues do not solve problems. The only thing it does is allow fund raisers to shake the tree for more contributions and increased polarization. In some ways S&P is kind in their analysis. It maybe much worse except we don't realize all the ramifications of our actions.
The US wastes a great deal of money it spends on health care. Sadly we are getting older, fatter, and too many still smoke. At the end of our lives we spend too lavishly to extend something whose quality has been seriously degraded. The real problem with entitlement mentality is that it allows too much flabby thinking.
The effective tax rates overall do not generate enough revenue to pay for the government we expect. Reforming of the tax code and adjusting rates along with the elimination of waste and duplication can go a long way to solving the debt problem which is increasingly not a partisan issue.
Meanwhile one side says no increases in revenue and we can balance the budget on cutting expenditures and the other gloom and dooms it saying the rich should pay their fair share and pull out their charts. They ask how did the rich get so rich, sadly in many cases it was by sending jobs overseas and exploiting the tax code which they have had too much influence in constructing. Wealth these days is related to the positions people hold if they are lucky enough to have a job.
The clock is ticking. The slow burn of frustration, unrealistic expectations, and stupidity continues and we are not better for it.
One final thought! Many people have an unwaivering faith in the free market and democracy. If only it were so. What too many people now realize that the real road to success requires gaming the process where incumbents are invincible and work the political process and serve "forever".
Financially your success is also related to your network and it relationship to wealth and political power. Going to the "right schools", having friends in high places, or some other kind of sinecure is the ticket these days.
The optimist says all things being equal, but things never are equal and they probably never were.
The debt problem is overblown what is not overblown is the country's political response to it's fiscal problems. A pox on both your houses. The Ryan Plan to deal with funding issues related to medicare financing was DOA after Republicans realized the political headaches it would cause. The Democrats coulda, woulda, and shoulda beaten them around the head with policies that would have raised costs for the elderly poor that already made other plans based on current medicare promises.
Sadly and I think S&P is correct in saying that the political situation in the country is not positive when dealing with this situation. The brinksmanship of the debt ceiling deal was unnecessary at best. John Boehner's comment that he got 98% of what he wanted is a political victory that will make it harder for this country to get out of this recession. The democrats have their issue with Medicare. Political issues do not solve problems. The only thing it does is allow fund raisers to shake the tree for more contributions and increased polarization. In some ways S&P is kind in their analysis. It maybe much worse except we don't realize all the ramifications of our actions.
The US wastes a great deal of money it spends on health care. Sadly we are getting older, fatter, and too many still smoke. At the end of our lives we spend too lavishly to extend something whose quality has been seriously degraded. The real problem with entitlement mentality is that it allows too much flabby thinking.
The effective tax rates overall do not generate enough revenue to pay for the government we expect. Reforming of the tax code and adjusting rates along with the elimination of waste and duplication can go a long way to solving the debt problem which is increasingly not a partisan issue.
Meanwhile one side says no increases in revenue and we can balance the budget on cutting expenditures and the other gloom and dooms it saying the rich should pay their fair share and pull out their charts. They ask how did the rich get so rich, sadly in many cases it was by sending jobs overseas and exploiting the tax code which they have had too much influence in constructing. Wealth these days is related to the positions people hold if they are lucky enough to have a job.
The clock is ticking. The slow burn of frustration, unrealistic expectations, and stupidity continues and we are not better for it.
One final thought! Many people have an unwaivering faith in the free market and democracy. If only it were so. What too many people now realize that the real road to success requires gaming the process where incumbents are invincible and work the political process and serve "forever".
Financially your success is also related to your network and it relationship to wealth and political power. Going to the "right schools", having friends in high places, or some other kind of sinecure is the ticket these days.
The optimist says all things being equal, but things never are equal and they probably never were.
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