The Politics Of Debt Destruction

So I follow this guy on twitter. He seems like a nice enough guy and pretty smart too. But then he posts this and I’m pretty angry about it. I’m angry because it’s so off base. It’s so off base and he even admits it. It’s almost like it was created for linkbait.

The worst thing about these Tea Party assholes is that they’re actually right – even as what they are about to do may go down as the worst self-sabotage in the economic history of the United States.

Any rational, non-partisan person can see that the reckless spending and gigantic government of the last ten years are absurdities that need to be corrected – but there is a time and a place

So there is a time and a place, but we never get there.


The only time anyone has become serious at looking and actually doing something about the debt is because of those assholes. So on the one hand you actually give those assholes credit for being right but on the other hand you then have to go and call them names. Nice.

How dare these sonofabitches choose now to put the US on a collision course with a ratings downgrade?

Dude, I know I’m not even close to being as smart financially as you are but, we’re already toast. Maybe you haven’t seen the signs because you’ve been making all sorts of money. Hell, you even put a chart from Barron’s who then says we can’t stop a ratings downgrade anyway. Did you even read the friggin chart you posted? It’s right there.

Even S&P is saying the obvious, that it’s the total debt that’s a serious concern.

“The more important issue is really the long-term growth rate of the debt … as well as the deficit,” S&P President Deven Sharma told a House Financial Services subcommittee hearing on oversight of the credit rating companies.

We’re basically at 100% GDP for debt. Seriously think about that statement. That’s banana republic territory. Even the OMB admits we’ve got that much freakin debt.

The Office of Management and Budget forecasts that, by the end of fiscal year 2012, gross federal debt will total $16.3 trillion. Thus, the projected debt will equal 101% of projected gross domestic product, which represents a milestone in the U.S. economy.

And don’t forget. The US government is currently operating without a budget. The Senate is supposed to submit a budget but hasn’t even bothered to do that either last year or this year, in violation of the law. You’re complaining about the asshole tea party folks and the democrats controlling the Senate couldn’t be bothered to even submit a budget for the past two years running.

Don’t forget about the Enronesque off balance sheet accounting of Fannie and Freddie.

The on- or off-balance sheet obligations of those two independent GSEs was just over $5 trillion at the time the conservatorship was put in place, consisting mainly of mortgage payment guarantees.

Do we even want to go near the Social Security and Medicare unfunded liabilities?

The U.S. government is committed under current law to mandatory payments for programs such as Medicare, Medicaid and Social Security. The GAO projects that payouts for these programs will significantly exceed tax revenues over the next 75 years. The Medicare Part A (hospital insurance) payouts already exceed program tax revenues and Social Security payouts exceeded payroll taxes in fiscal 2010. These deficits require funding from other tax sources or borrowing.

The present value of these deficits or unfunded obligations is an estimated $45.8 trillion.

Yeah you can go ahead and argue the actual valuations and whether that number is correct to the penny but you can’t deny there’s an issue when the Social Security and Medicare “trusts” agree that things are seriously unfunded.

I’m trying to prove a point. We’re already on the Titanic. Do the math yourself, but really, we’re all just arguing over who’s going to hell in first class versus steerage. There’s already so much debt and no one, not one single professional politician did anything about it until these assholes were elected.

Dude, you even say yourself that a downgrade is going to come unless something is done. You obviously don’t pay much attention to politics because, nothing has been done, by either party. Both party’s suck. Neither is credible when it comes to overspending. But, one group of a party actually tries to do something and they’re the assholes? Seriously?

Want to know what an asshole is? It’s the Secretary of the Treasury going on national tv and telling gullible seniors that they’re not going to get their Social Security checks. And then those wonderful old folks then do things like not eat because they’ve been told by the Treasury Secretary, a lying tax cheat by the by, they’re not going to get their checks.

Tim Geithner knows for a fact that those checks are going out. He deliberately lied to people for political purposes. There never was a snowballs chance in hell of that ever happening but he did it. And his boss did it too. Those people are assholes. They deliberately cause people pain purely for their own political advantage. How is that not an asshole?

So while you’re most certainly allowed to pick on one group over another, I think you’re missing the forest for the trees. The problem is government itself. Both parties will do anything they can to stay in power for as long as they can. That’s the issue. Anything else right now is just music on the Titanc. Enjoy your ride.