Sunday, January 13, 2008

If We Don't Begin To Solve Debt Problems

Moody's recently said that the United State's AAA bond rating could be in trouble once Medicare and Social Security costs skyrocket with the retired baby boomers. Moody's rates bonds from nations around the world.

There is still time to fix the issue, or at least start to get things under control if Congress and the President are willing to face the hard truth. But each year gets us closer and closer to the eventual massive shortfalls of social security and medicare we will have to face.

The subprime meltdown is a relatively minor event comparatively and it has Wall Street panicked. Imagine what is in store for us once the social security/ medicare meltdown begins to kick in. If our bond rating gets downgrading the result will be crushing.

I understand Iran is already using the dollar as toilet paper. We might be doing the same if we don't get our house in order and have to start printing lots of money to keep paying our debt.

I used to be optimistic that we could indeed begin to fix the issues especially with a Republican President. Republicans are supposed to be against big government and excessive spending right? Ironically Clinton not Bush did more to balance the books and reduce debt. Bush has only exacerbated the problem. Government has grown at an out of control rate under his presidency and so has the national debt.

It is probably impossible that any President and Congress would be willing to approach the American public and tell them we need to make some sacrifices so our children can enjoy some prosperity. Presidents are elected on their optimism not their pessimism. We need to tighten our belts and nobody wants to hear that in an election year.

I've heard enough talk about rainbows and sunshine. A little pessimism would do this country some good.

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