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Here It Comes

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rickl:
S&P is talking about downgrading the United States' credit rating.


--- Quote ---This is not about the "ceiling."  It is about fiscal sustainability.

...

Folks, it is time to cut the crap.  We must cut the growth of government debt to below the growth in GDP.  Since at present the government is providing ~12% of GDP via borrowing, this means we must cut federal spending by something closer to 15% of GDP, since GDP will contract when we do this (it's the math, and is inescapable) and debt must shrink faster than GDP does, or grow slower than it does.

Incidentally, that means we must cut federal spending approximately in half, double tax receipts (not rates), or some combination of the two that adds to the same figures.

And we must do it now, because the laws of exponents, which we cannot change, state that the longer we take to get to the above point the greater the cut in the federal budget will have to be.

In other words we will soon get to the point where it makes absolutely no difference what we do - default will become mathematically inevitable.

This sucks, and I understand it sucks.  It doesn't matter if it sucks.  It also doesn't matter if Congress likes this or not.

In blunt language it no longer matters whether there is political will to act as is required.  Arithmetic does not care if you like the answer that it provides.

I have been warning of this outcome for four years, and saying that time, while available, is not unlimited.

We are now out of time.
--- End quote ---

Link

Libertas:
Double tax receipts.

Uhh huh...

Can't do that without cutting rates, and The Regime will stage a coup to stay in power and usher in a full dictatorship before they ever do that!

Spending cuts are the only answer, period.

And as far as time running out...the clicking has only gotten louder of late, the ticking actually started decades ago...

charlesoakwood:

The bottom line is for spending to be less than available funds.

Inexplicable why Pubbies cannot explain in plain language the fallacy the administration is perpetuating.
The credit agencies would shut up or defend a laid out plan of cutting spending to below the current limit.

Glock32:
The Republican'ts are seemingly unable to even get across the point that default is not the automatic consequence of keeping the debt limit in place. The Dumbocrats and their propaganda wing in the MFM keep ratcheting up the doomsday scenarios about default, when it has been shown conclusively that with current monthly revenues, the government could continue to service the existing debt (i.e. NO DEFAULT), pay for SS and Medicare, pay the military, and still have more than $60 Billion available for other monthly expenses.

charlesoakwood:

--- Quote from: Glock32 on July 15, 2011, 09:44:53 AM ---The Republican'ts are seemingly unable to even get across the point that default is not the automatic consequence of keeping the debt limit in place. The Dumbocrats and their propaganda wing in the MFM keep ratcheting up the doomsday scenarios about default, when it has been shown conclusively that with current monthly revenues, the government could continue to service the existing debt (i.e. NO DEFAULT), pay for SS and Medicare, pay the military, and still have more than $60 Billion available for other monthly expenses.

--- End quote ---

 ::thumbsup::

Right, it's clear and simple but they can't get it out of their mouth in unison.  ... and then repeat it.
They should talk to Michele, that girl can go through hell and stay on point.  Oh yeah, she's up in the polls too.

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