Friday, January 15, 2010

GOP, Dems in “Death Embrace”: U.S. Budget “About to Go Off a Cliff," Cal Prof Says

U.S. Budget “About to Go Off a Cliff," Cal Prof Says

If we haven't already gone off the cliff, see chart, then it's probably best not to ask what if he's right.

The budget deficit is skyrocketing

Raise taxes or cut spending? Washington must take action on both fronts to curb U.S. debt or run the risk of a dollar crisis, according to a report by the Committee on the Fiscal Future of the United States, a panel of bipartisan experts.

1. Raise Taxes
2. Cut Spending
3. Devaluation

The first two choices are hard. The last one is easy. Political will is like electricity, it always seeks the path of least resistance.

Source: finance.yahoo.com

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