posted on Nov, 12 2012 @ 05:30 AM
Raising taxes is not the solution. Not on the rich, not on the poor, or the middle class. The problem that no politician in the US congress wants to
address is SPENDING. The only way for America to start digging itself out of this hole if its even possible is to lower taxes on everyone, simplify
the tax code, close tax loopholes, remove some ridicolous regulations on small business and most important get the damn budget under control by
slashing spending across the board. Raising taxes on the rich like Obama would like sounds good in theory but its socialism, and its not going to do
anything to help create an environment where business are going to want to create jobs in a time where Americans are desperate for employment.
But where the problem lies mostly is NO ONE in the country wants to compromise and actually cut anything. Since 9/11 military spending has risen
astronomically, aswell as spending for every new sort of governmental department you can think of to keep Americans all "safe" and "regulated".
Medicare and social security are obviously unsustainable problems into the future in the current form. Anyone that has properly looked into the future
liabilities knows the government at the moment has liabilites estimated between 110-220 trillion on top of the 16 trillion and god knows what else
debt that is hidden away on off-balance sheets ie the GSE's like Freddie and Fannie.
These fiscal policies are not going to end well, by the end of Obamas term if the US makes it there, public debt will stand probably close to 22
trillion & honestly the only way these deficits are going to continue is by the banks buying up the debt and flipping it back to the Fed in endless
QEternity until the dollar is worthless. Now some of you might think that inflation starts rising the Fed can raise interest rates, well thats not
really an option anymore because they dont have an exit strategy because of their huge stock of securities now (3 trillion) if rates were to rise back
to their historical mean levels the US government would be paying one large interest bill I cant remember the exact figure but its hundreds of
billions & the Federal reserves own capital would be destroyed. The Fed has to keep rates artificially low as possible until atleast 2015 they state
in their latest guidance by continuing to buy up MBS and Treasuries because of the huge spending of the congress.
In my opinion this cant really end well in any scenario. As Ron Paul has said recently the US is already off the fiscal cliff its just a matter now of
hitting the bottom and when it happens the implications are going to be massive. It all comes down to this though the majority of the population of
America has become dependent on government and convinced they require to be the police nation of the world until these attitudes change which I dont
forsee without devasting crises then America is sadly destined for disaster.