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Re: [OM] [OT] Budget Debates

Subject: Re: [OM] [OT] Budget Debates
From: Charles Geilfuss <charles.geilfuss@xxxxxxxxx>
Date: Tue, 15 Feb 2011 11:29:12 -0500
Boris,
  I'm reluctant to respond fearing a flame war so throwing caution to the
wind I'll put in my $0.02. This whole budget thing will devolve into
politics as usual. The items you mention all fall within the discretionary
spending portion of the US budget and makes up about 15%. Undoubtedly there
are wasteful things in it but there are also important things too. As far as
balancing the budget, even if they took a 50 pound red pen and crossed out
everything in the discretionary portion of the budget, it would only
eliminate about half of the budget deficit. And that doesn't even include
the accounting trick of "borrowing"  Social Security excess funds each year
to make the budget shortfall look less bad. They have turned it into a
classic Ponzi scheme that makes Bernie Madoff look like a piker. The
elephant in the room that they all ignore and are afraid to touch is
Entitlement spending. Social Security along with Medicare, Medicaid and
payment on the National Debt comprise 65% of the US budget. Defense spending
makes up the remaining 20% (and that 20% is the military's usual expenses;
it doesn't include the excess needed to fund Iraq/ Afghanistan). Now I'm all
for an effective, strong military but clearly ours has gotten out of hand
and is unsustainable. The US spends six times more than the next most
expensive military (China) and spends at least as much as the combined
military budgets of the rest of the world (or so I'm told). Look at carrier
groups: the US has eleven. The Russians have one, the Chinese have one (or
were trying to buy one last I heard) and I think the British still have one.
  As for Social Security, a number of things need to be done and they are
hard choices. The rate of growth of payments needs to be slowed; it also
needs to be means tested i.e. if your non-SS retirement income is over a
certain level your SS payment should be taxed at 100%. Medicare & Medicaid
are likely to go bust before SS. Fixing them will be a herculean task. They
are both rife with wasted spending. I know, I see it every day. Nothing
short of a complete sea change in how they operate will suffice: a change in
how doctors and hospitals are paid, a complete revamping of the malpractice
system, and a complete change in how we view end-of-life care.
  I don't think there is a snowflakes chance in hell of any of these
third-rail items be effectively changed. The only thing that will force
politicians hands is the bond market: when the US government bond rating is
reduced and the cost of US borrowing soars they will have no choice.

Have a nice day,
Charlie

On Tue, Feb 15, 2011 at 9:41 AM, Willie Wonka <alienspecimen@xxxxxxxxx>wrote:

> Without politicising the subject, the targets are:
>
> PBS/NPR, Smithsonian/National parks.
>
> Please, let your representatives know there is still need for an unbiased
> information source and how important is to keep park fees low.
>
> Best
>
> Boris
>
>
>
> --
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>
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