I continually stand amazed that the two latest tax reductions by Reagan and GW Bush directly and almost immediately resulted in economic recovery and increased tax revenue but the current custodians of the Presidency decide the best way to tackle the problem is to do exactly the opposite. To disastrous results.

There have been many similar reports since then, and as I said, they all cost a lot of money, and they are all ignored.

Also, take a look at the history of the debt ceiling:
http://www.geldpress.com/2008/07/united-states-debt-limit-joke/

We put so much emphasis on making laws that put an absolute high on the national debt. In theory, it is like a credit limit on your own personal credit cards. With the United States, however, every time we get within half a trillion or so of that ceiling, congress swiftly acts to vote on a few trillion dollar increase of that ceiling. The last increase was just about a week ago.
http://www.marketwatch.com/story/senate-approves-short-term-debt-ceiling-increase-2009-12-24

For other costly studies on runaway debt, just google for “social security studies” and grab yourself some strong coffee for a days worth of reading (and perhaps laughing and crying).

The train has crested the apex of the hill and is picking up momentum. It’s on the downside to oblivion, but there are no brakes to stop it, or even slow it.

I’m not trying to be prophetic…I just see it as fact. Unaddressed, I see failure of our country’s monetary system as inevitable (if left up to politicians).

As for the long term solution for fixing the fiscal disaster, there are others way more qualified than me. In fact, the United States government has commissioned dozens of consultancy organizations over the years to propose real solutions. Our tax dollars have shelled out billions in national debt studies and solutions. And then every time the summary reports are issued, they are promptly ignored.

However, inflation is a traditional response which may indeed happen.

The problem is that no politician will be elected or stay in office on a platform of serious pain now to avoid collapse later. Jimmy Carter tried to get the country to take conservation seriously, and many people resoundingly turned to Ronald Reagan who promised that the magic of the market would painlessly solve our problems. Obama proposes to finance health care through efficiency savings (which may be hard to push through the political process and/or may not save as much as hoped) combined with letting the Bush tax cuts for the upper percentiles expire – ie: promising the majority very little pain. And so on.

I do get that your intent is to awaken enough people to the need to take difficult measures now, rather than buy yet another promise that there’s a magical way out which won’t be very painful. What else can one do?

Have you posted a proposal about how to spread around that serious pain you advocate? What would it really look like on the ground? It’s clearly more than just postponing the carribean cruise and buying a cheaper car this year. Does it mean dramatically raising taxes until the debt can be paid down? Slashing social security? Reducing the military budget? Or what?

I think the solution is to work towards a long term sustainable, and REAL balanced budget. And by REAL I mean a budget where the total government debt does not increase one single penny from year to year. Painful? Absolutely! Necessary? I used to think that we either need to face a little pain now as a country, or a severe pain in decades to come. That time is over. We need some serious pain now, rather than face an inevitable collapse sooner than people can fathom.