S&P TO DEEPLY CUT U.S. RATINGS IF DEBT PAYMENT MISSED « The Burning Platform

And the big wind down begins, without deficit spending, the US and world economy will grind to a halt.

The US went off the gold standard because there wasn't enough money to go around, Wall Street wasn't making money fast enough, so they devised ways of accelerating commissions, the US taxpayer assumed the risk.

Deficits began to skyrocket during the Reagan Administration when Reagan and the US Congress agreed to whatever one side wanted as long as the other side got what they wanted. Corporations successfully lobbied to have their share of the tax burden reduced from fifty percent in 1980 to around five percent today. While CEO pay increased five to ten times what it was in 1980, while working wages have been stagnant since the 1970's. Inflation has taken hold and promises to continue to increase as long as Bernanke continues to print money, which will be until the system collapses.

Geithner said it best, there is no credible spending plan that will not cause the need to raise the debt ceiling. So, the debt ceiling is raised, and we continue the march toward higher prices and lower GDP. Unfunded federal entitlements and the lack of political will to significantly cut spending guarantee deficit spending will remain out of control. Regardless of whether the debt ceiling is raised, the system will collapse when the federal government loses the ability to borrow money. Debt to infinity proponents have said as much by describing the dire consequences of not raising the debt ceiling. The US finds itself in a position of having to cut spending, while maintaining a socialist welfare state for at least the next fifty years. Future generations will look back and wonder who were these profligates. The history books will record they were the politicians, bureaucrats, central bankers, and financiers, who contribute little to society, yet were allowed to gain a strangle hold over the world economy. When the ponzi scheme collapse, and it's almost guaranteed at this point, what will the future look like, indeed.

S&P TO DEEPLY CUT U.S. RATINGS IF DEBT PAYMENT MISSED « The Burning Platform