Here, from Talking Points Memo, is one spin on the Super Committee meeting to fix the Federal Budget before a deadline of Wednesday, 23 November (the upcoming Wednesday).
The report is pessimistic, and it sees the Republicans as the villains. That is an a-historic view, but it is the view of the reporter, Mr Brian Beutler. Of course, this is all further complicated by the fact that economists are currently clueless about how to fix our problem. On top of that, Europe is in deep economic trouble and so is China, although China has done a better job of covering it up.
For those who picture themselves, or their Congress Critters, as Dr. Henry "Indiana" Jones, the fact that the cuts and taxes doesn't go into effect until 1 January 2013, when there is a new Congress, there is plenty of time to find an escape from this problem.
The problem is, this problem is not going away. There are ever more of us older folks and ever fewer young folks, and those who are entering the job market are not finding many jobs.
Can we spend our way of this, or do we have to destroy the overhang of mal-investment in order to spark new investment? I don't think you can split the difference.
In the mean time, stand by for layoffs in the Defense Sector. Both returning servicemen and women and those in defense industries. I am thinking the US Army, active duty, could shrink up to 20% from its current authorized end-strength of 561,984. Not only will we be retiring colors and mothballing equipment as the Services shrink in size, we won't be buying as much shiny new stuff, nor as much in terms of spare parts. Then there are the cuts to social services that will begin thirteen and a half months from now—medicare reimbursements, for example. It is an ugly picture. We better hope there is an Indiana Jones out there to show us the way to successfully escape this doom.
Regards — Cliff
10 months ago