The left has one path: Tax and Spend.

Roy Filly says it all regarding our debt. The time bomb of debt has been ticking for a while now. Future, unfunded liabilities arising from Medicare, Social Security and Medicaid, not to mention Obamacare are estimated to be $90 to $120 Trillion with a “T.” That is six to eight times our current GDP and six to eight times our current debt. There is no question that a collapse is coming unless we do something radical now. The only question is what form the collapse will take, mega-inflation, government default or something else.

The Rugged Individualist

Many of my readers will likely have read about the recent embarrassment of two well-known Harvard economists, Rogoff and Reinhart, who published a tour de force book about government debt. It turns out that one of their spreadsheets had an error (leaving out some data). Worse still, an economics student writing a term paper made the discovery. Ouch!

The error was in the statement that when government debt reaches 90% of GDP it has a significant impact on GDP growth, bringing growth down to near zero. The Republicans used this piece of information in multiple campaigns – didn’t seem to do much good. Nonetheless, the left has been all over this because the error would indicate that GDP growth might be as high as 2% when government debt reaches 90% of GDP. Wow, 2%! Let’s have a party. At 2% growth our unemployment rate will never go below 7%. If potential…

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