megaman1898
Just Browsing
It is hard to see a way forward for the USA which doesn't include some QE in order to avoid default. But unlimited QE is not an option. As pointed out above, excessive QE would itself be a default.
I don't see much realism in the USA about the nature of the problem. In the EZ people have got it - they know that the catastrophe has happened and they must somehow find a way through. But most of the US debate in the run-up to the election was the debate of denial. Neither the Obama nor the Romney "solution" will work - both were sops to a gullible electorate. The hope was a decisive win for either side so they could tear up their commitments and do something right. The debate about taxing the rich or tearing up Obama-care is rearranging the deck chairs. The US needs to be debating MEANINGFUL policies. In terms of expenditure the one that has to be cut is defence as the US defence budget is so huge. And the cut isn't a few percentage points, it is upwards of 50% over a very few years. In terms of tax some major new source of revenue is needed. Increased CT is probably not right, and there are problems with income tax. Sales tax is probably better. The simplest would be some sort of special new tax on gas - but I'm not talking a cent or two. Say $4 a gallon, introduced progressively over a couple of years.
I agree with some of what you said. But with the fed printing more money with QE, lowering the value of the dollar(which has been happening for a while now) which in turn drives up the prices of things that we need due to the devaluing of the dollar, is already a tax. Gas prices, energy prices, and food prices at the grocery store have all gone up and will continue to do so. Also not to mention that with the FED keeping interests rates artificially low, there is no way to make money by saving in the banks.
The problems go back a loooong way, and both parties have been guilty of not addressing the main issues that led to the collapse of the .com bubble, the housing bubble, and other things that aren't allowing the US to actually have any noticeable growth in GDP while still fighting against inflation. We are spinning our wheels it seems.
The simplest tax is no tax, but, since the Gov has grown itself to such a massive size, and continues growing through non effective regulations and legislation to serve special interests, it is a massive, inefficient money pit. IMO