TheLaughingStock
Member
And how come we never talk about the Pentagon going bankrupt? If social security can go bankrupt then the Pentagon can go bankrupt too.
It's too confusing for the avg Joe. I talked earlier about how the US handles itself. There's little rhyme or reason to current law. And we disagree about the policy implications. The way Supplementary Medical Insurance (SMI) is funded relative to SS and other parts of Medicare doesn't make any sense. The "problems" i.e. health care and aging for the two biggest federal endeavors are indistinguishable from SMI. Yet, SMI is financed automatically by law despite that. In addition, SMI resides within a federal program/government that is at risk of becoming insolvent. How it can meet the next year's costs in 2035, 2086, or any year when supposedly everything around it will be on the brink of going belly up is a mystery...but somehow lawmakers simply asserted that it can be done no problem. I'd imagine Reinhart and Rogoff would have a heart attack if they found out.
And while they're being cited as justification for austerity, the Fed is just crediting and debiting accounts to stimulate.
However, Bernanke also warns that the US is on an unsustainable path...even though stimulate the economy, headwinds, blah blah, let's hinder our efforts
Meanwhile you have an economist/associate at the St. Louis Fed saying the unsustainable path isn't what you think.
And of course James Galbraith asserts CBO health care projections are wrong. Therefore, the unsustainable path isn't what you think.
So we've got errors in Excel, bad inflation assumptions, disagreement on how/if the US is on a sustainable path...I can see why folks don't ask whether or not the Pentagon will still be around.