Article about US economy in Financial Post (National Post)

[Marthony]

Hello,

I read this by chance yesterday: http://opinion.financialpost.com/2012/08/21/u-s-worse-than-europe/

Of course, since last summer's fiasco of the debt ceiling debate such details aren't any surprise, but this is the first time I've seen a reputable paper put it in print..!

Other than the obvious concerns for the US, I can't help but feel concern for the effects austerity measures would have for international trade levels and what that does for everyone's job security.

The clincher is, what do you think will have to happen for US politicians to take the situation by the horns? In an election year no less..?

[NWPilgrim]

Politicians will NEVER take the situation by the horns. They are riding this pony off the cliff yelling Giddyup! The whole way down to the rocks.

Balancing the budget and laying off thw horrendous debt would drive the economy into the ditch. It would be very painful as it force us all back to affordable levels. Normally this would be a healthy thing and in a couple of years the sound foundation would produce good solid growth.

But the debt has been driven to outrages levels and austerity would mean decades of menial servitude to the banksters.

Inflating our way only exacerbates the problem but is more palatable until the buggy actually hits the rocks and implodes. This is the most likely choice of politicians.

I think the only realistic solution us to wipe clean all national debt, and perhaps even have to include local govt and personal debt. Default. Start with a clean slate. But this can only work if we also cut back size of govt drastically and balance the budget. Never going to happen politically.