Weekend Economists: It's a Jungle Out There! November 2-4,2012

[Ghost Dog]

36. Chances of US social unrest non-negligible

... The chances of social unrest at a close decision are non-negligible in the current environment and should not be dismissed...

/... http://www.zerohedge.com/news/2012-11-03/three-days-ahead-election-candidates-tied-reuters-finds-bill-maher-jokes

Liberal/Conservative Divide Only Grows Uglier

... Until a crisis equal to the Great Depression arrives, liberals and conservatives are unlikely to bury the hatchet. For voters on either side of the divide, the stakes in this election will not seem to have been exaggerated; for they involve nothing less than a fight for the nation’s economic well-being – nay, for its very soul. Over the next four years, and probably long thereafter, moral and financial jeopardy will confront each of us in ways that seem likely to widen political divisions. Putting aside the wild card of Iran, one of the most difficult issues we face will entail putting public employees’ pension and health care benefits on a sound financial basis. The unions will claim, correctly, that there is no legal precedent for denying workers benefits that were promised them when they were hired. Their employers will claim, also correctly, that the money simply isn’t there. But anyone who thinks the Federal Government will be able to “solve” this problem simply by printing money is in for a rude awakening.

The financial liability is in fact so large that attempting to monetize it would be tantamount to hyperinflating. If, say, the Government were to offer lump-sum settlements averaging $150,000, the money could conceivably be worthless on delivery, since the actual disbursement of digital cash would be taken as a sign by the rest of us that Uncle Sam was on the hook for everyone’s financial needs. If the Government were instead to assume responsibility for years of scheduled payments in “real” dollars, taxpayers would eventually riot in the streets. No matter how you work the numbers, there is no easy way out, at least not using monetary shenanigans. The very clear implication is that the “solution” will come in the form of a dramatically lowered standard of living for most Americans...

/... http://www.zerohedge.com/contributed/2012-11-02/liberalconservative-divide-only-grows-uglier