Saw Peter Peterson on NOW raising the alarm about the deficit

[Dirty Hippie]

Has anyone read his recently released book "Running on Empty?"

Several points:

Reliance on foreign investment places the country at risk. If the countries investing begin to see the US as too risky, or more likely, if at some point they no longer have the funds to invest, the US economy will tumble.

Economists are asking if the "landing" will be hard or soft. All seem to agree there will be a "landing."

Much more, transcript not up yet.

I'm no economist but the guy seemed credible.

Anyone care to comment?

[BootinUp]

1. I saw it, as a 41 year old

it sure didn't give me any hope for getting back much of the Social Security that I have been forkin over for my whole life.

He pretty much nailed it when he said that Republicans are going to bankrupt the system so there is a sudden interruption of payouts. Forcing a massive change in the program. He also said the twin debts exceed the actual net worth of the whole country (net worth was said to be 44 trillion dollars).

[NMDemDist2]

2. he was frightning on the Al Franken show too n/t

[Free2BMe]

3. It made so much sense..

Peterson's assessment did not seem like rocket science..and I only manage a household budget...The fact we are acting immorally toward future generations should sound loud alarms in the voting public...Liked his take on the "new president" should immediately form a task force on how to take on the deficit...and follow it's recommendations..

Speaking of NOW ...it is the one program on TV that our household watches religiously...and even if inciting...it gives us what I believe are realistic assessments and approaches to life in our time...No disneyworld fiction...

[papau]

4. I like Pete - and he is correct about the deficit causing a "landing" -BUT

the two elephants and trillion dollar cost is bullshit - and he does know better.

Why in the world he is using this bit of lies is beyond me.

In any case there is one deficit - the health benefits/cost.

Social Security is fully funded on a pay as you go basis - and even under Pete's approach it does not have problems until 2052 - when a revenue increase - say no wage cap on the payroll tax, or move from age 67 to age 70 for "Normal" retirement which in effect is a reduction of 30% to what otherwise would be paid at age 62 to a Social Security "early retiree", will solve the problem for another 75 years.

There is no problem.

But on health, the projection of current insurance company greed means eventually all work income is sent to the insurance companies as premium - and then you have another premium increase the next year. A silly projection - but real. The GOP will keep the rip-off going as long as they can, just cutting Medicare benefits each year until they end Medicare.

The $43 trillion number is the either the very large amount of assets we need to have on hand today if we wish to avoid future taxes, or it is the same calculation reduced by the present value of the current tax rate continuing (I think it is the latter). In any case, the GOP stopped this "fully funded" approach back in 1942 with cries of "Socialism by the Backdoor" (as you noted that number is the value of all assets, meaning the gov - in the form of Soc Sec Trust Funds - would own everything - hence the socialism charge. Meyers in his book SOCIAL SECURITY comments on this. IT is funny to watch the GOP complain the we have not developed a huge fund of real assets - not government bonds - in the Social Security Trust Funds! :-) But they are really just using this "lack of logic" path to justify a cut in Medicare benefits so as to have more monies go to insurance company profits, and less monies being taken from the rich as their share of the cost of health care for the middle class and aged.

After all - we must be "fair" to the rich.

[Vincardog]

5. It is the physical economy that is the problem

This country has been dismantling the means of production for years. We have to reverse the trend and begin to invest in infrastructure here. We have to begin massive public works programs to put Americans to work and put the pieces to be productive in place.