“I am very proud to stand here today with Chairman Ryan to say that we have broken through the gridlock,” said Murray, calling the agreement “an important step in helping to heal some of the wounds here in Congress and show we can do something without another crisis around the corner.”
But it really doesn’t.
The basic problem is that the Federal government has passed the “point of no return” re the deficit. The national debt has come to the point where the anaemic economic “growth” that we have can’t generate the tax revenue to swing it without politically unacceptable cuts. There are some things we could do to shrink it considerably (like cancel some of the “internal” debt between the Fed and the government, but the opportunity to profit from that will kill the idea) but the only thing that has stood between us and insolvency are the artificially low interest rates we have had. When the Fed loses control of them, we are in big trouble.
Conservatives obsess about the debt while resisting tax increases. Liberals obsess about keeping the patronage of entitlements and “sticking it to the rich” with higher taxes. The patronage will be seriously crippled when de facto insolvency is achieved, and then the conservatives will discover that the United States and its government are more closely intertwined than they thought.
A rude awakening for everybody…