6/07/2011

Wolfman Report: A New Kind of Tsunami

Greek protests11369976_aed7ea72bd

An economic tsunami is threatening the United States.
We have borrowed money, but now our credit rating is in danger. The time may come where borrowing will not solve our problems.
We have printed money, and may print more. There is a limit though, as has been proved in other nations that printed money irresponsibly.
Then there is “tax the rich”. There is a limit to that too. I get the impression that some believe that “tax the rich” is a magical solution to money problems. I would like to point out that Greece has run out of money. Are they “taxing the rich”?  Answer: no.  In fact the taxes on smaller incomes are increasing in Greece; how can that be?
    Greeks on modest salaries are furious that they have to pay ever higher taxes in the drive to reduce a towering budget deficit, while they believe the self-employed such as doctors and lawyers are guilty of flagrant tax evasion. Greece

If I was a "rich" person in Greece, I would leave. Also, if Greece "took" all the money from the "rich", it would not be enough to solve their debt problem, and they know it.
  • So borrowing is limited
  • Printing money is limited
  • Taxing the rich is limited
When the limits of all three are reached, the tsunami hits. No more social security checks, no more Medicare, Medicaid, or food stamps. No military.
None of these:
Federal Department of Education, Department of Energy, Small Business Administration, Securities & Exchange Commission, Peace Corps, Office of Personnel Management, Occupational Safety and Health Administration, Nuclear Regulatory Commission, Consumer Product Safety Commission, Drug Enforcement Administration, Environmental Protection Agency, Federal Aviation Administration, Equal Employment Opportunity Commission, Federal Communications Commission, Federal Deposit Insurance Corporation, Federal Election Commission, Federal Emergency Management Agency, National Aeronautics & Space Administration, National Endowment for the Arts, National Endowment for the Humanities, National Highway Traffic Safety Administration,National Security Agency, Voice of America, and last but not least; The Social Security Administration,Fannie Mae, Freddie Mac, HUD, FHA, VA.
Several million government employees would be out of work.
    As the government struggles to prevent Greece from defaulting on its debt, the Socialist cabinet will discuss informally on Monday the medium-term economic plan which will impose 6.4 billion euros ($9.37 billion) of extra austerity this year alone. Greece