February 17, 2011

Creative Destruction and the Federal Deficit

By Frank Ryan
The President announced the 2012 budget of $3.73 Trillion with an expected deficit of $1.1 trillion.  The massive deficit combines with the three prior years' deficits of in excess of $1 Trillion each which will push the national debt beyond $16 Trillion.When combined with the exploding state deficits and other unfunded liabilities, the debt crisis will begin to unfold rapidly and unpredictably for our citizens.  A national disaster is in the making.Republicans in Congress responded with demands for budget cuts of $100 billion.   The current debt crisis requires so much more than a band aid.  We need a tourniquet to stop this hemorrhaging.  Cuts of $100 billion are not even a good start yet such cuts may be all that is politically possible at this point.  Such a political reality sets the stage for the disaster that is sure to follow.Some may question the need for caution.  Some may underestimate the nature of the concern.  After all, our...(Read Full Article)