Re:Fed Ends Zero-Rate Era
by toomuchtodo on Thursday December 17, 2015 @02:20AM
(#10750096)
> primarily reducing social security payments (particularly when most of the boomers are drawing on them)
Disagree. Removing the payroll cap for social security taxation causes Social Security to become solvent permanently [1].
> and cutting medical spending - probably by instituting controls on what the government will pay for in terms of end-of-life care.
Sort of agree. The US needs to go single payer, and institute price controls on health services.
[1] http://www.pbs.org/newshour/making-sense/what-impact-would-e...
I'm afraid it's quite impossible to 'own up' to those liabilities. Look at the debt clock: http://www.usdebtclock.org/
The GAAP liabilities of USG amount to $100 trillion, yet the net assets of the entire US are only $116 trillion. Nearly all of the assets in the entire country would need to be sold to pay for the liability to be incurred.
I'm afraid the only solution is to reduce benefits, primarily reducing social security payments (particularly when most of the boomers are drawing on them) and cutting medical spending - probably by instituting controls on what the government will pay for in terms of end-of-life care.