In all seriousness (no zombies or Mad Max) - is anyone concerned that we might default

[Anonymous]

Anonymous wrote:19:50, left unsaid in your analysis is how, exactly, we will pay for the social welfare state you want. Is it working out in Europe?

We certainly can't afford the social welfare state for the rich that Bush installed, but the GOP has no trouble risking the world's economy to keep it in place.

[Anonymous]

We're not going to default. This is a big charade to please the righty base. Hang onto your pants.

[Anonymous]

Anonymous wrote:19:50, left unsaid in your analysis is how, exactly, we will pay for the social welfare state you want. Is it working out in Europe?

family in Italy

healthcare services

One goes to her socialized medicine doctor for typical stuff - a cold - and then uses her specialist for anything out of the ordinary, which is rare, as she's had one health concern over her 20+ years there. Another, with a very sick and immobile wife, has never complained about her care. She's had numerous procedures done, and although her condition will never improve, she's been stable. Medicine is easy to get, and they're also appreciative of more holistic measures.

But I realize my lens is very narrow. Even so, when they come here and see what we pay for services, they can't believe it. More relatives have moved back there - especially after retirement, knowing their lives there will be much easier.

[Anonymous]

16:35, touche.

I forgot to mention eliminate all agriculture subsidies once we have a Strategic Grain Reserve (come on, it's an idea that's been around since the time of the Pharaohs if you believe post-flood Genesis as history) in place. I am willing to revisit this if an Organization of Food Exporting Countries starts trying to blackmail us a la OPEC.

I'd want to see some sort of deal worked out where corp. tax rates are lowered but foreign profits are taxed (I assume there's no double taxation going on here.) Ditto for allowing dividends to be deducted from corp. income.

19:14, I'm not doubting the quality of care there -- that, their willingness to declare an end to end-of-life care (yeah, those pesky death panels), and their healthier habits mean they do live longer than us.

What I am arguing, though, is that their social welfare state is about as untenable in its current form as ours is, perhaps even more so due to demographics (both ageing populations and less willing to assimilate immigrants.)

I differ from most Republicans in that (1) I am willing to raise taxes on the rich since they aren't filling their historic end of the bargain by providing jobs and (2) I want to see some form of social welfare remain in place -- I am not a fan of seeing much it going to the well-off.

Another idea I've floated is tying corporate and high-end income taxes to the unemployment rate. Basically if the rich can create jobs, they can pay lower taxes. You know, since in the GOP universe, businesses are just aching to create jobs but are being held back by those nasty Obama SOCIALISTS.

[Anonymous]

Anonymous wrote:We're not going to default. This is a big charade to please the righty base. Hang onto your pants.

God I hope you're right because it doesn't look good right now.

[Anonymous]

The US will no longer function as a state. The tea party extremists are destroying the country. There is no way a deal will be done in time, and the results are going to be catastrophic.

There isn't much you can do about this, but here is my plan:

Hold zero cash and zero bonds
Stick a bunch of money in a short/ultrashort treasury ETF
Buy non-dollar assets while the dollar is still worth something
Buy gold

I am assuming that large US companies will come out of this OK so I am not selling most of my share portfolio.