Congressional Budget Office: We Are Doomed

Yesterday the Congressional Budget Office released a report titled Federal Debt and the Risk of Fiscal Crisis that lays out a few future economic scenarios for Amerika.

Scenario #1
Idea: All spending and tax levels continue as they currently exist.
Result: A fiscal crisis will occur at some point in the undetermined future.
Solution: Under scenario #1 a fiscal crisis can be avoided with an immediate 4% cut in federal spending.

My thoughts on the validity of this scenario and its conclusions:

Scenario #2
Idea: The Alternative Minimum Tax is indexed for inflation, Medicare payments to physicians rise over time, “some other aspects of current law are adjusted.”
Result: A fiscal crisis will occur at some point in the undetermined future.
Solution: Under scenario #2 a fiscal crisis can be avoided with an immediate 20% cut in federal spending.

Now if this scenario’s solution was applied scenario #1, it might be closer to something we could consider valid.  Of course, the odds of the criminal federal government cutting spending by 20% are roughly the same as the second coming of the Christ.

If a Fiscal Crisis Occurred
Option A: the US government attempts to restructure debt, leading to substantially increased interest payments on existing federal debt; some creditors may not be willing to accept new debt terms
Option B: the US government prints more money, which leads to a decrease in standard-of-living and higher interest payments on future debt obligations
Option C: the US government adopts radical austerity measures in excess of the cuts require immediately under scenarios 1 or 2

If a fiscal crisis occurred, both A and C would be required to prevent a total disaster.  The US debt levels are already way beyond the point of being able to be repaid.  A debt restructuring and severe austerity might be able to save the system as it exists now, but I think this is unjustified in and of itself.  We should not be forced to pay back debts to bankers for criminal unconstitutional bailouts.

The proper solution is option D:

We stop spending, stop taxing, and the government declares bankruptcy and liquidates the debts and its assets just like individuals do.

Of course, the solution we get will be option B:

Mass printing of money, total chaos, Mad Max Beyond Thunderdome economic implosion.