More on this from here [PDF]. The bottom line is that there are two options: (1) spending is cut drastically and taxes go way up or (2) the Treasury issues bonds and the Fed prints dollars to buy them. Most likely it will be a combination of both with (2) being easier for re-election-seeking politicians to do than raising taxes or cutting spending and services.

More on this from here [PDF]. The bottom line is that there are two options: (1) spending is cut drastically and taxes go way up or (2) the Treasury issues bonds and the Fed prints dollars to buy them. Most likely it will be a combination of both with (2) being easier for re-election-seeking politicians to do than raising taxes or cutting spending and services.

Notes

  1. southpol reblogged this from mattlehrer and added:
    And the scary part is that medicare has been able to control its costs as well as or better than private insurance. And...
  2. mattlehrer posted this