Alexander Berezin berezin at MCMAIL.CIS.MCMASTER.CA
Wed Apr 24 16:55:38 EST 1996

On Wed, 24 Apr 1996, Jim Smolen wrote:

> Of these two parts of the budget, only the debt service is (IMHO)
> TRULY untouchable.  

> Defaulting on the national debt is unthinkable and
> would lead to the economic ruin of the country. 

On the contrary, this (defaulting of natl debt) is likely 
the ONLY option to look forward. It will likely start to
unfold after the stock market collapse which by all means
now appear inevitable in just a year or two.

There is not a single case in a recorded history when 
the individual or a country became wealthy by paying off 
the debts. If individuals often use banktrupcy to get rid 
of debts, I don't see why the whole state can't, 
especially beacuse the present 'debt' is largely 
fictional paper chimera. 

Hyperinflation & McBurger  for $1,000: why not ? (Lira was 
a gold coin century ago, now milla = 1 $, so what ?).   
(I am not saying it is pleasant route, but may well
be better than the present malaise).

> But further growth of
> this segment can be halted by passing balanced budgets. Entitlements
> are deemed untouchable by politicoes....but they really are not. Their
> entitlement status is a political one, nothing more.

Bottomline is that you can't maintain any claims to the
civilized society and let people (incl.children) to literally
starve. Call it welfare, workfare or whatever by basic safety
net is a non-negotiable item (incl. basic medcare). There is a
PLENTY of resources and manpowere in this country to retain this. 
However, the abuses of entitlements must be addressed much more 
seriously than it is done now.

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