Can't Take Stuff Away from People

What's up with this whole debt limit thing huh?  Boy you sure can't get away from that story lately.  From my narrow view of things I feel like our politicians are running out of can kicking options.  They are being faced with a downgrade from two of the major ratings agencies (Moody's and S&P).  What this would mean is an increase in the government's cost of borrowing, which it does a lot.  This has the possibility of starting a snowball effect of us being in even more debt very quickly, which would merit a further downgrade which would again raise borrowing costs, and round and round we go.  This is sort of like what countries like Greece and Ireland are experiencing now.  The only difference being that they are tiny countries who can be easily bailed out as long as the bailer doesn't mind shoveling cash into a black hole.  There is nobody out there that I know of who is going to bail us out.  So Congress is faced with having to cut spending.  That has been the big catch phrase in Washington for quite a while now.  We have to cut spending.  Everybody agrees.  Congress agrees, the public agrees, the ratings agencies agree.  So what's the problem?  The problem is cutting something like a bridge to nowhere in Alaska wouldn't even qualify as a drop in the fiscal budget.  Accord to S&P they need to cut 4 trillion over the next 10 years.  That means hitting entitlements, Social Security, Medicare, and Medicaid.  I am going to tell you what the big problem is right now.  What it all boils down to is "You can't take stuff away from people".  That's it.  Remember that because I'm going to be repeating it in the future.  ok, so I guess you don't have to remember it.  Everybody wants the problem solved as long as it doesn't effect anything that has to do with them.  Congress knows this very well.  So they're screwed.  If they vote for a plan that calls for real major cuts then there will be rioting in the streets and Congress will either have to take it all back or stand firm and be voted out in November of 2012.  If Congress makes some kind of mickey mouse deal that claims to cut a certain amount over the long term but nothing to entitlements I predict the ratings agencies will not buy it and downgrade anyway.  A third and perhaps likely scenario is that Congress mickey mouses it and somehow pressures the ratings agencies to not downgrade which the stock market will love until it doesn't.  Raising the debt ceiling is nothing new.  With my rudimentary knowledge of the subject I'm sure the people involved have a better handle on this.  I am worried though.  Economists have said for a very long time that we are saddling our children and grandchildren with a tremendous amount of debt.  Personally, I'd like to get that paid off.

I feel weird today.  I got in early and went for a 6 mile run to the Marina.  It did not feel good.  I felt totally out of energy when I was at the 3 mile mark.  If I didn't know better I'd say I was sick.  I went to bed last night with some bad stomach cramps.  I think it may have been from a bad ice cream sandwich.  I always overdo it at dinner.

Marina Del Rey 7:40am