The Bucknuts Hot Spot

Really? What other nation owes $16 trillion in debt?

I have four soon-to-be-adult children. What I fear the most is that they will inherit the consequences of our generation's lack of restraint, and it will have a permanent and profound suffocating effect on their economy and their prosperity. Think Spain. They may not experience growth for a generation. I really think that is a possibility - I am not trying to be Chicken Little. We desperately need to balance the budget - we cannot continue to add further to the debt. Obama wants to do it by extracting it from the wealthy. On the face of it, that's fine - all taxation policy is arbitrary anyway - there is no universal truth on taxation fairness. The problem is, the "deficit" is the smaller problem. The BIG one is our accumulated debt and the position it puts us in with respect to our creditors (i.e. China) and our ability to influence currency valuations and balance of trade discrepancies. We can never "pay off" a 15 trillion dollar debt - the shoulders of "the wealthy" are not broad enough. We will have to outgrow the debt - to expand our economy to the point where, a generation down the road, a 15 trillion dollar debt is not such a large percentage of our GDP. That will never happen if Obama's vision of class warfare prevails. He targets the "rich" households that have joint incomes greater than $250K, which account for the upper 2-3% of the population. Most of those people are successful, but the majority aren't "rich". They have more disposable income than others, but they are still working hard to generate an income, and are as vulnerable to changes in the economy as anyone else. The truly "rich" - Romney's class - aren't living off of salary or wages, but off of established assets - investments, trusts, etc. - and they're taxed at 14% capital gains rates, not the 40ish%-plus marginal income tax rates (or more) the ">250K " group will see under Obama. The problem is, that's where most of the NEW consumer spending is occurring right now. When Obama tries to balance the budget on the backs of that small segment, you can say good-bye to the slow and fragile economic recovery we think we are seeing. You can say good-bye to the stabilization of the housing market and home values. These consequences - arrested growth in economic activity, continued unemployment, and declining home equity - will have a far more profound negative influence on the well-being of America's middle class than any positive effect they might see by having the "rich" provide more tax revenue for entitlements - or even for more legitimate expenses. Economic growth is the only way out of this mess, and I fear we are teetering on the edge of another crisis. Europe is not buying our goods and services. South America is not. If Americans don't provide the demand, we will have to look to China again - and I'm afraid that even they can't buy enough of our stuff to fuel sustained growth of our economy. Oh, I forgot, they make all our stuff anyway. Well, then, I don't see a solution.

Alright, that's enough ranting. I need to put the Bourbon away and get some sleep.

Obama is now leading in BOTH the electoral college AND the popular vote.

The news media is reporting that Romney has called the President to concede the election, and that his motorcade is now en route to the hall to make the concession speech. It's over.

President Obama has won four more years !

Well the people have spoken and they won. They won more handouts, higher debt, and a bankrupt nation. #theentitled.

Good morning Bucknuts... What a great country we live in this fine morning?

You are mistaken in your believe that there was no real difference in the two candidates. That couldn't be further from the truth.

"A government which robs Peter to pay Paul, can always count on the support of Paul."

– George Bernard Shaw

I agree, I think for most people it is about winning and being right rather than the true impact of an election on their day to day lives.

A lot of people vote against the candidate who would actually benefit them the most because they either dont know any better, were raised on one side or the other or they know at the end of the day, not much will change in their day to day lives either way.