Wednesday, October 22, 2008

And they say it would never happen here...

In 2012, Moody's will likely reduce the rating on US government debt because Medicare, Social Security, and Medicaid are running out of money. Whoever is president at that time will face some very difficult choices: increase taxes, cut benefits, allow more immigration or, like Argentina, confiscate private savings:
José Piñera, a former Chilean cabinet minister who pioneered the privatized pension system and has served as a consultant to many other countries that have implemented it, called the nationalization proposal "just another step in Argentina's 100-year 'road to underdevelopment.'"
At that point, we will discover what the parties really stand for.

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