Inflating the debt only works when the obligations are fixed in dollars in quantities as a mortgage. But in essence, all our long-term fiscal problems are the right commitments that grow (are indexed) with inflation. When inflation increases, spending on Social Security and Medicare increases at the same speed. The debt continues to climb in terms of real dollars. Problems that won't go away and really I mean that practically all our problems are right commitments. This chart from the Congressional Budget Office with CBO (CBO) 2008 on budget and Economic Outlook, tells the story (shaft and is spending as a percentage of GDP): these projections are more than two years and have grown ugly way since then. In a latest report, the CBO said: almost all the projected growth of federal expenditures that are not interest on debt payments come from growth in the three largest welfare programs spending (Medicare, Medicaid and Social Security). And any of these three programs grow with (or cause) inflation.
Inflation in medical costs have historically been one of the major driving forces behind the general inflation. This largely explains the growing burden of Medicare not to speak of why premiums in the mega suppliers of medical supplies such as WellPoint (NYSE: WLP) and Cigna (NYSE: CI) have towards the sky. For Social Security, inflation, as measured by the index of consumer prices (where medical costs are also a component) promotes and supplies known adjustment of cost of living gerando higher profits. Reflect why this inflation still has failed solve our problems of debt and will see the defective which is the argument of inflate ourselves towards freedom. And now what will happen? If inflation is not the answer, then the reduction of expenditure and the tax increase should be considered. But do this scares the eternal political turmoil because it irritates the people who vote for them. Even those who speak about cuts expenses also. A good example occurred in January, when President Obama proposed the creation of a Committee of deficit reduction. The Senate voted 97-0 immediately (a rare sample of unanimity) that the Commission would be forbidden to touch Social Security benefits. Original author and source of the article.
Inflation in medical costs have historically been one of the major driving forces behind the general inflation. This largely explains the growing burden of Medicare not to speak of why premiums in the mega suppliers of medical supplies such as WellPoint (NYSE: WLP) and Cigna (NYSE: CI) have towards the sky. For Social Security, inflation, as measured by the index of consumer prices (where medical costs are also a component) promotes and supplies known adjustment of cost of living gerando higher profits. Reflect why this inflation still has failed solve our problems of debt and will see the defective which is the argument of inflate ourselves towards freedom. And now what will happen? If inflation is not the answer, then the reduction of expenditure and the tax increase should be considered. But do this scares the eternal political turmoil because it irritates the people who vote for them. Even those who speak about cuts expenses also. A good example occurred in January, when President Obama proposed the creation of a Committee of deficit reduction. The Senate voted 97-0 immediately (a rare sample of unanimity) that the Commission would be forbidden to touch Social Security benefits. Original author and source of the article.