Thursday, September 26, 2013
Orrin Hatch warns that raising debt ceiling alone won't stop a sudden financial crisis
Orrin Hatch (R-UT) has an op-ed in today’s Wall Street Journal that needs a read, “Obama’s Debt-Ceiling Stonewall”. The link (paywall enforced) is here.
Hatch doesn’t get into Obamacare; instead he goes right to the heart of entitlement reform. To be honest, the proposals he makes are reasonable and gradual, and pretty much in line with what we have already heard.
Hatch doesn’t specifically mention Stansberry’s theories on the “dollar as reserve currency” problem, but it isn’t hard to see it reading between the lines. At some point, a financial crisis can erupt suddenly anyway, he maintains, because the current entitlement system is unsustainable.
There is some debate on this, as with Social Security, but the math seems to be getting worse, as we noted recently with the disability payment system ambiguities.
The significance to retirees is not just in Social Security payments, but the value of assets underlying savings of retirees.