by Yukon Cornelius » Fri Jan 28, 2011 5:38 am
Thinking back to a call that Hedgeye people sponsored -- they had Peter Orszag run down the deep dookyness of our fiscal situation.
Basically you need to move the needle in terms of percent of GDP when dealing with our problems -- when you talk about cutting Defense, or discretionary spending. With half of the budget spoken for by Medicare, ss, etc, only a 1/3 of the Defense budget in play, and any real cut in discretionary spending (5% would be a miracle)...
...we are only talking in terms of tenths of a percent in cuts, and these are cuts that will never happen without serious political bloodshed.