Racing Towards the Abyss

The IMF says that the US lacks a "credible strategy" to deal with it's debt and poses a risk to the global economy. The alleged $38B in cuts passed by Congress last were mostly tricks. The deficit is up 16% in 2011, heading for a total of $1.6T!

Listening to the politicians, it sounds like they're going to cut the 2012 deficit. In order to make any significant cuts they will have to eliminate entitlements such as social security, medicare and medicaid. Cutting the entire defense budget and discretionary spending wouldn't dent the deficit. Think politicians are going to cut entitlements in an election year? 

Obama wants to eliminate the Bush tax cuts for those making more than $250,000 per year. I used to argue against class warfare, but I don't care anymore.We're in a zero sum game now as we race towards the abyss. I want to know that the middle class is following me over the edge.

Inflation is roaring along at 10%, by earlier standards, or 5.5% by non-government measures or 3% by BLS standards. I haven't had a raise since I started a job at 33% less than I was making in a previous job. And I won't see a raise this year either. The Federal Reserve's QE2 inflation is making me poorer every day.