The President has recently proposed a new Federal Budget which has more than a trillion dollars in deficit financing. As with any budget, this one has also set up a fight between the Republicans and Democrats. Nobody is happy about it since the Republicans (which include the TEA PARTY candidates) want a more drastic cut in the spending and the Democrats are not happy because it cuts too much from their pet social programs. Also it proposes more than one trillion dollars in cut in federal debt over ten years. All these proposals are just the beginning of the battle that will be played out among various competing interests.
Everybody meaning the Politicians of both major parties are right but the main thing is we cannot sustain this huge deficit each year unless we attack the entitlement and this has started to get addressed by the President. But this is a major fight with huge and powerful constituents and they will not want to give up their entitlements without a fight even if we have to print more money (that is borrowing our way to bankruptcy). The people don’t understand that the markets would not wait that much longer to fix our house and they will punish us (meaning demanding higher interest rates) to finance our wasteful ways. The politicians should start talking about reducing these entitlements even if it brings short term pain for long term gain. This is what I have been emphasizing always and it will have to be done sooner not push it down decades later.