Zero-Out Financial Solution:

[Confederate Kahanist]

http://www.conservative.org/acuf/issue-156/issue156news2




Marc Farber (Bloomberg): I can tell you, all governments will eventually have to be bailed out in the western world. It’s either going to be through money printing, as I think, or default. They are over indebted, especially if you consider the unfunded liabilities like future pensions, social security, medicare, medicaid and so forth.

It does not add up, they will all default or they will all print money. But the outcome won`t be pretty, that I can assure you.

GEORGE GILDER: Or someone will try the New Zealand solution, the only real remedy, imposed by a Labor government two decades ago, when they shocked everyone by zeroing out all government programs. The result was an amazing boom, particularly in agriculture, where huge farm subsidies and regulations were abolished and the entire department dismantled. New Zealand moved from being a massive net importer of food to provoking Wisconsin to protect its dairy products from unfair competition from down under. Abolishing government programs turned out to be all upside.

This is not a problem. It is an opportunity. The key to doing it is rescission of pensions extorted from the government by public sector unions, which are unconstitutional self-dealers trading their campaign agitprop and contributions for runaway benefits and absurd early retirements.

Farber: Any recommended reading on the New Zealand solution?

GILDER: The entire saga was told in detail in a Heritage Foundation tape that I gave to Steve Forbes (and he lost without mentioning). I bet Heritage could track it down and has paper records of the contents. It is the best libertarian story ever told. It is definitely worth chasing down. They zeroed out all the departments and all spending had to be justified from scratch. It changed New Zealand from a Third World basket case into a thriving economy for several decades.

Everybody expected disasters, but cutting government (except defense) is all upside.

Imagine zeroing out the department of agriculture, department of commerce, department of education, department of labor, etc. etc. Think anything bad would happen?

Read More :: http://www.conservative.org/acuf/issue-156/issue156news2#ixzz0p63eGdAo

[briann]

http://www.conservative.org/acuf/issue-156/issue156news2




Marc Farber (Bloomberg): I can tell you, all governments will eventually have to be bailed out in the western world. It’s either going to be through money printing, as I think, or default. They are over indebted, especially if you consider the unfunded liabilities like future pensions, social security, medicare, medicaid and so forth.

It does not add up, they will all default or they will all print money. But the outcome won`t be pretty, that I can assure you.

GEORGE GILDER: Or someone will try the New Zealand solution, the only real remedy, imposed by a Labor government two decades ago, when they shocked everyone by zeroing out all government programs. The result was an amazing boom, particularly in agriculture, where huge farm subsidies and regulations were abolished and the entire department dismantled. New Zealand moved from being a massive net importer of food to provoking Wisconsin to protect its dairy products from unfair competition from down under. Abolishing government programs turned out to be all upside.

This is not a problem. It is an opportunity. The key to doing it is rescission of pensions extorted from the government by public sector unions, which are unconstitutional self-dealers trading their campaign agitprop and contributions for runaway benefits and absurd early retirements.

Farber: Any recommended reading on the New Zealand solution?

GILDER: The entire saga was told in detail in a Heritage Foundation tape that I gave to Steve Forbes (and he lost without mentioning). I bet Heritage could track it down and has paper records of the contents. It is the best libertarian story ever told. It is definitely worth chasing down. They zeroed out all the departments and all spending had to be justified from scratch. It changed New Zealand from a Third World basket case into a thriving economy for several decades.

Everybody expected disasters, but cutting government (except defense) is all upside.

Imagine zeroing out the department of agriculture, department of commerce, department of education, department of labor, etc. etc. Think anything bad would happen?

Read More :: http://www.conservative.org/acuf/issue-156/issue156news2#ixzz0p63eGdAo

The problem is socialism is self-perpetuating.  Look at Greece.   People believe they are 'entitled' to government funded income, jobs, etc.  Once you run out of other people's money, people start rioting when you start de-funding their socialist utopia.

[MassuhDGoodName]

I have a far better idea!

Secede from the Federal Government, and reinstitute the glorious Plantation System!

The answer to all problems.