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<p>[QUOTE=&quot;Vess1, post: 788396, member: 13650&quot;]Yes.&nbsp; That was the point I was trying to get at.&nbsp; &nbsp; Nobody should be under the illusion that Americans and the government will just dig in their heels and roll up their sleeves when they have to, cut a few programs and raise taxes on the rich and the problem will be solved!!&nbsp; No way.&nbsp;&nbsp; That&#039;s an absolute unrealistic pipe dream.&nbsp; &nbsp;&nbsp; Anyone who thinks this doesn&#039;t fully understand the magnitude of the numbers that we&#039;re dealing with now.&nbsp; &nbsp; The unfunded liabilities you mention are what swamps the boat.&nbsp; They are the nail in the coffin.&nbsp; </p><p><br /></p><p>&nbsp; Real unemployment is at 17 to 22% currenly.&nbsp; &nbsp; We were screwed when the economy was great and the taxes were rolling in.&nbsp;&nbsp; Now they are severely reduced just because so many people are not working and their employers are not paying in taxes for them either.&nbsp; &nbsp; There&#039;s less coming in now, but the govt is still spending more than ever.&nbsp;&nbsp; I&#039;m hearing 1 trillion dollar deficit every year now.&nbsp; </p><p>&nbsp;&nbsp;&nbsp; It will take drastic measures to ever hope to deal with this mess which will likely be another formal devaluation.&nbsp;&nbsp; I wouldn&#039;t be surprised if it happens this decade.&nbsp;&nbsp; It would actually solve a lot of problems.&nbsp;&nbsp; But people on fixed incomes will likely struggle to survive.&nbsp; &nbsp; It&#039;s left to be seen if employers would double people&#039;s salaries to accommodate and keep people up with where they were after such an event.&nbsp;&nbsp; They may not be able to, or they may just take advantage of the situation and bring people back to 75% of where they were as a &#039;favor&#039;. </p><p>&nbsp;</p><p>&nbsp; A formal devaluation is not doom and gloom, make believe stuff.&nbsp; It has to happen sooner or later.&nbsp; There is no other way to deal with the problem.&nbsp;&nbsp; We have informal devaluation year after year in the form of inflation already.&nbsp; &nbsp; A formal 50% cut or more would be much more painful though. </p><p><br /></p><p>&nbsp; BTW, going into the great depression, we were still on a gold standard which allowed for a deflationary depression.&nbsp;&nbsp; That won&#039;t be happening again.&nbsp; The gold standard is gone.&nbsp; The printing presses are unleashed.&nbsp; The next one will be a hyperinflationary great depression.&nbsp; It has to be.&nbsp; </p><p><br /></p><p>&nbsp; There should be no doubt in anyone&#039;s minds that they will keep printing to take care of things and fend off problems for as long as possible.&nbsp; Up to the point where it simply doesn&#039;t work anymore.&nbsp;&nbsp; They&#039;ve done it for years and they do it more now.&nbsp; Why wouldn&#039;t they continue?[/QUOTE]</p><p><br /></p>

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