Most of us are less than stellar at predicting future events.  However some things, usually bad, are easy to predict.  The reason is that similar events have happened in the past and scientists know they will happen again.  For example; at some point in the relative near future, California is going to have another major earthquake.  It may not be the “big one,” but it will be a major earthquake and it will do an incredible amount of damage. 

Greece is reminding us of the evitable consequences of spending money you do not have.  This too, is inevitable.  If you spend more than you make, at some point, no one will lend you more money.  This is as true for governments as it is people.  When that happens, you have to cut spending, even if the cuts are unacceptable.

This is hardly a new problem.  Our Government has been running up deficits for decades.  It is important to understand that the “Clinton Surplus” was a temporary situation resulting from a peak in the Social Security Cash Flow.  The following chart, from George Mason University, shows what happened:

It is really simple.  We either cut spending now, or we cut spending later.  The longer we wait, the more it will hurt. 

 TDM