David M. Walker:Profit (Prophet) of Doom

A couple of weeks ago, I received an email from an acquaintance of mine, Kirk Shamberger, urging me to watch an interview with David M. Walker, the Comptroller General of the United States.

Being a financial advisor, Kirk usually has an interesting take on the news that I am likely to overlook.

It took me a little while before I got around to seeing the story from 60 Minutes, but it was worth my time- I hope you will watch it, too.

Mr. Walker is, in effect, the nation's top accountant. And he has some startling news:

when ... boomers start retiring in mass, then that will be a tsunami of
spending that could swamp our ship of state if we don't get serious

Politicians on both sides of the aisle are aware of the problem. They will need a great deal of help and support from their constituents, however, if they are to effect unpleasant changes.

From the 60 Minutes transcript:

[Senate Budget Committee Chair Kent] Conrad acknowledges that most people
in Washington are aware how bad the situation is. "They know in large measure
here, Republicans and Democrats, that we are on a course that doesn't add up,"
the senator tells Kroft [of 60 Minutes.

"Why doesn't somebody do something about it?" Kroft asks.

"Because it's always easier not to. 'Cause it's always easier to defer, to
kick the can down the road to avoid making choices. You know, you get in
trouble in politics when you make choices"

I hope you will watch the video, or read the story. I would certainly like to hear other options discussed, in addition to the scaling back of Medicare. For instance, I would definitely hope to see upper income tax breaks reversed, and I would like to see us decide, as a nation, how to empower our MIDDLE class- rather than reward the very rich.

Still, this debate is worth having. As a nation, we have high aspirations, and lofty dreams. It is impossible to reach those goals, however, if you are economically crippled. On the flip side, remember, it can actually be quite WONDERFUL to live in a third world country...but only if you're rich.

See the piece here:

http://www.cbsnews.com/sections/i_video/main500251.shtml?id=2534935n

Or read it here:
http://www.cbsnews.com/stories/2007/03/01/60minutes/main2528226.shtml