As long as the Dems control the White House, there will never be any serious reform of the U.S. fiscal house.

The One is ignoring the fiscal crisis in the U.S. and just keeps spending, first on his failed stimulus, and then on ObamaCare.

He is not cutting, he is spending — rapidly.

Meanwhile, the Fed prints money to keep up.

The crisis in Japan will cause more Fed money printing, first to pay Japan the debts they call, and second to make up for the new U.S. debt they are not buying.  (Three days after the earthquake, the Fed announced it is printing another $600 billion.)

Gross, in the bullet points at the bottom of this post has the future exactly right.

Let me be crystal clear: it is time to bet against the U.S.

We no longer have the moral clarity or will to cut spending, instead we print money to keep the party going for a few quarters more.  Nor does the U.S. have the political will or the political ability to cut entitlements to the point needed.

Since Washington is incapable of doing anything real on the budget, and the liberal think tanks still put out their repeated mantra of debt-doesn’t-matter, the E.J. Dionne types are, in fact, hand-maidens of the economic destruction and end of the global leadership and reserve currency status of the United States.

The yelping of those who are claiming a government shut down will cause the markets to “lose confidence” in the U.S. are ignoring the elephant in the living room — there should be zero confidence in the U.S., we have destroyed our fiscal house and those in charge are incapable of correcting or stopping the coming disaster.  (They are like four year-olds who you expect to be able to do algebra, they can’t and will never be able to do it.)

Congress will not stop spending and Obama will not force reform of entitlements, in fact, he created a new trillion dollar one that Congress and he refuse to repeal.  Not only do the Dems not care about cutting spending, all they ever want to or will do is increase spending.  Even The One’s alleged “freeze” includes annual spending increases for everyone — he just does not increase above the already built in increases.

The insane logic is illustrative that the lunatics are in charge.

Therefore, since the political system cannot stop spending and the creation of new debt — there are some simple things to do:

Bet against the dollar.

Bet on more money printing.

Bet on inflation.

Bet on higher interest rates.

It is all inbound because of the total FAIL of Washington to do one thing, and that is to cut spending.

So after that rant, here is Gross on the fiscal future of the U.S., as promised:

• Medicare, Medicaid and Social Security now account for 44% of total federal spending and are steadily rising.
• Previous Congresses (and Administrations) have relied on the assumption that we can grow our way out of this onerous debt burden.
• Unless entitlements are substantially reformed, the U.S. will likely default on its debt; not in conventional ways, but via inflation, currency devaluation and low to negative real interest rates.