Genius suggestion. Yes. Just "cancel" the obligations and commitments.
They are massive, no doubt. And they will severely damage the economy if they aren't changed. That's why they will be canceled or altered in some way. It might take a crisis, but all non-marketable debt of the United States government can be changed with a stroke of a pen. You can do that many ways - change the age of retirement, change the age at which you can receive Medicare, limit payouts to those who can afford it, and so on.
They are a time bomb, but I think that eventually, the political logic will change entitlements. In the meantime, I own gold.
I realize that the entitlement programs like Social Security are utterly fucked and that they actually do have to be attended to. Politically, though, there's not one ******* Congressman with the stones to do it and certainly not enough for a working majority of those idiots to do it.
But it also will never happen in such a manner, anyway. This "stroke of a pen" stuff is fantasy. Cancellation is absolutely never going to be "on the table." That would be political suicide for all involved. It will HAVE to be restructured but it can only be restructured (realistically) by tinkering with the pay-outs to FUTURE recipients, not current recipients, which means that for every day we delay doing what has to be done, the inevitable explosion is going to be much more damaging.
And how are the States going to manage the State employee retirement mess? And how is the Federal government going to deal with the Railroad Retirement system? President Obama crammed Obamacare through an idiot Congress. THAT shit can be revoked and rescinded. But how then can we rescind Medicare and Medicaid?
These programs are huge and they will explode as surely as would Social Security if not dealt with -- urgently -- sooner rather than later. And any "solution" reasonably worthy of that title will gut those programs. Speaking of political suicide.
I don't like Ron Paul, but I'll say this about him. HE has the stones to try to pare down the "leviathan." But he will be lucky to get a dozen Congress-critters to jump off that cliff with him.