James K. Galbraith Champions The Beast Manifesto

While seers from Wall Street proclaim a "deficit crisis," obviously the capital markets don't take that talk seriously. If they did, they wouldn't be willing to lend to Uncle Sam for thirty years at four percent! But in fact they are doing this every week. Yes, long-term interest rates could change, but supposedly everything we need to know about future deficits is known right now. There simply is no funding problem for the U.S. government, and in the real world of financial markets, none is foreseen.

So what are the real effects of cutting Social Security and Medicare?