The problem is of course on spending side. Every single Reagan budget was pronounced DOA by Tip O'Neil (D), Speaker of the House. Every single budget that Congress approved was far larger then what Reagan wanted but had no choice but to sign it.
Lets get back to this disaster. US Budgets since Nixon days (Congress wanted to punish Nixon for holding back authorized spending on their projects) have been on automatic increases which is referred to Baseline Budgeting. Current US Budget is set to increase 7.5% annually. That means in ten years, if the "cut" $2T in "savings" means we actually spend $7T more. That is "Washington's Math" that we cut $2T from a $9T increase, but that's an evil thing to do. Note that if we have 100% tax on those making $100K or more, we are still short about $400B annually. If you think high taxes on the Rich is apart of the solution, take a look at NY State, they did this and the rich have either left or are in the process of leaving and lowering NY's revenue generation. Same has happen to the US, the rich will simply invest more overseas or leave and join their overseas investments. This is not a revenue problem, this is a spending addiction issue.
That means in 2022, we will have $22T in debt. I should be rejoicing in this? Right now the $14.7T is being funded in mostly short term debt, that means about a third of that debt is under 12 months before it matures. Right now we are paying about 1.5% APR on that debt when we typically pay about 5.5% for the 80s and 90s on the national debt. So on a monthly basis, we are paying roughly $28B. Imagine if that debt goes to ~6% interest? That jumps monthly payments to $112B monthly payment on the national debt or $1.14T in sudden expense to the US Budget for $14.7T we already have. Greece is paying 13.5% so if no one will buy US debt again (Chinese have already said no more) and we had to pay that today, that's $252B monthly or $3T annually in debt payment, but that is on 14.7T, try 13.5% on $22T.
Then add in QE I, II, and possible III to the US dollar supply, and we have massive inflation that will be hitting. Most of the QE "printed" money is sitting in banks. That dam will eventually break and we will have inflation, it's going to be 20% or will it be close to 100% is the only question. The perfect storm is coming, Wall Street CEOs have been dumping their own stock holdings at unheard of ratios, they know what is going to be happening. If you think we have alot of bank closings, just wait, the FDIC will break less Feds print more money to cover it, which will add to inflation. Why do you think Silver and Gold are so high and more are buying? india and China are buying about 38 tons of gold monthly, US is about 11 tons monthly as the smart money leaves paper for assets they can touch. Hell, by 2013, Mexico's Peso will be back by silver. And we are supposed to be happy about $2T reduction of the baseline increase of $9T? Mind control via propaganda.