Paul Volcker says that the U.S. will probably need to raise taxes to curb the deficit.

Specifically, at a speech to the New York Historical Society, Volcker said that America should consider imposing a “value added tax” – a type of national sales tax used in Europe – and also carbon or other energy-related taxes.

Of course, Herbert Hoover raised taxes in 1932, with disastrous results for the economy.

More importantly, instead of raising taxes or cutting services, why don’t we just stop unnecessary wars, unnecessary bailouts and unnecessary interest costs – and claw back the ill-gotten gains from the too big to fails?