Posted on 02/02/2010 3:33:45 AM PST by lbryce
In a federal budget filled with mind-boggling statistics, two numbers stand out as particularly stunning, for the way they may change American politics and American power.
The first is the projected deficit in the coming year, nearly 11 percent of the country’s entire economic output. That is not unprecedented: During the Civil War, World War I and World War II, the United States ran soaring deficits, but usually with the expectation that they would come back down once peace was restored and war spending abated.
But the second number, buried deeper in the budget’s projections, is the one that really commands attention: By President Obama’s own optimistic projections, American deficits will not return to what are widely considered sustainable levels over the next 10 years. In fact, in 2019 and 2020 — years after Mr. Obama has left the political scene, even if he serves two terms — they start rising again sharply, to more than 5 percent of gross domestic product. His budget draws a picture of a nation that like many American homeowners simply cannot get above water.
For Mr. Obama and his successors, the effect of those projections is clear: Unless miraculous growth, or miraculous political compromises, creates some unforeseen change over the next decade, there is virtually no room for new domestic initiatives for Mr. Obama or his successors. Beyond that lies the possibility that the United States could begin to suffer the same disease that has afflicted Japan over the past decade. As debt grew more rapidly than income, that country’s influence around the world eroded.
Or, as Mr. Obama’s chief economic adviser, Lawrence H. Summers, used to ask before he entered government a year ago, “How long can the world’s biggest borrower remain the world’s biggest power?”
(Excerpt) Read more at nytimes.com ...
“....To imply that the greatest, most powerful country in history has suffered an economic hit it might not ever recover from is in a word, unAmerican , to imply that the greatest, most powerful country in history has suffered an economic hit it might not ever recover from is to deny that what has made America so great, the very principles set forth by our founding fathers, the resilience of its people to carry on with relentless bravery in the face of adversity. I believe that despite the toll our burgeoning deficit may take, America’s best days are yet to come. God Bless America. “
there is no confidence in the dollar. The fed is monetizing debt. Once the credit contraction slows/ends, the endless dollar printing is going to begin to cause serious inflation, aside from the anticipatory currency moves we already see.
it may be unamerican, but it is very realistic, and is a story told over and over throughout history. Is there any old empire that reached the level of fiscal disaster the US is at and didn’t keep rolling downhill?
Your points are very well-taken and make for a very persuasive, effective argument, all of your points absolutely ironclad, in that there is no mistaking this deficit blowout as being one of America's greatest challenges.
You've taken to be downtrodden about how this is all going to end, in fatalistic manner, the futility of it all, the sky is falling, the sky is falling and there you are, your pitcher of Kool-Aid is all done except for the drinking.
Well, I'm sorry but that is just about the most unAmerican, (won't say cowardly) attitude there could possibly be. Imagine had any of our historical brethren taken such an approach there would not be American history for us to have made.
We've faced challenges where the very destiny of our nation stood on the precipice. In World War II, our navy was decimated, the European continent was a Nazi fortress, civilization as we had known it to be, freedom, democracy, the very fate of mankind stood in the balance. The problems, statistics every bit as factual, realistic as what you've taken to enumerate about our current crisis except maybe multiplied a few times over, war casualties, death does have a way of piling on the misery.
I don't think any time throughout the war effort was there any one who would have opted for surrender, at least not to put up a fight. There were times even after America had geared up its awesome war machine where things looked very bleak for the Allies, where pessimism was all that the War had come to meaN. But no one dared succumb to it.
That is the American way. Always was, will always be.
Algernonpj....
It does not sit well with me to even consider the NWO - makes me squirm in my seat. But it is exactly as you said it too - that too much falls into place. The puzzle pieces fit far too often if you know what to look for with eyes wide open.
I agree with all you said and appreciate the suggested reading.
And sadly, I can’t even talk about this with my wife! Should speak volumes to our relationship...but that is another story.
Have you seen the video I suggested? There is much to learn just out of that two hour video. It still blows me away. I am 48 and wish I had seen this 25 years ago. It changes everything.....thanks
This was the plan all along, as Charles Krauthammer underscored in a speech not too long ago.
Honestly, it will. We are in deep trouble. We don’t have a manufactoring base anymore, and are so in debt that not borrowing will lead to a massive collapse.
The USA is going the way of the British Empire.
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