Posted on 05/11/2010 9:48:25 AM PDT by ezfindit
America’s financial situation is unsustainable. In 2009 the federal government spent $3.5 trillion but collected only $2.1 trillion in revenue. The result was a $1.4 trillion deficit, up from $458 billion in 2008. That’s 10 percent of gross domestic product, a level unseen since World War II. Worse, the Congressional Budget Office (CBO) projects that we’ll be drowning in red ink for the foreseeable future, with annual deficits averaging $1 trillion during the next decade.
While these figures are dramatic, they pale in comparison to what the federal government owes foreign and domestic investors. According to the CBO, in 2009 America’s public debt reached $7.5 trillion, or 53 percent of GDP, the highest it has been in 50 years. In 2010 the debt will cross the 60 percent threshold, a level at which many economists believe a country is putting itself in financial peril.
(Excerpt) Read more at reason.com ...
We are on the verge of massive disaster and Obama and the DemonRATs are shoving us into chaos and destruction.
Stu Varney made some interesting comments this morning...
In the last ten (10) weeks, the National debt has grown 350 BILLION dollars...If the rate stay relatively the same, that equates to about 1.5 TRILLION dollars a year for the forseeable future...
There’s where the unsustainable facts are...
The fuse is lit, and it has been running for a little while here...And when it goes, its going to go bad for this country...
November 2010 can’t come soon enough! If we don’t start reversing this nightmare then, we are in deep s@#$%t.
Consider our country a cruise ship, which is slowly sinking. We’re the fare-paying passengers. Most of us aren’t even aware the ship is sinking, because we’re too busy listening to the band and getting a tan on deck.
The officers in charge of the ship know it’s sinking, and they know they’re the ones who have damaged it beyond all hope.
All they’re doing now is trying to finish looting the ship’s safe and all our personal possessions before it goes down and they make off in the only remaining lifeboat, having scuttled all the others.
The doom will be forestalled by the federal government confiscating IRAs and 401Ks, but this is only a stopgap because there is not enough equity in this country to account for the debt. It will take a while, in the midst of Obama's maneuvering for the next election, amidst this ploy and that designed to fool the collective into thinking we have it under control, but it WILL come. And, if you owe any money to any institution or the government, you will be financially devastated.
Pay off your debts, stock what staples and long-term goods you can. Buy arms and ammo. Move away from urban areas. You laugh now, but one day, if you make it, you'll think back on this advice and have a second thought.
Very nicely said in the genre of a fast-action thriller...good job.
And don't kid ourselfs, GWB is all for it!
The most remarkable aspect about our situation is that the federal government is borrowing at very low cost now. With the peril to the dollar and the permanent imbalance in the budget, the borrowing situation seems incredible. Unfortunately, the borrowing situation is fueling even large deficits as Democrats and the public perceive public debt as a free good. The public is being deceived about our financial situation. The huge stimulus spending has revealed on the gain side of the debt especially for those in the government sector. The pain side is coming however.
The rat solution is massive tax increases on the most productive, perhaps followed by massive tax increases on others. Rats have disguised this solution as a free lunch. The rats will confiscate the income and wealth of the most productive with no impact on the large majority of the population.
And I believe that's if everything stays pretty much the same as it is now. The reality is that the gov's revenues are going to continue to crater, while the ponzi entitlements continue to run further and further into the red. Social Security is ALREADY paying out more than it takes in.
Justice Joseph Story said of the Constitution of the United States: "The structure has been erected by architects of consummate skill and fidelity; its foundations are solid; its components are beautiful, as well as useful; its arrangements are full of wisdom and order, and its defenses are impregnable from without. It has been reared for immortality, if the work of man may justly aspire to such a title. It may, nevertheless, perish in an hour by the folly, or corruption, or negligence of its only keepers, THE PEOPLE. Republics are created by virtue, public spirit, and intelligence of the citizens."
If America's citizens, who are designated by the Constitution to be the constitutional KEEPERS of the Constitution, do not act soon to reverse the reckless plunge this Administration is taking toward undoing the Founders' protections for liberty, then future generations may never know or experience their heritage of liberty.
Neither party has behaved well for the last 30 years... we had a Repub Congress and WH for several years... what happened? The debt nearly doubled.
It won’t matter which party has the upper hand as long as the incumbents are in the majority. What would make those guys do anything differently than in the past? NOTHING!!
Vote EVERY incumbent out... “primary” the RINOS...
I don’t think we should panic. The problem is obvious - we need to borrow more money to get out of debt. I think that’s what Congressman Stark of California said. The more you borrow the stronger your economy.
“Well have at it. Raise tax rates on the rich. Start a VAT. Do whatever you want. You will not get the money. You’ve run out of other people’s money. There is no more piggy bank to rob.”
Hauser’s Law. People will only pay so much in taxes (historically 20% and then they will change behavior. The rats think that taxpayers will work harder to maintain their lifestyle but the ‘producers’ find a way without generating ‘income’. They don’t have enough ‘Boxer’s’ (Animal Farm) on their side.
We keep hearing how the financial crisis that the Greek government is in won’t happen here... yet we are marching down the same out-of-control path they followed.
Default is coming. The question is how we deal with it.
*
I dissagree, on part of your theory...
I believe it WILL impact us all, regardless of our wealth and previous molestation (or non) by the government...
Medicare/Medicaid are already 36-37 TRILLION dollars in the hole...
Not going to get any better...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.