THE CLIFF and DEBT

Posted on Sunday, December 23, 2012 by Post Scripts

by Jack

Every household in America now owes $140,000 thanks to the National Debt. This debt is accruing at the rate of $2bn a day as we spend at the rate of $11bn a day! This overspending must STOP or we’re headed for a disaster of mega proportions!

When Andrew Jackson was president, the debt was just $34,000. In 2008 it had grown to over 8 trillion and by 2012 it was over 16 trillion! We can’t keep this is up, there is a day of reckoning approaching and it’s very, very close. The gun debate pales by a million times over compared to the economic calamity ahead.

Consider that from 1945-47 there was a huge drop in government spending because we were winding down from the war. There was a great fear that we would go right back into depression because many of us believed it was big government that was holding up our economy…it wasn’t. Big government and massive spending was actually holding us back and as government was cut back, guess what happened? The economy boomed! But, have we learned from history? It doesn’t appear so, if Congress doesn’t get control on being stupid and gutless our worst nightmares will come true.

Bottom line: Time is not on our side because of the interest that is accruing makes repayment almost impossible. This debt is approaching a level that will trigger a great implosion, the dollar will crash, bond debt will be wiped out, people will lose their life savings and there is every chance we will go into a global depression that will make 1929-30 look like a pretty good year.

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One Response to THE CLIFF and DEBT

  1. Tina says:
    Sunday, December 23, 2012 at 10:34 am

    More bad news. The fed has been holding inflation in check artificially. Some economists say this is creating another bubble…it can’t go on forever. See article with charts here:

    http://globaleconomicanalysis.blogspot.com/2012/08/trends-in-interest-rates-on-national.html

    Should interest rates rise to the long-term average, interest on the national debt would more than double from the 2011 figure of $454 billion dollars.

    Find 16 points you should know at the article below…I’ve listed four:

    http://money.usnews.com/money/blogs/my-money/2012/10/04/16-things-you-need-to-know-about-government-debt

    4. Your share of the interest paid in fiscal year 2011 was over $1,400—equivalent to each person writing a check each month for $116.

    5. Interest on government debt consumes 6 percent of the federal budget.

    6. The interest on government debt is likely to go up. Current rates are at historic lows. A review of history shows that interest expense could easily double or triple. Your $100 per month contribution could turn into $300.

    7. The “official” debt is only part of the picture. The latest report of the Social Security and Medicaid trustees shows an unfunded liability of $63 trillion. An “unfunded liability” is a promise that’s been made without the money to back it up. The unfunded liability is approximately four times larger than the acknowledged federal deficit and amounts to about $200,000 per citizen.

    8. The government won’t declare bankruptcy. When the government doesn’t have enough money to meet obligations and doesn’t want to—or can’t—borrow money, it just prints some. Right now that’s called “quantitative easing” and has added over $3 trillion to the money supply. The result is more dollars available to buy the same amount of goods and services—or, as it’s commonly known, inflation.

    We could end up like Germany when it took a wheel barrel filled with money to buy one loaf of bread.

    Tell me that “fundamental transformation” isn’t about “leveling the playing field” by bringing America down to third world status…go ahead…make my year, it’s only “fair”!

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