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A Comprehensive Breakdown of America’s Economic House of Cards
Submitted by Thad Beversdorf via First Rebuttal blog,
I was going over some of my older posts to review what was being discussed at the beginning of this year and what the perspectives were at that time. I found an interesting piece I wrote at the beginning of the year. I had just watched Janet Yellen’s inaugural panel hearing in front of the congressional finance committee members on Cspan. It’s basically a forum to allow the congressional financial committee members to directly pose comments and questions to the world’s most influential banker, namely, the US Fed chairman.
There were a few hardball questions but mostly just buttering up on Ms. Yellen from both sides of the aisle. Picking out a few of the interesting bits that came up in the course of discussion I was certain I saw a glimpse of honesty indicating that problems are on the horizon, from Ms. Yellen. The most notable commentary was her fairly forthright perspective that the CBO forward guidance depicted an imminent problem for America. What caught me a bit off guard was how easily the congressional finance committee members shrugged off the repetitive warnings from the Fed chair regarding this imminent problem. There was no discussion about possible solutions to the problem or even calls for further investigation to the warnings. It was simply dismissed. I found it incredibly ironic the one person in the world who is mandated to continuously increase leverage to the US was the one warning congress to get its fiscal house in order. Yet the congressional committee before her, acted as though they didn’t hear it.
However, subsequent to that initial committee hearing I’ve not heard any additional warnings from the Fed about getting the America’s fiscal house in order. It was a rare moment of honesty from a rookie chair and she apparently received a memo shortly thereafter informing her of the mistake. Now let’s take a look at specifically what Ms. Yellen was warning congress about. The CBO publishes annual long term forward guidance to give the world an idea of where things will be for the US 25 years out given where we are today. Forecasting so far into the future is no exact science and it relies heavily on assumptions. And so let’s take a look at the typical process.
The CBO runs historical trends and then ties that into the current state of the state and from there they get creative in their forecasting by assuming various policy changes will be made and these potential changes will have differing economic consequences. Eventually they get to some baseline forward guidance that may or may not be accurate but doesn’t send the country into a panic whilst also providing some legitimate underlying point. I think someone at the CBO really dropped the ball on the last two though because the reports look slightly apocalyptic. Because of my mistrust for all things government I wanted to validate the CBO projections.
So I replicated the CBO forward guidance using historical trends to guide me through the future of total debt and GDP. Rather than assuming specific policy changes I simply used quantitative positive and negative sensitivity testing. Policies change throughout the historical data and so it implicitly captures varying policies over time. As such, simple discount and premium sensitivity should be a more impartial method of scenario testing. Let’s have a look at the following forecast by the CBO. Note these projections do not include intra-governmental obligations (basically IOU’s government has from borrowing money from various social accounts like pensions and social security). If it did these percentages would be much higher. For instance, currently Total Federal Debt including intra-governmental debt is already about 106% of GDP rather than the 70% excluding intra-governmental debt. Yet there is nothing fake about those intra-governmental obligations, however, they are not explicit securities with maturities, etc. But understand the projections are not anywhere close to the true debt levels.
Here are the CBO projections:
So we see the CBO has Federal debt held by the public ranging from 42% to 183%, with a baseline of 111% of GDP by 2039.
The following are my projections using pure quantitative assumptions (+/- one standard deviation from baseline). All historical data for my projections were pulled from St. Louis Fed.
Debt to GDP Forecast
My projections had a debt to GDP range of 62% to 240% (vs 42% to 183% CBO), with a baseline of 123% (vs 111% CBO) of GDP. So slightly higher than the CBO and I would expect the CBO is going to be as conservative as they can even in there higher projections. But given these are predictions for 25 years forward I would say the results are similar enough, particularly the baseline, to assume these ratios are probably fairly accurate. Possibly averaging the CBO with my baseline and range intervals would give a reasonable indication. The CBO also provides an ever further out forecast for debt, spending and revenues. Let’s have a look.
* * *
The fact of the matter is that regardless how you spin these projections they are frightening. And this gets us back to Ms. Yellen’s quite forthright and appropriate warnings to the congressional finance committee members that the US must get its fiscal house in order. What she meant and explicitly said in the discussion was spending must be contained. The seriousness of even the baseline projections are simply not survivable (Yellen’s words were unsustainable). And that’s not superlative but literal. Just being America does not allow us to defy all economic principles forever. Let’s take a closer look at some of the implications of these projections.
If we face the worse case projection, let’s call it 200% debt to GDP by 2039, 10 yr Treasuries cannot be more than around 2% yield in order to remain within the historical debt service to GDP range. This is where things really break down. Because if we cannot entice lenders today at 2.5% or 3% interest with 70% debt to GDP there is simply no way lenders will be attracted at 2% with debt to GDP at 200%. So let’s think about what this means. Now the CBO budget projections predict deficits will increase forever after 2018. And we will see why this is true shortly. This will require massive amounts of debt over the next 25 years. And if we don’t have willing lenders we’re back to monetizing most of that debt as we’ve done for the past several years. This means massive amounts of money printing. And so we put ourselves into a downward spiral of devaluation, which means inflation. Inflation perpetuates larger deficits as spending increases and even more money printing and so the downward spiral worsens. This will be made much worse by the winding down currently taking place of the petrodollar as demand for dollars will see significant declines.
Alternatively to monetizing debt, we can raise interest rates to attract lenders to the market. Let’s say we get to the 20 year average of 7.5%. That means 7.5% of 200% of GDP, so 15% of GDP. Well we’ve already stated that total tax revenues equate to about 17% of GDP. This means total debt service will eat up virtually every bit of tax revenue, again leading to massive deficits so even more debt will be required to cover all other expenditures. That leads to more borrowing and worsening balance sheet metrics requiring even higher interest rates. And so we can see very quickly this alternative also leads to a downward spiral. Further, we see that under both scenarios of monetizing debt or incentivizing lenders, a debt driven economy will result in endlessly rising deficits requiring ever more debt. There is simply no way to escape the need for ever more debt once you get locked into this economic catch 22. The CBO quite rightly projected this to be the case for the US.
The alternative to a debt led economy is organic growth. Meaning we find a way to create value from investing in human and fixed capital. We innovate, increase productivity, improve efficiencies and create value. The end result is income growth. And it is the next decision that is of particular importance as it either makes or breaks the economy. What I mean by that is we can take that earnings growth and move it outside of the economy into financial investments or we can put that money back to work inside the economy. If we choose to move those gains into financial investments we forego any hope of economic growth. That is, we begin a cycle of narrowing income distribution.
As I’ve discussed many times recently, below a certain point of income distribution there is nothing that can be done to boost economic growth. That is, no amount of money injections, no duration of costless borrowing, absolutely nothing other than widening the income distribution will prevent economic implosion. And I believe that is exactly where we are today. We’ve printed trillions upon trillions while keeping borrowing costs at zero for 6 years and we are yet to get back to 3% economic growth. The shocker is going to be when economists catch on that 3% growth is no longer sufficient given the doubling of our debt. Like you or me, if we double our debt levels are annual 3% raise no longer covers the bills.
Private fixed capital investment has been deteriorating for at least 15 years now and continues. The past 6 years have been notably devoid of capital expenditures. The effects of that have and will continue to manifest through poor employment and further declining real median incomes. That results in further demand deterioration and again, here, we see another ugly downward spiral. Since the effects of capex are lagged we are yet to feel the real impact of the massive reductions to private investment here in the US but we will begin to over the next several years.
I guess what I’ve been trying to get across to everyone over the past month or two in my writing is that this all time high market has absolutely no positive impact on the economy whatsoever. The reason I would suggest is because secondary financial markets are actually outside of the economy. They are entirely irrelevant to the health of America. It certainly is making some rich folks richer. And that’s not a bad thing on its own. However, it has created such a devastating misallocation of resources within our economy which had already lost any sense of the economic efficiencies we boast of from the 1990′s. And it is because of these misallocations that the American consumer has suffered. We’ve masked the problem of deteriorating demand by flooding consumers with debt but all we’ve done is to cannibalize future consumption while burying and already struggling consumer in debt. Compounding this problem over the next 30 years is an increasingly difficult demographic landscape in the US with the baby boomers moving from net payers to net payees.
Where does this leave us? Well in a very bad spot. We have the information right before us that essentially spells out the end of American economic prowess. The info isn’t from some obscure source, it is the Congressional Budget Office projecting such things. Now in order to avoid panic, the CBO isn’t going to say it like I am that such projections are not survivable. But one who understands the projections understands the implications. However, as did the congressional finance committee members, Americans are unwilling to accept the fact that we are facing an incredibly precarious economic landscape going forward. And our policymakers have done everything in their power to exasperate the problem.
America has created a moral hazard for all Americans in that we feel we always have a fail safe no matter what we do because we’ve always succeeded. But so too had every other great dynasty until it didn’t. If we do not force a change in our economic policies we are very close to and perhaps already past the point of no return. I have no witting quip to end this article. The economic landscape we face today is nothing short of dire. And at the risk of sounding overdramatic we either force a policy change, suffer the short term pain and restructure or we and all future generations will live in a very different America from the one our folks left us. And that my friends is what, as teenagers, we would have called the balls-out-truth back in my small Canadian hometown.
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We are fucked. Make no mistake. It's just a matter of time.
"Tick tock motherfuckers." -LOP
They need to bring down America to roll in eco-fascism and make us all vegans
https://www.youtube.com/watch?v=tOW5eljyjms
Right direction, off by an order of magnitude.
Spending on medicare/medicaid alone is more than enough to bring this puppy down.
All these damn fool models treat government transfer payments as equal to the private sector.
Ridiculous. First, separate parasites from producers.
Fuck everything!
Buy Bitcoin!
"If we do not force a change in our economic policies we are very close to and perhaps already past the point of no return."
Past. Trying to figure out why so many people are expending so much time trying to fix an unfixable situation instead of preparing for what comes after.
(Yawn) . . .
Call me when gold reaches $2000.
Until then, stop with the bullshit.
instead of bitcoin or dollars
http://paypo.me
"Turn $10 Into $100+ Pay days, Every Day! Receive $10 Payments Over & Over Into Your PayPal Account, Starting From Now! Get paid $10 instantly into your PayPal account every time someone you refer does the same as you and joins the PayPo system!"
0h hell yes. ponzapalooza
Is that you, Ms. Yellen??
You want me to what??
Sorry, not this guy.
Find yourself another stud muffin.
I hear Alan Greenspan is available . . .
"Find yourself another stud muffin."
Umm... I'm pretty sure that the very last thing Mr. Yellen is looking for is a 'stud muffin'.
(Unless, of course, you define 'stud muffin' as a 350 lbs. gender-confused orangutang who just happens to be blessed with a 16" steel-studded strap-on and a stylish checkered flannel shirt.)
I'm confused. Not sure whether to up vote you for sick humor and originality. Or to down arrow you for the horrid image that came to mind as I read the last line. Hmmmm......
Thank-you!! We signed up! We go in pants unworn and spirits unshorn!
Oh, that's nothing. My sister makes $7500 a month part-time...
I can't do it. I'm so sick of scam-spam I can hardly make myself type.
Kinda sad when our entire economy turns into a stereotype of a 3rd world flea market.
kaiserhoff: "First, separate parasites from producers."
Agtreed, we should put about 80% of Fedgov on the chopping block immediately.
I suggest chopping the military-industrial complex. At least Medicare and Medicaid are for healthcare. Don't know why we need to spend a trillion plus every year on empire stuff, other than to pump up elite egos.
Some things never change.
As long as you are there to serve and protect. Remember anyone who resists is a dead man and rightfully so. /sarcasm.
"And at the risk of sounding overdramatic we either force a policy change, suffer the short term pain and restructure or we and all future generations will live in a very different America from the one our folks left us."
This actually made me throw up in my mouth a little bit. What a joke.
Forecasts out to 2034 make me giggle. As if there'll be an America left that even remotely resembles the one today. You don't have until 2034, you got at best 5 years.....but I doubt even that.
Well, adjusting for the frog-in-a-saucepan effect, America today is vastly different from America in 1994. For instance, then we had banking laws. And we could board airplanes without stripping butt-naked and being groped. So hey, not everything is worse.
America, an HMO with an army.
How it ends:
Plunging oil prices lead to a deflationary downward spiral. This makes the Japanese government insolvent, and they then sell thier enormous holdings of treasuries. Given the level of exposure american banks have to japanese ones, american financial institutions begin taking on huge quantities of toxic assets.
Fed tries to stave off deflation by printing money. They overshoot.
Several oil producing nations start to go under. China, with essentially infinite oil demad, offers to buy the juice, providing the sales a denominated in yuan. Desperate to remain afloat, nations like Nigeria or Venezuela or even Russia accept what ever terms are offered.
With dollar holdings no longer required for buying oil, many countries sell off their treasury holdings. The effect of all these treasuries being sold and money printing by the fed is severe inflation in the USA, killing the economy.
In the 1930's, things weren't as dire because many people still know how to farm and many people were used to being poor. These days, people have no clue how to be self suffcient and don't know how to function if the power goes out for an hour.
Anyway that's how I see things playing out. I could well be wrong, being after all just some guy on the internet.
How do you see hyper inflation creeping into the economy? This is somehow implying that the FED's money printing is trickling into the actual economy, which it isnt. If no one is buying anything due to a decrease in incomes/loss of jobs/etc. how can there possibly be inflation?
Yes, wait for the Real Estate crash 2.0, then the real depression begins.
It's not printing until they start cancelling debt. Until that happens, straight up depression for the productive sector.
this is how things will play out:
either,
- people buy the war bullshit and go off to die
or
- debts get cancelled
or
- heads will roll
Basically. The only thing that is for sure going to happen is that .gov is going to have to stop blowing so much fucking money every year. Whether it comes about due to a treasury default = no one lending money to .gov anymore, OR the interest rates normalize, forcing .gov to pay down debt rather than wasting money on bombs and bullshit, OR they simply default on SS/medicare/medicaid, OR all of the above. The end.
So 2015?
We're all fucked! (but you guys are gonna be fucked better and for longer)
"I guess what I’ve been trying to get across to everyone over the past month or two in my writing is that this all time high market has absolutely no positive impact on the economy whatsoever"
In other news ~ CAPTAIN OBVIOUS has your hotel room rating ready & available [whether or not you'll be needing it tonight].
no good options
suffer the short term pain and restructure
short term pain? i'll hv what he's smokin
The length of the "pain" is somewhat optional (and inversely correlated with the level of said "pain"). Restructuring is coming, one way or another...
Congress are paid not to hear! Why the surprise?
Gold monthly analysis:
http://investfts.blogspot.co.uk/2014/12/gold-monthly-thoughts.html
The sheeple and their shepherds still have hope. They trust a god or nature or a manifest destiny will provide.
Black Agenda Report
Glen Ford's blog
The New Movement: Are We There Yet?
Submitted by Glen Ford on Wed, 12/03/2014 - 18:43
.
http://www.blackagendareport.com/node/14549
.
"“This movement-in-the-making has no choice but to challenge the very legitimacy of the State and its armed organs of coercion.”
After decades of misleader-induced lethargy and quietude, Black America is finally in motion – or, at the very least, earnestly seeking ways to resist being plunged deeper into the abyss. The nascent “movement” is more like a pregnancy than a full-term child, and thus does not yet have a name beyond the focal point of “Ferguson.” Yet, it is kicking its way into the world robustly – even seismically – registering nearly two hundred demonstrations in the week following the non-indictment of killer cop Darren Wilson. This baby is reaching self-awareness in the womb of struggle, and will emerge screaming its own name at the top of its lungs.
Unlike its older siblings, Civil Rights and Black Power, this movement-in-the-making has no choice but to challenge the very legitimacy of the State and its armed organs of coercion and control: the police and, inevitably, the entire intelligence and national security apparatus of the ruling regime. Poor baby, but such is her fate." ...g.f.
.
02 DECEMBER 2014
Princes of the Yen: Central Banks and the Transformation of an Economy
"Central banks have the power to create economic, political and social change. This is how they do it." ...jca.
see
"princes of the yen", a film about central banks....
http://jessescrossroadscafe.blogspot.com/2014/12/princes-of-yen-central-...
.
turning japanese, i really think so.
.
Bow Wow Wow - I Want Candy
https://www.youtube.com/watch?v=aMICD3aMZpw
I hereby proclaim that it is our "Patriotic Duty" ® to immediately transfer all of our assets to our overlords so that the FSA and Banksters can delay their inevitable suffering for a few more years.
Not that it would even matter though, as the USSA is functionally insolvent not that the FSA could understand the concept, but I guarantee the Banksters do.
But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson! But Ferguson!
But bread and circuses!
Looking into the ice core records will tell you the truth. Which reminds me, gotta keep my jacket in my car even though I'm in LA. Maunder Minimum might not let up for another 100 years. Even worse this time the cold spell might be the catalyst for a big one.
Arrest Al Gore before we all freeze.
This is all prequel to the movie, the final act will be all pensions will be seized and given to the insolvent banks on Wall st.
yes, i will and can't wait to give all my life long earnings/savings to an oligarcy institution.
i fact i will donate time to help orchestrate the flood of sheeple giving everything for the
village. you in? come on we can make a differnce! be somebody with compasion and a big heart and help the collective whole. yea you can make a difference folks, with some hope and change we will get it right this time, because this time will be different. plez...
PIPPIN: What? Gandalf? See what?
GANDALF: White shores, and beyond, a far green country under the same powers that be.
PIPPIN: Well, that's really bad.
GANDALF: Yes. Yes, it is.”
when you live under or operate a debt money system this is the end result. Inflating debt away and growing the amount of debt that can be handled is grasping at straws.
when you live under or operate a debt money system this is the end result. Inflating debt away and growing the amount of debt that can be handled is grasping at straws.
For sure, frankly scarlet, AFTER the MAD Money As Debt system gets implemented (as it was by the international banksters applying the methods of organized crime to dominate the political processes), then everything caused by that automatically gets worse, faster.
The American House of Cards was originally built on the government ENFORCED FRAUDS of privately controlled banks being legally allowed to create the public "money" supply out of nothing as debts. For more than a Century the American economy has been based on making more and more "money" out of nothing. Hence, the government necessarily went deeper and deeper into debt, and the American people as a whole went into deeper and deeper debts inside of that criminally insane system, which only existed due to the real ways that the best organized gang of criminals were able to capture control over the powers of governments!
Historian Carroll Quigley wrote:
"powers of financial capitalism
had another far-reaching goal,
nothing less than to create a
world system of financial
control in private hands
able to dominate the
political system of
each country and
the economy of
the world as
a whole ..."
Most of the comments above agree with the alternative that America is "already past the point of no return." The international banksters were able to implement their agenda through the USA, as well as almost everywhere else in the world, as political economy based upon ENFORCED FRAUDS, where the abilities to bribe, intimidate and assassinate politicians, continued for decade after decade, along with the profits from fraud reinvested in more frauds, through the schools and the mass media, to the point where the BASIC SYSTEM IS A HOUSE OF CARDS, ALL BUILT ON ENFORCED FRAUDS.
America has become a runaway system of legalized lies, backed by legalized violence, regarding the vast majority of everything it is doing, at home and abroad. There is nothing within those systems that can fix those problems. As usual with Zero Hedge's featured articles, this one grossly understates how serious the situation is, and therefore, underestimates what the consequences will be, or what possible genuinely better resolutions would require.
This article states that it is worried about "the risk of sounding overdramatic." Hah! The path America is on is towards the runaway debt insanities provoking death insanities. The international banksters that dominate the American government are preparing to impose democidal martial law upon the majority of Americans. The established systems did that by promoting one war based on deceits after another, in order to advance the overall agenda of debt slavery, mostly using the techniques of false flag attacks, by getting people to blame the wrong enemy, and make things worse because of the vicious spirals driven by attacking the wrong enemy, in the wrong way. (E.g., War on Drugs, and then, War on Terror.) Furthermore, given how far gone those problems are, there are no reasonable ways to imagine how the runaway debt insanities could avoid provoking psychotic breakdowns of some kind, in one way or another, sooner or later, SINCE THE FOUNDATION OF THE ECONOMY IS ENFORCED FRAUDS, in which debt slavery is backed up by wars based on deceits:
control in private hands
able to dominate the
political system of
each country and
the economy of
the world as
a whole ...
http://www.conspiracyarchive.com/NWO/silent_weapons_quiet_wars.htm
Silent Weapons for Quiet Wars
"Energy is recognized as the key to all activity on earth. Natural science is the study of the sources and control of natural energy, and social science, theoretically expressed as economics, is the study of the sources and control of social energy. Both are bookkeeping systems: mathematics. Therefore, mathematics is the primary energy science. And the bookkeeper can be king if the public can be kept ignorant of the methodology of the bookkeeping. ... In this structure, credit, presented as a pure element called "currency," has the appearance of capital, but is in effect negative capital. Hence, it has the appearance of service, but is in fact, indebtedness or debt. ... if balanced in no other way, will be balanced by the negation of population (war, genocide)... They must eventually resort to war to balance the account, because war ultimately is merely the act of destroying the creditor ... War is therefore the balancing of the system by killing the true creditors (the public ...)"
The ONLY plan that the ruling classes have apparently prepared for the collapse of the American Economy's House Of Cards is to mass murder the majority of Americans, mostly by getting them to mass murder each other. Furthermore, since money is measurement backed by murder, there are no genuinely better resolutions to the real problems which are possible outside of that context. The existing problems are due to the ways that FRAUDS WERE ENFORCED, i.e., how the money system was backed by the murder system, or how the debt controls were backed by the death controls. That became systems where the death controls operated through the maximum possible deceits, in order to maintain the debt controls based in the maximum possible frauds.
There is nothing within the established social pyramid systems which can resolve their inherent problems, since the only ways that ENFORCED FRAUDS can respond to their problems is through MOAR ENFORCED FRAUDS!
The article above was another demonstration of the ways that the debt slavery systems have generated numbers which have become debt insanities, which have no mathematically possible ways to be resolved within those systems, since those systems were always actually based on a kind of magical mathematics, whereby "money" could be made out of nothing as debts, which ENFORCED FRAUDS drove irreconcilable social polarization and irreparable destruction of the natural world to accelerate their trends at exponential rates.
Creating "money" out of nothing to gamble with has enabled a series of increasingly insane economic situations to pick up momentum, with one of the more recent examples being:
Plummeting Oil Prices Could Destroy The Banks That Are Holding Trillions In Commodity Derivatives"For those looking forward to the day when these mammoth 'too big to fail' banks will collapse, you need to keep in mind that when they do go down the entire system is going to utterly fall apart. At this point our economic system is so completely dependent on these banks that there is no way that it can function without them.
It is like a patient with an extremely advanced case of cancer. Doctors can try to kill the cancer, but it is almost inevitable that the patient will die in the process."
Getting spending under control? Does that touch on the coming large military spending bills the new republican congree will be bring to the floor in record time once they are seated? Let's be honest, the US military and spying budget runs well north of 1 trillion dollars. Add the costs of past and coming wars, and we will soon spend 1.5 trillion a year easily. One wonders, would the Fed Chair woman sanction any military spending cuts, or cuts in free cash and weapons to Israel?
No? That's what I thought.
Help me here. They can print forever, and probably will. Just the mention of more QE sends markets soaring. Millions hang on every word the central bankers utter. Even “denials” are spun into, “No QE today, but likely within a few days.” There is nothing else that matters anymore, not poor earnings, massive deficits, slowing consumers, government’s $18T debt, etc. It can all be fixed by limitless money creation, so who would sell stocks? Bears have not YET shown one negative from all the money creation. There is no inflation, millions are thrilled with their 401k’s, they are out buying SUVs like candy bars again. Gas is cheap, loans are easy to get. Phony appraisals push home prices ever higher, then comes refi’s and granite counter tops. So, there is not one solid bearish argument, YET.
"It can all be fixed by limitless money creation, so who would sell stocks? Bears have not YET shown one negative from all the money creation."
A record credit bubble. If you think it is not a negative, wait until it bursts.
We are F***ed.
So,..........youre telling me theres a chance.
Hot damn !
For those who note such things or care America it there. The national debt is at the 18 trillion mark. This has happened as Americans continue to hear from the media how robust economic growth has helped push the U.S. budget deficit down to the lowest level since 2008. Claims of the sharpest turnaround in the government’s fiscal position in at least 46 years are targeted at reassuring American that Washington has got our back.
The ugly truth many people choose to ignore is that starting in 2017 entitlements will become the driving force and carry the deficit in to nosebleed territory. Any claim that the Obama administration has the budget deficit back under control is a total lie. We are mired in the mist of the greatest government debt bubble in the history of the world. The recently written article below looks into the risk that with the artificially low interest rates many people seem to have little desire to do anything about this.
http://brucewilds.blogspot.com/2014/11/deficit-poised-to-top-18-trillion.html
<= There is still time to get out
<= There is still time to go full Sage Kelly
Finger painting on the Titanic courtesy of the CBO and your tax contribution.
"Caught with his pants down and money sticking up his hole"
Lou Reed describing a politician
I pledge allegiance to the government of the disunited states of America,
and to the republic that it failed, one nation, under God,
with a history of liberty-and justice-for-all that it relies on as a moral bludgeon around the world.
Thad
get a grip...we are heading for a hyperinflationary collapse. Everyone but Harvey Dent knows this and even he knows there is no 'solution' to the problem. Hold on tight the ride is going to get rough real soon. The other countries have distanced them selves as best they can with currency swaps and trade agreements. Right now the US dollar is 'the queer fellow' walking to the gallows. The country will eventually recover but the changes will be more than painful. Your wealth is not what your Fidelity account statements says it is...it is only the things in the physical world that you own. Your paper is reaching 451F.
"exasperate the problem"?? Good grief. I think the author meant "exacerbate the problem"
And your comment adds what to the Topic.
Spelling Police, now that is a relavent crime. Just Saying......get stuffed.
It's not a spelling error. It's a grotesque misuse of a word which the author quite obviously doesn't understand.
Please Stop ..........YOU LOST ME AT GDP.......
Seriously debt as a percentage of GDP??? NOW, there is a lesson in relativity that even Al WTF Einstein would struggle with....... may as well be using gold pressed latinum it's a bit more realistic...
Shout out to all dem bruthas
We broke as MUTHA FUCKAS
word.