Do you know how enormous one trillion dollars is? If you were alive when Christ was born, and on that day you started spending a million dollars every single day, you still would not have spent one trillion dollars by now. If right this moment you went out and started spending one dollar every single second, it would take you over 31,000 years to spend one trillion dollars. A trillion $1 bills, if they were taped end to end, would wrap around the globe more than 38 times. That is how big one trillion dollars is. But right now, if the U.S. government could actually reduce the federal budget deficit to one trillion dollars that would be a major victory. In 2009, the U.S. government ran a budget deficit of more than 1.4 trillion dollars. The U.S. government will run a budget deficit of more than 1.4 trillion dollars in 2010. Not only that, the Obama administration is already admitting that the budget deficit will be over 1.4 trillion dollars again in 2011. In fact, the truth of it is that we are looking at trillion dollars deficits for as far as the eye can see. In the process we are piling up the biggest mountain of debt the world has ever seen. What we are doing to future generations is unfathomable. Servicing this monolithic debt is going to devastate the U.S. economy and is going to absolutely crush the American Dream for future generations of Americans. But we can’t seem to help ourselves. We just keep spending. (Read More...)
Government Debt
14 Reasons Why The U.S. Government Will Never Have A Balanced Budget Ever Again
The United States government will never have another balanced budget again. Yes, you read that correctly. U.S. government finances have now reached a critical “tipping point” and things are going to spin wildly out of control from this time forward. Why? Spending on entitlement programs and interest on the national debt are now accelerating at exponential rates. Some time around 2020 they will eat up every single dollar of federal revenue that is brought in before a penny is spent on anything else. Of course the solution to all of this would be to radically cut entitlement programs, but no U.S. politician in his or her right mind would do that. After all, do you think elderly people (who vote in droves by the way) would vote for you after you just cut their Social Security checks in half? That is not the way the world works. You see, democracies always get into trouble once the people realize that they can vote for the candidates that promise them the largest gifts out of the public treasury. That is where the United States is at now. Over 100 million Americans now receive direct payments from the United States government. For millions of Americans, the American Dream now means getting a government check and kicking back and enjoying life. We have become a nation that is chock full of people that can’t take care of themselves and that are totally dependent on the monolithic nanny state that the U.S. government has created. (Read More...)
Why Is U.S. Government Spending So Wildly Out Of Control?
As the world watches in horror as the financial nightmares in Greece, Spain and Portugal unfold, most Americans are oblivious to the fact that a great day of financial reckoning is soon coming to the United States as well. The truth is that the United States is not “the richest nation in the world” anymore. What the United States actually has become is the biggest debtor in the history of the planet. In our lust for the “good life” and the American Dream we have spent ourselves into a financial black hole from which there is no escape. U.S. government spending has been wildly out of control for decades, but over recent months Obama, Pelosi, Reid and their cohorts have taken things to an entirely new level. Certainly it cannot be denied that the Bush administration badly mismanaged America’s national finances, but budget deficits during his administration were generally in the three to five hundred billion dollar range. (Read More...)
The Coming Economic Collapse Of Japan – And Why You Should Be Extremely Concerned About It
Most Americans pay very little attention to what is going on in the economies of other nations. But they should. The reality is that in today’s global economy, what is happening on the other side of the world can have a dramatic impact on the U.S. economy. In particular, the ongoing implosion of Japan’s economy should greatly concern us all. Japan is the 3rd biggest economy in the world and is one of America’s most important trading partners. If Japan experiences a total economic collapse it will create a tsunami of financial panic around the globe. In fact, it is likely that a default by the government of Japan would plunge the world into such an economic nightmare that the American Dream would quickly vanish for millions of American families. So just how close is Japan to a financial collapse? Well, Fitch Ratings says that Japan’s gross public debt has reached 201 percent of GDP and is likely to continue to pile up into very dangerous territory for the foreseeable future. It is estimated that this gigantic mountain of debt amounts to 7.5 million yen for every person living in Japan. Needless to say this is extremely troubling. Japan has the highest level of public debt to GDP of any of the industrialized nations. Japan is literally drowing in red ink. Meanwhile, even with all of the massive government spending that has caused all of this debt, Japan’s economy still continues to implode at a frightening pace. Japan’s discouraging battle with deflation dragged into its 13th straight month in March as prices continued to decline and the unemployment rate rose sharply. In fact, the number of unemployed in Japan totalled 3.5 million in March. This represented a 4.5 percent rise from the same period a year ago. (Read More...)