Use access key #2 to skip to page content.

alstry (35.40)

The MOST Convulsive Math Problem In American History

Recs

4

November 30, 2010 – Comments (1)

When America was founded, government played a very small roll as a percentage of GDP....

In The Great Depression....there were no Food Stamps, Unemployment Benefits, Welfare, Social Security, or Medicaid/care....and government was LESS than 10% of GDP.....

TODAY...Federal, State, and Local Government spending, factoring health care, constitute about 50% of GDP.......and the other half of GDP is dependent on the Government spending for it to generate revenues......

Over 50,000,000 on Social Security and Medicare/aid

About 50,000,000 on Food Stamps and similar programs.....

Over 50,000,000 receiving unemployment benefits, working for government OR working for an essentially government subsidized health care system.....

IT IS THE SPENDING OF THE ABOVE 150,000,000 AMERICANS AND THEIR DEPENDENTS THAT DRIVE MOST OF THE REVENUES AND SPENDING OF THE PRIVATE SECTOR....OR THE OTHER 50% OF GDP.....

THE PROBLEM.....not the end of the world, just the end of the world as you know it

Right now the Federal Government is guaranteeing tens of billions of dollars of State Government spending through Build America Bonds........EVEN though the Federal Government is running a deficit of $1.5 TRILLION DOLLARS by itself...WE BASICALLY HAVE THE BANKRUPT GUARANTEEING THE BANKRUPT....

and much of the current tax receipts of America are a direct result of the Federal Government's deficit........HOWEVER, there is no source in the world which can credibly or legitimately fund such a large deficit.....so essentially Benny the B must counterfeit money to maintain the illusion of cashflow...............

and if the government didn't steal and counterfeit the $1.5 Trillion (our nation, and much of the world, would fall into the deepest Depression in HISTORY)

But if we keep counterfeiting.......fewer and fewer around the world will accept our currency and the price of everything we pay for will be out of reach of basically every American....AND THE RESULT WILL BE WORSE THAN A DEFLATIONARY DEPRESSION.

There is a third choice.......go to war and just take what we need........and probably kill a few billion people in the process which will make Al Gore happy because it would lower the carbon footprint of the world.

So which is it.......

A.  Depression and Restructure

B.  Hyperinflation and MASSIVE Depression

C.  War

1 Comments – Post Your Own

#1) On November 30, 2010 at 7:38 PM, alstry (35.40) wrote:

In sum...the nation is broke on all levels for the first time in its history since it adopted Fiat Currency........

people get really really mad and angry when they are broke...especially when they are not used to being broke.....

My advice to my fellow Fool family.......STAY COOL FOOLS.....

Report this comment

Featured Broker Partners


Advertisement