The story of this decade is debt. More specifically, government debt.
We've said it time and time again.
And the biggest story within the story is US government debt.
Right now America is spending $118 Billion per month more than it takes in. That is an astounding figure.
Today all the talk is of America 'officially' hitting the debt ceiling today. And prospects for the future are bleak. Increasing revenue is going to be almost impossible. Despite talk of a recovery, the economy is badly under performing. Growth last quarter came in at just 1.8%. America isn't even creating enough jobs to employ new workers entering the job market, let alone the six million workers who lost their jobs during the recession.
Most importantly, the unsustainable trajectory of government spending is accelerating the America's ruinous debt crisis.
This trajectory is catastrophic.
By the end of the decade, America will be spending 20% of it's tax revenue simply paying interest on the debt – and that’s according to optimistic projections.
This course is not sustainable. That isn’t an opinion; it’s a mathematical certainty.
The big news is that the US Treasury will now start dipping into federal retirement funds to give the country more room to borrow.
Treasury Secretary Tim Geithner sent a letter to Congress alerting them to actions that have be taken to create additional headroom under the debt limit so that Treasury can continue funding obligations made by Congresses past and present.
Last week Geithner also warned about the fiscal and economic consequences of failing to increase the debt limit.
Geithner continues to urge Congress to raise the debt limit in a timely manner in order to uphold the full faith and credit of the United States.
Debt... and the concurrent solution of money printing.
The issues have not changed.
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There are always trillions for bullets, bankers and oil company subsidies. The whole system is a shakedown scam that would make Al Capone blush. The mainstream press just supports this BS, since they are owned by the same elite that owns us and our politicians. The same politicians who are promising that tax cuts will create jobs and a better economy, while the sheep phone the talk shows in support of this nonsense that will demolish the social contract established in the 20's and 30's. Get ready for austerity with new super prisons and tougher sentences for those who complain.
ReplyDelete"Federal Communications commissioner Meredith Attwell Baker announced Wednesday that she will resign from the FCC on June 3 and join Comcast-NBC Universal as its senior vice president of governmental affairs.
ReplyDelete"The commissioner’s announcement comes four months after she voted to approve a joint venture between Comcast and NBC Universal."
FCC commissioner Meredith Baker to join Comcast-NBC
Ms Baker above brings to mind the story of the media darling Carole Taylor, BC's former finance minister. Right before resigning her position, working for the citizens of BC, Ms Taylor eliminated the provinces bank tax worth about $180M annually to the provincial coffers. She was then appointed to the board of directors of the TD Bank.
ReplyDeleteWe can rest assured though that the banks turned around and hired a whole bunch of new employees, because that's what happens when taxes are reduced.
One more thing, Ms Taylor was also appointed as Chancellor of SFU, where she can advise students on fashionable shoes and the intricacies of Canadian banking.
good read on the unwinding south of the border
ReplyDelete