Posted on 04/26/2009 5:44:36 PM PDT by Joiseydude
President Obama may be determined to use the current economic crisis as an excuse for "Obamanomics" to transform the United States into the world's largest socialist state.
Data emerging from the Congressional Budget Office and various international agencies, including the International Monetary Fund and the Organization for Economic Co-Operation and Development, or OECD, indicate the Obama administration's $3.6 trillion federal budget will dramatically increase government spending as a percentage of gross domestic product, or GDP, on a scale that rivals even the European Union social welfare states of France, Great Britain and Germany.
(Excerpt) Read more at wnd.com ...
The bottom 30% of any country will destroy if the government attempts to take care of them.
Another thing we can thank LBJ for.
It will happen...soon. One day America will try to sell debt and no one will buy it. Then the Treasury is in default as it can not pay it bills. That leaves only these hard options:
1. Cut spending to match tax revenue. About a 33% haircut.
2. Default on bonds. Interest rates skyrocket.
3. Try ti resell bonds. Interest rate skyrocket
4. Have the FED print money to buy the bonds. The dollar becomes worthless.
>1. Cut spending to match tax revenue. About a 33% haircut.
2. Default on bonds. Interest rates skyrocket.
3. Try ti resell bonds. Interest rate skyrocket
4. Have the FED print money to buy the bonds. The dollar becomes worthless.
Problem is, those are not either/or scenarios. - They can all happen at the same time. - easily
Sounds like Merkel’s been reading von Mises.
5. Raise taxes.
Option 1 will NEVER happen. I pick option 4. The easy way out.
In case of #4, buy gold and stocks denominated in other currencies.
4. Have the FED print money to buy the bonds. The dollar becomes worthless.
reparations anyone?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.