Posted on 08/20/2012 7:02:42 AM PDT by SeekAndFind
Most people don't understand the unsolvable problem the U.S. government has created for itself and its citizens. Sovereign default is beyond a likelihood; it is inevitable.
When and which (possibly all) obligations are defaulted on will be determined by panicked politicians under duress. A complete financial and economic collapse appears unavoidable. I hope that is the worst that will occur.
Official Government Debt
The official federal debt is $16 trillion. This debt represents 100% of current GDP. Ken Rogoff and Carmen Reinhart studied countries with high levels of government debt. This Time Is Different: Eight Centuries of Financial Folly contains their complete findings. The authors concluded:
"In our study "Growth in a Time of Debt," we found relatively little association between public liabilities and growth for debt levels of less than 90 percent of GDP. But burdens above 90 percent are associated with 1 percent lower median growth. Our results are based on a data set of public debt covering 44 countries for up to 200 years. The annual data set incorporates more than 3,700 observations spanning a wide range of political and historical circumstances, legal structures and monetary regimes."
Elsewhere, the authors state:
"Our empirical research on the history of financial crises and the relationship between growth and public liabilities supports the view that current debt trajectories are a risk to long-term growth and stability, with many advanced economies already reaching or exceeding the important marker of 90 percent of GDP. The U.S. has passed their danger point, and recent U.S. GDP experience conforms to their findings. The economy is growing at subnormal rates despite unprecedented stimulus efforts. A recent Rasmussen survey found that only 27% believe that the economy is improving."
(Excerpt) Read more at americanthinker.com ...
Not only that they are out of money too
We study history not so that we won’t repeat it.
We study history so that when today’s assclowns start doing what historical assclowns have done, we know what the results are going to be so that we can prepare accordingly.
RE: Not only that they are out of money too
Well as per Obama, how can we build any business if we depend so much on them? They need more money so that we can “build that”. /s
Don't know if we've passe the point of no return - but if we haven't, we're close... very close.
BTTT!
We study history not so that we won’t repeat it.
In my lifetime, we have gone from America as a “melting pot” (true) to “diversity is our strength” (absolute BS).
I predict that as the debt situation becomes increasingly unstable, you’ll see politicans promising even MORE benefits and Government programs. It seems counter-intuitive, but you have to remember that these people will say/do ANYTHING to keep their jobs & power in the short term (e.g., the next election). The mid-long term be damned. And the sheeple will eat it up until it all collapses on everyone’s head.
It’s the sure road to anarchy
It’s why I moved from Seattle to a small farm in rural KY last year.
The soon coming collapse is as real to me as the pandemic was to Bruce Willis visiting the past in The Twelve Monkeys.
And like him, I know its impact but not the details.
—Don’t know if we’ve passe the point of no return - but if we haven’t, we’re close... very close.—
This video uses all government money munbers but removes nine zeros from each number to compare it more “realistic” to the family in the video.
It answers your question. We are LONG past the point of no return. The only way out is hyperinflation.
https://www.youtube.com/watch?v=Li0no7O9zmE
I predict that as the debt situation becomes increasingly unstable, you’ll see politicans promising even MORE benefits and Government programs.
Just kidding, but I say that because, frankly, that is what they are already doing and have been doing for some years now. Why do you think the number of people dependent on the government is growing so rapidly? :-)
And you are dead on when you say: “And the sheeple will eat it up until it all collapses on everyone’s head.”
That's the rub there folks.
In plane and simple terms we no longer study history at any level of education.
If we studied history in basic education ( K-12 ) the two major driving forces in education - Dr Spock and Robert J Maslow - would have regulated to the dustbin of history shortly after they proposed their idiocy.
If we studied history after graduation from high school then most of the liberal/progressive/socialist programs that have been the highlight of political activity since the mid 1970s would have never escaped the late night college BS sessions.
And don't even think about foreign policy activities even before November 1979.
It has take us over 60 years to destroy our society but by G0D we have done so.
Yeah, except I think its going to get even worse. I fear we haven’t seen anything yet.
RE: In plane and simple terms we no longer study history at any level of education.
But we do, my friend, we do...
Our schools are replete with the history of white man oppression, the contributions of ethnic minorities to the greatness of this country and very recently — the contributions of gays and lesbians to society.
—I fear we haven’t seen anything yet.—
Absofrickinlutely.
If Obama wins, it will get very nasty, very fast. If Romney wins, after holder’s people quit rioting it will get nasty slower, but in the end it will be almost as bad. There will probably be a spurt of business investment and loaning/borrowing (i.e. inflation) that will sputter out like all the stimulus.
The reason is that neither man can solve this, seeing as they are mere men. It’s way too big for that. This will be resolved by war. A big one.
the only stimulus that means anything concrete is substantial tax AND regulatory relief.
anything else is smoke and mirrors...
In plane and simple terms we no longer study history at any level of education.
I was on a predominantly liberal site and was “temp-banned” for linking to an article claiming the same sex marriage crowd is using the tactics of the early days of Nazism. The moderator said he was tired of comparing something so minor with something so horrific. I didn’t get the chance to explain why I was using it - that Nazism was not “horrific” at first. That’s the point.
But when all people know of history is the “highlights” and not the details, they will blindly pass through the details again and find themselves square in the middle of brand new “highlights”. Unfortunately, we will be passengers along for the ride whether we want to be or not.
Not only are they mere men, but the social forces that were set in motion long ago are accelerating. The debt is a perfect metric for tracking this. The path of least resistance has been to spend more & more & more. Anyone who stood in the way was portrayed as mean spirited and racist, sexist, etc, etc.
Meanwhile, the prosperity that made the social programs possible has long since disappeared. We kept the illusion of prosperity by putting it all on our collective credit card.
The reason why interest rates are soo low now is that they CAN’T be allowed to go higher. The System would immediately collapse due to the explosion in Federal interest payments. In fact, rates will be forced ever lower (to zero) to make keep the higher deficits “affordable”. Its all blatent manipulation. It can go on for a while, but it can’t go on forever.
The governments insane spending has moved beyond treason and is starting to feel like wanton belligerence.
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.