Skip to comments.The Collapse Of America In Raw Numbers (With Video)
Posted on 02/09/2012 5:55:20 PM PST by blam
The Collapse Of America In Raw Numbers *Video*
February 9th, 2012
Looking at the numbers behind our federal budgets reveals that the majority of our governments spending goes not to running the day to day operations of government, but rather, to social safety net programs like Medicaid, Medicare, Social Security, welfare, food assistance, rental stipends and a host of other entitlement programs. In many cases, the programs themselves are used as a marketing tool during election campaigns, with the winner of an election often being the candidate who promises the most benefits to their constituents.
While this strategy of indirect vote buying has worked well for politicians on both sides of the aisle for many decades, and has been instrumental in ushering in an era of centrally planned economies and expansion of government influence on the individual lives of American citizens, it is as Bill Whittle suggests (video below), an unsustainable system that will ultimately fail.
Its generally true that the people who receive the most in benefits pay little or nothing in taxes, so people are voting themselves other peoples money. Its not just a vote pump. Its a wealth redistribution pump, and it pumps $2.2 trillion every single year from people who work and pay taxes to people who often dont work and dont pay any taxes.
As long as the benefit receivers can outvote the benefit producers there will be more and more people taking, and fewer and fewer people working harder and harder to produce those benefits. Thats exactly what were seeing today.
(Please click to the site to see the video)
We face a choice. One option is to cut back on this [entitlement] food supply and gradually but firmly reduce this entitlement dependence to what it was originally intended to be: help for those, who through illness or physical incapacity, cannot help themselves, and return everyone else feeding on this supply from the wealth consumer column to the wealth generator column. That is going to be very, very, very difficult to do.
Or, we can let this continue until the system collapses, and thatll be sooner rather than later, and much sooner than many of you think. Then there wont be any benefits at all.
There is certainly something to be said for the ethical and moral obligations of an advanced modern-day society with respect to taking care of those who cannot care for themselves, or those who have experienced a short-term medical or employment emergency. But providing extended womb-to-tomb safety nets and entitlement programs for those who are perfectly capable of working a productive job but refuse to do so, or for those who make poor personal budgetary choices, leads to the inevitable outcome in which everyone eventually realizes that theyd be better off by simply collecting their income from the government.
We are at the point in America where there really is no turning back. While Mr. Whittles solution of drastically cutting back these types of nanny-state expenses is a sound one, it is simply not politically feasible for individual politicians. In todays America, the idea of cutting back on social expenditures and facilitating a return to individual responsibility is political suicide for incumbents, and a non-starter for those wishing to enter the political arena as first time candidates.
Moreover, eliminating these types of expenses is simply not going to be possible without massive social upheaval. Consider what would happen if you cut supplemental food assistance by 50%, or eliminated extensions of emergency unemployment insurance, or, heaven forbid, you take away access to the millions of Obama Phones that will be distributed this year.
We are now so far gone that entitlement cuts to the federal budget will have the same catastrophic impact on society as will the eventual collapse of the monetary, financial and economic systems when our creditors finally stop lending us money. Its a catch 22 and both options lead to the same end result. Thus, for Congressional representatives who control our budget, the choice is simple: kick the can down the road to keep the system from completely destabilizing for as long as possible.
When the money runs out and it will, because China, Russia, Japan and the rest of our lenders know were a lost cause the entitlement system in America will fall apart, leaving tens of millions of people without any way to meet their basic needs.
Once this new paradigm becomes apparent you can fully expect riots in the streets - bloodshed, starvation, martial law all of the worst case scenarios youve imagined.
The system is coming unhinged and the math is all the proof you need.
I think we have passed the point of no return and there is no peaceful/bloodless way back from here. (These folks agree)
(BTW, are you all aware the the US military has been conducting urban warfare drills in the major cities of this country? They are, Los Angeles was just the latest)
I think we have passed the point of no return and there is no peaceful/bloodless way back from here. “
Let er rip! Let’s have them take picnic baskets and get all dressed up and drive out to watch the confrontation at Third Manassas.
Starting with FDR, the Democrat Party began their attempt to incorporate the teachings of Karl Marx into the fabric of America by converting Marxs dictum of From each according to his ability, to each according to his need. into what we know today as Class Warfare, the disparity between the haves and the have nots, wealth/income redistribution, progressive taxation, etc.
It took less than 80 years for the Social Security System to become a financially destructive program. This was FDRs largest part of his New Deal. Since then, almost all Presidents, (from both political parties), have added their programs to the financially predatory, share-the-wealth, social-engineering plans started by FDR.
The result has been a pervasive appetite on the part of voters to expect each new presidential candidate to buy their votes with new free Federal programs that they think that they are entitled to. The Federal politicians in both political parties have been only to happy to comply.
Since we are a consumer-based society, we the consumers pay all the taxes. Businesses do not pay taxes. We pay the businesses for all additional expenses that the Federal, State and Local politicians add to the cost of selling goods and services to us.
Consider for a moment what the financial impact would be if there were no Federal, State, or Local taxes on any fuel used by trains, planes, ships and trucks that are part of the supply chain that delivers goods and services to us, the consumers. Would the cost of a loaf of bread, cell phone, or cost of gasoline at the pump go up or down?
The entitlement mentality of the American voter is still very strong. Consider for a moment who among us really wants in 2013 to receive 35% less financial payments from the Federal Government for our entitlements, including Food Stamps (Nixon), No Child Left Behind (GWB), Medicare (LBJ), Medicaid, and Social Security (FDR)?
Certainly not the Republican In Name Only, (RINO), Party, or the Democrat Party. Thus, we come to today where the RINOs are asked to accept the political plank that the Entitlements of the past are now liabilities for the future.
This concept was brought home forcefully in September, 2008 when the US Governments Federal Housing Agency went Bankrupt. Americans lost 35 % of their wealth, but the US Federal Government has yet to cut its baselevel spending by the same 35 %.
The US Federal Government continues to live in denial by printing money backed only by the unsolicited pledge of American taxpayers to pay any future downside risk to owners of that money. This money is printed in the futile attempt, (it hasnt worked yet), to stimulate the return of the 35 % loss of wealth.
The probability is that market forces of supply and demand will force the voters to choose politicians who will adjust Federal Entitlement spending down below market expectations.
The question of that voter mentality change relative to a financial collapse of the US Federal Government is still an open question. Greece and California will be interesting future shock examples of what this Nation can expect.
Romney personifies the denial of the RINO Party to recognize that the primary problem in America is the Entitlement mentality of the American voter. Our National Election of 2012 is all about the money, our money. The RINO Party continues to endorse their best Entitlement Liberal, as just business as usual.
Neither Romney or the GOP has definite plans to change anything of significance to the Entitlement expense that is essentially paid for by strangers who buy our Government Bonds.
Obamacare not only is the fatal wound to America, it is also destructive to our Freedom of Religion, as well as Separation of Church and State.
Obamacare is also the clearest definition, so far, of what the Democrat Party has stood for since FDR began to weave Marxism into the daily fabric of the United States of America, the home of the formerly Free and the formerly Brave.
To the best of my knowledge, since that time until now, not one Federal Politician has accepted responsibility for their actions, and inactions in this Federally-caused financial disaster, currently called The Great Recession.
Instead, two administrations, from both political parties, have successfully been able to convince the voting public, and their children, (especially the OWS), that the FHA/Fannie Mae/Freddie Mac Bankruptcy was not the fault of Federal laws, regulations, regulators, or Congressional watchdog committee failures.
The CYA scapegoat was chosen to be only private business people who work on a highly Federally regulated industry on a street in New York City.
“Looking at the numbers behind our federal budgets reveals that the majority of our governments spending goes not to running the day to day operations of government, but rather, to social safety net programs like Medicaid, Medicare, Social Security, welfare, food assistance, rental stipends and a host of other entitlement programs. “
I’m sorry, but when I see “social safety net” and Social Security in the same sentence, it makes me puke. As long as Bill Gates can qualify for Social Security, it is not a “safety net” program, rather it is a transfer of wealth from my kids and their future kids, to a couple of deadbeat generations that decided (collectively) to borrow money for their indulgences, rather than tax themselves for it at the time.
We are indeed past the point of no return. There is nothing anyone can do to stop the spiral. The only question is, how long do we have? Anyone care to make a prediction (and explanation)?
I think they'll continue to borrow and spend and pay it off by 'printing' more money.
This will lead to inflation and ultimately hyperinflation.
We are in or headed into an inflationary depression. (?)
When will things completely fall apart? I don't know.
I worry that it will be slow, grinding and miserable process for many. People will continue to get the same 'government money' but it won't buy enough.
IMO, this is the easiest way out for politicians. Republicans and their austerity will get them voted (maybe even recalled) out of office, pronto.
When were the LA drills done?
” - - - The only question is, how long do we have? Anyone care to make a prediction (and explanation)?”
Yes. The answer is very simple. If the US Government were to balance the Budget tonight, and keep it balanced for the next 100 years, this is what would happen to our 15 Trillion dollar, (in rounded off numbers), National Debt.
The rule of “72” states that debt, or interest, doubles in 72 years at 1 %, 36 years at 2 %, 18 years at 4 %, and so on, due to annual compounding of interest.
If US Bonds pay 4 %, then our National Debt would be 2 X 15.5 = 31 Trillion dollars in 2030.
However, we continue to elect Federal politicians who promise to expand and protect our entitlements, so National Debt creation will continue as long as we want it to. Well, unless all the Bonds are cashed in at once, or we lack the money, (with value), to pay the interest on the bonds for even one year.
How long do we have until what exactly? Define the criteria (e.g. Cannibalism).
The result of our foolishness is predictable - economic ruin. It is impossible to predict when this will occur. It is also difficult to predict how - will it be abrupt and sudden or will it fall apart over a period of time?
My best guess is that our politicians will honor their promises. In order to honor these promises, they will continue to borrow from future generations. When they can’t borrow any more, they will crank up the printing press until a government check won’t buy a few days worth of groceries. When this happens there will be civil unrest and economic collapse. They will try everything possible to keep the system afloat including price controls, confiscation of private wealth and property, oppressive business taxes (see Chicago), import taxes, federalizing pensions and investment funds, and any other foolish thing they can do. All of their actions only prolong the inevitable economic collapse and anarchy. The only thing that could save us would be incredible economic growth with severe spending cuts. Both growth and cuts are highly unlikely.
I hope I am wrong, but I hold very little hope that any President or national figure can turn this around given how partisan we are. People and interest groups are only concerned about themselves and there is little acceptance of shared sacrifice. This is why austerity measures won’t work. We could elect Reagan on his best day with a GOP congress and they would not cut even half of what is necessary for the government to get back on a path to fiscal stability. They would be voted out of office the next election for whomever promised to reverse the cuts and spend more. We have no stomach for pain. We have no problem passing our debts onto our children and future generations.
At this point, our whole nation resembles a gigantic ponzi scheme. Those at the top - our grandparents and boomers will suffer the least. Like any ponzi scheme that robs the new to pay for the old it only works as long as fools invest in it. Printing money only works as long as people believe a dollar is worth something.
Just my guess and it’s worth no more than yours.
One thing is for damned sure. We ain’t voting our way out of this.
“Im sorry, but when I see social safety net and Social Security in the same sentence, it makes me puke. As long as Bill Gates can qualify for Social Security, it is not a safety net program ....”
It’s probably only a matter of time before they means test Social Security. And you can bet that Bill Gates won’t even notice.
Any article that refers to the “collapse of America” in terms of numbers without mentioning the demographic numbers is overlooking the main contributor. I don’t foresee a war with the Bronze Horde from the south, but as another FReeper pointed out, the systematic replacement of “Americans” (already well underway). The descendants of the Americans of the 18th and 19th centuries are disappearing, and being replaced by foreigners with completely different cultures and worldviews; there is no longer any assimilation, as the culture they would historically assimilate into has been denigrated into non-existence.
Even before the election of the Sultan, the left had radically transformed America; his election simply showed how far we’ve fallen.
It’s too late now!
Bump for later.
What started out as a (very successful) war against White males has become a war against all Whites and Western values.
What states and local communities need to think about is how they take care of the most vulnerable in the face of financial disaster at the national level.
The helpless/dependent may find that family and friends are their only/major support.
Well, I can only speak for Georgia, but the GOPElite in charge at the Capitol is STILL determined to tie the state even more tightly to the Federal government, rather than looking for ways to stand on our own.
Not an unexpected consequence when you elect as Governor, a career United States Senator.
May God grant us strength.
Fighting FedGov tyranny since 1861.
Worried that the Federal Reserve and the U.S. dollar are on the brink of collapse, says a report at CNNMoney, lawmakers from 13 states are seeking approval from their state governments to either issue their own alternative currency or explore it as an option.
In the event of hyperinflation, warns Glen Bradley, who has sponsored one such proposal in North Carolina depression, or other economic calamity related to the breakdown of the Federal Reserve System the states governmental finances and private economy will be thrown into chaos.
Thank you Lord, for not so small favors.
Here is a link to the CNN Money article.
Now to find out how it is going here, and who is driving it.
Thanks much blam, for the tip and the glimmer of good news, statewise.
May God guide our course.
I understand your position, but as a guy who put well over $400,000 (including employer contrib) into SS and Medicare, what am I supposed to do now that I’m eligible to get some back?
No, it has to be cut even more than that.
Remember that some government spending comes back to the government as tax revenue. If that spending goes away, that partially-offsetting revenue also goes away.
“What started out as a (very successful) war against White males has become a war against all Whites and Western values.”
It is more cultural than racial; a lot of the enemies are white liberals.
You’re screwed ... as am I.
Just about everyone in the country is going to find that promises made to them by someone (and not just in governments) will not be kept.
Surviving the abrogation of those promises will be the challenge of the next century.
Didn't you mean decade?
“I understand your position, but as a guy who put well over $400,000 (including employer contrib) into SS and Medicare, what am I supposed to do now that Im eligible to get some back?”
Morally, not take the money. In the real world, yes, take the money, since you’re already on it. But then work to get it changed for the future, rather than immediately opposing any reform, as most of your generation has done. The system is driving my kids and their future kids into poverty...it must get changed.
Never in my wildest dreams did I think my retirement income (pension from bankrupt company and social sec) would be checks signed by a guy named Hussein.
What a horrible turn of events.
My question was concerning a general economic collapse.
My guess...one to five years.
They will 'kick the can' until we wake up one morning with the suprise.
Nothing can stop it...only delay.
It’s been building for a century.
The only way it can be cleaned-up in a decade is if the 60-70% of the population that thinks they are owed government cheese dies. Literally.
I confess: endtimers and preppers and such used to make me snicker a just a hair not too terribly long ago. But it’s just not funny anymore. If somehow His Evilness, along with his bloody merry band of oppressors retain power after this yr, we are all probably screwed silly.
I appreciate the replies and I believe everything each one of you said which is why I asked the question. No one answered it, though.
I think one to five is a good guess. The are, of course, many variables, one of which is how long the EU can hold out and what effect that would have on us if they go first. If we go, everybody goes.
Once the wheels come off(1-5 years), American Socialism will vanish as quickly as Soviet Communism - mere months will pass before natural human society renews itself by throwing off the socialist burdens.
Who knows what shape the future will take, but socialism is doomed, in the US no less than elsewhere. The illusion that the state can create a better society through the gifting of public goods to the population will be broken.
I figured your question was rhetorical because there is no way to know when the wheels will come off. There is one camp that thinks it will be sudden and abrupt - like a run on banks. There is another camp that thinks we are the frog in a pot of warming water and it’s boiling.
There are too many variables.
As long as our bonds sell in the world market we can coast along increasing our debt until nobody will buy it.
As long as the dollar is the world currency everyone has a vested interest in our economic survival until an alternative is found.
We all agree that this level of government spending is unsustainable and the projections are frightening. Remember this, the calculations they base their estimates on assume a level of economic growth based on past years when the economy was much more healthy. The reality is that we are sinking faster than ever with government expenditures going through the roof. Remember the debt ceiling crisis and debate? Do the research on how long raising the ceiling was supposed to buy us..... we have reached it again. The proposed savings to pay for the debt increase were projected over 10 years assuming good economic performance.
When it happens is anyone’s best guess. I just know that there is no stomach for shared sacrifice in this country anymore and no true leadership because anyone who tells the truth will be replaced with someone who gives people what they want.
I would urge you and yours to start preparing now and don’t worry about a date because anyone that answers is giving you a guess.....
You mean the one we're in now? The government is spending almost twice what our revenues are and the Fed is having to make up 90% of that shortfall because no one is buying our bonds.
There will be many events that occur or markers to point at as the world economies spiral down to some level far below our current standard of living.
Better questions might be where will the bottom be and when. As far as cannibalism, I don't think we'll have to worry about that until maybe next winter. :)
” - - - The only question is, how long do we have? “
The answer is up until the moment that the National Debt Bubble bursts, if present conditions continue.
There is no conspiracy; the “Euro-Americans” are doing the same as Europeans, refusing to sacrifice for a next generation (the soul of socialism) then whining when they are surrounded by Third World imports brought in to stave off a declining population (a la Japan). Rather than reaping what they sowed when they’re 90 years old (or gone), they are seeing the fruit of their actions when they are 30 or 40 years old instead.
As long as a new car is more important than a new baby, there is no hope for them demographically. My children attend schools where at least half of the children have parents born elsewhere (as is their mother/my wife), and frankly I’d rather they be in that family-oriented environment than the yuppie type where their classmates have no siblings or progressive single mothers.
In a January 24, 2011 interview, Sen. Santorum said the United States is in need of more foreign workers. “I do think we need more people coming to this nation who want to be Americans to grow this economy. You want to fix the Social Security problem? Let’s have more workers producing and helping out the situation.... For me, I’m willing to allow increased immigration to this country...”
“It’s hard to put together a cogent explanation for it being a conspiracy. Who in a collective sense, over the period of 5 decades or so, would benefit from it?”
The beneficiaries are those who need an increasing population for their “industry”; retailers, the housing market, the government service providers (teachers, cops, etc.) - they all need “customers” (regardless of those customers’ means to pay - they’ll take it from others instead). What would happen to public school teachers as a population ages and flees their costs? Schools would close, and many infantile people with no marketable skills would be off the government dole and out of “work”. They’ll have class sizes of 5 students each before they let that happen, unless someone like Governor Christie comes in and forces the layoffs for financial reasons (no money left to pay them, and limiting how much they can suck from the taxpayers). Here in NJ we’ve also had mass layoffs of policemen, and in most cases they were in areas where Americans had conceded whole neighborhoods/cities to illegal aliens (read: non-taxpayers); for years they kept those police forces staffed on the backs of state taxpayers, but again, the money is gone, and our governor has capped how much they can screw us out of.
Most of these cops and teachers will have to look for work in other states; those fields won’t be hiring in significant numbers for decades in NJ, and they have no transferrable skills to contibute in our dwindling private sector (which has been ravaged by the previous decades of paying for these cops and teachers).
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