The 15 Trillion Dollar Party
(The Economic Collapse) -- by ??
If you knew that you could live in luxury for the rest of your life but that by doing so it would absolutely destroy the future for your children, your grandchildren and your great-grandchildren would you do it? Well, that is exactly what we are doing as a nation. Over the past several decades, we have stolen 15 trillion dollars from future generations so that we could enjoy a dramatically inflated level of prosperity. Our 15 trillion dollar party has been a lot of fun, but what we have done to our children and our grandchildren has been beyond criminal. We ran up the greatest mountain of debt in the history of the planet and we are sticking them with the bill. Sadly, both political parties have been responsible for the big spending that has been going on. Both Democrats and Republicans have run up huge budget deficits when in power. But instead of learning the hard lessons of the past, both political parties continue to vote for even more debt. They would rather continue to steal trillions of dollars from future generations than have the party end and have to face the consequences.
And the consequences will be dramatic when the party ends. During fiscal year 2011, the U.S. government spent 3.7 trillion dollars but it only brought in 2.4 trillion dollars. That means that the U.S. government spent about 1.3 trillion dollars that it did not have. It is important to understand that even if the U.S. government spent that 1.3 trillion dollars on really stupid things, that money still got into the pockets of ordinary Americans who then spent it on things like food, gas, housing, etc. In turn, most of those that received money from providing those goods and services would spend it on other things.
So extra government spending can definitely stimulate the economy. The problem is that we have been doing it permanently. Since 1975, we have added more than 15 trillion dollars to the national debt. This has fueled a false prosperity that was way beyond what we could afford...
So when will it be time to seriously cut government spending?
The day never seems to arrive.
But even though the federal government has been pumping more than a trillion extra dollars into the economy every year, the economy has not shown much improvement. The percentage of working age Americans that have jobs has barely budged for over two years.
Yes, the policies of the Obama administration have stabilized the U.S. economy for the moment, but if he was actually going to tell the truth he would say something like this....
"By mortgaging the future of our children and our grand-children I have stabilized our economic statistics for the short-term. Unfortunately, I am going to have to continue to financially abuse future generations to keep us from falling into another Great Depression. Meanwhile, I am making our long-term financial problems far, far worse. But the most important thing is that I win re-election so that I can continue to be president. Thank you for being so selfish and so willing to destroy the future of your children. Vote for me in 2012 and let the party continue!"
Unfortunately, the party is going to come crashing to an end at some point.
Right now, the global financial system is based on the U.S. dollar and on U.S. government debt.
There will come a time when the rest of the world is going to get sick and tired of watching this Ponzi scheme play out and they are going to completely lose faith in the U.S. dollar and in U.S. government debt. In fact, there are already signs that this is starting to happen.
When faith in our currency and our debt is completely gone, it will be nearly impossible to get back and the game will be over...MORE...LINK