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famous last words of B. Madoff
wanted to share this brilliant article by S. Dougherty:
http://www.financialsense.com/fsu/ed...2009/0714.html
my fav part:
"While that statement might seem stark, it is the verbal equivalent of morphine compared with the actual numbers in the CBO's long term budget projection, which are nothing short of terrifying.
According to the CBO, over the next SEVENTY fiscal years, the federal government will NEVER have a surplus. Rather, the United States will continue to suffer massive, escalating, multi-hundred billion dollar losses ("deficits") each and every year for the next SEVEN DECADES, which is when the budget projection stops. Under both CBO budget scenarios (catastrophic and worse-than-catastrophic), losses in fiscal year 2080 will be the largest of the entire 70 year series, meaning that the budget crisis will continue well beyond 2080. In the best case, the 2080 loss will be 17.8% of GDP; in the worst case, it will be 42.8% of GDP. To put this in context, the 2009 federal budget loss is projected to be 11.9%, in this, the worst financial crisis in American history. So 2080 will be 50 - 300% worse than now. Who the CBO thinks will fund these trillions of dollars' worth of forever losses, they do not say. Apparently, America is headed back to the Stone Age, thanks to our profligate politicians and corrupt financial elite.
The United States has already reached the point where it is arithmetically impossible for it to pay its debts or keep its promises, unless it devalues its currency to the point where it impoverishes its citizens and creates international financial chaos. And even devaluation as a means of ending the country's budget nightmare will be difficult, given that so many government programs have cost of living escalators, making inflation a No Exit horror story. This is not subjective opinion, but rather objective, arithmetic fact, now supported even by government agencies themselves, such as the Congressional Budget Office. As John Williams of shadowstats.com has observed, even if personal incomes were taxed at 100%, the United States still could not pay its bills...."
wanted to share this brilliant article by S. Dougherty:
http://www.financialsense.com/fsu/ed...2009/0714.html
my fav part:
"While that statement might seem stark, it is the verbal equivalent of morphine compared with the actual numbers in the CBO's long term budget projection, which are nothing short of terrifying.
According to the CBO, over the next SEVENTY fiscal years, the federal government will NEVER have a surplus. Rather, the United States will continue to suffer massive, escalating, multi-hundred billion dollar losses ("deficits") each and every year for the next SEVEN DECADES, which is when the budget projection stops. Under both CBO budget scenarios (catastrophic and worse-than-catastrophic), losses in fiscal year 2080 will be the largest of the entire 70 year series, meaning that the budget crisis will continue well beyond 2080. In the best case, the 2080 loss will be 17.8% of GDP; in the worst case, it will be 42.8% of GDP. To put this in context, the 2009 federal budget loss is projected to be 11.9%, in this, the worst financial crisis in American history. So 2080 will be 50 - 300% worse than now. Who the CBO thinks will fund these trillions of dollars' worth of forever losses, they do not say. Apparently, America is headed back to the Stone Age, thanks to our profligate politicians and corrupt financial elite.
The United States has already reached the point where it is arithmetically impossible for it to pay its debts or keep its promises, unless it devalues its currency to the point where it impoverishes its citizens and creates international financial chaos. And even devaluation as a means of ending the country's budget nightmare will be difficult, given that so many government programs have cost of living escalators, making inflation a No Exit horror story. This is not subjective opinion, but rather objective, arithmetic fact, now supported even by government agencies themselves, such as the Congressional Budget Office. As John Williams of shadowstats.com has observed, even if personal incomes were taxed at 100%, the United States still could not pay its bills...."
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