Friday, January 22, 2010

Comment on Denver Post Blog About Obama and Deficit

Delusion runs rampant here.

"Working together" is exactly how they got to a $56Trillion debt. Democrats increased government spending 8% per year and republicans raised it 5%. They are the same party.

There is no political will in EITHER party to balance the budget. There never will be. If they tell you they want to do it they are lying. If you believe them you are hopelessly naive.

A balanced budget requires Republicans ending their pointless, exorbitant international wars, occupations and winding down the US corporate welfare state. A balanced budget requires Democrats to surrender their entitlement and welfare programs that they use to mobilize their serf voters.

It is impossible to pay off the debt. They know it and have no intention of doing it.

The Federal Reserve enabled this looming insolvency by keeping borrowing costs low with the monetary printing press. That racket is coming to an end.

$1 Trillion in newly printed money sits on deposit with the Fed. Heres the Fed's own site. Check out the "Monetary base". That is the money that they printed. Look at Oct 2008. That should startle you.

http://www.federalreserve.gov/releases/ ... 3hist1.txt

Obama wants banks to lend it? If they did, gasoline would be $7 a gallon.

We are heading for a train wreck of a magnitude never experienced in US history. IT will change America more than the Great Depression. A collapse in Treasuries will result in parabolic interest rates and will bankrupt the government. An interest rate like Volcker's 21% would add $2.5Trillion to the ANNUAL DEFICIT. But printing money will lead to hyperinflation and destruction of the economy.

Japan is the lynch pin of this coming calamity. They are teetering on the brink and they hold $750B in US Treasuries that will be liquidated at firesale prices.

http://www.telegraph.co.uk/finance/comm ... ieces.html

Republocrats did this. They were asleep at the wheel for the past 4 deacdes. This bed was made by NIXON, REAGAN, BUSH, CLINTON, W. AND OBAMA and all the Ted Kennedys and John McCains, too with their profligate spending and accounting tricks. They kicked the debt can down the road for 37 years. Now they are kicking it into a wall.

There is still time to avert a hyperinflationary catastrophe or a USSR style breakup but deep, DEEP cuts need to be made. Federal spending needs to be reduced by half and those parasitical government functions cannot just be pushed onto the states. The states need to slim down as well. You will not close the budget gap by taxing and sucking every last drop of blood out of the middle class. Tax hikes will scuttle a recovery and further deplete tax revenues. You will not close the gap by "nationalizing" everyone's 401k.


It is going to be a wild ride. Get ready for inflation. It is the easiest political way out but it won't work. I myself do not have any "hope" and do not expect any "change" from our Washington plutarchs, and media enablers. The serfs like their welfare too much and the Lee Greenwood crowd enjoys their illusory wars, dropping bombs and getting strip-searched at airports.

If you want to see what America will look like in 25 years, read my book.

http://goldsteinrepublic.com/

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