Tuesday, April 13, 2010

Article: Implications of the U.S. National Debt


Excellent article...believe what you want, but you are moving really fast into bigger troubles than you've seen in your life-time in this country. Sadly, some old-timers might have lived through The Depression and all, but this ain't that society and we aren't going to have nearly as pretty a time as they did.

:::It is noteworthy that the Federal Debt chart has again turned sharply upward, to nearly an upright spike, rising to 90%+ of GDP.
This level of Federal indebtedness had only one precedent: the massive spending that was needed to finance World War II.
The current massive over-spending on the Mother of All Bailouts (MOAB) can't go on indefinitely. At some point, the piper must be paid.
In the long term, gross overspending will have some major implications for U.S. Treasury paper, and inevitably for the U.S. Dollar as a currency unit. I should mention that in 1945 (the peak of the last indebtedness spike), the U.S. dollar was still a net lender nation and our currency was still redeemable--by the citizenry in real silver coinage, and by foreign governments in gold.
But since 1985, we have been a net debtor nation, and since 1971, the "dollars" in circulation have been backed only by the hot air that emanates from the District of Criminals

Go read the rest and visit the links there. Common sense is yelling at folks these days.

1 comment:

LizBeth said...

You keeping up with Rush's pearls of wisdom?


Jeremiah 6:16
Thus saith the LORD, Stand ye in the ways, and see, and ask for the old paths, where is the good way, and walk therein, and ye shall find rest for your souls.

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