“This is what happens when you run a massive Ponzi scheme for six decades straight, taking ever larger resources from the young and giving them to the old while promising the young their eventual turn at passing the generational buck. ” — Laurence Kotlikoff
“Let’s get real. The U.S. is bankrupt. Neither spending more nor taxing less will help the country pay its bills. What it can and must do is radically simplify its tax, health-care, retirement and financial systems, each of which is a complete mess. But this is the good news. It means they can each be redesigned to achieve their legitimate purposes at much lower cost and, in the process, revitalize the economy.” Laurence Kotlikoff
The U.S. was bankrupt after the Korean War and it has no intention of honoring it’s debt. Indeed, they actually intend to borrow for as long as the world allows, and it appears that time is quickly upon us. Don’t forget that Roosevelt declared bankruptcy in 1932 and when the U.S. went off the Gold Standard, that too was a form of bankruptcy. It was done unilaterally.
The futurists recognized the collapse of the American Economic Empire as a certainty as far back as 1982. They also recognized the Generational Storm and the 75 million people (those born after WWII) lining up for their social security cheques without knowing the cookie jar is empty.
The Rich Folks knew and intended to break every promise made to the Working Class since WWII. Also, Free Trade was not about manufactured goods, but rather the ability of the Rich Folks moving their money out of North America. Free Trade gave the Rich Folks unfettered access to banking systems around the globe and thus giving them abilities to avoid the Generational Storm in North America.
Britain did the same thing in 1870 and the collapse of empire did not occur until after World War I. The Rich Folks in Britain moved their money out of Britain and into North America between 1870 and 1900. Knowing this, America has been living on “Borrowed” funds for 50 years. Here are some basic facts:
1982 $1.142 trillion
2010 $14 trillion
Plus all monies collected from pay cheques for social security and medicare was not stashed away to meet the promises made to the Working Class. Indeed, it was spent which leaves the U.S. with Unfunded Liabilities:
$13.9 trillion for Social Security;
$18.4 trillion for Drescription Drugs
$73.3 trillion for Medicare/Medicaid
International Monetary Fund declares USA bankrupt
Last month, the International Monetary Fund released its annual review of U.S. economic policy. Its summary contained these bland words about U.S. fiscal policy: “Directors welcomed the authorities’ commitment to fiscal stabilization, but noted that a larger than budgeted adjustment would be required to stabilize debt-to-GDP.”
But delve deeper, and you will find that the IMF has effectively pronounced the U.S. bankrupt. Section 6 of the July 2010 Selected Issues Paper says: “The U.S. fiscal gap associated with today’s federal fiscal policy is huge for plausible discount rates.” It adds that “closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP.”
If every level of government doesn’t significantly roll back the exorbitant salaries paid to their ‘workers’ we are in for a depression that will make 1929 look like a party. Every study done clearly shows the taxpayer (and government ‘workers’ don’t pay taxes) are falling more and more behind with the parasites living off their investments and labor. Government is a cost center, nothing more and nothing less. Their incomes should follow that of private industry, not lead the charge. If we don’t get government back to being servants of the taxpayers it is gonna collapse. Instead these egomaniacs will raise taxes to keep their own party going. I wonder what the provinces expenditures would drop to if government ‘workers’ put in a full day vis-a-vis private industry and were paid in line with these folks.