May 25, 2024

Bankrupt USA Continues To Borrow – The Emperor Has No Clothes

Congress and the Obama administration continue to move forward with economy killing legislation such as  Cap & Trade, Health Care Reform and  Card Check legislation,  to name a few.  The gorilla in the room that no one wants to talk about is the massive deficit being forced on future generations.


The way Michael Whalen of the National Center for Policy Analysis figures it, the na­tional debt is $11 trillion, but there’s also $107 trillion in unfunded entitlement liabilities for a total of $118 trillion, more than eight times the gross domestic product. More ominously, the Federal Re­serve Board says federal liabilities are 2.3 times America’s total pri­vate net, which is just $51.5 trillion. “Ask any accountant, banker, or anyone remotely familiar with simple accounting knowledge if we can service this debt, and the collective answer is a resounding ‘no.’ Any business with these ratios would be a complete basket case, hopelessly bankrupt.” Hence, the headline on Mr. Whalen’s Wash­ington Times op-ed Aug. 11: “We broke the bank.”

This is by far the greatest problem that our country will be facing, assuming that our economy and country can survive this onslaught of Socialist Programs. How much of the Federal Budget can be spent on debt repayment as our economy continues to shrink?

In other words….”I’m sorry Mr Geithner , based on your current situation, we can not approve your loan at this time. Feel free to visit Beijing again when your situation improves”.

We Broke The Bank

The United States is functionally bankrupt. Our collective capacity to deal with this astonishing fact is seemingly nonexistent. Our national politics have become show business, exhibiting a complete refusal to strategically respond to this reality.

Even if we significantly slash the federal entitlements by half, we cannot fix this problem. Even if we increase federal receipts from the 50 year average of 18 1/2 percent of GDP to say 27 percent, killing private-sector growth, we cannot fix the problem.

Perhaps President Obama is planning on a fast track bankruptcy for the federal government, just as he did for General Motors and Chrysler. The result would be SEIU (Service Employees International Union) making the decisions for Congress and ACORN running the Treasury.

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