Wednesday, April 21, 2010

The POTUS cuts the budget!

Ok. I know. The supposedly fiscally-conservative Bush 43 was no better. But I still think this video is pretty funny...

1 comment:

Anonymous said...

Of every dollar the US gov't now spends, 40-cents of it is borrowed or printed out of thin air.

If the Federal gov’t were a family of four spending $60,000 a year, this family :

* would be earning only $36,000 a year, and borrowing $24,000 from credit cards to cover the rest;

* is already $220,000 in debt with no hope of repaying (equivalent of $13 Trillion fed debt);

* plus owes another $1 million (in unfunded social security obligations of $60 Trillion).

And none of these figures include the equivalents of state and local debt, or other huge Federal obligations like health care.

The family of four will have to declare bankruptcy, and the federal government is already BANKRUPT. But the gov’t can do one thing the family can’t: they can just print up more (worthless) money.

Right now, the US dollar stays afloat in a confidence game, but the shell game will soon be up, and inevitably there will be HYPERINFLATION of the US dollar -- bread at $10, gas at $12, etc. (Pay and property values probably won’t keep up, as this will likely be *stag-flation*: depressed jobs with increased prices).

I agree with advocates for returning to hard money and bringing down the debt. However, I fear it may already be too late; the cow is already out of the barn; hyperinflation is inevitable regardless of what politicians do at this point.

At this point, our best bet as individuals is to buy long into gold and other hard assets like energy. Wish I could be more optimistic for our country.