tag:blogger.com,1999:blog-21123853.post2635118979591355530..comments2024-02-12T04:30:53.556-05:00Comments on Tim White Listens: The POTUS cuts the budget!Tim Whitehttp://www.blogger.com/profile/16588518063096822071noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-21123853.post-47196537407355634692010-04-23T11:33:09.645-04:002010-04-23T11:33:09.645-04:00Of every dollar the US gov't now spends, 40-ce...Of every dollar the US gov't now spends, 40-cents of it is borrowed or printed out of thin air.<br /><br />If the Federal gov’t were a family of four spending $60,000 a year, this family :<br /><br />* would be earning only $36,000 a year, and borrowing $24,000 from credit cards to cover the rest;<br /><br />* is already $220,000 in debt with no hope of repaying (equivalent of $13 Trillion fed debt);<br /><br />* plus owes another $1 million (in unfunded social security obligations of $60 Trillion).<br /><br />And none of these figures include the equivalents of state and local debt, or other huge Federal obligations like health care.<br /><br />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.<br /><br />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). <br /><br />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.<br /><br />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.Anonymousnoreply@blogger.com