Monday, February 21, 2011
Financial Chaos in the US
The light in the tunnel is that of a train coming our way.
Do you realize the extent of real and countable US liabilities right now? It is north of $112.6 trillion, or about a million dollars per taxpayer. Our total GDP is on the order of $13 trillion. This implies that we are underwater for keeps. There has been no effective response from the Obama team about this crushing number. Real unemployment is north of 20% now, when you count those who have given up looking and are hence excluded from the administration’s count, and this will soon explode further. Yet Obama proposes a budget of over $3 trillion after ignoring a bipartisan committee that had good recommendations.
The idea of printing dollars to pay our way out will shortly be blocked by a group of international monitary people backed by their governments, and the US Dollar will cease being the world’s reserve monitary base. We will enter hyperinflation at about that point or a little after. These are the facts that have trickled down and sparked much of the hysteria, and I, for one, don’t blame people for becoming very highly concerned and emotional.