Saturday, February 14, 2009

Federal obligations exceed WORLD GDP

Accompanied by this timely post from Mike Vanderboegh comes this gem from World Net Daily - and lest you scoff, backed up by a report directly from the Treasury. While I thought we were nearing the point of no return, if you take into account the naked debt inherent in the Medicare/Medicaid and Social Security programs, and (like a cherry on top) add in the extra entitlement programs stuck into the spendulus bill like corn in crap, we are plummeting towards the ground, and a crater is all we have to look forward to.

As the Obama administration pushes through Congress its $800 billion deficit-spending economic stimulus plan, the American public is largely unaware that the true deficit of the federal government already is measured in trillions of dollars, and in fact its $65.5 trillion in total obligations exceeds the gross domestic product of the world.

The total U.S. obligations, including Social Security and Medicare benefits to be paid in the future, effectively have placed the U.S. government in bankruptcy, even before new continuing social welfare obligation embedded in the massive spending plan are taken into account.

The real 2008 federal budget deficit was $5.1 trillion, not the $455 billion previously reported by the Congressional Budget Office, according to the "2008 Financial Report of the United States Government" as released by the U.S. Department of Treasury.

We have a very, very deep problem. As usual, the normal media outlets are silenced by their handlers, and we are left with a populace that is being fed a steady diet of complete bullcrap by the Government. Outstanding obligations, including monies owed to entitlement programs, now exceed $65 trillion - that's more than the total GDP of the planet.

"Shy of the government severely slashing social welfare programs, federal deficits of this magnitude are beyond any hope of containment, government or otherwise," he said.

"Put simply, there is no way the government can possibly pay for the level of social welfare benefits the federal government has promised unless the government simply prints cash and debases the currency, which the government will increasingly be doing this year," Williams said, explaining in more detail why he feels the government is now in the process of monetizing the federal debt.

To survive, ultimately, we're going to have to hit the reset button on all of the entitlement programs. We're going to have no choice, as there is no way to fund these programs, period. The money can't be wished into existence, and the people relying on that money to be there can't magically disappear (well, they can, but that is a possibility that, while I will keep it in mind as such, is not something I care to dwell on). This means mass starvation, and the collapse of services as the millions of Americans that have been taught to rely on the Government for their daily needs will suddenly find themselves without. I'm sure they will not take that removal kindly.

The biggest problem of all, is that we now have a group of people in charge of this Nation that either do not understand the issue, or (more likely) understand it all too well and are going about the business of ensuring the survival of their own while damning the rest of the country to destruction. If you have any doubts about the accuracy of that statement, look at the actions of the Fed and Government at large since October. The American People are being disregarded and marginalized in a naked power and money grab. The worst part, is that a fair number of those people are cheering the looters on.

Winter is coming.

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