In its first midsession review, the White House Office of Management and Budget estimated that at the end of 2010, the national debt will breach the $14-trillion mark. This means that America's sovereign debt will be soon equal to the annual output of our economy. In other words, our national debt will shortly reach 100 percent of GDP. History and experience show that most governments that assume such levels of debt are ultimately not able to contain them. In most cases, this kind of situation eventually leads to the disintegration of the country's monetary regime and the collapse of its currency.By Vasko Kohlmayer
This outcome is not inevitable, given that -- in theory, at least -- a debt of 100 percent of GDP is still manageable. But to bring things under control would require strict fiscal discipline. Unfortunately, there no indication that our federal government can muster any. Quite the contrary. Last year the federal budget deficit reached a record $1.4 trillion. At nearly 10 percent of GDP, this was the highest peacetime deficit in history. Despite the numerous assurances that the 2009 shortfall was a one-off event brought on by the financial crisis, this year's deficit will go even higher. According to the analysis submitted by the Congressional Budget Office last month, it will climb to $1.5 trillion. This will amount to 10.3 percent of GDP.
There is every reason to believe that the deficit will grow even faster in the years to come, as the federal government further increases its involvement in health care. The estimates by the Office of the Management and Budget which we quoted above do not factor in the costs associated with the recently passed health care reform. Even the more conservative estimates project that the legislation will cost well over one trillion during the program's first ten years. It is almost certain, however, that this figure is grossly understated, as government programs have a tendency to exceed their initial cost projections by grotesque multiples.
This, however, is not the worst of it, because the national debt represents only a relatively small portion of our government's total financial obligations. The far greater bulk is made up of long-term liabilities inherent in entitlement programs. According to the latest estimates by the Dallas Federal Reserve, the combined liabilities of Medicare, Social Security, and Medicaid amount to an astounding $104 trillion.
When we add the national debt and entitlements together, we get a figure of some $117 trillion. This figure represents the amount of money the federal government will have to come up with in the years ahead in order to discharge its obligations.
The sheer magnitude of this number makes it difficult to grasp. To give a sense of scale, it is about twice the current economic output of the whole world. It is also more than eight times the size of the American economy. With today's tax revenues it would take more than fifty-five years to pay for these obligations. This assumes there is no interest on the debt and that the federal government spends no money on anything else.
There is only one conclusion that reasonably can be drawn on the basis of these figures: The American federal government is simply not in the position to make good on its obligations.
There is a growing recognition of this fact. When discussing America's national debt in his lecture at the Mises Institute, the noted financial analyst Peter Schiff said this: We're not going to pay the Chinese back their money. It's impossible. We can't. We can't possibly.
Given the figures, Schiff only stated the obvious.
Sooner or later, our government's ability to finance deficit spending with low yield bonds will come to an end. Deprived of the source of cheap cash and pressed by the need to meet its vast array payments, the government will be left with two options: It will either have to default, or it can seek to meet the payment schedules by creating new money.
Given the dollar's status as the world's reserve currency, default would be a cataclysmic global event that would result in the disintegration of the world's financial system. Needless to say, this kind of calamity would bring about the dollar's sudden collapse with ruinous consequences for the American people. The second option -- paying its outstanding bills with new money -- looks initially more attractive. On this scenario government would discharge its liabilities with freshly created dollars. This is actually the most likely course our government will take, since money creation is the route that over-leveraged governments usually take in an effort to service their excessive obligations.
At first sight this may seem like an easy way out, but it has bad consequences down the line. As the government pumps new dollars into the system, the value of the money stock is diluted and inflation occurs. In light of the enormous depth of our indebtedness, inflation will in the end eat away most of the dollar's value.
It should be noted that inflation is really only default in disguise. On the inflationary scenario, creditors will only get paid back a portion of their original investment while entitlement beneficiaries will only receive a portion of the value of their promised benefits.
Whichever of the two possible options our government chooses to pursue, the final result will be currency destruction. Outright default would result in the dollar's immediate collapse, while inflation would produce a more gradual decline, at least initially. Needless to say, given the immense weight of the government' financial burden, the inflationary route will ultimately wipe out most of the greenback's worth. Either way, we will end up with a greatly debased, if not completely worthless, currency and all the painful repercussions inherent in that downfall.
To put it bluntly, the dollar's days are numbered and its demise is inevitable. Anyone who still hopes there may be a way around it, must answer that ultimate money question: Where in the world is the American federal government going to get $117 trillion? Any suggestions?
July 15, 2010 Obama's Backwardness By Greg Reese
Barack Obama is leading our nation backwards into chaos parallel to the early years of 20th-century Russia. In the early 20th century, Bolshevik revolutionaries led by Vladimir Lenin pieced together a bureaucratic authority that quickly developed into a totalitarian government.
Barack Obama is laying the foundation step by step for a superstructure not unlike the apparatus by which the Soviet Union functioned. The bureaucratization of America is an attack on capitalism, the free market, the private sector, and ultimately private property ownership.
Obama, like Lenin, imposed government on the people and will systematically dismantle personal freedom. As more and more of the private sector is regulated and controlled by big government, all categories of society will fall under the umbrella of one central authority.
Lenin imposed upon Russia a Decree on the Suppression of Hostile Newspapers justifying a series of measures to stop all of the press that spoke out against the revolution.
Obama, once inaugurated into office, commenced a campaign to silence opposition opinion. White House staff and the president singled out private citizens, groups, and news agencies as illegitimate.
Vladimir Lenin, in establishing the young USSR, assigned a Control Commission to oversee the government departments for the sake of imposing authority and policing rumors or insinuations that are critical of the party.
Parallel to Lenin's actions, Obama categorically assigned czars throughout the many departments of government. Many of these czars wield managing power and are not bound by constitutional checks and balances or congressional oversight.
Obama is replacing every facet of our society with bureaucracy. Once our system of private sector and individual freedom is subverted, then we will find ourselves dominated by a dictating government from of which we cannot break free.
Marxism did not collapse with the fall of the USSR. Obama shares the same philosophical dream as Vladimir Lenin. Marxism is the faith and religion of the ultra-left. Barack Obama is an evangelical Marxist. The American people have not recognized Obama's Marxism because Marxism has changed its vocabulary.
In his trademark chameleon-speak, Obama deliberately articulates his language, delivering rhetoric open to interpretation -- he speaks in code. In the late 1800s and early 1900s it was very fashionable to be a Marxist, and no one dared critique Karl Marx, while in 2008-2009 it is cool to vote for Barack Obama and politically incorrect and unpopular to criticize him.
Lenin studied revolutionary Chernyshevsky, while Obama studied socialist-activist Saul Alinsky. Lenin was a collective agitator, while Obama was a community organizer. Lenin, like Obama, believed the public is no more than an instrument of the party, and both emphasize the importance of seizing power and getting things done, whatever the cost.
Obama is setting up the network and laying a foundation for egregious misuse of power. Obama is laying the foundation for dictatorship. He is deliberately bypassing checks and balances, using exclusive executive order to govern.
When the government becomes one central authority, it becomes vulnerable to dictatorship. The American people have already witnessed the intolerant traits of the president. All it takes to misuse power is a ruthless, selfish personality.
Obama, like Vladimir Lenin, has waged his war against capitalism. It is wrong-minded, blaming capitalism as the cause of corruption. It is not Wall Street, big banks, big oil, or the free market that causes corruption. It is men who choose to be selfish. Corruption comes from sin and the evil nature of men. Barack Obama does not recognize sin or evil -- only government systems. This is why Obama is wrong-minded. He is unable to recognize his own tunnel-vision. Although he preaches "change," he himself is unable to change and unable to recognize that he does not care about people. His fixation on government systems is ultimately heartless.
Government bureaucracy is lifeless and insensitive and will lead only to mass confusion, abuse, dependency, and atheism. There can be no idyllic utopia -- Obama and his ideological kind long for a false reality, and they are prisoners to an intolerant, one-sided, materialistic view of life. Obama cannot bring progress because his thinking is old and fatally rigid.
It is not time to fall prey to lies and deception of the 20th-century past. America is drifting and losing its identity and origin. We must return to our roots -- to God and country. America is exceptional because it is a nation founded like no other nation -- on the idea of individual freedom and a limited government.
Dear friends do you know the Lord Jesus yet? Time is running out FAST in this evil world. God is always listening, and he will be there for you when you choose to speak to him.
God's there, listening for all who pray, for all who pray and mean it. Psalm 145:18, The Message (MSG) All I ask is that you don’t wait UNTIL IT IS TOO LATE. Watch this Video and Surrender Your Heart To God because He LovesYOU AND WILL SAVE YOUR SOUL.
“The fool hath said in his heart, There is no God.” Psalm 53:1
Thank you for reading this article. May the Lord God of Abraham Isaac and Jacob bless you in Jesus name I pray.
Simon and Emma Brown.
IMPORTANT! Most of the material for this website was taken from the list below:
Who is he that overcometh the world, but he that believeth that Jesus is the SON of God? 1 John 5:5.
THE SO CALLED ''MISSING LINKS'' TO EVOLUTION THAT FOOLED THE DUMB SCIENTIST
IF THE BIBLE IS TRUE, THEN WE CAN SEE THE EVIDENCE. IF THE BIBLE IS NOT TRUE, THAN WE WILL NOT FIND ANY EVIDENCE TO PROVE IT. MOST PEOPLE KNOW EVIDENCE PROVES THINGS TO BE TRUE. HAVE WE SEEN ANY EVIDENCE. THAT PROVES THE BIBLE? YES WE CAN STILL SEE 1000'S OF YEARS LATER THE STAGGERING EVIDENCE TO PROVE EVERY STORY OF THE BIBLE. The many bible discoveries and information on this web site proves the Holy Bible to be forensically accurate and perfectly reliable in every possible way and in every detail truthful concerning the most important events in human history. The whole purpose of this website is to help bring people to the saving grace of Jesus Christ. Some need evidence, others do not. I hope that the evidence shown on this site helps you make a decision for the Lord. When we “believe” that Jesus Christ truly died on the cross for our sins and if we believe that Jesus rose from the dead, and follow Him by taking up our cross, you shall be saved. 1 Thessalonians 4:14 For if we believe that Jesus died and rose again, even so them also which sleep in Jesus will God bring with him. Luke 9:23 And he said to them all, If any man will come after me, let him deny himself, and take up his cross daily, and follow me. Some need physical proof... well here it is. Some simply believe. The Bible says, “Blessed are those who have not seen, yet hath believed.” Whether you believe what I’ve shared in this website or not, and you have not yet received this free gift of salvation through Jesus Christ our Lord, now is the day. Let today be the day of your salvation! If you are looking for the evidence of the bible, God or Jesus, here it is. It is time to turn away from our sins, believe and receive salvation, and follow Jesus. Amen.
The comments are owned by the poster. We aren't responsible for their content.
Truth springs from the earth, And righteousness looks down from heaven. Psalm 85:11 Barnes' Notes on the Bible:
Truth shall spring out of the earth - As plants do - for this is the meaning of the word. The blessings of truth and righteousness would be like the grass, the shrubs, the flowers, which spring up from the ground - and like the, rain and the sunbeams which come from heaven. Truth would spring up everywhere, and abound in all lands, as plants, and shrubs, and grass spring up all over the earth.
Matthew 27:51 At that moment the curtain of the temple was torn in two from top to bottom. The earth shook and the rocks split.
THE SEAL AT THE GARDEN TOMB. - Matthew 27:65 "Take a guard," Pilate answered. "Go, make the tomb as secure as you know how." 66 So they went and made the tomb secure by putting a seal on the stone and posting the guard.
Matthew 27.33 They came to a place called Golgotha (which means The Place of the Skull).
Our Search for the Tomb of Jesus Book
Read the new book for FREE Our Search for the Tomb of Jesus and learn about the real crucifixion site of Jesus. Packed with new exciting evidence. by Simon Brown.