Just a few years ago, the US government was forecasting surpluses of trillions of dollars based on the stupid assumption that there would not be a downturn in the economy for decades. This foolish assumption was of course proven wrong and deficit spending in 2009 and 2010 will be at least two trillion dollars a year if everything is counted. The only reason the United States is not yet feeling the pinch of spending beyond its means has been the record low interest rates. The low interest rates were brought about by Federal Reserve manipulation to stimulate the economy but interest rates now will rise. Soon all who need loans will be making higher payments and the US government will be paying much more to service the national debt.

Debt and unfunded liabilities promised through entitlement programs is now over 50 trillion dollars. This amount of money in non inflationary dollars is impossible to raise! Thus, the US is now technically bankrupt. In order to keep up the facade that the US is solvent for even another decade or two one or more of the following must happen.

1. Taxes must be raised.

2. Government spending will have to be drastically cut.

3. Deficit spending will dramatically increase.

If taxes are raised, it will kill the economy and the debt load will get worse and not better. Spending will not be drastically cut because these types of cuts would never get through the political system. Therefore, massive deficit spending will take place. The monetary system will be inflated so that this debt can be paid by using a dollar worth only a fraction of what it is today. This means a much weaker dollar in the future and much higher prices for all goods and services imported to the United States (in short it means we should expect hyper-Inflation).

US Dollar - sink or swim?

Based on that assessment. No question. It's sink.

Old timer,,, please reveal where the quote you used above came from....... Otherwise we have absolutely nothing to base the credibility on. Cheers, LL

no source needed, that is a farily obvious observations. the usa is already bankrupt, everyone is scared to admit it and face the reality. that domino effect again. it keeps putting itself further in debt with every new millionaire's bail out. forget the system that was in place, that probably would of worked with no more additional expense...........oh, but that didn't cover the millionaire's losses, so much for free enterprise, that only exist if you're poor. keep watching faux tv, murdoch news, hey, how is britney, lohman, hilton doing this week..............are we entertertained and distracted while being raped, and not even a kiss. idol, dancing with the stars, 'can we talk', more crap reality tv so far away from reality, i can't wait to watch the boomerang channel. the commercials will turn you into an idiot, no need to watch the programs, or the promo of themselves, love talk shows talking about themselves and the season brain dead offerings. unplug, wait for the system to collapse, then move to china, they will own the world by then anyway.

is every one ready for the amero.................

as l ong as they can fake a real econony for couple more decades, i'm happy. that's all i need.

ME ME ME, i'm not even expecting soc sec to last that long. diligent planning, think you are being screwed now, they haven't even start to twist 'em yet.

mistakes were made LBJ putting the FICA fund in to the General fund woodrew Wilson giving control of our money over to the Fed reserve which is by no means federal just the name Nixon taking us off the gold standard and putting us on the GNP and the worst of them all was giving GWB the mantel
congress does not help either by catering to special interest and pork barrel programs
the things that are needed now are to far out of reach namely universal health care and for
those who oppose it you can buy your own plan I am sure the insurance companies will oblige
you with a policy you love but I say tough cookie your still have to pay for those who use the universal plan
I do agree that taxes will have to be raised the bail out I think was a mistake but only time will tell as for the mortgage bail out I see a return on the funds lent if it done correctly I also believe we have to get out of Iraq & Afghanistan we can not afford to fight those phony wars any longer I also believe a strong USD is vital to the USA interest not a weak USD since we buy more than we sell or produce this is only my opinion based on some true facts

The quoted economic assessment is IMO a clear and simple analysis of the condition and direction of the U.S. economy and an accurate forecast of how the U.S. government (and other states) will continue to mismanage the national economy.

Hyperinflation is coming. The big questions IMO are: 1.) How soon and how much will the U.S. dollar (and other paper currencies) fall in purchasing power and 2.) what choices are available and desirable for each person to protect himself from civil termoil, personal poverty and destitution. While pondering these questions, consider the very likely case of simultaneous hyperinflation in Thailand (and other nations) which certainly will produce sharp increases in local prices.

The only remedy that governments will choose to defeat hyperinflation will be to drastically shrink the supply of paper money and credit. This will result in another depression like the current one.

We are watching the U.S. government extending its control over banks and financial institutions, assuming powers to install their agents within management of major businesses and for regulating salaries and wages, creating money and credit to multiply the money supply, etc. The New Deal and the Great Society fixes are back. My guess is that within the next year of two there will be government programs very involved in price and wage fixing along with much more government intervention.

Fixing prices and wages didn't work for FDR or Nixon. Stimulus packages didn't work for Japan (in the last two dacades of continual stimulus) of for FDR and his New Deal. They just increases State power and control and cause malinvestment of funds.

TJ wrote:We are watching the U.S. government extending its control over banks and financial institutions, assuming powers to install their agents within management of major businesses and for regulating salaries and wages, creating money and credit to multiply the money supply, etc. The New Deal and the Great Society fixes are back. My guess is that within the next year of two there will be government programs very involved in price and wage fixing along with much more government intervention.

The socialist/fascist warnings have now become facts. Government owns businesses. Government now competes against private business. Government now regulates wages. Government now determines who will lead private companies. Government now imposes its will on the states. Government now gives taxpayer money to those people and businesses it favors and takes more taxpayer money away from those it chooses to target. Government now openly manipulates the economy through manipulation of supply and demand through taxes, the money supply, lending rates, and power currently held by the US Treasury and the Federal Reserve.

One more step to come: Government controls all media.

If things continue, Americans will all be working for the government.

TJ, your assessment is filled with true facts and looks at the future realistically.

There is a lot of it going on isn't there!!

I really don't believe that the US (or UK) governments wanted to go down that road. I feel it is a case of them trying to recover a very grim situation, and put into place effective controls (as previous ones proved not to be effective). Had they let things take their course, and not "interfered", the situation in my view would ultimately have become considerably worse, - bankruptcies of more banks, leading to greater business failures and job losses etc.

And getting back on topic, I think the US dollar is going to need a snorkel, for some time to come.

WBU what is your answer to the problem BTW this happened under Bush watch what would have John do if he got elected ? you seem to have answer for every thing so let here it.

not sure what WBU would say, but partly agree with me. they should of done absolutely nothing. there is/was a system already in place for just this situation in the USA. FDIC, and free enterprise. those not absorbed by a profitable business, the free enterprise part, would be bailed by FDIC, taken over and ran properly. all funds to a certain amount guaranteed. avoiding any stock holders bailout, ceo bail out, bonuses, wasted funds, unaccounted funds. now all those trillions of dollares wasted, and making money unavailable for the original system, FDIC, in serious trouble of insolvency. those trillion dollars given away to the big boys club, pretty much was the last straw, and will result in the eventual collapse of the system. the hole is too big, impossible to dig way out now. as stated above, the american public is in for ............a brave new F'd U world..........of poverty, lost medical, lost pension, lost retirement, lost soc security, higher taxes, less freedom, as if that part is even possible. already have total freedom to look at your information and detain, no habius corpus, charges, indefinite detention. anything for national security. only a true patriot would vote for that one.

anyone who doesn't think it's time for 2 term limits of all politcal jobs is a fool. along with abolishment of all campaign funding. elimiaton of lobbyist. along with a new amemdment to the constitution, politicians get paid last, after the budget is balanced.

nationalize all usa oil companies, domestic and internatioanal holdings, if they are going to gouge the market and make trillions of the tax payers money, the tax payer might as well benefit from it. disolve the stock market............after my next play of course...........it is nothing but a major scam/fraud, not a free market but controlled by the big boys club and inside trading.

if you are an illegal alien, and not working, get a job or leave. return and go to jail for life. that jail will be in the middle of the desert and nothing provided except a tent and what is necessary to grow and maintain your life, if you fail, take a walk, or die or both. that jail will be located on the mexican border, with no fence, anyone allowed to enter or leave.

follow china's lead, want to save the earth, one family, one kid. can't concieve, no artificial, adopt. if not, screw you. there is nothing wrong with the earth, there's too many people. africa, sub sahara, have a nice day. no more kids. no gov't, not army, no foreign aid. all i see is old men, woman and children dying. nothing but young men running around stealing and raping anything they want. nuke somolia, and kenya while we're at it. solve that pirate problem. or any unregistered ship, within 10 miles of any cargo ship gets sunk, no if, ands or butts. covert op time, kill them all, the leaders/negotiators/gov't supporters of piracy.

invite the leaders of all mid east countries, install detonator in their head, sign a peace agreement, and please, violate it. next. stop selling them food, let them eat oil.

see what happens when i find out one of my favorite beaches turns into a sh*thole.

oh, and stop saving the unborn gay grey whale living with hiv oppressed by it's peer group that can't marry in it's own sex group. stop worring about how your food is treated before you kill it and eat it. instead of worrying about all the cute and fuzzy things out there.................save a kid, just one, educate them and watch the whole world change in one generation. just the thoughts of a demented pissed off MF'er.....................Glen, you better be open when i get back, i need a day out

peace/love/out

damn, and i'm on vacation, good thing i don't work anymore

laphanphon wrote:they should of done absolutely nothing. there is/was a system already in place for just this situation in the USA. FDIC, and free enterprise.

LA, you are a knowledgeable, astute and reasonable American with a good understanding of our economic, social and political system. The answer is/was as simple as you state.

I heard this this morning, Capitalism is man living off of man, Socialism is just the reverse.

banpaeng wrote:I heard this this morning, Capitalism is man living off of man, Socialism is just the reverse.

Funny, but inaccurate.

Actually, in simplistic terms, capitalism (the government owns nothing) is man working for himself and living off of his own labor. Socialism (the government owns/controls everything) is man working for the government and those men who don't work.

banpaeng wbu and few others in here I bet if Joe McCarthy was alive and shooting his mouth off like he did in the fifties you two would be right behind him waving the flag. I am not against capitalism in
fact I embrace it but sadly the system has been broken by greed & corruption why is it 1/3 of the working people are with out health insurance ? you think they don't want to pay for it they can't afford it
do you think it right for insurance companies to run over injured workers especially when there injury is
poor safety practice by the company not the individual just to save few bucks. I spent all my adult years working in construction line I saw what these animals try to pull and some get away with it. that one of
the reason why I am big supporter of UNIONS they go after those animals and put them out of business if they continue those practices are UNIONS corrupt yes but that what happens with the power of money
I also want to remind you about social security it was designed for the worker to pay for the retired worker and so on & on that what made it solvent until the government saw huge amounts of money pouring in and very little going out so they used it to fund every program that was possible including
the Vietnam war now it broke amazing how soon some of you forget and that statement Brian is insulting to those of us who are retired & living of social security and so are you

but sadly the system has been broken by greed & corruption

the system was not broken, matter of fact, it was never given the chance to be tested, those 535 ? congressman violated your trust and their oath of office. they are all in on the grand plan themselves. sure they complain, get press, then vote the opposite of what is in the murdoch news. simply as you say, uses and abused by greed and corruption.

we invaded a country, when 2 other countries advised us with intelligence not to, we occupied and murdered thousands of people. cheney / and buds stole billions of dollars from the american tax payer, non biddable contracts, also illegal, been caught over charging, stealing, false billing, you name it, they've been caught. all in the news, all debated in congress, but not one investigation. who the hell ever goes to a grand jury and doesn't have to give oath to testify or have it recorded. WTF. ALL 535 congressperson are having a brain lock..............hmm. or ............more believable............would any person with morals vote the way they do, or would a person getting one million dollars each vote against their morals, if having any. billions on the war, trillions on the bail outs, i think their is enough to give each congress person a million everytime they give away a billion or trillion............what do you think.

are they voting to destroy an economy, invade countries when the evidence is obvious not to, remember, the UN was against the invasion, couldn't even get one resoloution passed to invade. now spending trillions, unaccounted for, going where, for what. oh yea, they cry, why why why, but they also vote vote vote for more and don't investigate or prosecute any misdeeds.

how many trillions voted away, and where did it go...............535 time 1-2-3 million each, that sure does leave alot left for the organizers of this grand raping of the world.

just some more demented thoughts, of the paranoid conspiracy demons.............but makes more sense that what they are trying to sell you..........................

all these ivy league grads with degrees are all voting for trillions of dollars and not even reading the bill they are voting for....................that's believable...............all these brains voted to invade a soveign country for NO REASON..........that's believalbe........remember, who was the head of the CIA, who lobbys for saudi's, who's braindead son is having his strings controlled by ex ceo of haliburton. what family of the saudi's were allowed to fly out of the country on 9-11, what people made money in the stock market on 9-11.

which is more believable................535 idiots are running the country completely blind, or they're making a lot of money shovelling their **** down our throats, and since control most media outlets, can spin it anyway they want. sadly, with all that control, they still screw up and get caught, then little press here, little speech here in congress, then it all disappears without a peep. simply amazing.

which do you believe, i'll continue being the paranoid conspiracy theorist. much more believable than the other 535 have failed so miserably, and nobody noticed, simply re-elect them. all those high salaried ceo, the best price for the best minds, who can't seem to make one dollar profit, tho, if taking their salaries and bonuses of the top 10 % of the company off the books, guessing a profit could of been made.

back to my cave, i forgot, i don't follow politics or news or watch the idiot box. believe what you want, but when i smell smoke, i usually find something burning.