The $200 Trillion Secret
So the debates are over and the presidential campaign is winding down. Yet, I haven’t heard either of the candidates, never mind the totally biased political pundits, talk about the only issue that really matters; namely, the economy. Okay, I was just joking about that, sort of. Here’s why.
From my perspective, neither of the candidates has a meaningful plan to turn the country around, let alone return it to greatness. Heck, Obama seemingly doesn’t have any plan at all. The elephant in the room that everyone is ignoring is the federal deficit which may be as high as $200 trillion (as opposed to the published figure of $16 trillion), which means that you could conceivably shut down the entire federal government and the country could go still go further into the hole. Of course, these numbers don’t even count the black budget which absolutely no one ever talks about.
The reason is that the government lies about most things pertaining to the economy. By that, I mean they lie about little things and they lie about big things; certainly important things like the rate of inflation and the unemployment rate. For example, if the inflation rate is kept artificially low then workers’ salaries, most of which are driven either directly or indirectly by the Consumer Price Index, have less value relative to the cost of products that they buy (food, gas, housing etc). This is one of the reasons why the savings rate has plummeted over the last 30 years.
David Walker, a highly-respected and former U.S. Comptroller General, has launched the Comeback America Initiative to discuss the looming crisis in government spending which he says is a bigger threat to the country than terrorism. In fact, he has labeled it a threat to the very survival of the republic. Yet, go on the six-o-clock news and see if anyone is talking about it. Alternatively, attend a local town hall meeting and see if anyone is even remotely aware of the issue. One must also question why Mitt Romney is not making a big deal out of this either, as this has the potential to swing the election to him. I’ll leave that to you to ponder.
The bottom line is that the government wants to hide how bad things really are. Sure, Obama is politically motivated to suppress the truth – he has an election to win. However, this problem has been around for a while. President Clinton left office with a surplus so just how could things have gotten so bad so fast?
So there you have it – political intrigue, government bailouts to corrupt financial institutions, including foreign banks, and a cast of characters worthy of an Agatha Christie novel. It’s a $200 trillion secret that they don’t want you to know about… but, of course, now you know.