We’re Broke Folks
Hate to be the one that breaks it to you, but…. WE’RE BROKE. By we, I mean the government of course. Now you may be wondering how that’s possible or why you haven’t heard about it. Those are fair questions that deserve a decent answer.
So how bad is it you might ask. Well, the value of the U.S. dollar is now worth about 3% of what it was worth in 1900. As a result, a loaf of bread that cost $.05 in 1900 now costs $2.75. That’s inflation for you. You see, inflation is primarily the result of the Federal Reserve printing too much money; in other words, too many dollars chasing a finite amount of goods for sale. Milton Friedman, who won a Nobel Prize for economics, must be rolling over in his grave. In addition, the government spending has ballooned totally out of control over the last 8 years or so. If it were you or me of course, they would have cut off our credit cards long ago. As if that wasn’t bad enough, the really bad news is that the light at the end of a tunnel is an oncoming runaway train loaded with increases in entitlement programs (primarily Obamacare and social security) as the demographics in this country change dramatically with the retirement of the Baby Boomers.
The reason that you haven’t heard about this issue during the presidential campaign is that neither candidate wants to talk about it – since there is little to nothing that they can do about it that won’t totally piss off the voters. Mitt Romney gave lip-service to government spending in his economic plan, but it’s a drop in the bucket compared to what it will really take and as for President Obama, well he seems to be proposing four more years of Hope and Change.
As things stand right now :
You can say good-bye to the American Dream.
You can say goodbye to America being a world leader.
You can say goodbye to your standard of living.
You might even have to say goodbye to your very way of life.
So the country is swimming in debt (the real deficit is closer to $200 trillion) and the two candidates have totally side-stepped, or are ignorant of, the issue. Former Senator Everett Dirksen should have been around to see this. He would have been right in his element. However because of the escalation in government spending, he would have had to adjust his famous quote to something like the following: “A trillion here and a trillion there and pretty soon you’re talking about real money.” Yes, and pretty soon you’re broke too.