BACK in 2007, when Ron Paul asked us to elect him to be or President, Ron Paul predicted this impending disaster. So did Peter Schiff, Gerald Celente and many others. The Republicans choose McCain and Democrats choose Obama.
So, How's that working out for you? Including you Martin, you also supported Obama.
by Martin D. Weiss, Ph.D. 10-05-09
When our leaders have no awareness of the disastrous consequences of their actions, they can claim ignorance and take no action.
Or when our leaders have no hard evidence as to what might happen in the future, they can at least claim uncertainty.
But when they have full knowledge of an impending disaster … they have proof of its inevitability in ANY scenario … and they so declare in their official reports … but STILL don’t lift a finger to change course … then they have only one remaining claim:
And, unfortunately, that’s precisely the situation we’re in today: Three recently released government reports now point to fiscal doomsday for America; and one of the reports, issued by the Congressional Budget Office (CBO), says so explicitly:
The CBO paints two future scenarios for the U.S. budget deficit and the national debt. But it plainly declares that fiscal disaster will strike in EITHER scenario. Furthermore …
The CBO states that its fiscal disaster scenarios could cause severe economic declines for decades to come, including hyperinflation and destruction of retirement savings.
The CBO then proceeds to admit that even its worse-case scenario could be understated by a wide margin due to panic in the financial markets or vicious cycles that are beyond control.
Separately, in its Flow of Funds Report for the second quarter, the Federal Reserve provides irrefutable data that we are already beginning to witness the first of these consequences in the United States: an unprecedented cut-off of credit to businesses and consumers.
Meanwhile, the Treasury Department shows that America’s fate remains, as before, in the hands of foreigners, with the U.S. still owing them $7.9 trillion!
And despite all this, neither Congress nor the Obama Administration have proposed a plan or a timetable for averting these doomsday scenarios. Their sole solution is to issue more bonds, borrow more, and print more without restraint.
Congressional Budget Office (CBO):
It shows that even in proportion to the larger size of the U.S. economy today, the government debt has ALREADY surpassed the massive debt loads accumulated during World War I and the Great Depression … and will soon surpass even the massive debt load of World War II.
“Large budget deficits,” write the authors of the CBO report, would …
“Reduce national saving,” leading to …
“More borrowing from abroad” and …
“Less domestic investment,” which in turn would …
“Depress income growth in the United States,” and …
“Seriously harm the economy.”
Worse, on page 14, the CBO warns that:
“Lenders may become concerned about the financial solvency of the government and...
“Demand higher interest rates to compensate for the increasing riskiness of holding government debt.” Plus …
“Both foreign and domestic lenders may not provide enough funds for the government to meet its obligations.”
The magnitude of the problem cannot be underestimated. The CBO declares on page 15 that:
“The systematic widening of budget shortfalls projected under CBO’s long-term scenarios has never been observed in U.S. history” and …
It will also be larger than the debt accumulations of any other industrialized nation in the post-World War II period, including Belgium and Italy, the two worst cases of all.
U.S. Federal Reserve: Flow of Funds Accounts of the United States
The Fed’s data on page 12 tells it all: The impact on the U.S. credit markets is not just a future scenario. It’s happening right now.
The U.S. is deep in debt to the rest of the world, and on page 48, it provides the evidence: total liabilities to foreigners of $7,898,435 million (nearly $7.9 trillion)!
That is the epitome of insanity. FULL STORY