Ruins of houses in Fredericksburg, Virginia Circa Civil War. Are we preparing for another?
While it’s too early to tell whether or not the destruction in stock markets will continue as it did in 2008, one thing is for sure – when the bottom finally falls out of this economy it’s going to come as a surprise to tens of millions of people who have been bamboozled by their trusted politicians and corporate elite.
Today’s Dow Jones collapse of 350 points is but an indicator of the severe volatility and unmitigated destruction we can expect as this crisis enters the next phase. Former comptroller general of the Government Accountability Office (GAO) David Walker warns that it’s going to hurt:
“Here’s the bottom line. If you take the total liabilities of the United States – public debt, unfunded pensions, retiree health care, under funding with regard to social security, with regard to Medicare, a range of commitments and contingencies – as of September 30 2010 we would have had to have had $61.6 trillion dollars in the bank in order to be able to cover those obligations.” Walker explained.
“The fact of the matter is that government has grown too big, promised too much and waited too long to restructure. Our problem is overwhelmingly a spending problem.” Walker, now the head of the fiscal advocacy group the Comeback America Initiative, told viewers.
“Lets understand something very simple. If you have escalating deficits and mounting debt, that means you have to increase the debt ceiling limit at some point and it means absent structural reforms in entitlement programs, defense and other spending, those represent deferred tax increases.”
“We are not exempt from a debt crisis,” he said. “We’re never going to default, because we can print money. At the same point in time, we have serious interest rate risk, we have serious currency risk, we have serious inflation risk over time. If it happens, it will be sudden and it will be very painful.”
It’s not a matter of if, but when. The course is mathematically unsustainable, and a few hundred billion in cuts, as ridiculous as it sounds, is simply not going to be enough.
As Charlie McGrath pointed out in his August 3 video report, the US government will have to take extreme measures, like Greece is being forced to take now, to keep the system alive, albeit on life support:
We are in the leagues of nations such as Greece and Italy, these other nations who their national debt far outpaces their GDP, and reality is these nations are going through austerity.
And, here comes your crisis of reality.
The austerity measures that are about to come our way are going to be like nothing we’ve ever seen or even dreamt about in this country – certainly worse than any of the politicians getting before the cameras will tell you is coming. They’re telling you if you go further into debt everything’s going to be OK.
…President Obama and Federal Reserve Chairman Bernanke are out of bullets. They have nothing left…they’ve tried everything: QE1, QE2, Stimulus 1, Stimulus 2, there’s just nothing left that can be done to help create jobs in this country.
Video: WARNING ...Real Crisis Ahead
Many don’t believe it will happen here. But make no mistake, it’s coming (in fact, it’s happening right here and now!).
They’re going to print more money and erode your savings. They’re going to borrow more money from foreign creditors, until such time that they won’t lend to us anymore. Prices for essentials like food, energy and clothing are going to increase exponentially over the next few years. At the same time we will see forced cuts to programs like social security, Medicaid, Medicare and a host of other entitlement programs. Millions of Americans are going to feel like they’ve been hit with a sledgehammer.
The United States of America is embroiled in the next Great Depression – and there is no way out. The economy will not, contrary to the opinion of our government and the presstitutes who promote their agendas, recover in a few months. We’re in this for the long haul, as in years and decades not weeks or months, and all of us will soon learn what TEOTWAWKI means.
Source: ShiftPlan - Mac Slavo - August 4th, 2011
Obama says we're only "halfway" to where he wants to take us as Dow drops 512 Points!
Obama says we're only "halfway" to where he wants to take us as Dow drops 512 Points!
Money/CNN is reporting it is the worst financial crisis since 2008.
"The conventional wisdom on Wall Street was that the economy was growing -- that the worst was behind us," said Peter Schiff, president of Euro Pacific Capital. "Now what people are realizing is the stimulus didn't work, and we may be headed back to recession."
There's "total fear" in the market, said Bob Doll, chief equity strategist at the world's largest money manager, BlackRock.
"In the last two weeks, we've been through the ringer," said Rich Ilczyszyn, market strategist with futures broker Lind-Waldock. "When we start looking at the recovery, there's nothing to hang our hats on anymore."
Earlier today, I read a transcript from Obama's fundraiser on Real Clear Politics where he said we weren't even "halfway there" to where he wants us to be.
When I said 'change we can believe in' I didn't say 'change we can believe in tomorrow.' Not change we can believe in next week. We knew this was going to take time because we've got this big, messy, tough democracy," President Obama said at a campaign fundraiser in Chicago on Wednesday night.
Sounds like this darned democracy thing is impeding Obama's progress. If we are only "halfway" to wherever it is he's trying to take us, all I can do is pray God helps us survive until January 2013.
Sherry Phillips at Tea Party Nation - August 4, 2011 at 5:43pm
Related:
Drunken Ben Bernanke Tells Everyone How Screwed U.S. Economy Really Is
Romney Video: Obama Isn’t Working: Chicago
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