Another TRUTH Tellers Steps Forward on the Deficit and Debt That the American Republic Is Now Facing….This Time Lawrence Lindsay in an Op-Ed in the Wall Street Journal – Yes, the $2 Trillion In “Cuts” Over the Next Decade The Democrats and Republicans Are Negotiating Is Trivial Indeed When Compared To the Trillions In Debt That Is Slated To Be Added to the National Debt Over the Same Time Period – Sigh….The Fantasyland That Is Modern Day Washington DC Continues – We Have Seen What the People of Greece Are Doing When the Greek Government Took Their Fantasyland Punch Bowl Away – The American People Are Nothing Like the Candy Ass Greeks….So What Will Happen In America When an “Elected Leader” Starts Telling the American People The TRUTH About What OUR Country Is Facing and the Things That Will Have To Be Done To Save OUR Nation From Ruin? – Damn Good Question
We are not quite sure when the fantasy started that the American Republic and OUR “Elected Leaders” could promise all kinds of governments services and then send the bill for those services to future generations of Americans that are often not born yet, but the deficits and debt that have been piled up on those future generations of Americans in recent years are not only immoral….in many ways they are evil.
Lawrence Lindsay is out with an op-ed in the Wall Street Journal today (With Lindsay being one of the very few Truth Tellers around Washington DC these days) that lays out the very ugly truth about the deficits and debt that are now facing America…..
….and Lindsay’s op-ed makes the “negotiations” between the Democrats and Republicans over debt reduction of around $2 Trillion Dollars over the next decade look very trivial indeed.
From Lindsay’s WSJ op-ed:
“Washington is struggling to make a deal that will couple an increase in the debt ceiling with a long-term reduction in spending. There is no reason for the players to make their task seem even more Herculean than it already is. But we should be prepared for upward revisions in official deficit projections in the years ahead—even if a deal is struck. There are at least three major reasons for concern.
First, a normalization of interest rates would upend any budgetary deal if and when one should occur. At present, the average cost of Treasury borrowing is 2.5%. The average over the last two decades was 5.7%. Should we ramp up to the higher number, annual interest expenses would be roughly $420 billion higher in 2014 and $700 billion higher in 2020.
The 10-year rise in interest expense would be $4.9 trillion higher under “normalized” rates than under the current cost of borrowing. Compare that to the $2 trillion estimate of what the current talks about long-term deficit reduction may produce, and it becomes obvious that the gains from the current deficit-reduction efforts could be wiped out by normalization in the bond market.”
Yes, the above reality about “normal” US bond interest rates does make that $2 Trillion Dollars in deficit reduction the Democrats and Republicans look like nothing at all, but Lindsay is just getting warmed-up as he also points out that both the assumed economic growth rates that the Washington DC Wackos are assuming are way too positive and will cost the US Government another $4 Trillion Dollars in tax revenues in the coming decade.
Add to the $5 Trillion Dollars because of “normalized” bond interest rates and $4 Trillion Dollars lost from Bogus economic growth rates the growth in the cost of government healthcare in the coming years of another $700 Billion Dollars or so and Lindsay points out that the US Government is over-estimating around $10 Trillion Dollars over the next decade in tax revenues and that is on top of the projected $8 Trillion Dollars in deficit spending over the next 10 years!
Add it all up and the United States of America’s National Debt is slated to clock in at….
$30 Trillion Dollars or so by 2022!
…and if there is anyone on Planet Earth that thinks the American People even with all of their hard-work can support the debt service on $32 Trillion Dollars and fund things like National Defense, Medicare, Social Security and the rest of the US Government then that is someone that lives in an Absolute Fantasyland which is an accurate term since that is where members of both political parties in Washington DC are living right now!
Here are the FACTS about what America is facing in the upcoming fiscal year, 2012, which begins on October 1, 2011 and runs until September 30, 2013:
Total Spending – $3.8 Trillion Dollars
Total Revenues – $2.7 Trillion Dollars
Federal Deficit – $1.2 Trillion Dollars
What the Hell?
2012 will be the THIRD straight year that the United States of America will be running a $1 Trillion Dollar annual deficit which would have been an outrageous amount of deficit spending only a few years ago when the Democrats and Republicans were spending like drunken sailors with someone else’s money during the George W. Bush Presidency.
Here were the US Federal Deficits in the mid to late-2000s (From US Government Spending):
2005 – 320 Billion Dollars
2006 – 248 Billion Dollars
2007 – 161 Billion Dollars
2008 – 457 Billion Dollars
2009 – 1.4 Trillion Dollars
2010 – 1.2 Trillion Dollars
2011 – $1.5 Trillion Dollars (estimated)
What the Hell?
The United States of America was running annual budget deficits in the Hundreds of Billions of Dollars in the mid-2000s under the irresponsible Republicans and George W. “Can’t find my veto pen so just let’s just run up lots of debt on the backs of future generations of Americans” Bush, but now these Bastards in Washington DC have put US Government spending into overdrive and are spending money hand over fist with little concern about anything but getting their precious asses re-elected to office!
As always, look to the FACTS, and the FACTS will tell the American People why the US Government is running Massive Annual Trillion Dollar Plus Deficits right now and as usual in Washington DC it is…
The Spending Stupid!
Here is what the US Government has spent annually since the mid-2000s:
2005 – 2.4 Trillion Dollars
2006 – 2.6 Trillion Dollars
2007 – 2.7 Trillion Dollars
2008 – 2.9 Trillion Dollars
2009 – 3.5 Trillion Dollars
2010 – 3.6 Trillion Dollars
2011 – 3.8 Trillion Dollars
What the Hell?
Why is the US Government running 1 Trillion Dollar annual deficits right now and is projected to do so for years to come?
It’s the Spending STUPID!
Hell, the spending that these Bastards in both political parties are doing in Washington DC right now make the irresponsible Bastards in the mid-2000s look like they had at least some common sense, but the explosion of spending by the Federal Government over the last few years is just outrageous and any of OUR “Elected Leaders” talking about cutting just $2 Trillion Dollars in government spending over the next decade is nothing more than tossing a pebble into a huge ocean!
Well, the good news for OUR “Elected Leaders” in Washington DC right now if that as they nibble around the edges of the biggest problems facing the American Republic is that they will go down in history as very important players on the world stage because they will be remembered as the Destroyers of America and since most of these folks in Washington DC are desperate to make a name for themselves at least the moniker of the “Destroyers of the American Republic” is better than nothing!
Just wait until America elects someone that will actually tell the American People the TRUTH about the current fiscal situation facing the country right now and in the future, because it is going to be a Damn interesting time to live in America when the American People are actually told the FACTS of just what OUR country is facing and both the amount of cuts that will have to be made to US Government spending and the new taxes that will have to be put in place and/or sweetheart tax deals and deductions will have to be cut.
Yes, it is going to be Damn interesting to see how the American People react when they are told the TRUTH because the American People are not like the Candy Ass Greeks that are now rioting in the streets as the Greek politicians begin to take away the punch bowl from the People of Greece that should have never been brought to the party in the first place.
Yes, what the Hell will happen when the Fantasyland Punch Bowl is taken away from the American People that are the descendents of revolutionaries and are the People that have helped give Freedom and Liberty not only to themselves and THEIR country but to countless Billions of people around the world?
Damn good question.