Home > America’s Top Accountant Resigns : US Comptroller General warms of US bankruptcy
America’s Top Accountant Resigns : US Comptroller General warms of US bankruptcy
by Open-Publishing - Saturday 16 February 20081 comment
Trade-Exchange Rates Economy-budget USA
http://www.chycho.com/?q=node/1580
David M. Walker, The Comptroller General of the United States and “head of the Government Accountability Office, announced Friday that he will resign in March to lead a new foundation focused on long-term public policy challenges… Walker, 56, has repeatedly warned that the government faces a long-term fiscal crisis as the baby-boom generation retires, driving up spending on Medicare, Medicaid and Social Security.”…
“As GAO chief, Walker has warned that the government is ignoring threats to the nation’s long-term fiscal security.” The latest audit of the federal debt have revealed that “deficit spending and promised benefits for federal entitlement programs have put every man, woman, and child in the United States on the hook for $175,000”. This is exclusive of the personal debt that each person may carry.
This means that every newborn in the United States of America has $175,000 of debt that they are responsible for before they take their first breath. This also means that every person that takes his or her last breath in the United States dies with at least $175,000 of debt.
Since debt slavery came into effect by the passing of the Bankruptcy Bill, this basically means that everyone in the United States is essentially a slave to the banking institutions since interest continues to accumulate on this debt. Now that personal debts are no longer cleared upon declaring bankruptcy, almost every person in the United States will die a slave.
How did the United States economy become so devastated and the populace so indebted? The Federal Reserve and the Military-industrial complex have most of the answers. The American lifestyle has the rest.
The simplest remedy to the American financial crisis is to change the American lifestyle from “the person(s) who accumulate the most possessions ‘win’ the game” to the person(s) who accumulate the most amount of goodwill ‘win’ the game. The reason that this has to happen is because “the carrying capacity of the planet will not continue to support” the American lifestyle. It is unsustainable, both economically and environmentally.
The second remedy is to eliminate the Military-industrial complex. “USA is responsible for 48 per cent” of the world’s total military spending, consuming over 41% of “US tax payer’s money”, not including hidden costs. When a country spends almost half its income on warfare, then it is doomed to economic oblivion and every other public priority, from healthcare to education and community development to social programs must be cut.
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The most important cure for what ails the US economy is to dismantle The Federal Reserve: A private banking institution headed by private individuals who represent conglomerate and the financial elite who act as “fiscal agents for the U.S. Treasury”. They decide how much money is in circulation, they print it, sell it to the United States Federal Government who in turn distributes it to the American people. In return they get all the interest, paid for with American taxes.
If you think this is absurd then you are not alone. John F. Kennedy tried to "strip the Federal Reserve Bank of its power" before he was assassinated, and more recently, presidential hopeful Ron Paul had a few choice words for Ben Bernanke, the current Chairman of the Board of Governors of the Federal Reserve System.
How large is the economic crisis that has hit the United States? With the discontinuance of M3 and the apparent flooding of US dollars into the economy by creating money "Out of Thin Air", the US currency has been devalued to the point where “central banks and finance ministries (of other countries) are setting up obstacles to keep the falling dollar from threatening company profits and economic growth.” The ultimate question is, how long are other countries going to be able to keep the American economy from collapsing in on itself, specially since there is "talk of a worst recession since the 1930s."
2008 should be a very interesting year.
Forum posts
29 February 2008, 07:06, by JBPeebles
At some point, the Congress will have to choose between allowing a recession or simply running the printing presses. Even if the US gov’t can borrow, it still must repay and pay interest. Historically, non-US sources of capital have bought our Treasury debt, keeping the scheme rolling.
The Fed is a layer between Congress simply printing and spending money. For private entities, interest rates are a constraint to borrowing. In times of decreased economic activity, money gets borrowed less and is wanted less. Money is a commodity, during economic down cycles it is spent less and produces more interest income as rates rise, cooling off overall growth.
When gov’t simply spends without regard to interest rates, it is forcing itself to borrow to pay interest. The interest might feed to the money center banks that run the Fed but remember they will suffer if there’s too much growth in the money supply. Stagflation may be happening where the supply of money grows, prices goes up, but economic activity in real terms stalls. It’s obviously not enough to feed money into an economy. Even government spending has less and less of a benefit the more that is spent. Like this "stimulus package" if everyone has more money, prices will simply go up so there’s no real net benefit. Now the rich are paying less taxes and therefore accumulate a greater share of the wealth, but the overall economic downturn is punitive to all. Inflation robs middle- and lower-income people more than it does the rich, who are able to shift their capital into higher income-producing assets.
Creating liquidity based on borrowing will only generate artificial demand which must be discounted to show real growth rates. As the scope of the contraction becomes known, real economic activity falls and this can help slow demand for money—hopefully not too much or we could have a depression or economic calamity. Gas/energy costs are going up though and inflation will be higher as a result.
Bernanke has sold out to the idea of preventing a recession so he’s flooded the market with cheap money. This is a sign inflation is rising and will continue to do so, at least thru the elections. A political imperative to maintain growth means more gov’t spending which will increase inflationary pressures unless the economy totally melts. Longer term the debt will spike to pay for all our previous borrowing, curtailing the real rate of US growth for decades.