Monday, 8 October 2012
Is It Any Surprise The United States is Facing Bankruptcy?
The “unfunded liabilities” alone represent trillions of dollars per year, that the U.S economy has no hope of ever being able to fund, through it's revenues. Therefore it’s not even theoretically possible for the U.S to avoid being crushed by its massive debts – unless, of course, it prints astronomically huge amounts of money to pay for them. Plus, the Obama administration is now predicting that over the next decade and a half, the projected increase in debt will be just enough to cover the interest payments on current debts. Every year, a larger and larger portion of every revenue dollar gets consumed by interest payments.
With the US government basing its budget projections on above-average growth of the US economy, in the real world its economic growth must trend in the opposite direction, as a matter of arithmetic. Furthermore, the reason why U.S default is almost certain, is because it’s totally inflexible and hopelessly gridlocked political system; is incapable of generating the massive spending cuts needed to delay the U.S' bankruptcy.