Over the past few years, U.S. government debt held by the public has grown rapidly—to the point that, compared with the total output of the economy, it is now higher than it has ever been except during the period around World War II. The recent increase in debt has been the result of three sets of factors: an imbalance between federal revenues and spending that predates the recession and the recent turmoil in financial markets, sharply lower revenues and elevated spending that derive directly from those economic conditions, and the costs of various federal policies implemented in response to the conditions.
Further increases in federal debt relative to the nation’s output (gross domestic product, or GDP) almost certainly lie ahead if current policies remain in place. The aging of the population and rising costs for health care will push federal spending, measured as a percentage of GDP, well above the levels experienced in recent decades. Unless policymakers restrain the growth of spending, increase revenues significantly as a share of GDP, or adopt some combination of those two approaches, growing budget deficits will cause debt to rise to unsupportable levels.
Although deficits during or shortly after a recession generally hasten economic recovery, persistent deficits and continually mounting debt would have several negative economic consequences for the United States. Some of those consequences would arise gradually: A growing portion of people’s savings would go to purchase government debt rather than toward investments in productive capital goods such as factories and computers; that “crowding out” of investment would lead to lower output and incomes than would otherwise occur.More Here..(.gov site)
A foreign observer asks:
ReplyDeleteIn Ireland even the president of the national police association (celtic “Garda)
calls the bailout and socialization of the international banksters and shareholders by the government and resulting unemployment and Austerity class war.
“Treason”.
In America ,what do they call in plain English ,the similar bi-partisan , bush/Obama/McCain , collusion between the US government and the Fed for a financial coup to seize the treasuries future taxpayers revenues for the ruling elite to socialise their past and future losses and treasury bondholders usury profits.
‘ a so called recovery” for the ruling capitalist elite class or Treason ?
"Michael O'Boyce, President of the Garda Representative Association (GRA), said at its annual conference in Limerick, at the end of April, 2010, that the Irish Government had been 'corrupted' and had been 'bought' by developers and bankers.
(A garda is an Irish policeman, gardaí in the plural.)
“"The Government of which you are a long-serving member has mismanaged the wealth of this country for more than a decade by allowing our assets to be plundered and robbed by bankers and speculators, and you are making generations of Irish workers pay the price for this treachery...
"...You did this because bankers and speculators have bought your party, and in return you have sacrificed the greater good and prosperity of the Irish nation for the benefit of the few - the few who have now taken their ill-gotten gains and secured them in tax havens around the world. Truly, a government of national sabotage."..
they pledged a colossal amount of money to private banksters to save them and their investors from losses incurred by their own criminal recklessness. In doing so, they have mortgaged the future of Ireland and the Irish people for generations to come and crippled the economy to levels often seen in the Third World.
By giving billions of public money to maintain the fortunes of its former cronies in banking and property development the Irish Government has created a living hell for its struggling citizens: almost 500,000 people out of work, 200,000 emigrating in search of jobs, tens of thousands of mortgages falling into arrears, hundreds of small businesses going to the wall, and suicides alarmingly on the rise. The land is filled with misery and despair when it could so easily have been triumph and prosperity."..
Read more: http://www.articlesbase.com/banking-articles/cops-charge-irish-government-with-treason-2872483.html#ixzz0v34E46R8
As more Shit will hit the fan in America soon, with civil tension developing as the econonmic crisis spins out of control,with millions permanently unemployed living on food stamps and millions of the middle class losing their housing, it is to be hoped that the American police and military develop a similar patriotic understanding of the real cause of the economic crises in Ponzi Crony capitalism America and stand on the side of the people attempting to assert peoples control over the bankrupt economy and their lives –not side with the system of the banksters- and financial debt peonage oppression for future generations of Americans.
Those who do not study history and learn from it are doomed to repeat it.
ReplyDeleteAnd we are
Rome is burning
Amen! Arrest and try these hooked nosed Mf's for treason and publically execute each and every one of them setting examples.
ReplyDeleteCan I inject the poison? ...pull the trigger? ...trip the blade? ...tie the knot?
ReplyDeleteI *SO* want to see these people gone. I don't really care if its with lethal injection, a bullet, a beheading, a hanging, cement shoes, terrible accident, etc.
These people know who they are and they know that once the system falls apart, they're goose is cooked.
They may be in bunkers but we'll poison the air and water for them like they have poisoned it for the world. We The People will survive the coming collapse, they will not.
Another problem is the confusing headlines over the Bush tax cuts. Everyone is arguing about them. They are due to expire soon and both parties cannot agree on what to do. I read opposing headlines that letting them expire will raise the debt and NOT raise the debt. Or keeping them in place will raise the debt and NOT raise the debt. So which is it?
ReplyDeleteSeems to me that letting tax breaks for the rich expire can only be good for the rest of us. Otherwise the middle and lower classes will keep footing the bill and we're running out of money.
When the government says "rich" however, they generally mean anybody that earns over $100k, even if it's a family combined income. They don't really mean "rich" as in a single earner topping $250k or so, which is kind of around where I'd think you're really rich.
ReplyDeleteIn many parts of the country, even a $100k salary won't get you far. The government already takes half of that with just taxes, then will take another chunk with cost of living and various required fees and licensures.
The AMT is allegedly for the rich but it also hits the middle class.
The goal of the government is to completely destroy the middle class. Don't buy into this nonsense about the "rich." The truly rich don't pay much in taxes because they don't report their income and let their businesses handle most of their costs. They also find as many ways to reduce their tax liability as possible, because they can afford to hire accountants and tax lawyers to make sure they pay the least amount possible.
8:03
ReplyDeleteExactly & when they do get caught AKA our lovely John Kerry and his MultiMillion dollar yacht that he harbors in R.I thereby foregoing Mass. taxes is just one beautiful exanple out of a billion these rich mtrf*ckers keep most of what they steal from us while we pay, pay pay. I mean we're
talking 500 thousand dollars this fucking maggot would've never, ever paid had he not been caught with his dick in the puntang.
Another great example is that rotten cocksucker Charlie Rangle - I hope that rotten sonofabitch gets his little weiner stuck in a crocs jaws. That prick has used our money over the past 40 years to build himself quite the little empire.
Oh well, not to worry; the smart folk of New York will put him right back in office come November - Go Yankees !
The so-called "tax cuts" are in fact tax rate cuts. That is everyone who pays taxes pays taxes at a lower rate. The reason this distinction is important is: 1)Tax rate cuts usually result in increased revenues not decreased revenues. 2)Tax rate cuts are the most efficient way to give "everyone" tax relief and it clearly gives poor people tax relief. That tired old lie that it is for the rich is so stupid.
ReplyDelete