Educational, NOT political... An excerpt of a report by a noted financial analyst I follow, which shows part of why I am VERY disturbed by the Progressive Movements economic theories, and Obamas execution of them. This was from a report in which he warns his client base about the very likely collapse of the dollar sometime in the next few years. We began the year 2013 with a net public debt that has more than doubled since the year BEFORE Barack Obama took office. These overwhelming public financial obligations are completely unprecedented in the history of our country, outside of the two major global wars we fought in the 20th century. (NOTE BY Carlos - this is in terms of percentage of GDP that we had similar debt then - and we paid it down by following the OPPOSITE of the anti-business, tax and spend, policies we follow today) But even these incredible figures dont tell the real story. Or even half of it. Various other government agencies and private companies taken over by the government also have obligations of nearly another $5 trillion. Weve already booked complete losses on $140 billion worth of these obligations. Yet they remain completely off the federal balance sheet. When you add these other, genuine, federal obligations that exist right now, today, you come up with a total debt figure thats much more than $20 trillion. Far more than half of these debts were assumed under President Obama. We dont know what the full burden of these new and existing debts will be in total, over time. Thats because the Federal Reserves power to manipulate interest rates is unlimited—at least for now thats the case. We dont know how much of Fannies and Freddies (NOTE BY Carlos - Fannie Mae & Freddie Mac - the 2 Gov owned Agencies that manipulate the RE Mortgage market, and were largely responsible for causing the recession) bad debts will eventually be covered by the U.S. Treasury. We do know they have an unlimited line of credit... so its a safe bet that we havent seen the last of these charges. Finally, we have no idea what the eventual costs of the Federal Reserves ongoing expansion of the monetary base will be over the long term. There is one thing thats certain, however: these debts will not be free. They will carry a burden. Today, we have more government debt than any country in the history of the world. We have more debt than every country in the European Union... combined. With each additional commitment we sink further and further into debt... closing in upon the moment that we can simply no longer afford even the interest payments on our obligations.
Posted on: Wed, 12 Mar 2014 13:57:32 +0000
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