Here is some thought provoking commentary from one of our members on the phoney debt ceiling debate going on in Washington D.C….
If anyone is by chance is still holding their breath about US debt and the current negotiations, feel free to relax.
Everything they are “scrambling” to do in Washington right now means, yep, absolutely nothing. No matter what they pass, even if it was 5 trillion, 6 trillion, 8 trillion……….does not matter.
Why, because they can call it a cut all they want to but it is not. The spending increases (NOT THE DEBT BUT SPENDING INCREASES) by law are set to increase every two year cycle. The negotiations for this current debt discussion are associated with a 10 year projection.
Yes, some like Rush and other radio guys will tell you that the AUTOMATIC spending increases over the next ten years will amount to 9 to 10 trillion dollars. That is above current day spending. So, do that math and cut 8 trillion dollars and the net result is not a cut at all but a 2 TRILLION DOLLAR INCREASE THAT THEY CALL AN 8 TRILLION DOLLAR CUT…………..
Yea, that kind of accounting gets the average business owner a room next to Charles Manson. Not so in Washington.
The funny thing is, is these guys can’t even agree to a ONE TRILLION DOLLAR or (let’s phrase that in true terms) a 9 trillion dollar increase. They are arguing over whether we will have a 9 trillion increase over ten years or a 10 trillion increase over ten years.
Oh, but it gets better. That 10 trillion increase is based on zero additional increases over the next ten years. It does not factor in the real Obummer Care costs of an additional (at least) four trillion dollars. It does not factor in the increase costs of an additional 2 to 4 trillion in debt service costs due to the additional borrowing we will be doing on a simple 2.5 trillion debt limit increase nor does it factor in the additional couple of trillion (minimum) in costs due to interest rates that will rise very soon.
The reality is, we are looking at a 25 to 30 trillion dollar spending increase over the next ten years. I take that back, if they pass the 1 trillion dollar HAAA HAAA HAAA cut, it will only be 24 to 29 trillion dollars.
That is not deficit, that is not debt, that is ONLY spending. Period.
So what does this all mean? It means the United States is only a year, or three at the most, away from total, absolute, economic implosion. Count on it.
If you are spending time watching what is going on in Washington with the hope that the “tea party republicans” can pull this one out, I would simply encourage you to use that time instead to read your Bible, learn a new survival skill, build your food inventories, etc.
Cause Rome is burning my friends and they are throwing logs on the fire. Far too many sheep out there actually believe the barn will still be standing for them in winter.
This is going to be ugly the likes of which history has rarely seen.
Filed under: The Economic Meltdown | Tagged: Government Spending, Obama, Raising The Debt Ceiling, The Pending Economic Collapse | Leave a Comment »