That’s the title of Karl Denninger’s latest blog post. In it, he reiterates what he’s been saying for years (and I’ve been doing likewise).
That’s right — the government intentionally destroyed almost 8% of your paycheck and your savings last year, running a $1.423 trillion dollar budget deficit, which is roughly equal to the worst of the “great recession” when tax revenues went through the floor.
Today there is no such “tax shortfall” excuse.
The breakdown of exactly where the ugly is coming from will be published next week. I already know what is in there because I’ve been following the monthly treasury statements all fiscal year, but wish to report final “as tallied” facts — and thus will have another post at that time.
Let me be clear: On the arithmetic if we do not stop this now within the next 4-5 years — that is, within the next Presidential term — our government will collapse, our economy will collapse, our health care system will collapse and both the stock and housing markets will collapse. This is not politics, it’s arithmetic. And the worst part of it is that I am utterly certain that the “references” count, along with the “views” count on this article will both be a fraction of the politically-oriented articles I’ve recently posted. That the real end of our way of life in America, a threat that is obvious, mathematically certain, not very far in the future and yet avoidable if we act now fails to garner any sort of serious attention is the real outrage folks.
There’s more at the link. It’s essential reading, IMHO.
This really is the crux of this election. If our political leaders don’t stop their deficit spending and stabilize our budget, this nation – and almost every nation in the First World, for that matter – is headed for a collapse of monumental proportions. Mathematically, it’s inevitable.