Home     Writers     Op/Ed     Book Reviews     News     Bookstore     Photoshops     Submit     Search     Contact Us     Advertise  
  You are here: 

Wed

10

Mar

2010

The other side of that eroding veneer is nothing less than a fiscal abyss
Wednesday, 10 March 2010 06:36
by Stephen P. Pizzo

Look, I know I’m an awful nag about some things, particularly things that have to do with money, or to be precise, the terrifying lack thereof.

Oh, there’s plenty of paper floating around that looks, feels and — for the time being — spends like money. But it’s not. It’s really just trust in paper form. Those of us who take it in payment or trade it for goods and services have simply agreed to agree that the figure printed on the face of the bill represents its actual value. So when I say that it’s not really money, what I mean is that, while paper money abounds, the trust that underpins it’s value is at risk. The only thing that now stands between a $100 bill being worth $100 or $50, or less — or zero — is making damn sure the general public doesn’t get a whiff of what lays just below the surface, just behind the happy “the recession is over” talk, just behind the political talking points about “stimulus” and “jobs bills.”


What lays just on the other side of that eroding veneer is nothing less than a fiscal abyss. If you think American consumers got in debt over their heads, just wait until everyone finds out what the US Treasury is on the hook for. It’s an amount so staggeringly huge that even knowing the figure is cognitively meaningless — like when Carl Sagan used to tell us that the universe contains “trillions upon trillions upon trillions of stars.” The same goes for America’s fiscal debt-universe, only these are not stars we’re counting, they’re unfunded liabilities, they’re borrowed trillions, they’re annual revenue deficits in the hundreds billions of dollars forever needed to pay our every-day national operating expenses .. money we don’t have. It’s more money than anyone has... on earth.

Adding up all unfunded liabilities for Social Security, Medicare, Medicaid and Government sponsored pension funds gives us a figure slightly in excess of $100 trillion. The Federal budget deficit for fiscal 2009 will be approximately $1.84 trillion. Over the next ten years the projected deficit will be$9 trillion. These projected deficits come from the Congressional Budget Office and has to be considered a conservative estimate.

I only mention all this because, if you want to prepare your family for what’s heading our way, you better start now to hedge your finances. You better start, if you haven’t already, building a fiscal bomb shelter.There’s much each of us can do, but each family’s situation is different, so there’s no one right way. But for christ sake, start by getting our heads out of the sand here people. We are in very deep trouble. Begin by paying closer attention, not to what being said in Washington, but because all they are trying to do is make damn sure nothing spooks the herd. Sites like http://www.shadowstats.com does a very good job objectively comparing what the government says is happening and what’s really happening. There is a difference, and it’s a growing difference.


?ui=2&view=att&th=1273453a6e6eed86&attid=0.1&disp=attd&realattid=ii_1273453a6e6eed86&zw





Congressional estimates show grim deficit picture

By ANDREW TAYLOR, Associated Press Writer - Sat Mar 6, 4:46 am ET

WASHINGTON – A new congressional report released Friday says the United States' long-term fiscal woes are even worse than predicted by President Barack Obama's grim budget submission last month.

The nonpartisan Congressional Budget Office predicts that Obama's budget plans would generate deficits over the upcoming decade that would total $9.8 trillion. That's $1.2 trillion more than predicted by the administration.

The agency says its future-year predictions of tax revenues are more pessimistic than the administration's. That's because CBO projects slightly slower economic growth than the White House.
More from this author:
Predictions for 2007 (6893 Hits)
by Stephen P. Pizzo The War: Jenna & Barbara Bush will not be part of their dad's troop surge. Ditto for any member of the Cheney clan. ...
White House Chess (6430 Hits)
by Stephen P. Pizzo The Washington media spent the holidays trying to guess what the President's new plan for Iraq might be. Meanwhile in the...
Fine Mess You Got Us Into This Time (8081 Hits)
by Stephen P. Pizzo At the moment all the focus is on what George W. Bush is going to do about the mess he's made of Iraq. But the larger...
New Lies Forward (6306 Hits)
by Stephen P. Pizzo Well it's a new year, and you know what that means... time to update the administration's list of stated reasons for it's...
The GOP's Comprehensive Immigration Reform Scam (6878 Hits)
by Stephen P. Pizzo Traditional conservative, William F. Buckley was once asked how he would describe a “liberal.” He thought for...
Related Articles:
"Boiling Point" - Eroding Freedom: From John Adams to George W. Bush (13769 Hits)
Put a frog into a pot of boiling water, the well-known parable begins, and out that frog will jump to escape the obvious danger. Put that same...
No-brainer: Hillary loves Dick (Cheney, that is) (6038 Hits)
by Mickey Z. When you're bored, get on board. For some that might mean a surfboard, a snowboard, or maybe a skateboard. For Vice President Dick...
Nothing to celebrate - US elections bad for Arabs (7579 Hits)
by Paul J. Balles Paul J. Balles argues that the Democrats' gains in the US mid-term elections will not lead to a change in US policy in the...
When Failure is Better than Success: What Americans, and the World, Owe to the Disaster in Iraq (9507 Hits)
by Andrew Bard Schmookler There can be no doubt that the failed American invasion of Iraq has been a terrible thing. Because of...
Be All That You Can Be: Leave the Army (6512 Hits)
By David Swanson As long as there has been a U.S. military, people have been leaving it. That choice has never been more appropriate than...


Add this page to your favorite Social Bookmarking websites
Trackback(0)
Comments (0)add comment

Write comment
smaller | bigger

busy
 

adsense

Top