Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Economic Armageddon, Here We Come

Economics / US Debt Aug 26, 2009 - 03:02 AM GMT

By: LewRockwell

Economics

Best Financial Markets Analysis ArticleMarty Nemko writes: Obama administration admitted today that the federal debt will, over the next decade, grow wildly larger than it had previously said – so much for a recovery. Now the estimate is $9 trillion!

And that doesn't count the $1.0 to $1.6 trillion Congress is contemplating spending on ObamaCare.


Nor does it count the massive additional new spending Obama has promised; for example, legalizing the 13–20 million illegals, who will thereby become eligible for ObamaCare, increasing the debt further.

And Obama is considering "Stimulus" 2. For our trillion dollars, "Stimulus" 1 has resulted in increasing unemployment and increasing debt, yet he contemplates Son of Stimulus.

China owns ever more of America and the U.S. is becoming ever less creditworthy. The amount we have to pay just in interest, is approaching the total budget for national defense!

And federal spending is accelerating?! Will we, not to mention, our children, and grandchildren, suffer profoundly from our profligacy?

Government programs (yes, Republican-initiated programs, for example, the Bush bailouts and the Iraq War, are equally at fault) are usually terribly inefficient. Think Amtrak, the Postal "Service," the public schools, the nearly bankrupt Social Security and Medicare, the Bailouts, $75 hammers, the Bridge to Nowhere.

Many government programs are actually negative in effect. Consider, for example, Cash for Clunkers: dangling taxpayer dollars in front of people poor enough to own bad-gas-mileage clunkers so they can go deeply in debt to buy a new car (80% of which have been foreign, by the way). And of course, dumping all those cars and their toxic components and fluids into landfills is an environmental disaster. Plus, car dealers are screaming that they have laid out the $4,500 per car to customers and often have not yet been paid by the government, thereby killing their cash flow, a business's lifeblood. The government can't even write a promised check in a timely manner and they want to run a "public option" health care system?

An individual and especially a nation in debt is at-risk. A nation that has assumed unprecedentedly, incomprehensibly mammoth debt is doomed. Even Keynes did not imagine this magnitude of government spending. To pay for its metastasizing number and scope of programs and interest on its soon-to-be $9 trillion debt, the government will, unchecked, continue to raise taxes and print ever more money, thereby decreasing the value of our life's savings and purchasing power.

As a result, American workers will likely end up joining most of the world's workers in earning a net $1 an hour. According to the Center for Fiscal Responsibility, we already work into August just to meet all the costs imposed by government. Does anyone really think we get fair value for the government's taking over half our money from us each year?

Our only hope is for us to demand that the government return most of our tax dollars to us and for government to live within its then more modest means: scale down so it can balance its budget and pay down its debt. Anything else leads us to economic Armageddon.

August 26, 2009

Dr. Nemko [send him mail] is a career counselor in Oakland, CA and host of Work with Marty Nemko on KALW-FM (NPR, San Francisco.) 500+ of his previously published articles and columns are on MartyNemko.com.

© 2009 Copyright LewRockwell.com - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in