Aug 29 2007
Implied Long Term Insolvency For U.S. Federal Government
If you don’t take my word, take that of David Walker, U.S. Controller General, whose been on tour telling the truth about the real Federal deficit vs. the headline number. The numbers used by politicians: $315 and $265 billion in 2005 and 2006. The real numbers: $3.5 and $ 4.6 trillion, when the slight of hand that returns to the balance sheet the many social obligations that were removed thanks to the creativity of L.B.J and Congress back in the 1960s.
Cut programs? Raise taxes? Show me a politician who’d dare run on that — a scarcity confirmed in this video.
To us, this smells like more money printing in the future. Add that to the current credit market fiasco, and suddenly there’s a real issue regarding the slumping dollar!
