Is a U.S. Default Inevitable?

Is a U.S. Default Inevitable?

www.prisonplanet.com...

With that share of the U.S. national debt held by individuals, corporations, pension funds and foreign governments having risen in 2009 from 41 percent to 53 percent of GDP, Penner and Walker believe it imperative to get the deficit under control. Unfortunately, it is not possible to see how, politically, this can be done.

Consider. The five largest elements in the budget are Social Security, Medicare, Medicaid, defense and interest on the debt.

With interest rates near record lows, and certain to rise, and back-to-back $1.4 trillion deficits, this budget item has to grow and has to be paid if the U.S. government is to continue to borrow.

Second, with seniors on fire against Medicare cuts in health care reform, it would be fatal for the Obama Democrats to curtail Social Security or Medicare benefits any further this year. Next year, they will not only lack the congressional strength but any desire to do so, after their anticipated shellacking this fall.

The same holds true for Medicaid. The Party of Government is not going to cut health benefits for its most loyal supporters. Indeed, federal costs may rise as state governments, constitutionally required to balance their budgets, cut social benefits and beg the feds to pick up the slack.

This leaves defense. But the president is deepening the U.S. involvement in Afghanistan to 100,000 troops, and the military needs to replace weaponry and machines depreciated in a decade of war. Where, then, are the spending cuts to come from?

Seriously, where is the money going to come from? We can't just print money to pay back our debts that we owe to a branch of our own government (even if it is a private corporation) forever.

All we do is increase spending, increase budgets, but there is a smaller and smaller population to tax anymore, with unemployment rates so high.


[edit on 15-1-2010 by seattletruth]

reply to post by seattletruth


www.abovetopsecret.com... Take a look at some of these links from early, and tell me this isnt fishy,

We have states and local goverments making there own money, and the FED montizing our debt, yes it is inevitible.

The world will not allow the US to default. Not just yet, anyway, until a replacement is found. Enter China.

Well obviously, we live in bizarro world ATM. Rationally, the US must default. Rationally, the world economies as a whole must default. Common sense tells us the entire economic system is a giant ponzi scheme. Those in control are manipulating the system to keep it going. It will crash when they allow it to. It seems this won't happen until the looting has been mostly complete, and their agenda can be served. I was certain that our economy and society as a whole would have crashed by the end of 2007. It didn't happen then, and doesn't seem like it's going to happen anytime soon. I think if 2012 will be anything at all, it'll be when the economy is allowed to really crash. What better way to freak people out about the end of the world than having this coincidence occur? Order through chaos. Agenda always.


[edit on 15-1-2010 by unityemissions]

i see a large tombstone, has anyone stopped to see the name on it yet?

RIP
USA

yeah looks like your right man, but your about 10 months too late.