U.S. Is Bankrupt and We Don’t Even Know It: Laurence Kotlikoff (www.bloomberg.com, Aug. 10, 2010)
“But delve deeper, and you will find that the IMF has effectively pronounced the U.S. bankrupt. Section 6 of the July 2010 Selected Issues Paper says: “The U.S. fiscal gap associated with today’s federal fiscal policy is huge for plausible discount rates.” It adds that “closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP.”…
“Based on the CBO’s data [about ‘unofficial’ liabilities], I calculate a fiscal gap of $202 trillion, which is more than 15 times the official debt…
The “Ponzi scheme”
“will stop in a very nasty manner. The first possibility is massive benefit cuts visited on the baby boomers in retirement. The second is astronomical tax increases that leave the young with little incentive to work and save. And the third is the government simply printing vast quantities of money to cover its bills.”
It’s clear to me that this unpayable and ridiculous debt was built up deliberately to bring everything crashing down, so that the current system of limited freedoms and rights and national governments would be replaced by a new world order.
And I hear hints in this article and elsewhere of a huge dangerous divide opening up between young and old. But we should not get caught up in blaming each other instead of those who run the system. The older generations were just as deceived by the system as the young, so we need to stick together through the tough times ahead.
Those in charge would just love to see people reduced to mindless divided rage – one half of the poor fighting and scapegoating the other half, collecting fines and taxes for governments. Or one half of the poor working as spies and government stooges to crack down on the other half. Here is another example from the U.K. And here is another article with child spies. Tyrannies attempt to use the masses as mindless tools and snitches. And any efforts to make the people of the U.S. pay off this absurd debt will likely involve escalated tyranny.
When I was running as a candidate in Canada, I used to think regular people were indirectly determining the direction politicians were taking, and partly to blame for policies. No, they’re not. There is no evidence that most regular citizens are involved in any government policies, or even know about them. There are Establishment funded private policy institutes and foundations who tell the governments what to do, and the politicians are controlled by their Party leaders. For example, see Rule by NGOs: Libertarian Rejection of “Smart Growth” (scroll down).
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