Community | January 22, 2012 | 2 comments

If The U.S. Government Keeps Spending Money Like This We Are Doomed And If The U.S. Government Stops Spending Money Like This We Are Doomed

source: http://theeconomiccollapseblog.com/archives/if-the-u-s-government-keeps-spending-money-like-...

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Revelation1217
Right now, the U.S. government is spending more than a trillion dollars more than it takes in every year. Even if the U.S. government spends all of that money on incredibly stupid stuff, it still gets into the pockets of ordinary Americans. In turn, those ordinary Americans use that money to pay the mortgage, buy food, shop at the mall, etc. All of this borrowing and spending by the U.S. government has created a "false prosperity" bubble that is not real. It may feel real to you right now, but it is unsustainable by definition. If the U.S. government suddenly started spending only the money that it actually brought in every year, our economy would be doomed and all of this "false prosperity" would rapidly disappear. But if the U.S. government continues to rack up debt at this pace we are doomed as well. In fact, every dollar that gets borrowed makes our eventual collapse ever worse. We are heading down the exact same road that Greece has gone. Eventually the rest of the world is not going to lend us gigantic mountains of super cheap money anymore. When the flow of cheap money stops, it can be extremely painful. Anyone that has ever seen the interest rates on their credit cards go above 20 percent knows how this feels. If we had addressed these problems as a nation a decade or two ago, perhaps we could have found a solution. But now there is no way out under our current financial system and a devastating economic collapse is on the horizon no matter what we do.
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2 comments // If The U.S. Government Keeps Spending Money Like This We Are Doomed And If The U.S. Government Stops Spending Money Like This We Are Doomed

  • good_stuff
    • 0
      good_stuff  

    • Not really a factual statement, as imports/exports are also a point for influx into/outof the US economy.

      There are other options however unlikely they may be. If we import a lot less and export a lot more, then we could reach a no net change point.

    • 4 months ago
  • COMMONSENSEFORCOMMONGOOD_COM
    • 0
      COMMONSENSEFORCOMMONGOOD_COM  

    • The fallacy of this idea is that it's not how much "WE" / the U.S. is spending, it's what "WE" / the U.S. is -spending it on- which is imperiling. If "WE" continue to transfer public money to private corporations; through oil and corporate profiteering wars, subsidies, war on drugs, foreign aid, and all other means of institutionalized theft of public funds, we will perish. If we spend even more than we are spending now on public education, renewable/sustainable/clean energy, rebuilding our infrastructure, creating perpetually funded technology and medical research institutions to benefit the public only (meaning not transferring their product and value to private hands without fair market compensation), take the private sector and profit incentive out of health care, we will flourish and generate vast sums of revenue. Also, if we demand repayment of all public and private money stolen by the private sector, banks and Wall Street, with interest, we can balance the budget. Since the national debt was incurred for the benefit of oil and Wall Street, they should pay off the national debt, or have their assets attached and dissolved. Pay up, or check out.

    • 4 months ago
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