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Congress CAN’T Balance the Budget.

29 Oct

(fear) the Fiscal Cliff...

(fear) the Fiscal Cliff… (Photo credit: MyEyeSees)

I’ve warned for most of the past five years that the National Debt is too great to ever be repaid.  I’ve chanted, “What can’t be paid, won’t be paid.”

The following video agrees:  “To balance the budget, Congress must raise taxes by 50% or eliminate the federal government.”  Both solutions are politically untenable and therefore will not be considered to any significant degree until after the economy hits the fan.

Gov-co be screwed.

Note that the evidence and arguments presented in this video presume that the true national debt is at the “official” level of $16 trillion.  I.e., even if the total national debt is only $16, the gov-co (and the American people) be screwed.

But John Williams at Shadowstats.com says the real national debt is $85 trillion.  The Congressional Budget Office claims that the total debt (both funded and unfunded) is $202 trillion.

If the national debt isn’t “only” $16 trillion, but is actually $85 trillion or even $202 trillion, the problem presented in this video may be 5 to 13 times more severe than the video warns.

I don’t see a way that an economic and/or financial calamity can be avoided.  It can be postponed, but probably not too much longer.

The “Fiscal Cliff” (higher taxes and less government services) is scheduled occur around January 1st, A.D. 2013.  That “Fiscal Cliff” will mark the beginning of the same sort of “austerity” that’s caused Greece to riot.  I don’t necessarily expect widespread riots in the US in A.D. 2013.  But I do expect those riots to at least begin on a small and scattered scale.

video

00:05:37

http://www.youtube-nocookie.com/embed/EW5IdwltaAc?rel=0

 
16 Comments

Posted by on October 29, 2012 in Debt, Economy, Video, What Can't be Paid

 

Tags: ,

16 responses to “Congress CAN’T Balance the Budget.

  1. greatscott

    October 29, 2012 at 9:47 PM

    The admitted national debt of 16 Trillion is larger than the GDP, therefore there is not enough money in the economy to payoff the debt. You could raise taxes 100% and completely shut down the government and you still could not payoff the admitted national debt.

     
    • Don

      November 4, 2012 at 10:41 AM

      Who is this debt owed to?

       
  2. Lance

    October 30, 2012 at 1:17 AM

    Hi Mr. Adask. Thanks for your research and sharing of information.

    In regards to the debt. 1. Isn’t it the corporate federal government debt? It doesn’t apply to the nation they just want you to be surety for it/strawman. 2. You can’t pay a debt with a debt. Federal Reserve notes are a debt instrument. A promise to pay. It’s a note. A bearer bond. A promissory note. There are notes which are promises and there are drafts which are orders.

    See Winston Shrout and Solutions in Commerce for more info.

     
    • Adask

      October 30, 2012 at 1:03 PM

      Who really owes the debt is one issue. Who is will be presumed liable for paying the debt is another. We all know that “Joe Sixpack” will be the designated patsie for paying off the debt–regardless of whether Mr. Sixpack is truly liable or not. My point in all of this is that no matter who is finally “chosen” to repay the debt, it can’t be repaid, won’t be repaid, and therefore the majority of the debt instruments currently treated as “assets” will turn out to be largely worthless.

       
      • T. J.

        November 20, 2012 at 10:12 AM

        yes, “it” will not be re-paid because “it” has already been paid

        “it” will be off-set.

         
    • Don

      November 4, 2012 at 10:43 AM

      Who is this so called “debt” owed to?

       
  3. Ummer

    October 30, 2012 at 1:39 AM

    3 million views for a video about a budget…

    I’m sure all who are informed would admit that a budget is not a comprehensive annual financial report.

     
  4. Lance

    October 30, 2012 at 1:42 AM

    CAFR. Budget shows operational cost. CAFR show’s net worth, investments, asset pools, etc. Good point!

     
  5. Charles

    October 30, 2012 at 2:19 AM

    If you figure derivitives into it, the “real debt” is $1.4 quadrillion. I doubt there’s enough physical federal reserve notes (FRNs) in existence to pay that back, even if it was possible to collect all the FRNs in one place.

     
  6. palani

    October 30, 2012 at 7:02 AM

    I wouldn’t presume to question the “national debt” but there is a Roman maxim of law that holds:

    If anything is due to a corporation, it is not due to the individual members of it, nor do the members individually owe what the corporation owes.

    You might consider a FRN to be a share in the corporation that stands little chance to accumulate or store wealth. Don’t want to provide credit to the corporation? Then maybe you would be more comfortable carrying a bag with honest weights and measures.

     
  7. sem

    October 30, 2012 at 8:56 AM

    It seems that the word is getting out; I’m happy to see (read) that people are becoming informed as to the reality of the allusion that is the Global Economy. “Money equals Credit…Credit Equals Dept.”

    Charles you are correct, if not for the Rule Change of Generally Accepted Accounting Principles (GAAP) the total global dept would be 1.41 quadrillion dollars; that is four times larger the the global GDP.

    Perhaps palani is correct in presuming Honest weights and measures, particularly as it infers that the bag will not necessarily be too heavy upon full valuation of said.

    The only viable (and eventual) solution is Bretton Woods III.

    PeaceOut

     
    • palani

      October 30, 2012 at 8:28 PM

      “the bag will not necessarily be too heavy upon full valuation of said”

      Nobody should be forced to carry a bag that is too heavy for them. My bag contains a single $5 gold piece which I find quite sufficient to prevent a vagabond charge without excess. I know of no other reason to carry a greater weight.

       
  8. mvg-avg

    October 30, 2012 at 4:39 PM

    Outside of this blog ,on main steet,I don’t encounter a single person,excuse me ,man or woman that even has a clue.When this bubble pops it will be a big surprise,maybe another media spectacle,like this hurricane we just experienced.The sheeple are not gonna see this .I see it and you see it, it’s similar to watching paint dry in the unfoldind process. In my dealings it seems almost impossible to bring up subjects espoused on this blog to the main street folks ,their mind is molded differently.
    I know the unfolding is a process,maybe we will still see the unfolding going into A.D. 2020.The redistribution process is just that.From each according to worthless paper they hold ,to each according to ability to hold real money . If you know where we are going just keep accumulation hard assets .Remember all the gold and the silver is the Lord of hosts, Haggai 2:8,9

     
  9. Anon4fun

    October 30, 2012 at 7:34 PM

    Lance: “In regards to the debt. 1. Isn’t it the corporate federal government debt?”

    It is indeed the debt of the private company masquerading as lawful government DC, though they will surely try to get We the People to assume it for them through their usual sleight-of-hand. Their purpose being the final implosion, and privatization into the hands of an international plutocracy on the post-Soviet model, of the Republic.

     
  10. sem

    October 30, 2012 at 8:55 PM

    The sad fact is that the economic reality for the average family is far worse today than it was ten years ago… even fifteen years ago, and the trend of declining wealth is firmly in place.

     
    • Don

      November 4, 2012 at 10:50 AM

      even fifteen years ago??
      I thought that was YOUR age (lol)

       

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