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.