Drowning in Debt: What the Nation’s Budget Woes Mean for You
February 18th, 2010Three pages of ABC neWz about the snowballing debt crisis and not one word about the WarBama regime’s absurd military spending increases and adventures.
Pentagon Black Budget Sees Year Over Year Record Funding; Tops $56 Billion
Obama Budget Seeks More Money for Nuclear Weapons
Cost of Keeping One U.S. Soldier in Afghanistan Per Year: One Million Dollars
[Note: I just got sick of linking. A person could spend all day and night referencing stories like this.]
But according to the article below, Americans are going to see tax increases that, “Aren’t even imaginable.”
Via: ABC News:
American political and economic leaders have sounded the alarm for years about the red ink rising in reports on the federal government’s fiscal health.
But now the problem of mounting national debt is worse than it ever has been before with — potentially dire consequences for taxpayers, according to a report by the nonpartisan Peterson-Pew Commission on Budget Reform.
…
Over the past year alone, the amount the U.S. government owes its lenders has grown to more than half the country’s entire economic output, or gross domestic product.
Even more alarming, experts say, is that those figures will climb to an unprecedented 200 percent of GDP by 2038 without a dramatic shift in course.
“Within 12 years…the largest item in the federal budget will be interest payments on the national debt,” said former U.S. Comptroller General David Walker. “[They are] payments for which we get nothing.”
Economic forecasters say future generations of Americans could have a substantially lower standard of living than their predecessors’ for the first time in the country’s history if the debt is not brought under control.
Government debt, which fuels the risk of inflation, could make everyday Americans’ savings worth less. Higher interest rates would make it harder for consumers and businesses to borrow. Wages would remain stagnant and fewer jobs would be created. The government’s ability to cut taxes or provide a safety net would also be weakened, economists say.
…
“The American people today are not remotely prepared for the changes that are necessary,” said former Congressional Budget Office director Rudolph Penner.
He says Americans who have been accustomed to buying on credit and living beyond their means at home may soon face a painful reality as the government tightens its belt further.
“They aren’t hearing about the drastic changes needed, and they certainly didn’t hear about it in the President’s budget,” Penner said.
In other words…the plan is progressing perfectly.