19 April 2011

Debt and Demography: A Deadly Double Dose


Interest on the US national debt is scheduled to explode wildly out of control, faster than entitlements, faster than any other government expenditure. And yet the US government cannot bring itself to stop its suicidally profligate deficit spending, adding over US$1 trillion a year to the debt!.

This is clearly a global problem, not just a US problem. As the economic foundations of the world's military hegemon and economic powerhouse crumble under an overload of debt and collapsing demographics, the rest of the world is going to feel the pain as well. Just as US baby boomers can find no one to buy their accumulated lifetime wealth, so the US government is finding it harder to find buyers for its accumulating debt.

Across the advanced economies, demographics are collapsing. And the US is not even on the list of the 17 countries with the fastest-collapsing demographics. The deadly combination of exponentially rising debt on top of a quickly collapsing demographic, becomes irreversible after a certain point. But in order for welfare states to maintain their bloated social benefit spending schedules, they must go deeply into debt -- just at the time that their productive workers are disappearing in time.

At the state government level of the US, reality is slowly and spottily sinking into the minds of those who are tasked with keeping the pensions and benefits solvent. But the blowback from leftist government unions, communtiy organisers, and other leftist special interest groups is severe and verging on open violence. In Europe the leftist backlash against proposed austerity programs -- even very modest and minimal plans -- is likewise bordering on open insurrection.

Obama has a plan for a fundamentally different America. We know that Obama has a plan -- he must have a plan! But we cannot decrypt the US President's plan from his words or even his actions. We may have to wait a hundred years, and look back in time at what we can learn about Mr. Obama's plans, to finally understand.

Al Fin has been suggesting that readers should buy precious metals, acquire the capacity to grow their own food, develop the means to defend yourself, your loved ones, and your possessions, and more -- for years now. Some readers may still wonder what he is getting at....

Labels: , , ,

Bookmark and Share


Post a Comment

“During times of universal deceit, telling the truth becomes a revolutionary act” _George Orwell

<< Home

Newer Posts Older Posts