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News Link • Economy - Economics USA

Short Video: Why the U.S. Government Will Default on Its Debt

•, Gary North
 Congress seems not to understand this. There is going to be a political crisis when the government begins cutting of the special-interest group most responsible for this deficit: retired people.
This 6-minute video proves that it is oldsters who are breaking the federal government's bank. It presents the official government numbers in a clear fashion. It shows what a well-designed screencast video can do. It has been seen by 2.6 million people. If you are impressed, forward this page to a friend.
What we see here is the tip of the famous iceberg. The video deals with the so-called on-budget debt. It does not assess the impact of the off-budget deficit: the unfunded liabilities of Social Security and Medicare. Prof. Lawrence Kotlikoff of Boston University has estimated the annual deficit of this budget -- the real deficit -- is rising by at least $11 trillion a year. Worse: this is the present value of the annual increase in unfunded liabilities -- what we must set aside today to invest in the world economy, and which will earn 5% or so for the next 75 years. The total deficit is now over $222 trillion: present value, not future red ink. The story is here.

2 Comments in Response to

Comment by Ed Price
Entered on:

You're right, OR. The only reason that the U.S. dollar has any strength at all is, the people are using it.

Personally, I think that the FEMA camps are there for the time when the people stop using the dollar because they see how useless it has become. Forced labor by law enforcement and the military - the method the Fed and Gov will use to keep things going a little longer - will only last for a short while, because even LE and the military will see that their pay is falling short of what they had wanted it to do. (I know. I know. The military is a form of slave labor already.)

So, what can we do? I can't see any way that collapse can be stopped. The best thing we can do is make ourselves and our personal families self-sufficient as possible. That means, out of the big cities... maybe out of the country; LE and the military won't waste their time on places other than the big cities, except by accident.

The resulting turmoil when the Fed and the U.S. Gov. collapse, just might make anywhere in the world that is not highly populated to be a good place to be. We will need small groups of trusted - and armed - friends with us for general protection from the chaos around us.

Comment by Olde Reb
Entered on:


Mr. North wants to play with figures.

He does not want you to know that every dollar that is spent do fund a deficit is a dollar of profit that his hidden by the FRBNY from the Treasury auctions for the owners of the Fed. Ref. RIP OFF BY THE FEDERAL RESERVE, .

He also does not convey that the category of SS includes food stamps and welfare. Medic costs attributed to non-residents have bankrupted many hospsitals. Any government program costs much more than a consumer controlled economy.

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