What a year. During the bleak GWB years, we saw $50 billion a year in deficit spending; enough to cause even "free-spending" Democrats to cry "Fiscal Irresponsibility". This year, year one of the Obama generation, we saw $1.5 trillion in deficit spending, and a prognosed $2 trillion in deficit spending for year 2. 30 bush years in year one and another 40 bush years in year two. 70 "fiscally irresponsible" bush years of spending in just two years. Wow.
This year, due to this huge increase in spending, we will spend 30% of tax income on interest. 40% is spent on already fixed costs such as social security and medicare/medicaid. We double that debt next year. Ironically, were this a mortgage, we wouldn't qualify for the loan. Even with an ARM. Even in the old days... the "free money days".
Where are we getting the money to pay our debts? Treasury bonds has been our historical choice. Nobody really wants to buy these today, and interest rates have quadrupled over the last year in order to get dumbsh... I mean our international financial and trade`partners to buy them. These are what would otherwise be known as "Non-Collateralized Debt Obligations". Think what THAT will do the interest portion above, when 40 years of historical spending is jammed down our gullet in one year at 4 times historical rates?
Chinese have said they will quit buying. So who is buying our increasingly less plush T-paper? This year, it was the Fed. They bought half our scratchy T-paper. With what? The new money they printed. How much? They doubled the money supply this year. Yep. 100% increase in the money supply. When a company does that on Wall Street, the value of their stock usually gets cut in half, especially if their economic output stays the same. Our economic output, however, is LOWER while we have DOUBLED our money supply. Guess what this means? Yep. A dollar is worth about 40 cents, but the treasury and feds have been pulling timing shenanigans to keep us from recognizing this catastrophe all at once.
Change and Hope are fine, but taking the monetary handgun, placing it in our collective mouth and blowing our society into the third world is the work of weak and worthless politicians. Sorry kids. We f**** you again. Heh heh.