US Action News

For the first time in U.S. history, the annual growth rate of debt is projected to remain above the growth of the economy for more than a decade.

Government strategy is misguided. It contradicts both common and economic sense. It will make the inevitable adjustment more painful. Instead of admitting their mistakes, government insists on compounding them.

Liable for the biggest chunk of the debt are children being born today. According to the Senate Budget Committee, each member of this group, which employs no lobbyists, already owes $1.53 million in federal debt. – IBD

While Greece continues to inch its way towards a deal with its EU partners, the creditors of a much-larger debtor, the US government, appear to be untroubled. Ten-year Treasury bonds still yield just 2%. But the issue of how the US addresses its long-term fiscal problems is, as yet, unresolved.

Many are warning us including Obama’s own debt commission. Obama continues to ignore the obvious consequences of multi-generational debt. It’s almost as if he really wants America to crash and burn.

“The White House’s rhetoric just doesn’t match the substance.” [they’re lying] “..white House isn’t even trying to solve this problem.” [Obama is all campaigning all the time] “When you strip away all the budget gimmicks and the accounting tricks they just gave us a budget that has a net spending increase of $1.5 trillion dollars and a tax increase of $1.9 trillion dollars. It’s not leadership.” [there are no cuts in Obama’s budget. Comments to the contrary are campaign propaganda]

Treasury secretary Geithner who had trouble figuring out his own taxes says the administration “has some work to do” when questioned by Paul Ryan over the national debt increasing to $26 trillion. Ryan accused the administration of “misleading” and continuing “to lie” to the American people.

There is so much happening so rapidly that the average American has no idea of the state of the country. Few understand that the situation is hopeless, regardless of what government does. Defaults, both private and sovereigns are coming. The laws of mathematics say there is no solution.

All of this prosperity that we see all around us is just an illusion. It is a false prosperity that has been purchased by the biggest mountain of debt in the history of the world.

In addition to the current Euro crisis Japan, the world’s third largest economy, could have its own debt crisis as early as 2012 bigger than the Euro Zone.