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The new [debt ceiling deal] legislation will add $2.4 trillion to the $14.3 trillion national debt in a little over a year – and we don’t even start saving money until after the debt reaches $16.7 trillion! This bill doesn’t even cut the deficit. It just slows the growth of government spending to around 8% a year! So, even if Congress cuts $2.1 trillion out of the budget over the next 10 years, we will still be running annual deficits of more than $1 trillion…[That means that in addition to a deficit that will continue to grow we can look forward to a shrinking economy, an imploding U.S. dollar and exploding inflation. Some future! Let me explain.] Words: 827
So says Greg Hunter (www.USAWatchdog.com) in edited excerpts from his original article* which Lorimer Wilson, editor of www.munKNEE.com (It’s all about Money!), has further edited ([ ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. Hunter goes on to say:
Recent economic data is signaling American business activity is about to take another cliff dive. Housing is bottom-bouncing with a shadow inventory that is now 3.35 million homes and growing. The true unemployment rate is now 22.7% (if computed the way BLS did it in 1994). The recent year-over-year 1.6% growth reported by the Bureau of Labor Statistics in the Gross Domestic Product (GDP) is a statistical crock, according to economist John Williams of Shadowstats.com who said in his most recent report that:
“The SGS Alternate-GDP estimate for second-quarter 2011 is an approximate annual contraction of 2.8% versus the official estimate of a 1.6% gain [which is even] more negative than the alternate 2.6% annual contraction (2.2% official gain) in the first-quarter.”
Double-dip here we come. So, in reality, the economy is contracting at an increasing rate compared to last year – not expanding.
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Things have turned so negative recently [that] there is increasing chatter on mainstream media about a third round of quantitative easing, or money printing (QE3) [which] I wrote about this past January stating that that would “surely mean an imploding U.S. dollar and exploding inflation…” What is happening today? The dollar is tanking, gold is on a tear, and the economy is headed for another fall.
Bill Gross, head of the world’s biggest bond fund (PIMCO), thinks QE3 is probably on its way from the Fed, but in a different form than QE2…On CNBC, Gross said:
“[T]here’s been $1 trillion of cuts, but they’re basically back loaded. Nothing takes place in 2012. It all begins in 2013 and, actually, it’s slower economic growth if it comes as we suggest. It probably will increase the deficit more than these packages will decrease it.”
What do you think will happen to tax receipts coming into the federal government if the economy tanks? If you guessed the government will collect less money in taxes, you are correct. Not only will the deficit grow, but the $2.4 trillion that is supposed to last through the 2012 election is going to be used up at a much faster pace. Peter Schiff, President of Euro Pacific Capital, said this week on FOX:
“The one bit of irony here is the President thinks they’ve raised the debt ceiling enough to get through the next election. I think he’s probably wrong. I think the economy is going to be so weak between now and then that the deficit is going to be so much worse than they think, it’s going to be that we might run into the debt ceiling long before the November election.”
I hate to break this to Congress, but America does not have 10 years to get its house in order. There have been recent predictions by financial experts of another economic meltdown by the end of 2012 or beginning of 2013… Something has to be done now, and we just lost an opportunity to truly turn the ship of state around…
By the end of next year, America will be in debt to the tune of $16.7 trillion. That staggering amount is way more than all the goods and services the country produces in a year.
*http://usawatchdog.com/debt-deal-passing-deficit-will-grow-while-economy-shrinks/
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Editor’s Note:
– The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
– Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above