Tuesday, August 9, 2011

We're With Stupid, Unfortunately


“When the US sneezes, Canada gets a cold”. This cautionary adage is all too true and why we are going to visit the problems to our Southern Border once again.

The US raised its debt ceiling for the 75th time in 50 years, however this statement would lead you to believe it is business as usual, so why all the fuss??

The problem is not “how many”, the problem is “how much”.

Before getting started we must state we care nothing about Democrat vs Republican. Both parties are to blame as well as the Media and the American public. No one is absolved and everyone is complicit. They all had their roles in “Charlie Sheen and the Cocaine Factory”.

Here we go!

The cumulative budget deficits of the US reached $1T by 1980. That is all their annual budget shortfalls combined. Btw $1Trillion is enough money to give every household in American $15,000.

From 1980 to 1995 it had climbed to $5T, an average gain of $0.25T per year.

From 1995 to 2005, it had increased another $3T, an average gain of $0.3T per year.

However in the past 6 years it has increased $6.5T, an average gain of $1.1T per year! Furthermore last year they dug a ditch to the tune of $1.6T and this year the smart money is saying $2T.

Meaning the average American household will go into debt another $8.5T in 7 years! When the movie “Wedding Crashers” came out they owed $120,000 and come this Xmas they will owe $250,000.

Hallmark should be printing cards that say “How did you possibly think you could pay for all this shit?! Merry Christmas -You’re Fucked”

The average American household only earns $50,000 per year before taxes. Do you think they can square a bill that is climbing by $30,000 per year?

How fucked are the Americans? Their “10 year Forecast” (that is 10 years in a row of making up shit like GDP and Inflation to suit their needs) shows the deficit will balloon to $30T ($450,000 per household).

They can’t even fake getting out of this debacle in a decade when they are making the shit up! These are the same people that didn’t see the crash in 2008 coming so let's not pretend they can prognosticate like Nostrodamus.

You can bet the reality would be much, much worse than $30T, luckily the end will come sooner than their forecast.

Politicians to the rescue! Did I say “to the rescue”? I meant “to the TV’s to lie”!

Bringing us to the deal reached to raise the debt ceiling: Cut $2.1T over the next 10 years.

Funny how they say “cut”. They continue to rack up huge deficits every year of the forecast. The “cut” is only a disgustingly lame attempt to lessen how huge.

And how much did these preening monkeys “cut” in the next year (the only time period this Congress and President are assured of being at the helm)?

$0.028T or $28B.

To put that another way…They agreed to a 0.8% “cut” to the budget ($3.9T) in 2012. Not even a single percentage point! That is a “Need a Penny” Cup territory. So instead of spending $3,900,000,000,000, they are going to try and spend..... $3,872,000,000,000. Which is still an INCREASE over this year btw. Please tell us this is a joke.

Unfortunately…no. No, they are not joking.

This deal doesn’t even get to the meat of their feeble so-called cuts until 2016 when 70% of the $2.1T kicks in.

This is officially insanity.

But what the hell, the US has $60T+ in unfunded liabilities thanks to Social Security, Medicare and Medicaid, what’s another few Trillion more added to the grotesque debt pile.

You know how Americans accept that the 30 year olds of today that are paying into Social Security won’t be getting it? Well guess what…neither will the Baby Boomers. That’s right. The real shocker is this Ponzi scheme won’t even last long enough for them.

The inevitable downgrade of the US Credit Rating by Standard’s and Poors is not surprising, unless you are surprised by how long it has taken and how minimal it is. This is only the “tip of the Iceberg” and the “USS America” is going down.

The US is unsustainable. All levels of Governments are nearing the end. The curtain hiding the mighty Wizard of Oz still has not been fully pulled back by the world to reveal the feeble old man with the shameful levers and pulleys.

The Emperor is wearing no clothes and we are nearing the time his frost bitten ass will affirm this fact.

And so the decline continues….SNAFU