Posted by
Alex Wallenwein on Tuesday, January 15, 2008 12:08:56 AM
The head of the US General Accounting Office (GAO) has stated, on the record,
in videos, and on
CNN's Glenn Beck show that the United States government is bankrupt.
Only Ron Paul is addressing the issue.
Not only that, he is addressing the core problem: Money
loaned into existence, at will. Every time Congress borrows money from the Fed, the money supply is increased by that amount.
This causes monetary inflation (an excess supply of money), which eventually - inevitably - results in
price-inflation. We can now see that it does.
In the past since 1971, the US was able to export most of that excess money because the dollar was the world's exclusive reserve currency.
Since 2002, the new euro currency has made huge inroads into this formerly exclusive deal. More and more oil nations are taking steps toward accepting the euro and other currencies in addition to the dollar in payment for oil.
As a result of that, in excess of ten trillion dollars ($10,000,000,000,000.00) will no longer be in demand world wide - and they will return "home."
Yet, as all of these bills were coming due, the current administration and former GOP Congress thought it was a good idea of saddling the US with an additional $26 trillion dollars in unfunded entitlement liabilities to the then already-existing liabilities from 2000 and 2005, alone. The total of unfunded liabilities in 2005 according tot eh GAO: A whopping $46,400,000,000,000.00 (i.e., 46.4 Trillion dollars!)
That is about twice the entire amount of dollars in existence in the world today.
This means that the US government must come up with
twice the amount of dollars that exist today just to pay its bills.Raising taxes to cover that amount will kill the US economy for good.
Cutting spending to cover that amount will require the government to cut all other spending, including military spending.
There is only one solution that makes sense:
(1) Cut that amount - the unfunded liabilities themselves - along with al other useless government spending;
(2) Bring the troops home to protect US, not build or threaten other nations, to pay for those who already depend on the government and have no other way to support themselves;
(3) Abolish the IRS and the income tax and let people keep their money so they can give to those in need.
(4) Make gold and silver legal tender again by untaxing any transactions involving them and allow people to choose between stable precious metals and depreciating federal reserve notes as their currency of choice;
(5) Needless to say, the federal reserve is no longer needed under such a system.
If you have a better, more effective way of dealing with the United States government's bankruptcy problem, I would appreciate hearing about it. If you don't know of one or can't think of one, should that make you think again about which candidate to support - maybe?
Just curious.