Thursday, August 16, 2012

WE ARE GREECE--Raised to the 23rd Power

by Katy King  

It is easy to look down on little, broke, profligate countries like Greece, because we all know that nothing like that could ever happen to America. We are Americans, and we are too smart for that.

However, Professor Kotlikoff, using the figures provided by the Congressional Budget Office, shows that America is the most profligate country on earth, and probably the most profligate country there has ever been.

According to Kotlikoff, “The U.S. fiscal gap, calculated (by us) using the Congressional Budget Office's realistic long-term budget forecast -- the Alternative Fiscal Scenario -- is now $222 trillion. Last year, it was $211 trillion. The $11 trillion difference -- this year's true federal deficit -- is 10 times larger than the official deficit and roughly as large as the entire stock of official debt in public hands.”
Wow.  Kotlikoff says the budget deficit is $11 trillion, not the $1 trillion we usually hear about. But even $1 trillion is a number we can’t get our minds around, and according to Professor Kotlikoff, this $11 is just this year. Imagine what it’ll be next year, or what it was last year!

The interesting thing about Professor Kotlikoff is that everybody reads his figures, and they are published in the mainstream media, but nobody says anything. Nobody refutes him. But nobody discusses these figures, either, probably because they know he’s right, and they know they will have their heads handed back to them if they try to argue, using their phony figures.

Even more interesting is the fact that most Americans who read these figures appear to have no clue what they mean.


It has been bankrupt for quite a while. There is no way it can ever repay these debts.  We are Greece, but on a far greater level.

Translated, that means the Great Default is coming, when America tells China, Japan, and all its other creditors to “take a hike.” It also means nobody will lend America any more money. And when that happens, the Great American Welfare State will come to a screeching halt. Most financial commentators who study Kotlikoff’s figures and agree with his findings believe it will happen some time within the next decade, although not right away.

Think about what this means to you and your family. The American people are about to realize they have been lied to, big time. Their retirements are worthless. Their 401-Ks will probably have been “acquired” by the government some time before. The promises of Social Security and Medicare are worthless. Welfare and Medicaid and food stamps are gone-gone, bye-bye.

How do you think most of the people who were depending on these things are going to react? Think about this now and plan accordingly. You probably have at least 5 years to get ready, but don’t count on it. Any “Black Swan” event could move this time bomb a lot closer than we like.

At the very least, learn to grow a garden and learn a skill you can use to earn a living during hard times. And a few chickens in your backyard probably wouldn’t hurt.


Molly Noble Bull said...

Great article, Katy, thoughtful too. I've been thinking about a garden. Maybe in the fall. It's really hot out right now.
How does your garden grow?

Connie Almony said...

It's always the thing you think could never happen that is the thing your are least prepared to guard against. This is true with sin as well.