Posted October, 2011
The national debt,
How bad is it?
The beginning of the end
History has proven that a democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury.
From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury with the result that every democracy will finally collapse over loose fiscal policy, which is usually followed by a dictatorship.
The average age of the world's greatest civilizations from the beginning of history has been about 200 years -- America is on overtime.
David Walker
Comptroller Genearal
And head of U.S. Accountability Office
David Walker who was Comptroller General up until 2008, explained our fiscal crisis -- BEFORE OBAMA'S STIMULAS PACKAGE.
Was there any warning of the comming calamity?
In his presentation, David Walker said that anyone who doesn't grasp the graveness of our economic future either doesn't know economic history or isn't very good in math. Unfortunately, the vast majority of today's immigrants along with a majority of American Citizens fall into that category.
Can the calamity be thwarted?
Yes, if we make some changes:
- A ten percent across-the-board cut in all entitlement spending -- and that just for starters. (If Greece is any indicator, there will be riots in the streets in of America.)
- No entitlements for anyone illegally in the U.S.
- Enforce our immigration laws.
- A fair tax system where consumers of goods and services pay - not manufacturers or service providers.
But if the anti-austerity riots in Greece are an indicator of what's to come to America's streets, fixing a broken system won't be easy.
Where did the money go?
Although America squanders money on just about everything it does, it started squandering money big time with President Johnson's "Great Society" spending which was supposed to end poverty in America. The spending might have worked but for the 1965 immigration act which opened the doors of America to millions of poor and uneducated immigrants from third world countries, most who got on the entitlement band wagon. Massive immigration, legal and illegal, is virtually a massive program to import poverty.
By any measure, the biggest area of spending is for entitlements mostly to people who don't pay any taxes at all, many who milk the system with virtual government approval.
