The US Federal Government seems to be in its death throes. It is writhing and flailing on the floor, almost like a grand-mal seizure patient. Visit our website and learn more about gold IRA broker.
The Obama Administration, Congress, the Federal Reserve, and Congress have no idea what the right methods are to help America get back on its feet from the financial brink. Some examples would be appreciated.
1. Easy money and credit have created a consumer society. America has changed from being a producer nation to becoming a consuming country and the largest debtor in history. The level of personal debt is unprecedented.
2. Federal Government is convinced more easy money and easier credit will revitalize our economy. They want America to get out of the current bubble it has been in for over 20 years. So Congress and the President authorized printing of over a trillion of dollars of paper money. These money would be distributed to financial institutions that were aides to America’s bankruptcy.
3. Congress rushed through hundreds-page spending bills. Some had “earmarks”, which legislators added to their votes as extortion. These bills could not be read by legislators. The legislation was passed by Congress and signed into law.
4. AIG and the “banksters”, once they got the money, took the time required to read the law. They discovered that they didn’t have any restrictions regarding how they spent the money. Many stories are being published in the media about the unaccounted billions. Merrill Lynch employees were given huge bonuses just days before the bailout. AIG paid more $165 millions in bonuses to the same executives that caused AIG’s demise. Now the Congressional roosters are crowing how they are going punish AIG. It is likely that we will find that AIG paid no bonuses in violation of any law.
5. Federal budget also includes Social Security Medicare, Medicaid, Medicare, and a huge military budget as well as normal operating expenses. There’s also the “off budget” portion of the federal budget. (Congress will not tell you how much money they really spend). The majority of Federal tax revenue goes to paying interest on our national debt. The cost-of life increases are automatic for the big entitlement programs.
A major reality adjustment is coming in the next few weeks and possibly for the next two years. Everyone, from toddlers all the way to senior citizens, understands that one can never spend more than one receives. All except politicians.