Washington DC, USA: US President Barack Obama unveiling plans for $7.2 trillion (£4.5 trillion) of deficit spending over the next decade, will test the bond markets with mega-deficits, whilst making little attempt to control the spiralling costs of social security and medical entitlements.
By the time the system comes crashing down Barack Obama will be long gone. In the meantime lavish spending is the best way to buy the votes of the ignorant - and there are plenty of them.
Based on the John Maynard Keynes philosophy, it's important to understand that Keynes's theory was not an economic theory in the normal sense. It was not intended to develop human understanding of how markets operate. It was written, by a Government bureaucrat, to justify the desires of governments to spend profligately. It has wrought disaster. But those who are in Government will always find it attractive, in the same way that a bogus theory "proving" one's racial superiority will appeal to those who seek to dominate other peoples.
Keynes was a charlatan, but an influential and, by all accounts, profoundly charismatic one, whose nonsense steamrollered over the previous theories developed by economists who sought to understand how the economy operates. Until it is abandoned, our economies will continue to stumble through mayhem, making a small oligarchy richer while devastating the middle and lower classes- the latter of whom are forced to subsist on welfare and become addicted to it as a consequence.
In fact the US deficit will be much much worse over the next decade. The budget as published assumes a 50% (yes FIFTY percent) increase in the US' total tax take each year starting in just over two years time. This is absolutely absurd.
The entire US budget forecast is completely bogus. They all know it, but nobody in the mainstream media is saying it.
7.2 trillion dollars of deficit spending! a 50% increase in total US sovereign debt within a decade. Governments are notorious for underguesstimating their data.
When you add 7.2 trillion to the deficit spending throughout the western world and the demands to rollover/ refinance existing debt it is difficult to avoid seeing the next crisis brewing. The entire financial system is being preserved by acts of madness.
There's no way markets are getting through the coming debt storm without extreme volatility in all financial markets. Batten down the hatches! QE will not end until the US dollar currency is worthless.
Obama is the ideal stooge to take the fall for the (managed) financial collapse of the US.
The gross political incompetence and financial recklessness of the Obama/Clinton Administration can only be explained by a "death wish" for the current American financial and political system.
A "managed" financial collapse of the world economy is the gamble they are taking, with the hope the US will emerge from the chaos like it did in WW II.
As one US Citizen has said;
- "The Office President Obama now holds, is plain nuts. There's a snowball's chance in hell of his budget passing the House. No more borrowing. Enough is enough!
Look for the US Government to shut down its offices come next month when current funding runs out.
Mr. Obama simply doesn't get it, but he is about to find out real quick that he can no longer borrow any more against our children's future.
Until, and only until, the people we gave jobs to in DC to represent us finally cross the Rubicon of opening up entitlements to cuts will America realize its fiscal well-being. The rest of this budget talk is all window dressing and must be ignored out of hand."