Denninger: “Wake Up America Before You Get Shot… And Possibly (Yes, Literally) Eaten”…” It is not that there “might” be a revolution or civil war long before that level of spending comes to pass, it is a certainty that one or both of those events will occur. “
Mac Slavo
May 20th, 2015
SHTFplan.com
America’s debt problems aren’t going away. In fact, they will continue to get worse. Karl Denninger recently cited a Bloomberg report to make his point at the Market Ticker:
Driven by higher interest costs, Social Security and Medicare for baby boomers, as well as tax cuts made permanent in 2012, the federal debt held by the public is expected to hit $40 trillion in 2035, according to calculations by the Committee for a Responsible Federal Budget based on Congressional Budget Office estimates. Back in 2009, soon after President Barack Obama took office, the forecast for the 2035 burden was at least $7 trillion lower.
You thought $18 trillion in debt was bad and enough to lead to a collapse? How about more than twice that?
As Denninger explains, the government will be spending four times more 20 – 30 years from now just to keep things running. But we’ll never actually make it that far because the system will collapse in on itself well before then:
$40 trillion?
You have to look at the second graph in this post. There’s a decimal missing but even so, if you think the federal government will be able to spend north of $17 trillion, which is more than 400% what it spends today by 2045, you’re nuts.
Let me make a clean prediction: Long before we get to the point where the federal government manages to spend 4x as much as it spends today fully half of the population will be literally starving to death and will turn violent. It is not that there “might” be a revolution or civil war long before that level of spending comes to pass, it is a certainty that one or both of those events will occur. Indeed, even those who are the “nominally” rich right now (top 10%) have utterly no means of keeping pace with this projection, should it prove up — and thus it won’t.
Now that view, incidentally, is what the predicate for your pension fund and your retirement are based on, assuming you are going to live another 30 or more years. That is, assuming you’re younger than 55 right now you’re going to get to either live this and will probably die in said violence or you had damn well better put a stop to it RIGHT NOW.
The Rest…HERE
