The Unthinkable Financial Ruin of America
by: Mark Sircus
Wednesday, July 27, 2011
People and governments around the world are fast running out of money. This is common news today, the inability to meet payments and the building up of debt. Though many individuals, corporations, towns, cities, states and sovereign governments are in this situation no one has gotten into deeper hock than the United States Government. They have been able to borrow and spend without limit but now they have hit a wall.
Treasury Secretary Timothy Geithner says it’s “unthinkable” that there would be a time when the U.S. couldn’t pay its bills. That’s why he says he’s confident of a deal to raise the government’s borrowing limit before an August 2 default deadline. He says the U.S. has a top credit rating and that despite all the rhetoric, there are signs that both sides are coming closer to an agreement. But he says the legislative process needs to get started by Monday night.
We are going to talk a lot about insanity in this essay and these declarations by Geithner are a good place to start. Look at this chart from the Office of Management and Budget. That’s a graphic image of the United States government’s swan dive into oblivion. That’s a straight line into fiscal hell. That’s the visual proof that the only reasons that Geithner is not taken away in a straight jacket is that he knows how to dress well.