Monday - 20Aug2012 - The US Debt Crisis!

From Weiss Research.

There’s no way a monster this big can be covered up or buried in a presidential election campaign.
In fact, it’s already pervading virtually every debate.
Every time they talk about Medicare reform, they’re really talking about the deficit.
Every time they mention Social Security, personal tax returns or extended unemployment benefits, it all ties back to the deficit.
Second, it’s not just a one-year deficit. The deficit has been a record $1 trillion or more for THREE consecutive years, with no end in sight.
Third, the U.S. deficit monster is gigantic DESPITE some improvements in the economy since 2009. If the economy sinks back into deep recession, tax revenues will shrink and the deficit could DOUBLE in size.

Each year that Washington runs a deficit, it must borrow more money to finance the gap.
So with each year of red ink, the government’s pile of debts gets bigger and bigger.
Until now, the official tally of U.S. government debts was at least SMALLER than the size of the U.S. economy. Good.
But this year, U.S. government debt is growing LARGER than the entire U.S. economy.
This is a critical threshold for any country — and we are in the process of crossing it right now!
The sorry facts are very straightforward:

• The U.S. economy is expected to clock in at around $15.6 trillion in GDP. Meanwhile …
• The government’s debt load (excluding Medicare, Social Security, etc.) is going to be $16.3 trillion.

• If Washington lets government spending continue to grow, the deficit naturally gets bigger. But …
• Even if Washington cuts spending, it can’t solve the problem any time soon! Just as in Spain and Greece, the cuts merely help sink the economy, producing much larger deficits anyhow.

So as you can see, the deficit and debts are going to have a far bigger impact on politics and the economy than ever before.