U.S. Headed Toward Bankruptcy, Says Top Budget Committee Republican

Discussion in 'Economy' started by coolgeee, Aug 13, 2008.

  1. coolgeee
    Offline

    coolgeee Member

    Joined:
    Jul 21, 2008
    Messages:
    102
    Thanks Received:
    6
    Trophy Points:
    6
    Location:
    NYC Area
    Ratings:
    +6
    The ranking Republican on the House Budget Committee said the U.S. government is headed toward bankruptcy if it stays on its current fiscal course.

    “We know that for a fact,” Rep. Paul Ryan (R-Wis.) told CNSNews.com in a video interview. “All the actuaries, all the objective scorekeepers of the federal government, are predicting this.”



    To back up this claim, Ryan cited an estimate by the non-partisan Government Accountability Office that says the government faces a $53-trillion shortfall to cover the costs of promised benefits in its entitlement programs.

    “They say we are $53 trillion short of fulfilling the promises the government is making to the American people, in today’s dollars,” said Ryan.

    “Meaning that if we want to keep the promises of Medicare, Medicaid and Social Security, which are basically the three major entitlement programs, today we would have to set aside $53 trillion dollars and invest them at Treasury rates in order to do it,” he said.



    Ryan said that to deal with this situation the government must either reform the entitlement programs or eventually impose massive tax increases on American workers.

    “For the last 40 years, the federal government has had to tax every dollar made in America at 18.3 cents on that dollar to pay the bills of the federal government,” said Ryan.

    “By the time my three children – who are three, five and six years old—are my age, the federal government will have to tax 40 cents out of every dollar made in America just to pay the bills for the federal government at that time,” he said.

    continued here:
    U.S. Headed Toward Bankruptcy, Says Top Budget Committee Republican
     
  2. Paulie
    Offline

    Paulie Platinum Member

    Joined:
    May 19, 2007
    Messages:
    31,483
    Thanks Received:
    4,840
    Trophy Points:
    1,130
    Ratings:
    +15,279
    Or just conjure it up out of thin air. Or borrow it.

    Shit, there's a LOT of ways to pay it back without having to utilize a set of balls and cut spending so revenue can be used for actual obligations.

    This government will have its cake and eat it too, that much is becoming certain.
     
  3. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617
    Hey, all we need to is change from the 2007 Dollar to the 1778 Continental and we'll pay off that 53 trillion in no time.
     
  4. Chris
    Offline

    Chris Gold Member

    Joined:
    May 30, 2008
    Messages:
    23,154
    Thanks Received:
    1,958
    Trophy Points:
    205
    Location:
    Virginia
    Ratings:
    +2,089
    Americans are getting so fat, that many of them will be dead before they collect social security.

    The Twinkie will save America.
     
  5. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617
    Given that, statistically, cigarette smokers not only die earlier, but the cost of their dying is actually less per capita than it is for non-smokers (according to medicade numbers) one would think the best thing we could do for our children is encourage the boomer generation to smoke smoke smoke that cigarette.
     
  6. indago
    Offline

    indago VIP Member

    Joined:
    Oct 27, 2007
    Messages:
    1,048
    Thanks Received:
    98
    Trophy Points:
    85
    Ratings:
    +180
    CNN — LOU DOBBS TONIGHT — Aired August 20, 2008 - 19:00 ET

    LOU DOBBS, CNN ANCHOR: Our national debt now exceeds $9.5 trillion. If you include the unfunded entitlement such as Social Security, Medicare, Medicaid, the number is more like $53 trillion of obligations. "IOUSA" is an important new documentary and warning of the serious consequences of this country's economic crisis. It's a crisis caused in part by national debt and rising reliance on foreign lenders and producers.

    (BEGIN VIDEO CLIP)

    WARREN BUFFETT: I do think they're piling up more and more and more external debt and having the rest of the world own more and more of the United States may create real instability down the line and increase the possibility that demagogues come along and do foolish things.

    (END VIDEO CLIP)

    DOBBS: You know I just wonder who could come along who could do anything more foolish than the leaders that we've elected over the past several decades. Former controller General David Walker's efforts to educate all of us about this troubled economy are at the center of IOUSA and Patrick Creadon is the writer and director of the documentary joining us from Omaha, Nebraska. Patrick, that makes me think it has something to do with Warren Buffett, you being in Omaha. Is that right?

    PATRICK CREADON, WRITER/DIRECTOR, "IOUSA": Yes, we're here for tomorrow night's world premiere. We're going to be live from Omaha. The film is going to be broadcast to 400 theaters around the country. It's really exciting.

    DOBBS: Well, you've taken on, David Walker, as you ran the government General Accountability Office for years and brought so many important issues to the attention of both the American public and our lawmakers, what do you think is the most important aspect of this that will be the takeaway for the audience of this documentary?

    DAVID WALKER, FMR. U.S. COMPTROLLER GENERAL: Our financial condition is worse than advertised. We're in tough shape. Our situation is deteriorating with the passage of time. We need to start making tough choices now, if we want our future to be better than our past. We need to start holding elected officials accountable for — if they don't act.

    DOBBS: You say that if we continue on this course, by the year 2040, the debt to GDP percentage will be 244 percent. Just 244 — 2 1/2 times the GDP.

    WALKER: Third world nation. And we'll owe it to other countries. Because today 70 percent of our new debt is being purchased by foreign lenders, 50 percent of our public debt is held by foreign lenders, and that means America's being mortgaged, which is not good for our economy. It's not good for our foreign policy. It's not good for our national security over the long term.

    DOBBS: Why is the American public simply not slamming their fists on the table and saying what in the world are you fools in Washington doing? Both political parties are absolutely responsible for creating this disaster, and yet these — you know, we have people in this country going off with a banner says "republican" and one that says "democrat" and they're so riled up about their partisan branding they forget they're not accomplishing a darn thing.

    WALKER: Well, two reasons. Number one, because not enough politicians telling the truth. A lot of people tell them we can grow our way out of the problem. Don't worry about it. We've had higher debt levels in the past. And they're not looking to the future. Secondly, a lot of people have their own problems. They're focusing on their own problems day to day.

    DOBBS: Trying to perhaps make due, as corporate America outsources their jobs, offshores production, their political and government leaders bankrupt them through the folly of public policies that are just ridiculous and have been for two decades.

    WALKER: In the meantime, the government's doing more bail out, expanding entitlement benefits like it really has some money.

    DOBBS: And somebody should — we're going to do a report here over the next few weeks on all of the money that's been taken overseas by Fannie Mae, Freddie Mac, all of the people who have made a fortune managing what was an insured result, insured by the federal government.

    Patrick, let me turn to you. This is a difficult issue at best for the smartest people, for example, like David Walker, and no one smarter. But to bring it to life in a documentary, that had to be — I mean that had to be an immense, challenging, difficult, absurdly difficult task.

    CREADON: Yes, it's a tricky topic. And when we told our colleagues that we were doing our next documentary about the national debt, they thought we were insane. Because how do you — how do you explain this topic? Where do you begin? How do you get your head around it?

    We were lucky very early on, we met David Walker, the comptroller general, and no one in the country knows the story better than he does. And one of the things that I like and respect so much about Mr. Walker is he's an independent. He's had three presidential appointments, one from Reagan, one from Bush 41, and his third one —

    DOBBS: It's one of the reasons I like him too, Patrick.

    CREADON: Right, right, right. He doesn't have an ax to grind. He's there telling you basically what the score of the game is. And what --

    DOBBS: Did I just see Steve Martin in this documentary? What's going on here?

    CREADON: Right, right, right — yeah, the documentary — our documentary — yeah. Our — I can promise you that the movie is a lot more entertaining than people might think it would be, considering the subject. It's funny. It's sad. And at the end of the day, it's very scary.

    DOBBS: Very quickly, David, we're wrapping up here where can people go to see the documentary?

    WALKER: They need to go to the website, I.O.U.S.A.: The Movie.

    DOBBS: iousathemovie.com. All right. How about if they want to see it out in the theater?

    WALKER: That's right. Go there, it will show all the theaters that are showing it, when, where. Believe me it will be a big investment. But don't put it on your credit card. We already have too much of a debt problem.

    DOBBS: David Walker, Patrick Creadon, thank you very much. As always, come up with a terrific idea. Thank you.

    I.O.U.S.A.: The Movie
     
  7. Denny Crane
    Offline

    Denny Crane Obama/Biden

    Joined:
    Aug 9, 2008
    Messages:
    422
    Thanks Received:
    25
    Trophy Points:
    16
    Location:
    Maine
    Ratings:
    +25
    This is what you get for raising the debt ceiling to pay for spending under Bush. Bush has never seen a spending bill he couldn't sign, unless it was something like healthcare for children.
     
  8. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617
    Yeah, I don't doubt that the masters of the universe are purposefully bankrupting this nation.

    But what can we citzens really do about it?

    Until we can change the way we finance our poltical process, the people who we get to vote for are NOT REALLY OUR Pols, now, are they?
     
  9. Chris
    Offline

    Chris Gold Member

    Joined:
    May 30, 2008
    Messages:
    23,154
    Thanks Received:
    1,958
    Trophy Points:
    205
    Location:
    Virginia
    Ratings:
    +2,089
    Bingo!

    That is why someone like Obama is such a threat to the powers that be. He is completely financed by 1.5 million individual contributions. This scares the shit out of the big money, and this is why they are trying so hard to defeat him.
     
  10. Ravi
    Offline

    Ravi Diamond Member

    Joined:
    Feb 27, 2008
    Messages:
    81,318
    Thanks Received:
    12,691
    Trophy Points:
    2,205
    Location:
    Hating Hatters
    Ratings:
    +29,752
    That's funny.
     

Share This Page