Rachel Maddow wrote: And the deficit is dropping, actually.
LOL.
In the first full month of fiscal year 2013 we've already added $200 billion to the debt. 20% of the projected Trillion dollar deficit and we've got another 10 1/2 months to go.
Here is a math problem for you all, and it has nothing to do with politics.
US government spending falls into one of three categories- Discretionary, Mandatory and Debt Service.
Discretionary spending is the spending on all the things you'd think government spends on, the military, the TSA to grope our children, schools, roads and all that jazz.
Mandatory spending is the entitlements that have to be paid
by law, Medicare, Social Security, VA benefits and all that jazz.
Debt service is the interest we pay on the national debt.
Mandatory spending and Debt service are taken off the top. Congress never sees that money, it comes in, it goes straight back out.
In 2011 the US took in $2.303 trillion. Mandatory spending was $2.025 trillion and interest on the debt was $454.4 billion for a total spending (without
discretionary spending mind you) was $2.479 trillion, a shortfall of $176.4 billion. And that's before the government even got into the spending for everything else!
It got worse in 2012, the shortfall was $251.8 billion, a 43% increase.
2013 it will be even worse.
Raising taxes won't help. Since WWII the US takes in an average of 17.7% of GDP and tax rates were all over the place, high and low throughout but the revenue collected was virtually unchanged. The government can only count on taking in around 18% of GDP and it's not enough to even cover the Mandatory and Debt service. Not to mention the GDP forecasts are horrid. Hell, GDP isn't even really keeping up with population growth.
10,000 baby boomers a day are entering the Social Security and Medicare rolls. Mandatory costs are only going to keep rising.
Debt service is non-negotiable. come hell or high water we have to service our debt, even if that means cutting off the Social Security, the Medicare, the Medicaid. Those on entitlements will learn where they stand in the food chain, well below the creditors.
So, what we have here is a math problem. Cut government spending, and the whole rotted shack collapses. Obama has been the Banker's and Wall Street's best friend, he and Ben "Helicopter" Bernanke.
The monetizing must go on until it can't go on any longer.
Then what do you all think will happen? Hell, we can cut military spending to the bone, we'll still run deficits. Despite this simple math problem, American's are generally not in favor of cutting any of the Mandatory spending.
The deficits will only get worse. We've reached the point of exponential debt and it is unsustainable. Even the most ardent Partisan should be able to acknowledge that simple fact. That is where the real denial is, that we can keep the charade up for much longer. Live and learn, we'll be seeing soon enough.
All you young ones out there, pay attention. We are going to go through something historic, something no one alive has ever seen before. If past history is any indication, we'll all be in for some interesting times. We will finally learn what it meant when our Grandparents told our parents as children- "I what things to be better for you than they were during my time".
You saps are going to be the ones paying for this. You just getting out of college, just entering the workforce, you'll be milked to pay for the excess of the past. You'll figure out that all this spending has been done at the cost of your future earnings. I'm glad the cake looks good, because you ain't gonna be able to eat it.......
