Is Economic Collapse Inevitable?

The US debt alone is $13 Trillion and rising by over a Trillion Dollars each year! The US debt was 37% of GDP in 2008. Today – two years later - it is 51% of GDP! This is what is happening in the world’s strongest economy (US). European economies of Spain, Greece, Ireland, etc. are in even worse shape. If the US economy collapses the rest of the world will quickly follow.

There are many economists that have calculated the true cost of our current debt plus the unfunded "entitlements" Social Security, Medicare, Medicaid plus the mess created by Troubled Asset Recovery Program (TARP), Freddie Mac and Fanny Mae, and now Obama Care, etc. Estimates are about $100 Trillion! If debt service is only 5% (very cheap historically), then we should be paying $5 trillion each year today in real debt service just to cover past extravagances and future promises. This assumes the over-extravagant promises end today. Deficits, however, are projected to be over a trillion dollars each year for the foreseeable future.

This year, Social Security paid out more than it received. It is officially broke. There are three workers for every recipient. For every $20,000 paid to a senior citizen those three workers should be required to each pay about $7,000 in increased taxes which pays only what has been previously been promised. It does not include one penny for those three worker’s own retirement! How many young people can afford to pay an extra $10,000 yearly to cover these costs? This is only one mismanaged program: Social Security. Medicare, Medicaid, TARP, Etc., etc., are also broke and current workers should be paying those deficits also. Now you realize that workers cannot pay for these past promises and still have enough money left to feed their families! Why work at all?

Are there any politicians that have the courage to stop the deficit spending and then begin to pay for all the past promised "entitlements"? If they tell the truth he/she will not last long because the media will portray them as heartless and stingy. It is true that the extreme pain of fulfilling these past promises will be so onerous that people likely will just quit producing.

If there is no chance to stop this insanity then spending will continue increasing until there is an inglorious crash into forced national bankruptcy. Is it better to prolong the agony and postpone the inevitable? Do you want a quick or slow bankruptcy? Perhaps now is better and get it over with.