The federal budget deficit grew by $222.5 billion last month, representing the largest one-month increase in the history of the U.S. government. For those who may shrug off the news and admonish the government to simply print more money, a rude awakening is likely in store, as everything from the price of gas to health care costs are likely to affected if that is the way out that the politicians choose. On top of that bad news, economists predict that this year will see the largest budget deficit in history as well. These are all ominous signs for the continued feasibility of the United States as a nation.
For those who think that is merely hyperbole or a "chicken little" reaction, it may be a good idea to study a bit of economic history and to learn EXACTLY what inflation will do to their savings when it hits (and it will if spending isn’t reigned in). The U.S. government is already on the hook for trillions of dollars of retirement payments to the baby boomer generation, an amount that has been shown to be oppressively large and, in essence, not feasible unless significant inflation occurs to devalue the U.S. dollar, thus allowing the government to pay pennies on the dollar for those promises.
Despite all that – or perhaps because they are secure in the knowledge that the average American will never by fully aware that the U.S. government is, by design, picking their pockets by allowing inflation to run rampant all – the federal government is seeking to keep in place spending on a wide variety of items, including the always-nice categories like education and aid for the poor. What good that will do if the nation is plunged into financial chaos akin to that which was evident in the 1970s is a mystery, but the government seems to be treading merrily along hoping to put band-aids on problems now only to be overcome in the future.
For those who think that is merely hyperbole or a "chicken little" reaction, it may be a good idea to study a bit of economic history and to learn EXACTLY what inflation will do to their savings when it hits (and it will if spending isn’t reigned in). The U.S. government is already on the hook for trillions of dollars of retirement payments to the baby boomer generation, an amount that has been shown to be oppressively large and, in essence, not feasible unless significant inflation occurs to devalue the U.S. dollar, thus allowing the government to pay pennies on the dollar for those promises.
Despite all that – or perhaps because they are secure in the knowledge that the average American will never by fully aware that the U.S. government is, by design, picking their pockets by allowing inflation to run rampant all – the federal government is seeking to keep in place spending on a wide variety of items, including the always-nice categories like education and aid for the poor. What good that will do if the nation is plunged into financial chaos akin to that which was evident in the 1970s is a mystery, but the government seems to be treading merrily along hoping to put band-aids on problems now only to be overcome in the future.
 By Buzzle Staff and Agencies |
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