The US Federal Government has fallen into its final hours. It is shaking, flailing around on the ground, and acting like someone suffering from a grand mal seizure. You can buying gold for IRA in this sites.
The Obama Administration, Congress and the Federal Reserve lack any idea of how to get America out of financial cliff edge. Do you want some examples?
1. Easy credit and easy money created a consumer society instead of a saver one. America has transformed from a nation producing to one that consumes and is the world’s largest consumer. Personal debt is at an all new high.
2. Federal Government is confident that more easy money, easy credit will bring back our economy. They want to re-inflate America’s bubble of the past 20 years. The President and Congress approved the creation of more than a trillion dollars in paper money. This money was to be given to financial institutions that contributed to America’s bankruptcy.
3. Congress ran ragged through spending bills that ran to hundreds of pages, adding “earmarks” by legislators to extort their votes. The legislators had to read these bills in record time. They passed the legislation, and the President signed it into effect.
4. AIG and the “banksters”, however, did take the time read the law after they received the money. They discovered that there were no restrictions on how they could spend the money. The media has reported stories about billions of dollars not being accounted for. Merrill Lynch only days before a bailout, paid large bonuses to its employees. AIG paid $165 million in bonuses just days before a bailout to the executives who caused AIG’s downfall. The Congressional roosters now groan about how they plan to punish AIG. I predict that AIG will prove that they did not violate any laws when it came to paying out bonuses.
5. Federal budget also includes Social Security and Medicare and Medicaid. There is also a massive military budget and regular operating expenses. The remaining budget is called “off budget”. (Congress doesn’t want to tell you how much they actually spend). Most Federal income from taxes goes to paying interest on the national loan. Automatic cost-of-living rises are a feature of the major entitlement programs.
Over the next few months, and for at least 1-2 years, a significant reality adjustment will take place. Everybody, from toddlers to old age, knows that you can’t continue to consume more than you get in. Everyone, except politicians, knows this.