Obama’s Great Depression

The US government has been recklessly borrowing and spending for too long. But President Obama has accelerated this recklessness to breathtaking levels.
The U.S. is rapidly approaching its crisis point a catastrophic collapse will be the only way out.

Get ready for Obama’s Great Depression, who is following the playbook of the man responsible for the Great Depression of 1930s, Herbert Hoover.

President Obama like Hoover launched the biggest stimulus programs and tax increases that the U.S. had ever seen. Those policies doomed the US economy. Now, it plays out again with the result that millions of middle-class people are about to suffer.

The American debt is so colossal, 21 cents out of every dollar of income tax is needed to pay just for the interest on its debt. This won’t last indefinitely, before the government will go broke, for the reason that nobody is going to lend the USA money anymore. Continuing printing money is causing both inflation and interest rates taking off, making the dollar worthless.

By now it is too late to reverse these trends, because Obama’s spending programs will continue. There are two options left, either to default on obligations like Social Security, Medicare and pensions, or pay for everything with worthless money. On a much larger scale it looks similar to the GM debacle.

Bill Gross a famous billionaire bond investor says: “I think it is important to recognize that General Motors is a canary in this country’s economic coal mine; a forerunner for what’s to come for the broader economy.”

GM’s mistakes equal America’s mistakes. Look at the enormous unfunded health-care costs that made GM liable for about $60 billion. On every car sold $1.500 was spent to pay for current and future health benefits. Similar the health-care costs for U.S. citizen is measured but now in tens of trillions.

GM’s debt problem lead to its collapse, Washington’s debt will lead to America’s bankruptcy and destroy its economic-standing in the world. What is wrong? Issuing more debt is the case, and the government won't change that, consequently taking on more debt cannot solve this debt crisis. All debts private and public must be paid off from earned income. The U.S. income is falling as its debt burden is rising causing a tremendous bubble that eventually shall implode.

Technically the cost of bailing out the banks and failed manufacturers like GM and Chrysler will soon increase the federal debt ratio to GDP to well over 100%. Not to mention Obama’s ambition to spend trillions more on health, the environment and education. Each will force the government to borrow trillions more from foreign powers like China, Russia and Japan. It’s difficult to believe that all this money will become available, not mentioning the enormous liabilities for payment on interests of borrowed cash needed to keeping up this massive amount of borrowed money.