On the nearly $18 trillion Federal debt, Snyder says, “This is a massive problem, but the mainstream media says the deficit is going down, and they have it under control. That is actually not true. It’s all accounting tricks and smoke and mirrors. Actually, if you look at fiscal year 2014, which just ended, . . . the national debt increased by more than a trillion dollars. What they tell you is the deficit was a little more than $400 billion, but that’s because they take all these things and say that doesn’t count as part of the deficit. . . . By the time President Obama’s eight years are over, we are on pace to approximately double the size of the national debt from $10.6 trillion to more than $20 trillion. What we are doing is absolute insanity. . . . We are going to suffer the consequences for so much of this. As far as the time window, I believe the next 12 to 15 months are going to be the most interesting time economically and as a nation as I have ever seen.” The deficit problem is much worse than increasing by a cool trillion bucks a year. Snyder points out, “In addition to the $1 trillion a year it has to borrow, the Federal government has to roll over or pay off by borrowing new money–an additional $7 trillion a year. So, the Federal government has to borrow about $8 trillion to fund current spending and, plus, repay old debt with new debt. . . . So far, the rest of the world has played along by lending us trillions and trillions of dollars at super low interest rates. We keep borrowing, and we keep paying it off so we can keep the game going. If that changes, and all it’s going to take is a major financial event such as a stock market crash . . . or black swan event, then we are going to have a massive problem on our hands because we are going to have to borrow $8 trillion, and we will be in a situation where people won’t want to lend us money, especially at super low interest rates.”usawatchdog/permanent-damage-to-us-economy-michael-snyder/
Posted on: Wed, 22 Oct 2014 06:53:53 +0000