Monday, September 17, 2012
The Magnitude of the Mess We're In
-Did you know that annual spending by the federal government now exceeds the 2007 level by about $1 trillion?The problem is that most people do not know these facts. If you do know them then you understand the huge mess we have and why our credit rating is being downgraded.
-Did you know that, during the last fiscal year, around three-quarters of the deficit was financed by the Federal Reserve?
-Did you know that the Federal Reserve is now giving money to banks, effectively circumventing the appropriations process?
-Did you know that funding for federal regulatory agencies and their employment levels are at all-time highs?
-Did you know that the federal government used the bankruptcy of two auto companies to transfer money that belonged to debt holders such as pension funds and paid it to friendly labor unions?
We might be years away from a financial meltdown, it might be weeks away, but we will have one if we do not correct the problems we have now and continuing the Obama policy of borrowing and spending is not the solution.