Demons & Dialog

Exposing hidden news, history, & the new world order

The Erosion of Economic Sovereignty

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America is on a wholly unsustainable course – living increasingly in debt and off the good graces of foreign creditors, all the while forfeiting a bit of economic sovereignty every time the Treasury holds an auction on U.S. Treasuries.  Sooner or later, America’s chickens will come home to roost: either we will no longer be able to afford refinancing our debt – making us a bankrupt and economically defeated nation – or foreign nations will grow tired of financing America’s debt which increasingly looks impossible to repay.

On Oct. 3, the nation’s total outstanding debt surpassed the $11 trillion mark.  Currently, that is 72.5 percent of Gross Domestic Product.  In 1988, national debt was only 51 percent of GDP.  Overall, the debt has increased by at least $500 billion since 2003.

Those numbers fail to take into account mandatory expenditure obligations such as Medicare and Social Security.  Experts predict that expenditures of those two funds will exceed tax revenues by over $40 trillion over the next 75 years.  That means by that point all discretionary spending – defense, homeland security and education among others – will be 100 percent foreign funded….

Economy In Crisis

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Written by Michael Cooper

January 26, 2009 at 9:37 pm

Posted in Uncategorized

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