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The Collapse of the American Economic Empire

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Yesterday afternoon the United States Government published its Annual Report stating plainly that America has 8 years left before a Financial Crash.

This is not Hyperbole.
This is not Conjecture.
This is not a Conspiracy Theory.

In fact, 8 years until a Crisis is the BEST CASE SCENARIO unless the US Congress takes action NOW.

The most critical "Trust Fund" in the so (called OAS, or “Old Age Survivors) and the other Entitlements will be fully depleted.

That’s precisely what it says in the 2025 Annual Report of the Board of Trustees of Social Security, signed by the US Secretary of Treasury yesterday.

Once that OAS Trust Fund runs out of Money, the Report states that Social Security Benefits will be immediately and permanently cut by 23% and worsen.

This will constitute a broken promise to 70+ Million Baby Boomers who spent decades paying Taxes into a Ponzi Scheme of epic proportions supposedly solvent by the time they retire. Social Security’s biggest Trust Fund running out of money will devastating and many Baby Boomers and the Disabled will not survive.

On top of that plain fact, the total US National Debt will be $52 TRILLION according to the Congressional Budget Office (CBO) estimates. which notoriously underestimates Deficits.

$52 Trillion is so large that the Government could easily be Spending 40% of all Taxes just to pay interest on the National Debt. There won't be any Money to do anything else.

THINK ABOUT THAT.
Not on DEFENSE.
Not on INFRASTRUCTURE.
Not even on the bloated ENTITLEMENTS PROGRAMS Washington DC refuses to reform. JUST INTEREST ON THE DEBT.

These two things together running concurrently— a massive Annual Interest Bill combined with Social Security’s insolvency— will combine to a Gargantuan Fiscal Crisis in 8 years.

The Political Indentured Servants on Capitol Hill indebted to their Corporate paymasters, aren't very concerned which is why they have very little will to cut Spending, or make necessary reforms that would solve our underlying problems.

Foreign Governments and Central Banks clearly understand this problem. They see and know how difficult it'll be for the US to pay its Debts. That’s why Foreign institutions are dumping US Dollars and US Government Bonds. Foreign Governments have lost confidence in the US Government, they’re wisely cashing out. So have I!

One of the biggest beneficiaries of this trend has been Gold; Others have talked about this — as Foreign Governments and Central Banks dump their US Dollars, they've been buying up record amounts of Gold Bullion, makes perfect sense. Who in their right mind want their Money and have any confidence in phony Monopoly Money?!

This isn’t some ideological crusade—it’s very rational for Foreign Governments and Central Banks; Gold is Liquid, Fungible (i.e. standardized), Globally recognized, and the Market can absorb massive Capital flows— Hundreds of Billions of Dollars or more.

This is how they diversify to protect themselves from what will likely happen down the road in the United States. Smart and Intelligent American Taxpayers who can read the Writing on the wall can surely do the same...
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Reason10 · 70-79, M
As a matter of fact, this was predicted in the Kerrey/Danforth report. In college Macroeconomics class, we all had stomach acid after hearing these predictions. And it's worse than you think.

If nothing is done about deficit spending (and the only thing that has been done is for DemoKKKrats to INCREASE IT),
in the year 2030.

1. The ONLY item on the budget will be interest on Social Security Debt.

2. NO MILITARY, NO WELFARE, nothing else.

3. Income tax rates will be NINETY PERCENT ACROSS THE BOARD just to pay that interest.

Thanks, KKKrats. Thanks for giving our grandchildren the bill for your buying votes from idiots.
@Reason10 i suggest you reprocess there has been an agenda adjustment
Reason10 · 70-79, M
@pentagrammom I suggest you reprocess there has been an agenda adjustment

There's nothing to reprocess. DemoKKKrats spent us into this disaster, whether it takes the form of the first post or the Kerrey-Danforth Report.
@Reason10 the system a level over the one doing that has been advised of the activity
whowasthatmaskedman · 70-79, M
@Reason10 Skipping over the part where you are just plain wrong about the democrats being the bid spenders in terms of running up yje international indebtedness of America (That is in fact the Republicans) There is a simple way to correct this situation. (Not that either side is going to actually do it.) First.. Place an income or assets test on Social Security..That cuts out the rich getting it. (Not that there are a lot of them. but its a start) Second, set Federal income tax levels to bring in enough revenue to cover it.. (Of course that means raising taxes.) If you want another aircraft carrier, tax more..😷
samueltyler2 · 80-89, M
@Reason10 you have cognitive dissonance, if the government had stopped borrowing from the trust fund, if the cap rose with inflation, if we widen the mandatory categories for enrollment and payment, there would be no fear of the program burning out from lack of funds!
Reason10 · 70-79, M
@whowasthatmaskedman Excuse me, but 70 percent of the federal budget is ENTITLEMENTS. And they ALL come from the Democrats.

You can't even blame the military budget. The last time the federal budget was balanced was in 1969, DURING THE VIETNAM WAR, when defense spending was the highest item on the budget.
whowasthatmaskedman · 70-79, M
@Reason10 Jesus Christ! Another American who doesnt know the difference between the federal budget (which is written every year and if memory serves hasnt been balanced since Clinton) and the international trade deficit, which is cumulative and the amount of money the American government, corporations and individuals owe the rest of the world.. The nation is living beyond its means and is borrowing year after year to pay for both the running of the country and to maintain the living standards Americans enjoy. The interest alone on that debt is now over $1 Trillion a year . An amount which will be rising faster now the nation lost its AAA rating..😷