Subprime nation

The United States of America is a subprime nation. That's quite a statement, but if you looked at the balance sheet of this country with the same scrutiny you would a corporation you were looking to invest in, you'd run for the hills. The US is basically the mafia of the world when it comes to legitimate financial operations. While it looks like we are running legitimate businesses in reality we force countries to pay "protection" in the form of the reserve currency and foreign funded military might. How much longer this can last is a scary and more pressing issue. The USA Today has an article that looks at the US debt in totality. This isn't a new concept to those who have studied this issue, but it should be alarming to all citizens.

Bill for taxpayers swells by trillions

http://www.usatoday.com/news/washington/2008-05-18-Redink_N.htm?csp=34

Here are some excerpts:

* The federal government's long-term financial obligations grew by $2.5 trillion last year

* When obligations of state and local governments are added, the total rises to $61.7 trillion, or $531,472 per household. That is more than four times what Americans owe in personal debt such as mortgages.

* The $2.5 trillion in federal liabilities dwarfs the $162 billion the government officially announced as last year's deficit, down from $248 billion a year earlier.

$531,472 of debt for every household!!! That's absolutely ludicrous. Considering the average household income is in the $50-$70k range, that is almost a 10x debt to income ratio. With incomes declining and the debt spiraling out of control this "subprime" ratio is only getting worse. This is an unsustainable model and there is no fiscally "viable" solution. There just plain isn't. There are potential solutions, but this political climate that has been created and fostered by big business will never let it be implemented. The Ron Paul's of this country, although the only potential saviors, are also too easily marginalized. We're either going to need to try and inflate our way out of this (Argentina, Zimbabye, etc...), war our way out of this or we will take it on the chin in a devastating process leading to the destruction of the quality of life in the US. 1 and 3 are already in process, but 1 is most likely not a long term possibility. Too many foreign countries exert too much control in this process to allow that to happen without a collapse in the currency.

Why is it so easy for people to look at the balance sheet of a company and recognize their fate, yet they fail to see the light on this country's economic situation? Why do people think this country can avoid the fate of every other debtor dynasty before it? Obama isn't change and neither are any of the other candidates. They are the same old dried and crusty politicians that will pander for the populist vote at the risk of the former greatness of this country. Change will not be led by a true Republican or Democrate. Change will need to come from outside the party ranks. Change will be close to impossible until people open their eyes. We've reached a critical point in this country where the economy will drive all policy. Entitlement programs are a myth and lost cause. There is no SS, Medicare and Medicaid in 10-20 years. They cannot exist in the form they are now or we will be mired in debt payments larger than our GDP. The miracle of compounding interest is working against this country in rapid fashion. That is the reality and that is our future. Take that to the voter's box with you in November. It does matter and it is fucking serious.