Thursday, June 12, 2008

Stimulus payments result in record May deficit

From the AP:

http://biz.yahoo.com/ap/080611/federal_budget.html?.v=2

Economic stimulus payments push May budget deficit to an all-time high of $165.9 billion

This is why government subsidies, bailouts, free tickets and the such are a rediculous prospect when the government has NO FING money. If you want to know why oil is at $135 a barrell and the US$ is tanking, look no further than the national debt. The ever-growing, all encompassing, monster national debt. That number for May is just ludicrous and that doesnn't even take into consider proper GAAP accounting for liabilities. Based on legitimate estimates, the country is now looking at over $100 TRILLION in national debt if you include legitimate liabilities like social security, medicare, medicaid, pensions, etc..., etc... There is absolutely no foundation for the US to have AAA rating on its debt, as the only legitimate way it can pay for it's debt is by creating more debt. Isn't that the beauty of a fiat currency? It is the ultimate check kiter's dream. An endless bank account that you can continue to draw against forever (or in the case of all other fiat empires before us...the currency and economy collapses). Which do you think is going to happen? I think you can already tell what is happening.

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