Growth in U.S. Spending Outpacing Economic Growth Three to One!
This headline is not one you are likely to read on the front page of your local newspaper, the New York Times or the even The Wall Street Journal. Yet it is the telltale sign of the terminal financial decline for American public finances.
The fact that the increase in U.S. Federal government spending is growing at three times the pace of American economic growth is not a mere statistic. It is a tragedy from which the country will not likely ever recover.
Consider what the CBO Congressional Budget Office recently reported in its official declaration of the sobering state of American government public finances. The United States’ public debt has already reached $19 trillion and is rising.
On top of this, the CBO looks for minimally an additional $10 trillion in debt in the next few years. It also anticipates that the budget deficit (annual shortfall in the budget) for the United States will only get worse each and every year going forward.
Evidence that supports the Congressional Budget Office’s grim assertions is all around you. Military retirement spending increased 8.7% last year alone. The costs of Medicare continued to rise astronomically, up over 10% in just the prior year. Some government employees’ benefit programs took the cake though. Their price tags expanded by 17%.
Taken together the total mandatory government budget spending increased a serious 6.6% for the year. This amounts to fully three times more than the growth in American Gross Domestic Product!
Not only is the United States government flat broke by its own admission, but it is spending more and more each year. Worst of all, the growth in spending is massively outpacing the total economic growth.
Another annual update and report just came out on Social Security. The program is quickly running out of money and will be insolvent within ten years. The U.S. Treasury publishes annual financial statements that show it is broke not in twenty years, ten years, or five years from now, but today.
You don’t need an advanced degree to understand how serious this is for the country and all 300 million people plus who live in it. Despite the fact that the statistics office for the country has admitted to the country’s looming bankruptcy, the overall government continues to operate as if nothing is wrong and with a “business as usual” mantra.
They are ignoring this serious problem and it is only getting far worse every year. Congress and the Obama administration are completely oblivious to their own current and looming insolvency.
It is no laughing matter. The terminal financial decline of the greatest superpower in the history of the world will prove to be the greatest trend of our day and age. It will take down the world’s financial system with it.
The so called safe havens of the world will not shelter you and your financial assets from this impending implosion. Sub-zero yielding foreign debt will not save you. Government debt around the world will fall with American public finances. The best place to safeguard your money is in gold.
Now is the time to put a responsible portion of your family’s assets into the only true safe haven. No one can squander or bankrupt the yellow metal. It has endured economic collapses time and again for five thousand years now. It will ensure that your assets and purchasing power survive this greatest collapse so far.