Tuesday, December 21, 2010

Government intervention and unintended consequences (Video)

Offshore drilling bans, Cash for Clunkers, spiking college tuition expenses, inflation and the unintended consequences when the government gets involved

This from the National Inflation Association. The statements have some definite correlation to the idea discussed yesterday that the United States may at some point lose its AAA rating, and the effect that would have on our financial system.

"...With a $13.6 trillion national debt, $6.3 trillion in Fannie/Freddie debt and $61.3 trillion in unfunded obligations for programs such as Social Security, Medicare and Medicaid, the U.S. government has total obligations of over $81.2 trillion or 5.57 times our GDP of $14.59 trillion. It is our belief that the United States for all intents and purposes is bankrupt and Americans need to take steps immediately to protect themselves from the potential loss of the purchasing power of their U.S. Dollars.

NIA believes the largest financial crisis in history is ahead of us as a direct result of the U.S. government unwilling to accept a much needed recession. We are now at a point where our national debt is impossible to pay off. Due to rising interest payments on our national debt, it is unlikely the U.S. will be able to balance its budget ever again. Foreigners will eventually stop lending the U.S. money and the Federal Reserve will most likely have to print the money to fund our deficit spending out of thin air..."

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