|Is financial armageddon coming?|
You may remember Wayne Allyn Root as Barack Obama's classmate at Columbia who wrote of skeletons in the Presidents closet that, if revealed, could likely cost him any chance at reelection!
But in his current article at Fox News Root is instead examining and presenting reasons for why he thinks that the United States is positioned for an economic decline that will make the 1929 Depression seem like a walk in the park.
His take, while certainly not unique, is not one typically heard when you turn on the business channels.
There viewers are told about U.S. economic recovery although most indicators, our own personal pockerbooks and the Federal Reserve Chairman's words and actions say otherwise.
They are told about how low inflation is with no pick-up expected, although $4.00/gallon at the pump and skyrocketing food costs are painful whether CPI is measured ex-food and energy or not.
And these viewers are told that while the EU financial crisis and the fiscal cliff in this country both pose serious potential risk at the end of the day all will be okay.
Therefore, they will tell you that if you have patience, a long-term investment horizon and you only buy companies with a strong fiscal future in this stock pickers market you will be okay in the end!
Some of the reasons presented by Wayne Allyn Root for why this rosy scenario may not be the case!
“…This time the results are going to be dramatically worse than 1929. This time we are facing The Greatest Depression ever.
Why? Because The Great Depression had NONE of the structural, economic, and social problems, nor the massive obligations we are now facing. Read the facts:
In 1929 America was not $16 trillion in debt, plus facing over $100 trillion in unfunded liabilities. That’s over $360,000 in debt per citizen.
In 1929, most of our states were not bankrupt, insolvent and dependent on federal government handouts to survive. One county (Cook County which includes Chicago, Illinois) now owes over $108 billion in debt (the biggest part of it in unfunded government employee pensions).
In 1929, we did not have 21 million government employees with bloated salaries, obscene pensions, and free health care for life. Today 1 out of 5 federal employees earn over $100,000.
Today, 77,000 federal employees earn more than the governors of their states.
Staggering numbers of federal government employees retire at a young age with $100,000 pensions for life.
Unfortunately on the state and local levels it’s even worse. There is now nearly $4 trillion in unfunded pension liabilities for state government employees.
Protected by their unions and the politicians they elect, government employees are bankrupting America. In Illinois there are retired government employees making over $425,000 per year.
No one could have imagined any of this in 1929. There is no possible way to pay these bills moving forward.
In 1929, Social Security, Medicare, and Medicaid didn’t exist. The federal government had no such obligations threatening to consume the entire federal budget within a few years.
In 1929, there was no such thing as welfare, food stamps, aid to dependent children, or English as a second language programs. American’s didn’t consider it the responsibility of government to pay for breakfast and lunch for school students -- let alone for illegal immigrants at school.
Who could have imagined back in 1929 that one seventh of America's population would be on food stamps…and the federal government would ADVERTISE to encourage even more Americans to sign up for food stamps and welfare...”
Read the entire article here.
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