U.S. is Bankrupt

This article is particularly sobering for me. Why? Because I have been saying for a few years that the U.S. is running a giant Ponzi scheme...and it consists of generational theft and also the "magic" of the Federal Reserve "buying" Treasury bonds at the Treasury auctions. It's a bit like a husband borrowing money from his wife in an attempt to forestall bankruptcy....it makes no sense.

Here is the title of this article in Bloomberg;
U.S. Is Bankrupt and We Don't Even Know It: Laurence Kotlikoff

This is what happens when you run a massive Ponzi scheme for six decades straight, taking ever larger resources from the young and giving them to the old while promising the young their eventual turn at passing the generational buck.

Herb Stein, chairman of the Council of Economic Advisers under U.S. President Richard Nixon, coined an oft-repeated phrase: “Something that can’t go on, will stop.” True enough. Uncle Sam’s Ponzi scheme will stop. But it will stop too late.

And it will stop in a very nasty manner. The first possibility is massive benefit cuts visited on the baby boomers in retirement. The second is astronomical tax increases that leave the young with little incentive to work and save. And the third is the government simply printing vast quantities of money to cover its bills.

Most likely we will see a combination of all three responses with dramatic increases in poverty, tax, interest rates and consumer prices. This is an awful, downhill road to follow, but it’s the one we are on. And bond traders will kick us miles down our road once they wake up and realize the U.S. is in worse fiscal shape than Greece.

See it here;
http://www.bloomberg.com/news/2010-08-11/u-s-is-bankrupt-and-we-don-t-even-know-commentary-by-laurence-kotlikoff.html

Friends, I hate to say it but I think it may be time to start making serious plans for how your family will cope/handle/survive this "awful, downhill road" that we are on.

We say the Lord's prayer almost every Sunday and in it we say, "give us our daily bread"....we may have a chance real soon to understand what that really means to rely on God for our food.

I pray that the rapture comes first, but we can't know that for sure. And it just may be that God the Father wants to purify us of our false idol of Mammon (wealth) before He sends his Son to collect the bride.