“…for the first time since the Great Depression, Americans took more aid from the government than they paid in taxes.”
That’s pretty sobering IMO. As you can see, our taxes are far too low to support the spending our government is doing. Government knows that if taxes were increased to where they need to be in order to support these levels of ridiculous spending that people would not have money to pay the rent and to shop at wal-mart. Major corporations would take a major plunge as sales fell off a cliff. A better way (they think) is to borrow money and then spend it so that banks and corporations can show profits for a bit longer.
So what we basically did was take on trillion dollar deficits in order to keep the economic Ponzi from collapsing. We kicked the can down the road a bit further but the end of this is fairly predictable. We will take on as much debt as suckers will lend us and then we will, either by massive inflation or by direct means, default on the debt. Others will default before us but default is the only way that the long running, debt based, something for nothing Keynesian con game can end. It will not be anything new and in fact we already defaulted once when Nixon closed the gold window in ‘71. But that was sort of a stealth default because people still had green dollars in their hands which they had been brainwashed into thinking were as good as gold. When the next default occurs it will be a lot more obvious and it will result in shortages of a lot more things than just gasoline like it did back then. The only thing that is not known is the timing.
