Originally Posted by
JsJs24
This is getting to be ridiculous. These pathetic politicians still haven't come up with the budget for fiscal 2011 and we are already several months in. As for cutting the deficit spending, they are not making a dent. The Republicans are trying but the Dems are not willing to agree to anything much. Still, even if they cut 10s of billions of dollars, it is merely a dent in the massive budget Obama has proposed. They need to cut hundreds of billions out. I would think 50% is very feasible, but it won't happen. Mark my words, our country will go bankrupt eventually at this rate of spending. It cannot go on forever like this. We are not immune to bankruptcy. And we are also not immune to hyperinflation, though I think double digit is all we will see in the near term. I suspect close to 20% real inflation is coming. Of course, going off the worthless CPI (consumer price index) will not show that, but it excludes the things that matter, such as food and oil. Ignore the CPI and look at real tangible products, notably commodity price increases to see what type of inflation we are really experiencing. Gold and Silver are on fire. Silver is just under $34 an ounce, and several month ago it was only $19 per ounce. That shows how poorly the dollar is performing. All other commodities are up significantly as well. The dollar is being destroyed. It almost seems like they are intentionally trying to bankrupt our currency. The budget battle is mere politics, and will do nothing to remedy the mess they have created. They being the Federal Reserve and past and current administrations. Now that oil is skyrocketing we can expect another recession to his soon. I think it will be before summer's end, or a lot sooner if gas prices continue at the current rate. If Saudi Arabia has civil unrest like the rest of the Arab countries then gas will most likely see the same $140 per barrel as it did in 2008. That will cause defaults on auto loans, credit cards, home mortgages, etc. This will lead to the second dip in the double dip recession economists have worried about. However, I don't believe we ever came out of the first recession. They use the GDP as an indicator for recessions, but any real economist who has half a brain knows that GDP is manipulated in the government's favor. Unemployment has remained steady while inflation continues to climb, thus resulting in stagflation. That is what we are looking at, and stagflation is not good at all. So on with the budget they work, but it will result in meaningless cuts that will have no positive effect on our economy. Tens of billions mean nothing on a one trillion plus deficit, and a 14 trillion dollar debt.