From Zero Hedge:
Let’s get real, austerity is not going to happen and we aren’t going to balance the budget. We’re never going to pay off our debt or even pay it down. We’re rapidly moving from 4 taxpayers for every social program recipient to 2 per recipient. And ultimately, now we aren’t even really paying the interest on the debt…the Federal Reserve is just printing money (QE1, 2, 3) to buy the bonds and push the interest payments ever lower masking the true cost of these programs. Of course, interest rates (Federal Funds Rates) have edged lower since 1980’s 20% to todays 0% to make the massive increases in debt serviceable.
Politicians and central bankers have shown they are going to print money to fulfill the obligations despite the declining purchasing power of the money. It’s not so much science as religion.It's that shrinking dollar that should be screaming a warning to all of us.
Again, I'll refer to the paint I just bought for a house I'm renovating. Same paint, same brand, same color, same size cost 30 percent less just five years ago. But I'm probably preaching to the choir to those reading this who do their family's grocery shopping. Bought any beef lately?
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