Three Government Reports Point to Fiscal Doomsday

"When our leaders have no awareness of the disastrous consequences of their actions, they can claim ignorance and take no action.

Or when our leaders have no hard evidence as to what might happen in the future, they can at least claim uncertainty.

But when they have full knowledge of an impending disaster … they have proof of its inevitability in ANY scenario … and they so declare in their official reports … but STILL don’t lift a finger to change course … then they have only one remaining claim:

INSANITY!"

So says Martin D. Weiss. Three separate reports were published mid 2009 - from the Fed, the Treasury Department and the Congressional Budget Office (CBO). They all paint a gloomy picture of the US heading for either disaster... or catastrophe.

The Long-Term Budget Outlook from the CBO paints a dire picture of exploding debt, reduced national saving, lower domestic investment, depressed income growth and economic growth, the potential for government insolvency leading to enforced higher interest rates and an inability to finace these. Phew!

OK, these are all fairly dry technical reports that most people are unlikely to want to read over breakfast, but the corporate media does nothing to inform the public of what is really going on. There are hundreds of intelligent, articulate and well-informed commentators outside the propaganda media.

20 Reasons Why The Global Debt Time Bomb Will Explode Soon

Paul Farrell seems like one of the few columnists allowed to be down-beat at MarketWatch. His latest doom-laden epistle lists 20 very good reasons why the global economy is going to go bang any time soon. He is not the only one, as he cites both Bloomberg and Forbes publishing similar articles.

The number one reason is the huge amount of debt being accumulated by governments, or rather, by their central bankers who then pass on the debt to the taxpayers. Historical research has shown that once debt reaches 90% of GDP then a country is in serious danger of defaulting and its economy shrinks - switch off the hot air and the balloon quickly shrivels and gravity takes over.

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