Saturday, July 15, 2006

America is going bankrupt.

Experts have calculated that the country's long-term "fiscal gap" between all future government spending and all future receipts will widen immensely as the Baby Boomer generation retires, and as the amount the state will have to spend on healthcare and pensions soars. The total fiscal gap could be an almost incomprehensible $65.9 trillion, according to a study by Professors Gokhale and Smetters.

The figure is massive because President George W Bush has made major tax cuts in recent years, and because the bill for Medicare, which provides health insurance for the elderly, and Medicaid, which does likewise for the poor, will increase greatly due to demographics.

Prof Kotlikoff said: "This figure is more than five times US GDP and almost twice the size of national wealth. One way to wrap one's head around $65.9trillion is to ask what fiscal adjustments are needed to eliminate this red hole. The answers are terrifying. One solution is an immediate and permanent doubling of personal and corporate income taxes. Another is an immediate and permanent two-thirds cut in Social Security and Medicare benefits. A third alternative, were it feasible, would be to immediately and permanently cut all federal discretionary spending by 143pc."

The amount of damage that this administration has done is almost unfathomable! Why these people were allowed a second term is just beyond my ability to understand.

I hope that Robert Kennedy's assertion that the 2004 election was stolen is in fact the truth, because it would meant that Americans were not so self-destructive as to vote for a man who was determined to destroy the world.

We need to get him out of office! I do not know how else to start repairing the damage that he has caused. I don't think we can wait two and a half more years.

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