U.S. Can Not Avoid Coming Economic Collapse – No Matter What! Here’s Why
Michael Snyder
If the government suddenly started spending only the money that it actually brought in every year, our economy would be doomed and all of this “false prosperity” would rapidly disappear… [but conversely,] if the U.S. government continues to rack up debt at this pace we are doomed. In fact, every dollar that gets borrowed makes our eventual collapse ever worse. We are heading down the exact same road that Greece has gone. Eventually the rest of the world is not going to lend us gigantic mountains of super cheap money anymore. When the flow of cheap money stops, it [will] be extremely painful…If we had addressed these problems as a nation a decade or two ago, perhaps we could have found a solution but now there is no way out under our current financial system and a devastating economic collapse is on the horizon no matter what we do.
Look at Greece. They were forced by the EU and the IMF to dramatically reduce government spending…[and] John Mauldin described the nightmarish effect that this had > on the country…
As Greece began to shake and bake its way to “austerity,” the very act of cutting deficits pushed the country into recession, which lowered tax revenues and increased expenses, putting the elusive goal of a balanced budget even further off…Spain’s “draconian” cuts have [had much the same effects]…
For country after country, this is the Endgame. It is the end of the Debt Supercycle. Debt has grown to the size that it cannot be sustained. The market will not lend any more money on terms that can be afforded, and any efforts to cut spending and raise taxes will result in an even worse economy, in various degrees of recession, with falling revenues and rising costs.
The above is what happens when a country that has been spending far beyond its means is forced to dramatically cut back.
Those that are convinced that balancing the federal budget in the United States will be relatively painless should take a close look at what is happening in Greece. The Greek economy has been plunged into a 21st century “Great Depression”:
This is only just the beginning for Greece. Things are going to get even worse.
Unfortunately, many believe that the United States is destined to experience far worse pain than Greece is currently experiencing. Peter Schiff, for example, insists that the United States is in even worse financial shape than Europe at this point. Just check out this video….
Anyone that attempts to downplay the U.S. debt problem is making a serious mistake. Yes, we are still able to borrow trillions of dollars for next to nothing, but that is going to come to an end.
Whole Article ---- http://beforeitsnews.com/story/1701/181/NL/
Michael Snyder (www.theeconomiccollapseblog.com)
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