The US Economic Crisis

In Nowruz 1390, the state TV showed I.O.U.S.A (2008) . This documentary movie is about American National Debt . As we said before the main concern of American authorities and American lunatic lefts for international intervention in Libya, is the economy and the money . In fact, the US economic crisis is very very serious. I.O.U.S.A. says: “ Wake up America! We’re on the brink of a financial meltdown ” I.O.U.S.A. boldly examines the rapidly growing national debt and its consequences for the US and its citizens. All the people around the world and all American citizens should see it. This movie could be an answer to all questions about the roots of the current US economic crisis. In fact, the US economic crisis is more deeper and more serious than we thought before.

The U.S. National Debt Clock , by Ed Hall, is a very interesting tool. It shows us that the U.S. National Debt is near $14 trillion !! now. The estimated population of the US is 310 million, so each citizen’s share of this debt is near $45,000! In 2005, each citizen’s share of the debt was near $27,500 ; And in 2000, it was near $19,000. In fact, Mr. bin Bush fucked the US economy so badly. Bush tax cuts, i.e. Huge tax cuts (that mostly were of benefit to wealthy Americans), War in Iraq and Afghanistan, and a dozen of dreadful decisions, f-u-c-k-ed the US economy so badly. The US National Debt has continued to increase an average of $4 billion per day since September 28, 2007! Ed Hall has published some helpful facts about the characteristic of the U.S. National Debt he says: “In 1998, over 40% of National Debt, was owed to the Federal Reserve, the central bank of the US. The remaining 60% of the Debt was privately held by individuals, corporations, states, and foreign governments. As of November 2007, Japan ($580 billion), China ($390 billion) and the UK ($320 billion) are the biggest foreign holders of our Debt. The National Debt is the total amount of money owed by the government. And the federal budget deficit is the yearly amount by which spending exceeds revenue. Add up all the deficits (and subtract those few budget surpluses we’ve had) for the past 200+ years and you’ll get the current National Debt. The National Debt on January 1st 1791 was just $75 million dollars. Today, it rises by that amount every hour or so. On October 18th 2005, the Outstanding Public Debt rose to
$8,003,897,406,911, the first time it had risen above $8 trillion” And as of October 2010, China ($900 billion), Japan ($870 billion), and the UK ($470 billion) are the biggest foreign holders of the US Debt.

Jim L. Riley has a good article about the US National Debt ; He says: ” As a nation and society we simply cannot sustain our existing system of spending beyond our means. Moreover, the problems resulting from the retirement of the so-called “baby boom” generation (those born during the period of 1946- 1964; some 70+ million) coupled with expansions of entitlement programs, particularly in the health care arena , become more unmanageable and catastrophic in their consequences as time passes with no effective action to bring government and private finances into the realm of fiscal responsibility. In 2009, the debut of the national government was in excess of $12 trillion Depending on which economic prognosticator one chooses, the projections are that by 2020 the national government, will have incurred a debt equal or in excessive of the entire gross national product of the nation The impact this will have on interest rates, the value of the dollar and ultimately the vitality of the nation is fearful in the extreme. If the current trajectory of deficit spending is not reversed, eventually the interest on the national debt would exceed the GDP . Obviously this development would never be reached because as the event was a looming inevitability the entire financial, social, economic, political fabric of the nation would be torn asunder. ”

The President’s budget request for 2010 totals $3.5 trillion. The main items of the US Federal Spending in FY 2010 are as follow: Medicare & Medicaid $793 billion (23%), Department of Defense (DoD) $689 billion (20%), Social Security $701 billion (20%), non-defense Discretionary programs $660 billion (19%), and Mandatory programs $416 billion (12%). Discretionary budget authority is established annually by Congress, as opposed to mandatory spending that is required by laws that span multiple years, such as Social Security or Medicare. The military budget of the US during FY 2009 was approximately $683 billion in expenses for the Department of Defense (DoD) and $54 billion for Homeland Security, a total of $737 billion !! . The U.S. defense budget is between 4% to 6% of GDP. The DoD baseline budget, excluding supplemental funding for the wars, has grown from $297 billion in FY2001 to a budgeted $534 billion for FY2010, an 81% increase. It’s really horrible. Non-defense discretionary spending is used to fund the executive departments (e.g., the Department of Education) and independent agencies (e.g., the Environmental Protection Agency), although these do receive a very smaller amount of mandatory funding. For instance, in FY2010 the estimated budget of some non-defense departments and agencies were as follow: Department of Education $47 billion, Department of Veterans Affairs $52 billion, Department of Agriculture $26 billion, Department of Commerce $14 billion, and Environmental Protection Agency $11 billion. When you compare them with the budget of DoD, it’s really shameful. The total deficit for FY 2009 was $1.42 trillion, a $960 billion increase from the 2008 deficit. In fact, the U.S. budget situation has deteriorated significantly since 2001, when the Congressional Budget Office (CBO) forecast average annual surpluses of approximately $850 billion from 2009–2012. The average deficit forecast in each of those years is now approximately $1.2 trillion. And one of the main causes of all of these economic disasters are Mr. bin Bush’s policies.

The population and the population growth is another problem. The retirement of the baby boom generation was just a distant worry. The Fed predicts that in the next 30 years, the U.S. working-age population will increase about 0.5% a year, compared with 1% now. The percentage of the population over 65 will rise from less than 13% to about 20% by 2030. Spending on Medicare, Social Security, Medicaid health care for the poor and interest on the federal debt, could zoom from 8% of the economy to 21% by 2075, according to the CBO. In fact, it’s a global problem and China and India with a population more than 1 billion, would have a very tragic situation in the 21st century. Iran has the same problem, too. In fact, the world population is really a worrying matter and we would write more about it later. Now Iran has 75 million, but in 2050 that would be 100 million, while the Iranian gas, oil, water, woods and other natural resources would be totally fucked up until that time. In fact, the Mullah and Mr. shit have fucked the Iranian economy and environment so badly, maybe worst than what Mr. bin Bush and Neocons did in the US. As we said before, Iranians are paid by Toman (1 Toman is 0.001 Dollar), but they should spend Dollar ! And it’s really an Islamic miracle, a Mullah’s miracle The Iranian economic crisis is really worst than the US. We should note that in the US, the critics/protesters could speak and protest, but in Iran the critics/protesters are fucked by Khamenei’s dogs/thugs. Ed Hall has have his National Debt Clock for more than 10 years, but if he had made his Debt Clock in Iran, just after 10 days Khamenei’s dogs/thugs would fucked both him and his clock! In fact, the real difference between Iran, Cuba, Venezuela, China, Russia, Syria, Libya, etc, and the US, the West, etc. is the Freedom , i.e. the amount of the freedom. The US and the West are not really free, but the amount of the Freedom there, never ever are not comparable to the East and above-mentioned countries. The Freedom could control the Corruption, and when there is no Freedom, the result is a really huge corruption.

Websites for further reading:

[1] Congressional Budget Office [2] Government Accountability Office
[3] U.S. Treasury department [4] Federal Spending

2 Responses to The US Economic Crisis

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    This is an terrific website. I like it a lot!…

  2. Thanks to the Glen Beck wannabees this stuff is occasionally taken as fact.

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