Telling Whoppers

Washington DC is the place where the largest lies are told.  Many folks who get their news from the mainstream media accept these lies as truth.  As the budget battle heats up this week, the size of the lies told by politicians is increasing.  Most notably, many might believe the Obama budget will get us to where we are not adding to the debt by the middle of the decade.  After all, that is what h said, and what we hear reported by the mainstream media.  It is a large whopper and nobody is a challenging it.

The truth is far different.  This asinine projection first assumes that economic growth will be far better than what Obama's own CBO (Congressional Budget Office) believes.  So they are expecting far more revenue (taxes) than they will collect.  Secondly, the projection does not count interest payments on the national debt.  Their inflated revenue expectations would pay for their projected spending programs, but not the interest on the national debt.  They are ignoring the $600-$800 billion we will send to China and others who own our debt as debt service.  That is not how families or businesses account for their finances.  For the politicians to do so is flat dishonest.

Also remember that any overpayment into Social Security will also be spent with an IOU left in the trust fund (oxymoron)  and will eventually result in additional borrowing.  Americans cannot continue to pursue the dream with so much debt.  The world economies are losing confidence in the American dollar due to this mountain of debt.  If they begin to demand payment for what we import in currency other than the dollar, hyper-inflation has arrived.  We will be forced to buy other currencies with a rapidly declining dollar.  Oil prices will skyrocket.  Inexpensive goods made overseas will be a thing of the past.  Everything will cost more, and not just a little more. 

While this impending tragedy progress before our eyes, the politicians continue to tell whoppers and the media repeats them unchallenged.