Out Of Control Gov't Spending

[Frostie7]

There was an article in USA Today on Wednesday interviewing Peter Peterson and made reference to a new website setup by Ross Perot. You may not like Ross Perot but the man does know economics. I worked for one of his companies for many years and have had the opportunity to do a number of personal projects for him. I don't agree with everything he does or says but I do respect his economic and fiscal knowledge. This particular site is also endorsed by a number of names you know......

A quote from the site first:

The American people must wake up and face the reality that promises made in the past will soon bankrupt this nation. These problems are explained in an easy-to-understand chart presentation discussed further at the bottom of this page. Comments to the charts and other material described to the right are encouraged.


http://perotcharts.com/

[Rinji]

It's not the aging population and rising health care costs and over spending like that front of that page suggests. Though they are part of it, they aren't the root cause. However you are right about the promises made in the past.

Here's some info I never learned in school (because they like to water stuff down when you're a kid.)

Before the great depression big bankers wanted to make a large financial institution for government to borrow money from. The money would be lent out on interest. In order to pay interest, you had to borrow more money from this bank, which lead to even more debt, and ultimately a bankrupt country.
England forced us to use their big bank currency (that works similarly to the suggestions of the banks here) when we were still the colonies instead of our interest free money, instantly putting us into debt we couldn't escape (and one of the big reasons why we fought for independence).

Just before the depression, a lot of people were buying up Margin stocks, meaning they could pay less for a stock (10% for example), but should it fail, they had to pay 100% the stock's worth within 24 hours.

Big bankers had a lot of these stocks, and quietly left the market. As you can guess many of the companies the stocks belonged to failed, and people had to pay up. Everyone lost their money, and the stock market failed. Thus the great depression.

In order to get out of the depression, the government agreed to have a centralized bank only because the bankers made it look like the centralized bank stabilizes things, and prevents depressions from happening. At this time, economists said that countries not not he gold standard avoided much of the depression, and ones that got off the standard avoided some of it's ravages.
So we were taken off the gold standard, and started to be based on money value supply and demand of the money.

Now we borrow money from the federal reserve, which isn't even part of the government, even though it was in part created by it. Congress ignored the constitution on account because the time was so desperate.

One another note, Yes, it's possible for a centralized bank to stabilize the market, however, the money is only lent to the government at interest. There is no way for us to pay back the interest unless we borrow more money from them.

The truth is, we will become bankrupt anyway; it's inevitable. The baby boomers, health care and whatever else, is just speeding up the process but not actually the problem. If you look at the average person in continual debt, and the government's spending habits, you'll notice they aren't much different from one another.

I don't understand why people don't say what is really happening. :(