Friday, June 29, 2012

  "My personal political journey began about five years ago when I was sitting at a business luncheon in Houston, listening to a presentation by the president of the Federal Reserve Bank of Dallas, Richard Fisher. He showed a series of slides with typical Fed fare: deficits, interest rates, home prices, mortgage markets.
This was before the financial crisis, and the economy still seemed strong. But Fisher was not so optimistic, and his talk was a little unnerving. At the end, he said words to the effect, “All of this probably sounds scary, but the next slide that I’m going to show you is the one that keeps me up at night. If you are concerned about your country, it should keep you up at night too.”
On the screen appeared one number: $84 trillion. “That is the unfunded liability of Medicare,” Fisher said.
I quickly ran the math and realized this was almost $300,000 for every man, woman, and child in the United States, including my wife, my five kids, and me. I was stunned.
After the luncheon, I made my way through the crowd to find Fisher. I expressed my bewilderment and said the number couldn’t possibly be true. “It’s true, “ he replied. “It’s one of the first questions I asked my research staff when I joined the Fed, and it has been checked and double-checked.”
“How did this happen?” I asked.
He looked at me and said one word: “Congress.”
And keep in mind that that is just Medicare.  It doesn't consider Social Security, or this new boondoggle, Obamacare, or all the debt the government has added on during the Obama administration.
Since the political class has created these enormous debts, and is adding to them daily, we can for sure know they will not stop until the entire financial edifice comes crashing down, or they print money until every dollar is worthless.

As the system is currently structured, how could they do otherwise?
Prepare accordingly.

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