Friday, February 22, 2008


The United States Government is now officially bankrupt.

For 2008, the White House projects the fiscal deficit to be over $400 billion dollars (the entire Federal budget is a record $3.1 trillion dollars). Meanwhile, INTEREST on the national debt is expected to be also over $400 billion (The national debt itself is now over $9 trillion dollars and growing exponentially).

That means that the Government's entire new borrowings this year ($400B) will be allocated just to pay the INTEREST on past borrowings, without a dime left over for anything else. Putting this in perspective, if the Government was me or you or a Corporation, it would be legally bankrupt.

This by all definitions is the very meaning of PONZI borrowing. Investors purchasing bonds from the Federal Government will be paying themselves back, with yet still more bonds!

...And to think the economy is not even in recession...yet...