The U.S. has 109 trillion in unfunded liabilities.
That is 13.2 trillion in current debt+medicare+prescription costs+social security liabilities.
The 13.2 trillion grows by about 500 billion per year at the cheap interest rates we are paying. Half of that 13.2 trillion is refinanced every year.
So what happens in a recovery?
Demand for goods and services increases as people have more money to spend. The Fed hikes interest rates to slow growth and inflation. And although more people are working and paying taxes- the interest rate hikes on that 13.2 trillion will more than offset any increase in tax receipts.
So there you have it. We have screwed the pooch.
Our only escape is to declare bankruptcy and eliminate the Federal Reserve. At the blog entitled the "Economic Collapse" they describe this in detail. The reason we have to have this economic collapse is evident. There is no stopping it. The greed of international bankers, as well as that of our domestic bankers, is without peer. That and a voracious government which simply can't stop eating itself. Headed by a buffoon that plays golf each week and runs around firing people that try to point out that he and his administration are buffoons.
Printing our own currency and issuing it interest free is do- able. In fact it already exists. It is called gold. So the bottom line is this. Any recovery will hasten the collapse. I think this administration knows that. Obama is caught in a lose lose situation. Did he inherit this mess? Yes of course. Has he done anything to stem the losses? No, in fact he has added to them. It would take great personal courage to dismantle the Fed and eliminate bankers and a banking system- which contribute mightily to these idiots in Washington.
Make no mistake about this. Lincoln may have inherited a civil war state but he had the courage to act on it. Obama inherited a mess every bit as bad as the civil war. Economic collapse. That he has done nothing and added to it- shows us what kind of leader he is. With any luck, Obama will exit and perhaps someone with a spine will realize we have to act NOW to have any kind of a chance.
Let's pray we don't have a recovery. This shit is going to get really bad if we do.