PITY THE NATION WHOSE GOVERNMENTS, BANKS, AND BIG CORPORATIONS SELL HER PEOPLE TO THE DEVIL – OUT OF SHEER GREED
SIMPLE DEFICIT MATHS
This shortfall of $20 billion in the chart below is for the day of 3rd August 2011 (the day when US credit rating would drop from AAA to AA. Typically, the shortfall (budget deficit)—what Sam brings in and what it pays out—is $4 to 5 billion daily or $1.5 trillion annually. That’s everything including war expenses in Iraq, Afghanistan, Libya and to maintain numerous bases all over the world, paying salaries, social security, etc.
The current US deficit has hit a cumulative $12 trillion, and its GDP is $14 trillion. Its annual budget (what it projects to bring in and spend) is $3.5 trillion but it actually spends $ $5 trillion!!! 30% more than what Sam rakes in. So it borrows and issues IO US (treasury bonds) that carry a specific interest rate.
Its like your budget is $100 but you spend $130. To cover the shortfall, you keep borrowing from the bank, your relatives or friends and writing them IOUs and keep paying interest. A day will come when the interest payments reach $100. Then what do you do?
a) Cut your expenses as per the donkey’s scheme?
b) Give more to the rich in taxes as per the elephant’s scheme so they can create more jobs (a big fat lie)?
c) Commit suicide?
ISN’T ALL OF THE ABOVE WHAT THE US IS DOING?
THE US FAILED TO LEARN THE HISTORIC LESSON FROM SOVIET UNION WHEN IT WAS EXITING AFGHANISTAN in 1988— ELEVEN YEARS LATER IT SPLIT AT ITS SEAMS.
BUT Russia survived as it has huge energy reserves.
JUST LIKE THE SOVIET UNION, USA IS ALSO IN DIRE STRAITS SINCE IT VENTURED INTO AFGHANISTAN AND IRAQ IN 2001 & 2004. WHAT WILL THE USA BE 11 YEARS LATER?
THOSE THAT DO NOT LEARN FROM HISTORY ARE DESTINED TO REPEAT IT
I pity this nation whose people I so fondly admire.
Their governments, banks, medical system, energy and big corporations have sold them to the devil out of sheer greed.
Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the ‘Wonders of Pakistan’. The contents of this article too are the sole responsibility of the author(s). WoP will not be responsible or liable for any inaccurate or incorrect statements contained in this post.
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