Principles of Economics
I read the following observation in September 2009:
• Through August, the federal deficit hit $1.38 trillion, or three times last year's all-time record
deficit of $454.8 billion. And in September alone, the administration expects another $200 billion in red
ink, bringing the total for the year to $1.58 trillion.
• The U.S. government's official debt is now at an all-time high of $11.8 trillion, or over $100,000 for
each and every household in America.
• Both the administration and its opponents agree that, over the next 10 years, the cumulative federal
deficit will be another $9 trillion, driving the burden per household up to $177,000.
• The Federal Reserve is also in hock up to its eyeballs, with more than $2 trillion in liabilities on its
balance sheet. That brings the total burden up to $194,000 per household.
• Perhaps worst of all, the government's unfunded obligations for Social Security, Medicare, and
Federal pension payments are also ballooning higher and now stand at an estimated $104 trillion, or
$886,000 per household.
Total burden per household: More than $1 million!
How will the United States ever meet these obligations?
The answer is deflationary pressures.
Natural Gas is being discovered at an astounding rate which is driving the price of energy down.
Lattice Assisted Nuclear Reactions are being refined and will be on the market in a few years causing the
price of energy to go down even more.
Saudi Arabia and other OPEC nations are heading for big problems. Consider Venezuela when Oil
reaches $40 per barrel and is still falling? Consider Canada when they put billions into a pipeline to the
Pacific and China cancels their contracts because they are switching to nuclear power. Nigerians and
other poor countries have gotten used to having oil and the citizens are rebelling to get their fair share.
What will happen to them when oil hits $40 and continues to dive in price?
We want to purchase Airline companies because their fuel will be cheaper in the future.
Is GE going to be hurting when windmill projects get cancelled?
Will all solar companies go bankrupt? Some may survive because people can use yard lights with
batteries recharged by solar.
econobot
I read the following observation in September 2009:
• Through August, the federal deficit hit $1.38 trillion, or three times last year's all-time record
deficit of $454.8 billion. And in September alone, the administration expects another $200 billion in red
ink, bringing the total for the year to $1.58 trillion.
• The U.S. government's official debt is now at an all-time high of $11.8 trillion, or over $100,000 for
each and every household in America.
• Both the administration and its opponents agree that, over the next 10 years, the cumulative federal
deficit will be another $9 trillion, driving the burden per household up to $177,000.
• The Federal Reserve is also in hock up to its eyeballs, with more than $2 trillion in liabilities on its
balance sheet. That brings the total burden up to $194,000 per household.
• Perhaps worst of all, the government's unfunded obligations for Social Security, Medicare, and
Federal pension payments are also ballooning higher and now stand at an estimated $104 trillion, or
$886,000 per household.
Total burden per household: More than $1 million!
How will the United States ever meet these obligations?
The answer is deflationary pressures.
Natural Gas is being discovered at an astounding rate which is driving the price of energy down.
Lattice Assisted Nuclear Reactions are being refined and will be on the market in a few years causing the
price of energy to go down even more.
Saudi Arabia and other OPEC nations are heading for big problems. Consider Venezuela when Oil
reaches $40 per barrel and is still falling? Consider Canada when they put billions into a pipeline to the
Pacific and China cancels their contracts because they are switching to nuclear power. Nigerians and
other poor countries have gotten used to having oil and the citizens are rebelling to get their fair share.
What will happen to them when oil hits $40 and continues to dive in price?
We want to purchase Airline companies because their fuel will be cheaper in the future.
Is GE going to be hurting when windmill projects get cancelled?
Will all solar companies go bankrupt? Some may survive because people can use yard lights with
batteries recharged by solar.
econobot
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