The Collapse of the U.S. Economy and Government Finances

America’s Fiscal Collapse: Obama’s Budget Will Impoverish America

March 16, 2009

Global Research - The administration’s 2010 budget will entail the most drastic curtailment in public spending in American history, leading to social havoc and the potential impoverishment of millions of people. Defense spending and bank bailouts will consume all government revenue resulting in fiscal collapse that will lead to the privatization of the state...

As General Motors Goes, So Goes the Nation

March 11, 2009

The Cutting Edge News - General Motors was founded in 1908 in Flint, Michigan and grew to be the largest corporation in the world... The story of General Motors is in many ways the story of America... GM’s rise to power and decline towards insolvency parallels the rise and fall of the Great American Republic. Overconfidence, hubris, lack of courage, foolish decisions made and crucial decisions deferred have been the hallmarks of GM and U.S...

Congress Approves Massive $410 Billion Spending Bill

March 10, 2009

AP – Congress on Tuesday sent President Barack Obama a once-bipartisan bill to fund the domestic Cabinet agencies that evolved instead into a symbol of lawmakers' free-spending ways and penchant for back-home pet projects. The Senate approved the measure by voice after it cleared a key procedural hurdle by a 62-35 vote. Sixty votes were required to shut down debate.

Obama is expected to sign the measure Wednesday to avoid a partial shutdown of the government. But the White House has kept the bill at arm's length, calling it last year's business. Obama is also set to announce steps aimed at curbing lawmakers' so-called earmarks.

The $410 billion bill is chock-full of those pet projects and significant increases in food aid for the poor, energy research and other programs. It was supposed to have been completed last fall, but Democrats opted against election-year battles with Republicans and former President George W. Bush...

The the bill ran into an unexpected political hailstorm in Congress after Obama's spending-heavy economic stimulus bill and his 2010 budget plan forecasting a $1.8 trillion deficit for the current budget year. And Republicans seized on Obama's willingness to sign a bill packed with earmarks after he assailed them as a candidate...

Cash-Starved States Need to Play the Banking Game: North Dakota Leads the Way

March 7, 2009

Web of Debt - Forty-six of fifty states are insolvent and could be filing Chapter 9 bankruptcy proceedings in the next two years. One of the four states that is not insolvent is an unlikely candidate for the distinction – North Dakota. What does the State of North Dakota have that other states don’t? The answer seems to be: its own bank...

Criminal Aliens Invading U.S. While President Obama Fiddles

March 5, 2009

Canada Free Press - It’s old news that the Mexican government exports Mexico’s poorest citizens into the United States for a number of reasons: It relieves them of the responsibility of providing social and healthcare services for them; it provides their country’s economy with an influx of US cash when these illegal workers send money they earn in the US back home; and it defuses problems with far-left groups who are usually successful in using the poor to advance their political agenda...

U.S. Debt Limit Hike to $12.1 Trillion in Stimulus

February 12, 2009

Reuters - U.S. borrowing authority would rise to $12.1 trillion under an economic stimulus bill rapidly moving through Congress, congressional aides said on Thursday.

Congress must authorize any increases in the federal government’s credit limit, which currently is set at $11.3 trillion. But with government spending rapidly escalating — because of financial industry bailouts, the Iraq war, increasing costs of retirement and health care programs and the $789 billion economic stimulus bill moving through Congress — the Treasury Department is rapidly closing in on the limit.

The U.S. debt currently is slightly more than $10.7 trillion. When President George W. Bush took office in 2001, the U.S. debt limit was around $5.7 trillion and debt rapidly rose through the eight years of his presidency.