I hate to say I told you so, but… As I wrote in January of 2009, the stimulus did absolutely nothing to help the economy, and I’ll prove it. (In fact, it’s likely that the stimulus has made the situation worse).
Just some quick facts:
- National Debt in January 2009: $10.632 trillion
- National Debt as of today (June 30, 2011): $14.025 trillion (a 32% increase in 30 months).
- Number of employed Americans in January of 2009: 140,436,000
- Number of employed Americans in June of 2011: 139,334,000
So the federal government spent (borrowed) $3.4 trillion in the last two and a half years and nothing was accomplished. Just remember, that $3.4 trillion now needs to be serviced with interest payments and eventual repayment (theoretically).
We have the politicians in Washington posturing about raising the debt ceiling and President Obama beating senior citizens over the head with the threat that he’s can’t guarantee Social Security payments if the debt ceiling isn’t raised. But wait, I thought there was a trust fund that would last decades into the future to pay Social Security? Not. The President just admitted that the Social Security trust fund is a sham and scam.
Whether or not the debt limit is increased is irrelevant at this point. The federal ponzi scheme will fail, it’s just a matter of when, not if. Are you ready for the result of an immediate 50% drop in federal spending when the Treasury suddenly can’t borrow any more because the world has had enough or our failed monetary policies?