Thursday, February 18, 2010

The Unsustainable Truth-4

Now let’s come to the United States. The same story that is being played in Europe is being played here too. Too many unfunded promises have been made to the citizens without any corresponding money. We have promised so much to so many people that the present generation (which will become the future) will be hard pressed to pay for it and expect something or anything in return. We are accumulating so much debt to pay for just four of the entitlements that we would not be able to do anything with our development. The four liabilities are Medicaid, Medicare, Defense and Debt interest obligations. Time is not far when we will be issuing debt just to pay the interest on the previous debt.

Our biggest obligation which our European counterparts have not be deal with is the Defense budget which is more than the GDP of Greece. Nobody is saying here that we should ignore defense but come on. How much do we have to spend on defense on borrowed money? As I said in my previous posts last year that we need to get our troops out of the harms way in countries which don’t need us anymore (like Japan and Germany) also Iraq has been stabilized so we can wind down our commitment there and bring our troops home. In previous years we could have supported our troops in other countries but now with this economic mess we are in, we can no longer pay for these troops being stationed overseas in countries which are the richest in the world.

Nobody (the politicians and the common folk alike) has bothered to talk about our defense obligations in Germany and Japan. We have stationed troops there like it is still the cold war (by the way it has ended 20 years ago).

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