In our recent discussion, many of you say that this financial situation the nation finds itself in is fixable. All we have to do is eliminated this Federal department, that one, and then convince the recipients of all the Fed Bucks that it’s for everyone’s benefit that they stop getting government checks. Do you even hear what you are saying? Comments like this are simply not realistic:
- Once DOGE is done and we quit using the Federal Reserve Note…
- Flat Taxes have to come with spending cuts and entitlement program reform…
- Did you know that snowballs last longer in hell if you put little hats on them?
Ok, that last one is me. Still, there is no way that millions of Federal employees, a hundred million welfare recipients, and 70 million Social Security recipients are going to sit idly by while DOGE and DJT tell them that the money faucet is being shut off. Even the medical field, my own profession, cannot survive without government money.
- In 2022, 53% of Americans received at least a quarter of their income from government aid, up from 1% in 1970.
- Government transfers account for 18% of all personal income in the United States
- One in four Americans received Medicaid in 2022
- One in five Americans received Medicare in 2022
- One in five Americans receive Social Security
- 12% of Americans are on Food Stamps, and 39% of children in school receive free lunches at school
- In fact, Americans received $3.8 trillion in government transfers in 2022
- Then there are employees. There are 28.5 million people directly employed by governments in the US.
- Millions more are employees of businesses that owe their livelihoods to government largesse.
More than half of the residents of this nation are net receivers of government funds, and there is no recovering from that. To illustrate- what would you say if DJT and DOGE announced tomorrow that to save the nation, the entire Social Security and Medicare system was ending on January 21, but the taxes would remain in order to pay off the massive $40 trillion in debt? Would you be OK with that, or would you scream some variation of “That’s my money! You took it from me, and I want it back?” Or would you calmly walk into personal bankruptcy, secure in the knowledge that your personal sacrifice saved the nation?
Call it doomsaying, call it black pill, call it what you want- but saying that we can vote our way out of this is foolishly mistaken. There are no cuts, no magic wand waving, and no solution that the people of this nation will accept until they are forced to accept it. This only ends when the current system collapses.
Whatever your own personal theory on how to save this sinking fiscal ship, there isn’t one that enough people will accept that will be doable. It just isn’t going to happen. Instead of fixing it, we kept kicking the can down the road, and we will continue to do so until it all collapses.
This isn’t a new thing- I have been telling people this for 20 years.
30 Comments
Gerry · December 6, 2024 at 9:36 am
In 2022, 53% of Americans received at least a quarter of their income from government aid, up from 1% in 1970.
I suspect a large portion of that is due to Boomers age for Social Security payments.
I also suspect a large amount of disability claims that has grown. We are bombarded by lawyer advertisement for help in getting payment “That you are owed! Add in survivor payments to kids in their 20’s and the Social Security Administration has grown like a cancer.
Joey · December 6, 2024 at 2:15 pm
The interest on the debt goes to 133 individuals who own the banking system. Cancel the debt by issuing lawful Congressionally issued money. The globalist oligarchs will get by on the trillions of dollars they already have. JFK tried to do this that’s why They killed him.
Divemedic · December 6, 2024 at 9:24 pm
Interest on the debt goes to anyone holding Federal bonds or T-bills. I have about $20,000 worth of I bonds. The rate for I bonds is currently 3.11 percent.
Noway2 · December 7, 2024 at 11:58 am
I put $10k in I bonds back in 2022 when the interest rate was like 9.6% and when the current rate dropped to 3.1%, I cashed them out for about $11,500 and put them in my brokerage account. I’ve been buying 4 week T-bills at auction (you get the average auction price) and my plan is to roll them over so that $2k matures every week. $1k bills gets bought for something like $992 and change and then when it matures $1k goes back into your cash account. It’s not a lot per transaction, but it works out to be like 4.6% interest, which is great for funds that I consider to be emergency cash. The bills can also be sold on the open market at any time.
JimmyPx · December 6, 2024 at 9:45 am
This is the cold HARD truth that no one wants to accept.
Many of the readers on here are “cut cut cut” but are on Social Security, military pension, getting Medicare or VA benefits and see what they say if you talk about cutting those “benefits”.
Trump and Elon remind me a lot of Gorbachev who tried to save the USSR by putting bandaids on a terminal patient. It is too little too late just like the USA and collapse is coming eventually.
The one event that WILL finally collapse the system is when BRICS takes over as the reserve currency.
On that day everything in the USA changes. We can no longer print money because no one has to accept our money which is backed by NOTHING. Since most goods are imported prices will skyrocket. NO ONE will buy our debt, so deficit spending has to come to an end.
The only way to cut the budget will be to cut entitlements and when they do there will be howls and screams and riots like you have never seen when people’s freebies and free ride comes to an end.
Aesop · December 7, 2024 at 9:21 pm
Good luck with that fond wish.
BRICS is already imploding.
TJ · December 6, 2024 at 10:26 am
Really, really wish you are wrong. But I can’t think of a reason why. Best option at this point is a relatively calm collapse like the Soviets. I lived there at the time. Lots of poverty and stress as everyone kind of slid down the economic scale so that 100% now fit into 35%. Many changed hearts and after 20 years, they found God and rebuilt. White pill ending to a black pill state.
BobT · December 6, 2024 at 10:33 am
I guess we should agree to disagree. I am NOT attacking anybody for their belief system. I also am NOT interested in dragging anyone across any line or anything else. You can argue for your educational limitations and believe that the system will never change – I can see that myself with over 100 years of the Federal Reserve Note and that they have literally bought up and taken control of everything with the capacity to print FED Notes from thin air.
I however choose to believe that a new system to replace all of this is nigh at hand. AND I never claimed that people would not receive their benefits – they will be received under the new system. There is way more information that I could give, but I hate people that write books on a blog comment.
I am done here, good-bye.
Charlie · December 6, 2024 at 2:46 pm
Who licked the red off of his candy cane?
Jonathan · December 6, 2024 at 10:39 am
Is the US budget situation fixable?
In theory, yes. In practice? No.
Too many people have a vested interest in keeping the system the way it is as long as possible.
I don’t think we can reform the system to survive long term without a crash or before major economic (and probably other) changes.
This is exactly why Jefferson supported property ownership requirements to vote – too many people today vote for the short term and for what they can get from the government.
My biggest concern is how the government will come down on those who have taken care of themselves.
Yet more reasons to stay quiet and away from people as much as possible.
Anonymous · December 6, 2024 at 12:06 pm
I agree that the financial mess is not fixable but instead of targeting Social Security how about we just end all welfare programs? You had all those babies, now you pay for them…
Diane
Divemedic · December 6, 2024 at 9:27 pm
You can, but SS is the unaffordable 800 pound gorilla in the room.
Steve · December 7, 2024 at 12:57 pm
SS is not a big deal. It’s within spitting distance of being solvent. As it should be. The tax rate is about the same as a maxed out 401(k), so it should be swimming in cash, and would be, if it hadn’t been looted.
Medicare/Medicaid is the huge problem, as it’s tax rate isn’t even remotely close to what’s needed. And its reimbursement rate has forced all the costs they won’t cover onto mostly private insurance.
Chutes Magoo · December 6, 2024 at 12:34 pm
Money is created out of thin air, it should be easy to un-create it also! Odious compound debt is voided and the money changers get to eat the results on their end. It’s their lavish lifestyles that come to an stop not Joe 8pack. Gov issues currency only as an means of conveyance without the compound interest, thereby cutting out the parasite class completely. This seems very simplistic to what appears complex but I believe it’s one way out!
Divemedic · December 6, 2024 at 9:26 pm
And whose money are you planning to “un create”?
SoCoRuss · December 6, 2024 at 12:51 pm
BRAVO DM, BRAVO.
And for those of us who haven’t lived in debt and worked hard and sacrificed for a nest egg to save money and now you feel a little safe. Never fear .gov WILL come in and take what you have to give to the parasites who partied like it would never end society.
This will not and cant be fixed, just accept it. But remember who got us here and make dam sure they and their families pay, not a threat oh no just a marker.
The UHC CEO shooter may be the start of we aren’t fucking taking it anymore, you have a name and a address, time will tell..
SoCoRuss · December 6, 2024 at 12:55 pm
One last comment, if they were even a little serious about trying to fix this. The first thing that has to be done is, If you are on welfare/medicaid you cant vote as long as you are on it, sorry no more voting yourself more money.
Mr Weebs · December 6, 2024 at 5:21 pm
I worked pretty hard my whole life at a thankless job I believed in so I get pretty ticked when I hear how SS is an entitlement. Had the government not pillaged it, I’d be doing way better while I see illegal aliens – I mean criminals – walking across the border for more than I see. Fazook that!!
Divemedic · December 6, 2024 at 9:22 pm
All “entitlement” means is the you are entitled to it by law. So yes, SS is in fact an entitlement.
Jonathan · December 7, 2024 at 6:18 am
Don’t forget that under the current system most people will get far more under Social Security than they paid into it, especially when you consider the anemic interest the system includes.
JD · December 6, 2024 at 5:47 pm
Sir,
Anyone with a working knowledge of history can see financial collapse is inevitable. There is no other logical way for this to end, and to think otherwise is optimistic foolishness. Thank you for stating the cold truth for those out there that need to hear it and prepare themselves. Could you possibly pen a article on when you think this will occur? Or what triggers will set it into motion?
Ozborn · December 9, 2024 at 3:56 pm
I’ll hazard a guess: the next stage is runaway inflation as it becomes evident to all and sundry the USA cannot grow out of the deficit and cut sufficiently to rebalance/stabilize. As inflation rises, the government will finally face the need to eliminate some of the money.
One possible scenario – a currency devaluation, that protects some level of funds (FDIC deposit insurance levels perhaps?) and wipes out or drops by 90% the face value of the remainder. Same action taken against other financial asset classes (stocks, retirement accounts, etc.) would eliminate a significant portion of the dollar money supply.
Whatever happens, there’s going to be mostly losers. And the winners are all going to be actively producing something needed at the time. Retirees without family support from younger, working relatives will almost certainly starve.
Divemedic · December 9, 2024 at 4:36 pm
Things that aren’t denominated in dollars would be winners there. Stocks, bonds, and other financial products would take a bath. Real estate, tangible assets like PMs, oil, and commodities would be the winners.
It would also trigger a massive economic collapse.
J J · December 6, 2024 at 9:41 pm
“ This isn’t a new thing- I have been telling people this for 20 years.”
The voice of one crying in the wilderness.
Mid 60’s boomer, nothing ahead but working until my body gives out. The social security I was planning on having for retirement isn’t going to be there. It took me way too many years to emerge from the fog of normalcy bias and realize that the government is the greatest threat to my well being. Not that I could have changed anything other than preparing my children to better prepare for the collapse in order that my grandchildren have some chance at a life of liberty.
Dufus · December 7, 2024 at 8:31 am
Can’t we grow our way out of this, by eliminating requirements for low-flow shower heads and restoring freedom of association?
Divemedic · December 7, 2024 at 9:08 am
It was possible once, but at this point? Our current debt is more than 125% of annual GDP, so even if we had the political will, it’s nearly impossible.
However, any legislator who proposes cutting any giveaway program can measure his remaining time in office in seconds. For that reason, there is no getting out of this.
Steve · December 7, 2024 at 1:02 pm
Cut or crash. Those are the only two possibilities.
Business as usual, or magic money printing, or reneging on the debt, or whatever else are kind of like Wile E. Coyote falling off a cliff, but climbing on top of whatever is falling with him. At best, it buys the blink of an eye, and, realistically, just adds to the damage when the anvil you tried to buy time with hits you on the head.
foot in the forest · December 7, 2024 at 6:53 pm
You do not need to get rid of any programs, reform anything, cut back any spending or any other such solutions. The simplest way to get rid of the problem is to unplug the grid. He who rules in hell, still rules.
Aesop · December 7, 2024 at 9:18 pm
IDGAF If they “sit idly by” or not.
Once the federal employees get marched out of the building by security, they’re civilians, and all they can do is piss and moan, the checks stop flowing, they have to compete for private sector jobs, and gravity takes care of about 95% of the other problems.
Let’s start with that, and then see how it goes afterwards.
lynn · December 10, 2024 at 8:48 pm
“The Mandibles: A Family, 2029-2047” by Lionel Shriver
https://www.amazon.com/Mandibles-Family-2029-2047-Lionel-Shriver/dp/006232828X
“In 2029, the United States is engaged in a bloodless world war that will wipe out the savings of millions of American families. Overnight, on the international currency exchange, the “almighty dollar” plummets in value, to be replaced by a new global currency, the “bancor.” In retaliation, the president declares that America will default on its loans. “Deadbeat Nation” being unable to borrow, the government prints money to cover its bills. What little remains to savers is rapidly eaten away by runaway inflation.”
Highly recommended.
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