Tag: deficit

Bankruptcy of U.S. government “mathematical certainty” says banker

3:22 pm

The former CEO of one of the nation’s largest banks says that unless the federal government gets its budget under control, bankruptcy is a “mathematical certainty.” I especially like this quote from the CEO, John Allison, in describing the past history of Fannie Mae and Freddie Mack:

“I was on a committee, a Financial Services Roundtable, for nine years trying to do something about Freddie Mac and Fannie Mae,” said Allison. “You couldn’t help but see it coming,” he said. “You ran the numbers, particularly the last several years, and it was mathematically certain Freddie and Fannie were going bankrupt.”

“We met with Congress. We met with [House Financial Services Chairman] Barney Frank and [Senate Banking Chairman] Chris Dodd and they absolutely wouldn’t see it,” said Allison.

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Federal spending is out of control and NASA’s gonna get what it wants?

10:58 pm

You think NASA’s going get money this year or next? Or ever? In one graph (see below), this article shows how completely out of control federal spending has become, beginning in 2007, with no end in sight. Key quote:

Until this skyrocketing spending growth is arrested and reversed, we suspect that government spending has become disconnected from the ability of any American household to support it.

out of control

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There simply is no money for NASA

12:01 pm

All the discussion about the future of NASA must be put in some fiscal context, and here it is: the Debt and Deficit Commission that the Obama administration created to review the spending problems of the federal government has some bad news: there literally is no money for anything but Social Security, Medicare, and Medicaid. Key quote from the Washington Post article:

The commission leaders said that, at present, federal revenue is fully consumed by three programs: Social Security, Medicare and Medicaid. “The rest of the federal government, including fighting two wars, homeland security, education, art, culture, you name it, veterans — the whole rest of the discretionary budget is being financed by China and other countries,” Simpson said.

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