This post is a response I made to a friend who sent the link at the end of the post. I will write a more complete treatise on the debt issue, but perhaps the information here will be helpful. As always, I invite comment and critique.Please go to the link.
Information in the link below has been around a while and is chilling each time I see it. Unfortunately, he is correct. There are a few points, facts and fallacies that aren't reported. One fallacy is the way government reports total debt and debt-to-GDP (a critical factor in paying it). You may have seen my reports that the real debt-to-GDP is 107% and rising while gov't reports say about 70%. BIG Difference! $5 Trillion of the $15+ Trillion national debt is to the Social Security Trust Fund (owed to ourselves as the gov't sees it). There is no intention to pay this. I've speculated on this for 2-3 years and finally an Obama shill said exactly those words in a debate. So, I consider this proof.... although it is undeniable from other evidence.
Then the question is, Does government intend to pay off the remaining debt? My conclusion is that they cannot possibly intend to pay it with dollars of current value....NO WAY. So, absent a doubling-to-tripling of the economy and tax revenues, which absolutely cannot and will not happen, the only "solution" is to monetize the remaining 2/3rds. Of course, this portends the same for the SS debt if they didn't plan to write it off. In fact, it is essentially written off now....they don't even consider it!!
Once the asset deflation spiral subsides, we must see a large inflationary spiral. I have thought it would have come by now, but The Fed has held it off and asset devaluation (led by housing) has prevailed. The Fed is out of arrows in their quiver in spite of commentary to the contrary. A Weimar-like event is possible, although I pray it doesn't happen.
I've never bought in to conspiracy theory, but for the first time I am about to think Obama wants a total meltdown. There are definite signs now. The bad news is..... 40% of voters seem not to have a clue or to care.