With the oncoming global economic implosion the deficit would theoretically expand at light speed, however, it won’t. It won’t because between now and then either a world wide coordinated reset of the entire credit based financial system will occur, or governments around the world will simply default one by one. The marketplace will eventually get what it demands, a rejection of the fractional reserve central bank manipulated finance capitalist system. It is a system designed by bankers for bankers that generates fiat wealth for an decreasing pool of the global few. It can not and will not survive.
Capitalism, as with all of the major “isms” is an evolutionary term, itself describing the evolutionary process of an extraordinarily complex adaptive system, that of billions of individual human beings interacting 24/7 now at the speed of light, in a global neural network far more vibrant than the current finance capitalist system and the anachronistic centralized coercive government architecture can adapt to.
The Anglo-American credit-finance capitalist system, along with the increasingly desperation and crisis driven response of the centralizing state that supports it, can neither control nor adapt to the turbulence ahead. There are a few absolutes in this world of ours, despite the reigning meme of relativism, one of which is the sanctity of the individual human beings personal freedoms, the rights to his own body and mind and all that flows from that. The current form of capitalism, which really has become a global crony fascism fully integrated with coercive police states around the world, can not support the freedom of billions of individuals unyoked from government control nor from the slavery of debt and thus seeks even greater control and indentured servitude. It is the response one would expect, authoritarian tyranny, however it is the exact opposite of the response required that would allow the necessary adaptations to a new dynamic economic and social equilibrium. It will fail. It will make the process of change far more turbulent and far more dangerous,
The period of evolutionary change we are in is best described as “punctuated equilibrium” which is a period of tectonic paradigm shifts that can only occur under intense pressure and dislocation. The old system and most of its still vibrant “isms”, capitalism, socialism, communism, fascism etc. will all be either transformed beyond their historical restraints or perish from the active lexicon of humanity.
Of all the failures of recent Congresses and Presidents, none is more important than their failure to deal with the nation’s long-term debt. Although Congress tied itself in knots trying to address the problem, the growth of debt remains, in the words of the Congressional Budget Office, “unsustainable.”
Debt figures tell part of the story. When the Great Recession hit, the federal debt was equal to about 40 percent of GDP. But to fight the recession, Congress enacted an $800 billion dollar stimulus bill. Stimulus spending, combined with already enacted spending and tax policy, resulted in four years of trillion dollar deficits. As a result, the debt ballooned to 78 percent of GDP in 2013, almost twice the pre-recession level. The annual deficit is now declining at a stately pace, but by 2016 it will begin increasing again, and by 2020 under CBO’s alternative fiscal scenario, we will once again return to annual deficits above a trillion dollars, thereby once again greatly increasing the national debt.
CHINA: Will become the world’s Central Bank?