Sifting through the projected balance sheet of our government and despite what is being said on TV, the numbers show a doubling of the spend of the Federal government. This will incur higher debt to GDP ratios than ever before in US history and higher taxes. Deficit is projected to be 1.5 Trillion this year and stays over a TRILLION until 2012. This also ASSUMES that our economy will have GROWN from 14.2 trillion in 2008 to 16.4 trillion in 2012. So much for all that 24 month recession/depression talk from the FED. Oh and PS… 2009 the government says will be a GROWTH year from 14.222 trillion to 14.240 trillion. Granted very small growth, but I thought we were in ‘dire’ times that we ‘haven’t seen since the depression.’
Therefore the reality-enomics of this is that the deficit will be much worse that projected and the tax bill that they are projecting to pay for this doubling of the government will be much higher. Gold is starting to look cheap at 1,000 dollars.