Conservative commentator Rush Limbaugh says the U.S. is on an unsustainable course; there isn't enough money from taxes to pay everyone lifetime healthcare, lifetime pensions, and hefty incomes. The federal government now spends 50 percent more than it takes in. Social Security and Medicare are on the brink of insolvency and are little more than government Ponzi schemes. Soon there will be more people on welfare than not. Borrowing and printing more money will no longer save the country from defaulting, because our debt will soon be so high other countries will not want our dollars.
Earlier this year, three financial analysts predicted financial meltdown will take place in less than a year. Author Robert Prechter, who wrote the book Conquer the Crash, sees economic parallels to the Great Depression and predicts the illusion of a recovery will fail like it did in the 1930s. Art Laffer, the economist who invented the Laffer Curve, predicted a crash in 2011 if the Bush tax cuts were not extended. Since Obama backed down and extended the tax cuts through 2013, the crash has been delayed.
Economist John Williams predicts that a hyperinflationary Great Depression will take place by 2014. Investment banker Martin Hutchinson believes that the next stock market crash will be worse than Black Monday, the 1987 crash which dropped lower than the 1929 crash. The 1987 crash did not trigger a depression because there wasn't an accompanying collapse of the banking system. Hutchinson warns, “We are living in the greatest debt bubble in the history of the world and Wall Street has been transformed into a giant casino that is based on a massive web of debt, risk and leverage.“
In Honor of His 103rd Birthday, Here Are The 20 Best Quotes From The Late, Great Milton Friedman | John Hawkins