The economy is crumbling, unemployment will soon be in double digits, Economic Trends Journal has predicted 12 percent unemployment by this time next year, it has not yet hit bottom the worst in 50 years, debt and deficits continue to explode, new home construction has stopped, GDP has an annual decline of -5.7% the most significant since 1980, given the size of public debt interest rates are extraordinarily low and the government keeps borrowing and expanding.  Government health care will cost $1 trillion, and while the American economy is on its knees begging for forgiveness, it is being stoned by its Marxist-fascist captors.

The US economy is in a crisis long-term interest rates are on course to double, given government borrowing, crippling the country’s ability to pay its debts and plunging it toward the precipice  from which there is no return, the elected wise men in government are debating another stimulus package.  Why, because the last ones worked so well?

As California’s example shows debt outstripped income, the states bond rating has just dropped to triple “B” just above junk, resulting in higher interest rates for its debt, the Liberal Marxist’s in government still have not come to grips with cutting government programs to bring a balance to the budget, giving an insight into the future of the US economy as a whole.  Comrade President Obama and his band of “green” merry men are the most fiscally irresponsible administration in the history of America.  They are borrowing more money than the combined budgets of every administration since George Washington!

While no one will lend to California due to the risk, so will the US face the same situation in the future, as the government growth requires taxpayer funding, as the base of taxpayers becomes greater through unemployment, as cap and trade taxes make US companies less competitive on the international market, as tariffs on imported goods to equal out the disparity in competitiveness are found to be protectionist and could ignite a trade war, Obama’s policies are failing miserably but his propaganda machine, and no sense minions on the street lap up the double talk giving the Comrade in Chief a 58% popularity rating, the beat to the economy goes on.

No one seems to believe that unprecedented expansion of government programs and the Marxist nanny state will lead America out of this depression, even the elected Politburo officials understand that this massive spending and debt creation means poverty for the American people tomorrow, but they continue to spend taxpayer dollars and do not listen to a majority of Americans who want this spending to stop.  No.  Elected officials are listening to Wall Street and bankers such as Goldman Sachs for direction, while they all fill their pockets with taxpayer money.  Then when a return of TARP money is made Congressman Barney Frank does not intend on paying down the debt, no he has other social give away programs for these moneys.  The cycle is unbroken as the economy worsens; self interest, political power, and big business with its green hand out are more than happy to subvert the capitalist system to serve in the new public-private politburo.

With America’s economy slowing to depression speed, entering a fiscal crisis unlike any seen since the 1930′s, with unregulated elected gamblers with fiduciary control doubling down with trillions in bailouts, industrial nationalization programs massive spending increases, creating a business dependency on government prioritized interests not on free choice, now admitting they didn’t realize the economy was so bad, per VP Biden, the idiots are truly running the asylum.

Where is the free American press?  It has come down to bloggers as the free press has its hand in Obama’s pocket with their pants down around their ankles in awe of the double talk while the true issues facing America are not reported on.  However, were Obama a republican, lord how the reporting would be different.  In the end, when times get tough enough, main stream media reporters losing their jobs will have to acknowledge the economy, that is if they are not being funded by a parent corporation that has major Obama “green” contracts to keep the Marxist-fascist propaganda press alive.

A day of financial reckoning is on the near horizon, it will be financially horrific for every American.  While America goes green, other economy’s are building up their international energy supplies and manufacturing base while America’s dwindles.  American products will become so expensive that cheap imports will put more Americans out of work, but they will face a doubling of electric and gas bills along with the higher taxes to pay for saving a planet that needs no saving! Lief Ericson named Greenland not because it was covered with snow, obviously over time the planet has gotten colder!

In a 2003 paper, Thomas Laubach, the US Federal Reserve’s senior economist, calculated the impact on long-term interest rates of rising fiscal deficits and soaring national debt. Applying his assumptions to the recent spike in the US fiscal deficit and national debt, long-term interests rates will double from their current 3.5pc.

The impact would be devastating by making it punitively expensive to finance national borrowings and leading to what Tim Congdon, founder of Lombard Street Research, called a “debt explosion”. Mr Laubach’s study has implications for the UK, too, as public debt is soaring. A US crisis would have implications for the rest of the world, in any case.

Using historical examples for his paper, New Evidence on the Interest Rate Effects of Budget Deficits and Debt, Mr Laubach came to the conclusion that “a percentage point increase in the projected deficit-to-GDP ratio raises the 10-year bond rate expected to prevail five years into the future by 20 to 40 basis points, a typical estimate is about 25 basis points”.

The US deficit has blown out from 3pc to 13.5pc in the past year but long-term rates are largely unchanged. Assuming Mr Laubach’s “typical estimate”, long-term rates have to climb 2.5 percentage points.

He added: “Similarly, a percentage point increase in the projected debt-to-GDP ratio raises future interest rates by about 4 to 5 basis points.” Economists are predicting a wide range of ratios but Mr Congdon said it was “not unreasonable” to assume debt doubling to 140pc. At that level, Mr Laubach’s calculations would see long-term rates rise by 3.5 percentage points.

The study is damning because Mr Laubach was the Fed’s economist at the time, going on to become its senior economist between 2005 and 2008, when he stepped down. As a result, the doubling in rates is the US central bank’s own prediction.