President Obama faces THE MOST DIFFICULT economic issue ever to confront an American President.
Throughout our nations history, we have been a nation where the PRIVATE economy generated sales and profits and supported our government and its currency. As time passed our private industry grew and so did our government......but a few decades ago our private side failed to keep up with the growth of government and government grew and grew and grew becoming a more important part of the economy as each year passed.
Right now our total government spending is about $6.5 Trillion dollars........about half of our GDP.
Unfortunately, after popping the debt bubble of the last ten years....our private economy is simply too small to sustain a government with $6.5 Trillion in spending.....and that spending drives our entire economy including health care, defense, and welfare which drives trillions into the private sector.
As a nation, we are now only generating about $3.5 to $4 Trillion dollars in tax revenues......and a HUGE gap is forming......and the outlook for the gap to widen is almost assured with an aging population and more and more becoming un/underemployed.
HERE IS PRESIDENT OBAMA'S MASSIVE PROBLEM:
If government slowed spending to match receipts, our nation, and the world, would immediately implode into the biggest depression in history.......if government keeps spending money it doesn't have......our currency will collapse as few will want to deal with a country that produces very little and has such a MASSIVE social welfare spend while their own citizens are living at a much lower standard.
In sum, our President has two choices.......a depression where we restructure and start over or hyperinflation with a depression where our currency is worthless and nobody can afford to fill up their cars with gas unless they live outside the U.S...
War is always a third alternative.