The U.S. sub-prime mortgage fiasco is just a blip compared to the economic disaster that is coming for Americans. The U.S. government is going trillions and trillions of dollars into debt. There is the war. There is the recently announced rebates for all 300 million Americans. There are hundreds of billions in bail outs of privately owned banks and corporations. The list of unnecessary expenses is lengthy. More than half of all generated government income (mostly taxes) is being used just to pay interest on this debt. Current trends continuing, it will eventually be all of the governments revenue. Then what? Banks only lend money based on collateral or security. In the case of government borrowing, the taxpayer is the collateral. The contracts that are struck between banks and governments include a provision to raise any and all taxes necessary to satisfy the debt. In other words, when the lenders decide they want their money back, the government will comply with the burden being on its citizens. When that time comes, Americans will wish for the easy days of the sub-prime meltdown.
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