Federal Budget Bubble Is About To Burst

Online, November 12, 2010 (Newswire.com) - The 2010 Federal budget has reached a record high of $3.55 trillion, eclipsing previous budgets and with projections of going even higher next year.

But just like the dot com bubble of the early 2000s and the housing bubble from the past two years, the federal budget is at the brink of falling to levels not seen since 2004. A free fall of public sector financing and military and entitlement spending.

With the growing wave of support for a balanced budget and the recent wake up call sent to Washington by the voters of the country, the spending levels could fall to $2.3 trillion to equal the total receipts brought in. There has already been work by the president's Debt Commission and talk by newly elected Senator from Kentucky, Rand Paul, of proposing a balanced budget.

With just under $3 trillion being spent right now by Social Security, Medicare/Medicaid, Unemployment, interest on the national debt and the military, it's going affect a lot of people as these spending items start losing funds. And with the rest of discretionary spending at $700 billion, there will be a lot of public sector jobs lost and people who's lives revolved around a government paycheck will be hit hardest, like the construction workers during the housing market crash.

Those who see the crash coming need to start assessing their own sources of income and if it is mainly coming from the public sector, they will need to start finding alternative sources of income or experience the same hardships as the dot com investor who put all of his money into pets.com only to find it all gone within days.

With the military, social security and medicare/medicaid having the biggest budgets it is plain to see that these will be hit the hardest. Although social security is something that people have paid into their whole lives, the federal government sold those people out decades ago as they used that money for other spending and it is now just a regressive ponzi scheme, taking from taxes from one group and cutting checks to another.

Those who don't believe that a Federal Budget bubble can burst need only look to places like Greece and other European countries to see that it is already starting and will only be a matter of time before it happens to the United States.

It's time to get out of the public sector, before it's too late.