The Federal Reserve is in the process of pumping an additional $600 billion into the economy, but even with that drastic step, they are revising growth estimates for 2011 downwards to 3 to 3.6 percent. In a $14.8 trillion economy, that amounts to a total growth of perhaps $440-530 billion, roughly $100 billion less than the second round of quantitative easing, which should provide for more than a 1-to-1 affect. This is also in addition to the $1 trillion plus deficit that the federal government expects to run.
Simply put, we are living beyond our means. To be optimistic, we are stealing money from our children; realistically, Greece, and now Ireland, are demonstrating to us that the effects of this debt will hit sooner rather than later. Within the next 10 years, and perhaps much sooner, we will likely see our economy in total collapse unless we take drastic actions to eliminate our deficits and to reign in the Federal Reserve. Unfortunately, few of our congressmen - on either side of the aisle - have expressed any real interest in making this happen. In fact, even when the deficit commissions released their ideas, there was stunning silence on the Hill, even from sponsors of such a commission such as our own Rep Frank Wolf (R, VA-10).