Sources: “Deficit Projected to Soar with New Programs,” The Washington Post, 26 August 2009; “Obama’s Tripling of the National Debt,” The Heritage Foundation, 28 August 2009; “Stimulus? There’s No Stimulus Here,” The Wall Street Journal, 11 January 2010; “China bidding dollar goodbye? Harvard economist says currency dying ‘slow death,’” WorldNetDaily, 23 October 2009; “Dollar Reaches Breaking Point as Banks Shift,” Bloomberg, 12 October 2009.
Massive stimulus programs with primary effect of wealth transfer rather than productive investment have ballooned the government debt in both the near- and longer-term. This debt will require historic government borrowing predominantly from foreign sources, providing tremendous leverage by China and other creditor nations and placing the dollar at risk of mass devaluation and loss of reserve currency status. Such trends compromise the U.S. economy and hinders future governmental ability to fund national defense, essentially mimicking several factors that led to collapse of the Soviet Union.