Mac Slavo
February 10, 2011

With over $200 trillion in committed liabilities the United States is very quickly nearing utter disaster. With most Americans calling for governments on the federal, state and local levels to cut spending, there’s one organization that will have none of it – the American Federation of Government Employees (AFGE).

According to AFGE President John Gage, you need professional help if you think spending cuts are the answer:

When people say, well, we just have to pay less in wages, whether it’s private sector or public sector, I think they’re mentally retarded to say something like that.

John Gage and the AFGE, which is the largest federal union in the U.S.A., represent some 600,000 federal and D.C. government employees who have been living off the taxpayer teat for decades. We’re at the point now where there will be forced austerity measures – the government has no choice.

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The fact of the matter is that one must be mentally challenged, especially when it comes to basic arithmetic, to believe that wages can be increased and public sector employee pensions can be maintained at current levels while retaining purchasing value. It is simply not possible.

Either the spending austerity is going to come in the form of voluntary wage cuts and pension concessions, or both will be wiped out by a steadily depreciating U.S. dollar – the likely outcome may very well be both.

The AFGE’s membership has no clue what’s about to hit them, because they’re simply not paying attention to the warning signs and remain focused on the old paradigm, where excessive government largess  was distributed within bureaucracies built on a culture of mediocrity and corruption. They and many others will Wake Up to the Danger After It Has Already Happened.

We’ve now run out of money – real money that is. Sure, we can continue to print dollars and we probably will, but we all know the end result of that misguided solution.

As we pointed out in June of 2010, we can expect 2 Million Layoffs By State and Local Governments before this is all said and done, and that’s if government employees are lucky – it’ll likely be much more. We’re already seeing massive cuts in the government workforce, especially on the local levels in essential emergency responder personnel. Just recently, the city of Houston, TX began forced furloughs for teachers in the Houston ISD. These are not isolated incidents. It’s national, and it will continue.

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Today, these protesters are walking the picket line in the hopes the government, acting in their interests and through the use of force, will seize more money from an already dwindling tax base. But soon, these same people will be rioting in the streets when they can no longer afford food and critical medical services.

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