'Are you ready for third-world America?'

Writing at Zero Hedge, Phoenix Capital Research lays out President Obama's endgame. Spoiler: it won't end well.

The US economy is literally on the ledge of a cliff.

Today, the Federal Government accounts for 35% of incomes and salaries in the US. That’s over one third of all income in the US coming from the Government’s ability to dole out funds.

What supports this largess?

Money printing and our ongoing debt-orgy. And today, these are one and the same. The US Federal Reserve and Treasury have enacted policies so insane that the US Federal Reserve is now the single largest holder of US Debt with a balance sheet of $2.8 trillion.

Let’s give that number some perspective. Germany, the world’s FOURTH largest economy is only $3.3 trillion in size. At $2.8 trillion the Fed’s balance sheet is larger than the economies of France, the UK, and Brazil.

Why is the Fed’s balance sheet so huge? Because US Treasuries are so unattractive to foreign Governments that the Fed has had to pick up the slack and buy our debt (usually within a week or two of it being issued).

Let me rephrase that: the US Fed is now printing money so it can buy US Debt because other investors are no longer interested in buying it.

This is just one of the various schemes Washington is employing to maintain its fiscal insanity. Another is the active raiding of pension funds to buy new US Debt (YES, the Treasury is doing this).

So... the US Government is now paying over 1/3rd of US incomes… and it’s financing this by having the Fed buy new debt from the Treasury.

Do you think this entire system might end up collapsing in a horrific manner?

Unless Barack Obama is summarily voted out of office in 2012, I fear this Republic will not survive.

The laws of mathematics simply cannot be defied; and the president's failure to propose a budget, his unprecedented deficits, his failure to address collapsing entitlement programs (and, in fact, accelerating their collapse), and his non-stop attacks on the private sector (the oil, health insurance, banking, and pharmaceutical industries, to name but a few) will result in certain catastrophe.

It's not different this time and, should he win a second term, Obama's reckless, feckless, selfish leadership will almost certainly doom the most magnificent society ever seen on Earth.

And perhaps that's the intent of the man who marinated in the teachings of Frank Marshall Davis, Jeremiah Wright, Rashid Khalidi, Bill Ayers, and numerous other America-hating crackpots.

Are you motivated for 2012?