Is the U.S. going broke? That's what Osama bin Laden predicted.

Is the U.S. Going Broke?
Laurence J. Kotlikoff 09.04.08, 6:00 PM ET
Forbes Magazine dated September 29, 2008

Now that the federal government has bailed out Fannie and Freddie, who's going to bail out the federal government?

...Uncle Sam, for all his righteous indignation, is, in fact, the father of all deceptive accounting. The government has arranged its budgeting to keep the great bulk of its liabilities off the books and out of sight. The real liability facing our government is $70 trillion. This represents the present value difference between all the government's projected future spending obligations and all its projected future tax receipts...

The Federal Deposit Insurance Corp. has $45 billion on hand to cover bank failures, such as that of Indymac earlier this year, which cost the FDIC $9 billion. Large-scale bank failures could leave the FDIC short hundreds of billions of dollars. The total of insured deposits in this country is $4.5 trillion...

The earthquake will come via a collapse in the market for U.S. government bonds as domestic and foreign investors realize that the only way Uncle Sam can meet his future spending obligations is to print massive quantities of money. The result will be sky-high inflation and interest rates and, most surely, a prolonged reduction in output and employment. This could happen today. It could happen tomorrow. But it will happen here just as it has happened in every other country that tried to spend far beyond its ability to pay...

(More at the link. Now compare that Forbes article headline with this one from CNN in 2004)

Bin Laden: Goal is to bankrupt U.S.
Monday, November 1, 2004 Posted: 8:07 PM EST (0107 GMT)

(CNN) -- The Arabic-language network Al-Jazeera released a full transcript Monday of the most recent videotape from Osama bin Laden in which the head of al Qaeda said his group's goal is to force America into bankruptcy.

"We are continuing this policy in bleeding America to the point of bankruptcy... We, alongside the mujahedeen, bled Russia for 10 years until it went bankrupt and was forced to withdraw in defeat..."

"All that we have to do is to send two mujahedeen to the furthest point east to raise a piece of cloth on which is written al Qaeda, in order to make generals race there to cause America to suffer human, economic and political losses without their achieving anything of note other than some benefits for their private corporations," bin Laden said...

"Every dollar of al Qaeda defeated a million dollars, by the permission of Allah, besides the loss of a huge number of jobs," he said. "As for the economic deficit, it has reached record astronomical numbers estimated to total more than a trillion dollars.

The total U.S. national debt is more than $7 trillion. The U.S. federal deficit was $413 billion in 2004, according to the Treasury Department...

"And it all shows that the real loser is you," he said. "It is the American people and their economy."

(If bin Laden were alive today, he would be laughing his head off)