For many years money paid by the public into the social security system and medicare have been used for current government expenditures. In a very few years those systems will start running a deficit and the combined deficit will add to the existing deficits in the government accounts, which are expected to increase exponentially, not only because of the hugely expensive „bailouts” since 2008, but also because of two other pending and very expensive programs, if they are in fact adopted by the U.S. Congress:
Despite the best efforts of the administration to claim that the Copenhagen climate summit was a success, the fact is that it was a total failure, with nothing of importance agreed-to, even in an informal, non-binding fashion. Not even a subsequent meeting was agreed-upon, usually the absolute minimum to come out of an international conference. This dismal failure is likely to make it impossible for the administration to get a climate bill passed (the so-called „cap and trade” bill). This is the good news, because such legislation would be enormously expensive and have little or no effect on carbon fallout.
The bad news is that the Senate is set to approve a health care bill without a single Republican vote. Even if the conference committee is able to agree-upon a single bill merging two very different versions, it is not absolutely certain this merged version would be approved by both houses, but right now it looks likely. Such a bill will be tremendously expensive and its health benefits would be at best marginal. In short, the future of federal finances looks very bleak at this point and thus high inflation is more and more likely sometime in the coming months or at most two years when the bills start coming due and the revenue gap is larger and larger.