Republicans promise no tax increases. Democrats refuse to consider entitlement spending cuts. That’s a bit of a problem.

How can you balance a budget if you can’t increase revenues or cut spending? In the current gridlock on Capitol Hill, Republicans are refusing to increase the debt limit unless Democrats capitulate on major spending cuts.

It’s the unstoppable force hitting the immovable object.

But what will be the result?

All three major credit rating agencies are warning that if the debt ceiling isn’t raised, they will be forced to downgrade America’s credit rating.

That would be “catastrophic,” says U.S. Treasury Secretary Timothy Geithner.

White House spokesman Jay Carney said, “The consequences … of failing to raise the debt ceiling would be Armageddon-like in terms of the economy.”

A downgrade would force many types of investment funds to sell U.S. treasury bonds. Consequently, interest rates on everything from mortgages to car loans could skyrocket, as would the amount of interest that America has to pay on its debt. And America’s budget problem would get even worse.

With a housing market in free-fall and an economy on the edge of a second recession, this is the last thing Americans need.

Yet, if meaningful action is not taken to address America’s looming debt crisis, America is guaranteed to face depression soon anyway. If things continue on course, the only way America will be able to pay its debts is through the money-counterfeiting presses. Confidence in America will buckle. The dollar will crash. Hyperinflation will result. And infinite numbers of dollars, transported by the wheelbarrow, will be required to pay for your daily bread.

America is not there yet, but we are getting closer.

Like the credit rating agencies, many people think that if politicians just learned to get along, everything could be fixed. If Republicans and Democrats would just stop the rhetoric and compromise to reach a deal, then we could get back to business. This is a fallacy. America does not need more business as usual. Congress does not need to raise the national debt ceiling for the 76th time in the last 50 years.

A reader once told me he didn’t like one of my articles because it wasn’t balanced enough. I told him that I didn’t care about balance, I cared about the truth of the matter!

It is the same with America’s budget problems. We don’t need more balance and compromise. We don’t need more vote-buying. We already have enough bridges to nowhere “compromised” into spending bills to gain passage. What we need is decisive, directed, courageous, unselfish leadership.

And what we need most is truth!

Do you objectively think we will get that out of Washington, where the number one concern is reelection, and self-interest groups make and break politicians? If you do, I have an idea for a bridge to the moon that I am selling. It will make you great profits since the imploding economy has forced America to cancel the space program.

America needs to realize that its economic problems are beyond what Congress and Washington are capable of solving.

Want proof? Not a single budget proposal, not Paul Ryan’s, not the Gang of Six’s, not “Cut, Cap and Balance”—not anybody’s—solves America’s spending problem. Not a single plan fixes the yearly deficit. And not a single one even attempts to address America’s overall debt problem.

Just look at the proposals. Every single plan relies on a magically recovering and robust economy conjuring up millions of jobs and trillions in additional tax revenue to fix our problems. As for the proposed trillion-dollar spending cuts, they may sound like a lot, but they are mostly spread out over a decade. During that time, the debt will continue to grow and grow.

With Europe on the edge of collapse and China gobbling up global resources, nobody knows where America’s magical economy is going to come from. And without the magical economy—none of the proposed budgets fix anything!

The budget plans put forth so far—never mind adopted—are all just more of the same that got America into its debt problems in the first place.

The country is facing its worst crisis since the Great Depression, and leaders still can’t take the bold steps necessary to fix its problems.

Republicans and Democrats both note that the government is borrowing 40 cents out of every dollar it spends. They both know that the Federal Reserve is creating money out of thin air just to keep the economy on life support. And they both know that America’s debt problem, including retirement liabilities, is now around $62 trillion.

But they can’t agree to do anything meaningful about it. Why? Because the unsolvable nature of America’s debt situation is beginning to be realized, and those in power are just trying to grab what little is left for their own specific special interest. The American economy is past the point of no return.

The total value of everything produced in America this year will be around $15.2 trillion. Of that, the government will take $2.1 trillion in taxes. But because it is spending so much, it will still need to borrow $1.6 to $1.8 trillion to cover its expenses.

$1.6 trillion may be an unpluggable hole. The government could mothball all defense spending—scrap every warship, jet and tank, fire every soldier—and still not eliminate the yearly deficit. It could also scrap the departments of State, Transportation, Education, Veteran’s Affairs, Health and Human Services, Homeland Security, Housing and Urban Development—and the next 10 biggest departments—and still not balance the budget!

That is the challenge America faces. Meanwhile, unemployment is rising, the housing market is turning down again, and the gap between the rich and poor is growing. Not an easy time to be cutting spending.

The unstoppable force of deficit spending is smashing head first into the immovable debt ceiling. And I am not talking about Congress’s technically mandated debt limit. I am talking about the financial, economic and mathematical limit to America’s borrowing capacity.

And sadly, it doesn’t matter which force wins. Whether America makes a feeble attempt to tackle its debt problems now, or is forced to deal with an even bigger debt hole later, a financial smash-up of epic proportions is looming.