While critics of both parties are avidly plucking apart President Barack Obama's budget, Doug Casey, chairman of Casey Research, questions why anyone is even paying attention to the document.

“The thought is completely ridiculous of having a budget when you're already bankrupt and digging the hole deeper at the rate of a trillion or a trillion and half dollars per year,” Casey told Yahoo.

Obama had long been criticized for failing to put forth a budget. This “normal” process evaporated while he was in office, political commentator Charles Krauthammer wrote in the Washington Post.

Editor's Note: Economist Warns: ‘Money From Heaven a Path to Hell.’ See Evidence.

What little progress that has been made under the Obama administration came by way of crisis backroom deals orchestrated by Gangs of This or That, Krauthammer wrote. But, none produced a written record of actual, written offers that could serve as the basis for serious, open negotiations, he noted.

To some degree there is a sense a relief that at least there is now an actual proposal on the table. But the relief quickly gives way as the critics weigh in.

Former House speaker Newt Gingrich is now making headlines for his “how to negotiate with a Democratic president” advice. He said the first thing you want to do is listen. Then
you determine if there is common ground and you find a way to get there. It's an “exploration process,” he wrote in a Businessweek article.

But Casey essentially views all the focus on analyzing and hammering out a budget as a waste of time and effort.

He argues that if the government used accrual accounting instead of cash accounting the deficit could be as much as $4 trillion per year. And while the acknowledged debt is $16 trillion, it would go up to $200 trillion if liabilities like Medicare, Medicaid and Social Security were factored in.

“It's ridiculous. I don't know why people pay attention to it,” he told Yahoo. He says the U.S. should declare bankruptcy.

This, of course, would cause some pain for those holding government debt, but they get no sympathy from Casey. They “have been feeding the beast by lending it money.”

“I think they deserve to be punished and taught a lesson for that,” he said.

The real question is one of ethics and morality, Casey says.

Debt must be repaid. And “it's going to come out of the hides of the next generation, yet unborn, and the kids who are around today. So I don't want to see them turned into indentured servants,” he said.

Furthermore, he insists that a U.S. default is not a matter of if, but how. Defaulting will happen, he insists.

“The question is whether it happens by saying, 'We can't pay it' or dishonestly by inflating it out of existence. In either event, it's going to go away,” he told Yahoo.

But it is not going to happen tomorrow morning, he added.

Editor's Note: Economist Warns: ‘Money From Heaven a Path to Hell.’ See Evidence.