The Beginning Of The End
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3, 2, 1: Global Debt Meltdown

We are steamrolling toward a massive global debt meltdown, and at this point world leaders seem to be all out of solutions.  Over the last 30 years or so, the greatest debt bubble in the history of the planet has produced unprecedented prosperity in the western world.  But now that debt bubble is starting to burst and the bills are coming due.  Many believe that “ground zero” for the coming global debt meltdown will be in Europe.  Unlike the U.S. and Japan, the nations of the EU can’t just print more money to cover their debts.  Nations such as Greece, Portugal and Italy must repay their debts in euros, and those nations are rapidly getting to the point where their debts are going to overwhelm them.  Unfortunately, major banks all over Europe are very highly leveraged and are also very heavily invested in the sovereign debt of nations such as Greece, Portugal and Italy.  If even one EU nation defaults it will start tipping over financial dominoes.  If more than one EU nation defaults it could cause a cataclysmic wave of bank failures all over Europe.

But Germany and the other more financially stable countries of the EU cannot bail out nations like Greece, Portugal and Italy indefinitely.  Pouring money into Greece is like pouring money into a black hole.  When you take money from financially stable countries and pour it into hopeless messes, you may stabilize things for a little while, but you also cause the financial condition of the financially stable nations to start deteriorating.

Right now, the yield on 2 year Greek bonds is up to 44%.  Basically, the market is screaming that these are horrible investments and that they will almost certainly default.

Greece cannot fire up the printing presses and print more money, so they are now totally dependent on others to bail them out.

Just how desperate have things become in Greece?  Just consider the following excerpt from a recent article by Puru Saxena….

In Greece, government debt now represents almost 160% of GDP and the average yield on Greek debt is around 15%. Thus, if Greece’s debt is rolled over without restructuring, its interest costs alone will amount to approximately 24% of GDP. In other words, if debt pardoning does not occur, nearly a quarter of Greece’s economic output will be gobbled up by interest repayments!

Can you imagine?

No nation on earth can afford to pay out nearly a quarter of GDP just on interest on government debt.

So just how did Greece get into this position?  Well, it turns out that big U.S. banks such as Goldman Sachs and JPMorgan Chase played a big role.  The following is an excerpt from a recent article by Andrew Gavin Marshall….

In the same way that homeowners take out a second mortgage to pay off their credit card debt, Goldman Sachs and JP Morgan Chase and other U.S. banks helped push government debt far into the future through the derivatives market. This was done in Greece, Italy, and likely several other euro-zone countries as well. In several dozen deals in Europe, “banks provided cash upfront in return for government payments in the future, with those liabilities then left off the books.” Because the deals are not listed as loans, they are not listed as debt (liabilities), and so the true debt of Greece and other euro-zone countries was and likely to a large degree remains hidden. Greece effectively mortgaged its airports and highways to the major banks in order to get cash up-front and keep the loans off the books, classifying them as transactions.

All over the world, politicians love to “kick the can down the road”, and big Wall Street banks love to find creative ways to help them do that.

But now Greece is about to collapse, and the people that helped them get into this mess will probably never be held accountable.

If Greece does default, it is going to have dramatic consequences all over Europe.  For a chilling look at what could potentially happen when Greece defaults, just check out this article by John Mauldin.

Sadly, Greece is far from the only problem in Europe.  Portugal, Ireland and Italy also have debt to GDP ratios that are above 100%.

The biggest potential problem, at least in the near-term, is Italy.

Italy is the fourth largest economy in the EU, and lately the financial problems of the Italian government and Italian banks have been making headlines all over the globe.

Italy is a far, far larger potential problem than Greece is.

The EU can handle bailing out Greece, at least for now.

If Italy gets to the point where it needs large bailouts, that is going to bring down the whole system.  The EU simply does not have enough money to perform an extensive financial rescue of Italy.

As you can see from this chart, the exposure that European banks have to Italian debt is absolutely massive.  If Italian debt goes bad, it is going to take down a whole bunch of banks.

Not only that, but many believe that the European Central Bank itself is now in some very dangerous territory.

It is estimated that the European Central Bank is now holding somewhere in the neighborhood of 444 billion euros worth of debt from the governments of Greece, Italy, Portugal, Ireland and Spain.

The financial consequences of a default by one or more of those nations could potentially be catastrophic.

According to London-based think tank Open Europe, the European Central Bank is massively overleveraged….

“Should the ECB see its assets fall by just 4.23pc in value . . . its entire capital base would be wiped out.”

That doesn’t sound good.

Surely the European Central Bank would be recapitalized somehow, but this is just another example that shows just how dangerous huge amounts of leverage can be.

As I wrote about in a recent article about the sovereign debt crisis, if the dominoes begin to tumble in Europe it is going to take everybody down.

The big banks in Europe are leveraged to the hilt, and they are massively exposed to government debt.

If you don’t think that this is a problem, just remember what happened back in 2008.

Back then, Lehman Brothers was leveraged 31 to 1.  When things turned bad, Lehman was wiped out very rapidly.

Today, major German banks are leveraged 32 to 1, and those banks are currently holding a massive amount of European sovereign debt.

Yes, things could become really nightmarish if the dominoes start to fall.

Already we are seeing huge signs of trouble at major banks all over Europe.

Major European banks UBS, Barclays, Credit Suisse, RBS, and HSBC have all announced layoffs recently.  In fact, when you add them all up, the total number of layoffs announced by these banks just this month is over 40,000.  Overall, the grand total of layoffs by European banks so far this year is now up to 67,000.

The mood in the financial sector over in Europe is very dark right now.  Just consider the following excerpt from a recent Bloomberg article….

“It’s a bloodbath, and I expect things to get worse before they get better,” said Jonathan Evans, chairman of executive- search firm Sammons Associates in London. “I cannot see a lot of those who have lost their jobs getting re-employed. Regardless of how good someone is, no one wants to talk about hiring. Life will be very difficult for two or three years.”

Just like back in 2008 with U.S. banks, we are seeing European banks getting absolutely pummeled right now.  A recent article in The Sydney Morning Herald documented some of the carnage….

The 46-member Bloomberg Europe Banks and Financial Services Index has fallen 31 per cent this year. RBS tumbled 49 per cent, Barclays 44 per cent and France’s Societe Generale 48 per cent.

Credit Suisse and UBS both reported a 71 per cent drop in investment-banking earnings in the second quarter. Revenue at Edinburgh-based RBS’s securities unit dropped 35 per cent in the period, while London-based Barclays Capital posted a 27 per cent decline in pretax profit.

Things in Europe continue to get worse and worse and worse.

Do not take your eyes off of Europe.  This crisis is just getting started.

Not that there aren’t huge debt problems around the rest of the globe as well.

Japan has a national debt that is now over 200 percent of GDP, and they are really struggling to recover from the recent disasters that devastated that nation.

Moody’s has just downgraded Japanese government debt one notch to Aa3, and more downgrades could be coming.  For now Japan is still able to borrow huge piles of money very, very cheaply but if that changes Japan could be wiped out very quickly.

Of course the nation with the biggest debt of all is the United States.

At the moment, the U.S. national debt is sitting at a grand total of $14,649,289,670,347.85.

Fortunately, the U.S. is also able to borrow massive amounts of money very, very cheaply right now.  But when that changes it is going to be absolutely cataclysmic for our economy.

Sadly, our politicians continue to act as if this debt binge can go on forever.

According to the Congressional Budget Office, the budget deficit for the federal government will be about 1.28 trillion dollars this year.  This will be the third year in a row that we have had a budget deficit of over a trillion dollars.

To put that in perspective, from George Washington to Ronald Reagan the U.S. government racked up a grand total of about one trillion dollars of debt.  But this year alone we will go 1.28 trillion dollars more into debt.

At the moment, the U.S. national debt is expanding by about 2 and a half million dollars every single minute.  It is hard to put into words how absolutely foolish that is.

As I wrote about yesterday, someone needs to wake up America.  Our debt is exploding and our economy is dying.

We haven’t even solved the problems caused by the last financial crisis.  The real estate market is still a gigantic mess.  Purchases of both new and previously existing homes in the United States continue to fall.

But there will never be a housing recovery until there is a jobs recovery, and our politicians continue to stand by and watch as millions of our jobs are shipped overseas.

Unemployment is rampant, and even many of those that do have jobs are barely able to survive.

Back in 1980, less than 30% of all jobs in the United States were low income jobs.  Today, more than 40% of all jobs in the United States are low income jobs.

That is not a good trend.

Sadly, it looks like things are not going to get much better any time soon.

Right now, the Congressional Budget Office is projecting that unemployment in the U.S. will remain above 8% until 2014.

That should really scare you, because government numbers are almost always way too optimistic.  The folks in the federal government hardly ever project that unemployment will actually go up.

So if they are saying that unemployment will remain above 8 percent until 2014, the truth is that things will probably be worse than that.

We have entered very frightening times.  We are on the verge of a massive global debt meltdown, and nobody is sure what is going to happen next.

Let us hope for the best, but let us also prepare for the worst.

  • McKinley Morganfield

    “We have entered very frightening times. We are on the verge of a massive global debt meltdown, and nobody is sure what is going to happen next.

    Let us hope for the best, but let us also prepare for the worst.”

    That is the frightening truth. Its important to recognize that once the first domino falls, the rest swiftly follow. In this era of instantaneous communications we could actually see a financial collapse that takes no more than a 8 hours to travel around the globe.

    Prepare now. Store what you can afford. Keep as much cash on hand, not in the bank, as possible. Have a list and a plan to rush to the stores and make your last minute purchases. Get ready to sit tight in your home/neighborhood. BTW, something many people neglect is dental health. If you need dental work do it asap. An abscessed tooth can kill you faster than you can starve to death.

    • AA Plus Rating

      Agree McKinley. In the last two weeks I’ve put a little over $1K of dental care into my mouth. I’m all cought up, and relieved. Plan to do other maintenance such as a tetanus shot, etc. tomorrow.

    • William Sturm

      I asked my dentist if he would be willing to come to the ‘compound’ to perform dental work in such a crisis situation in exchange for other things….

      Sure! He told me he even had a mobile operation and was ready to go when called!

      w

    • http://goldtracker.wordpress.com/ Hal (GT)

      You might want to keep a percentage of gold and silver on hand too, because once the currencies implode, specifically the dollar, it will likely not be enough cash that you’ve stored. It simply won’t be good for much of anything.

      That’s a good comment too about dental health. Consider some stores of food as well.

    • http://www.HowToSurveillance.com Bob

      Yes, I agree. Hope for the best but prepare for the worst. It seems that debt/leveraging levels in all major developed economies in EU and the US have reached such high levels that it may be mathematically impossible to pay back the debt (i.e. “past the point of no return”). Things could get rough for a while so it doesn’t hurt to have some extra food, water etc because when the Euro currency does unravel it will cause reverberations felt in the U.S. since U.S. banks have significant exposure to Italy, France, Greece, Portugal, Germany etc to the tune of billions. No one knows the total exposure due to the uncertainty in the derivatives and investments of these banks.

      This article (Why the United States Should Be Concerned about France’s Banking Crisis) summarizes some of the concerns:
      http://www.heritage.org/Research/Reports/2011/08/The-United-States-Should-Be-Concerned-with-Frances-Banking-Crisis

  • mondobeyondo

    Betty Boop just changed the lyrics on her song.

    It’s no longer “Boop-boop-a-doop”. It’s now “Boom-boom-kaboom”.

    Debt is a very heavy burden to carry. It’s best not to carry it at all in the first place, but that’s easy to say with 20-20 hindsight. Our government debt is so huge, both Atlas and Hercules would bend under its weight. It will NEVER be paid off.

    The only ways out are default, or forgiveness. And China doesn’t seem to be in a very forgiving mood.

    • Helix

      You need a refresher course in Federal Reserve 101. Government debt will never be paid off because debt is the underpinning of the money supply. Until this fundamentally exploitative money-creation mechanism is corrected, the debt problem will never be solved.

      There are actually many ways out, although perhaps not politically feasible ones. The most straightforward is for the Congress to take back the authority to issue money from the Federal Reserve, as specified in Article I Section 8 of the Constitution. The fact that the US Government pays interest to bankers in order to have a money supply is ludicrous and crippling to the national interest. Of course, one can hardly expect bankers to loosen their choke-hold on the Federal Government and US Public under any circumstances short of a fight to the death, and so this might be politically impossible. Anything short of this, however, leaves the US and all other governments so beholden on the horns of the debt dilemma.

      And while everyone seems to be touting China as a model of Fiscal integrity, let me ask you this: How did the Chinese Central Bank end up with all those US Treasuries? Not Chinese businesses, mind you, but the Chinese Central Bank. It is very easy to do a thought experiment that demonstrates that the Chinese Central Bank simply printed up trillions of dollars of Yuan, used them to mop up US dollars floating around in Chinese businesses, and then used the dollars to buy US Treasuries. This is currency manipulation, pure and simple. Mopping up the dollars with printed yuan defeated the natural balancing of trade by currency valuations between the two countries, keeping the balance permanently tilted in China’s fvor. In short, they’ve played the US by printing money, all the while chiding us for doing the exact same thing. Never let it be said that the Chinese aren’t every bit as hypocritical about money printing as the rest of the world.

      • Maria

        Exactly. Solutions do exist, but not with our current political environment or Treasury/Fed arrangement.

        Gold standard is not an option because of it’s physical limitations, and fiat currency is no better with too few constraints.

        So with these and our other limitations, where do you think the U.S. economy is headed? And the world economy? Do you envision the fiat central banking system surviving the economic collapse?

        • http://lnx-bsp.net/ Tel

          What are the physical limitations of gold?

          • Maria

            By “physical” I mean gold can’t be “printed” like a fiat currency which is more virtual than physical. Gold is a physical form of money. It has to be dug up out of the ground. A gold standard requires physical gold. There is a physical limitation to expanding the money supply when using a gold standard. To increase the supply means you have to increase the amount of physical gold.

          • Maria

            Tel,

            My second comment to Helix could have been posed as a rhetorical question since the answer was already covered in a previous post. While I am interested in the possibilities of going back to a gold standard, I am more interested in Helix’s answer to the fiat central banking system survival question.

        • Otown Right Guy

          These limitations of a gold standard are exactly the idea! This is what prevents the government/central banksters from devaluing a currency to finance wars. See Jerry O’s comment below.

  • Lovin’ The End Times–Tremble Wussies

    Lovin’ Every Minute of the End Times!!!

    The End of This World is THE MOMENT OF VINDICATION FOR REAL CHRISTIANS WHO OBEY THE COMMANDMENTS AND PERFORM THE BEATTITUDES!!!

    Tremble and fear all you worldly secularists!!!! Your Secular Humanistic Lies Are Not Real and Your Lies, Malice, Horror, Sin, Depravity, Porn, Abortion etc. etc. and your false gods of money, sex, drugs, porn will be with you in Hell for all eternity!!!

    The Sheep from the Goats Baby!!!

    The Wheat from the Weeds Baby!!!

    Yahweh Alone Strikes Terror in your Hearts!!!

    The Money Melt Down is just the start!!!

    Look to the East and See Christ When He Returns!!!

    • Zazz

      You are an idiot

      • Highspeed

        He may be crass, but, He’s no idiot.

    • Rejoice Change is a coming!

      Oh I know this is the best thing we can live for in todays day and age.
      Be happy all ye who believe in GOD!
      Jews, Christians and Muslims united as one!
      We will all be witness to a radical change of a filthy corrupt money system set up by the prince of darkness and his minions who have destroyed so many peoples lives.
      The day of change will be so great!
      Just to watch the fall of many corrupt money changers.
      We will witness the slashing and bashing of money changers in the streets by the hand of angry God fearing people! We will witness with the same excitement they must have felt when they saw Jesus whipping the money changers in the temple!
      Rejoice all ye! oh ye rejoice!

    • Rejoice Change is a coming!

      Oh I know this is the best thing we can live for in today’s day and age.
      Be happy all ye who believe in GOD!
      Jews, Christians and Muslims united as one!
      We will all be witness to a radical change of a filthy corrupt money system set up by the prince of darkness and his minions who have destroyed so many peoples lives.
      The day of change will be so great!
      Just to watch the fall of many corrupt money changers.
      We will witness the slashing and bashing of money changers in the streets by the hand of angry God fearing people! We will witness with the same excitement they must have felt when they saw Jesus whipping the money changers in the temple!
      Rejoice all ye! oh ye rejoice!

      • Andy

        The meek shall inherit the Earth, but not the mineral rights.

        • old.frt

          Jean Paul Getty loves you.

    • Alan

      I do not fear the great sky fairy!

      • William Sturm

        Nor do I. He is going to welcome me into eternal bliss.

        w

    • Helix

      I’m guessing that you either still have your job, or you’ve already got yours and screw the rest of us.

    • David

      you seem to relish that your salvation is secured and many have not that security. I will pray for your soul.

  • http://economiccollapse alreadyGone

    I Found out today the united states spent $896
    million dollars in Libya,Can Somebody Tell Me Why? Our Own Country Is Falling Apart At The Seams, But We Have Money To Spend In Libya.

    • AA Plus Rating

      To have their 144 tons of gold? which at $1750/oz is just over $8 BILLION, almost a 10:1 return on the investment, access to oil? maintain Eurpoe’s supply of oil?

    • D

      We spend money in Libya because it fits the best strategic interest of the Invisible Elite. It is just one move in the chess game which will fall the entire world and erupt a single-currency system.

      • McKinley Morganfield

        We, along with the Euro zone, decided to intervene in Libya simply because Qaddaffi was trying to organize the resource rich nations in Africa to stop accepting the USD as the currency of international trade. Qaddafi wanted to go back to the gold standard. Anyone suggesting this must be snuffed out.

        • DCV

          Then how on earth did Hugo Chavez get away with what he recently did (sold all of his Treasuries and centralized the gold mining industry)?

    • Alan

      I think Libya has something like 140 tonnes of gold and cheap oil. That’s the same reason we are not in Syria.
      Venezuela could be next on the list, all we need is someone there to yell “revolt” and its a done deal.

    • Tim

      Because the business of America is war.

    • Highspeed

      Sarkozy needs the oil. He pressured Clinton who pressured Obama, yady yada yada.

  • A.S.

    Germany and other stable nations should just let the PIIGS default. The long run will be much better. Let the EU die; it was a good idea in the beginning – NOT! – but now the EU must die. It will be better for everyone in the world.

    • Old Man

      Are you an European? I doubt it. Because you show no comprehension of the difference between the EU and the Eurozone.

  • Patriot One

    Great article Michael. You see what I see, I just can’t understand why everyone can’t see it.

    The US banks have so many shadow foreclosures unreported and hidden that I believe they are on the brink.

    I know of at least 20 people who have not made a payment in 24 months and they are not in foreclosure. In fact they show as current on their credit reports. So to keep it hidden the banks are not even reporting it to the credit agencies.

    If I had to guess I would have to say the housing problem is at least twice as bad as the worst numbers you can find.

    Anyone who counts U3 numbers as the real rate of unemployment is living in Lala land. We all know the U6 numbers are over 16%. In many areas real unemployment is north of 22%.

    So the real question is do we see reality and then collapse. Or do we collapse and see reality.

    • Michael

      Thank you Patriot One – and those were very good comments.

      Michael

    • J

      I’m right there with you Patriot! I don’t understand why even the brightest of minds I’ve spoken to cannot comprehend why we are in such danger – and I just turned 19.

      In today’s America of corruption, deceit, and falsification, the comments you posted do not surprise me. While I was aware of the gross dis-figuration of unemployment figures, the information about foreclosures is new to me. It is also very frightening. Every day, it becomes more clear to me that it is likely that nearly every quantitative measure of the economy is in some way altered or falsified.

      I ponder your final question frequently. I think it’s a little of both. Those with extraordinary power see the reality. The rest will experience the collapse and then see reality.

      “The few who understand the system, will either be so interested from it’s profits or so dependant on it’s favors, that there will be no opposition from that class.”

  • starstrike

    We are in a economic death spiral in the ‘developed’ economies, and this will cause another global recession as the necessary rebalancing has not been made in China etc for them not to be brought down by a decline in exports – not to mention their insane property bubble and water crisis.

    Endless austerity going forward. The banks and large corps on bailout money and restructuring were the only ones really to profit since ’08 (and the rich stakeholders) but as ‘main street’ is dying under increased taxation, low interest rates, and benefit/social cuts the foundation is cracking open. So more cost cutting from the corps who see the economic reality going forward and another leg down.

    The final debt bubble inflated (well accelerated) very quickly after ’08 and that is sovereign debt. We have had small ‘pops’ in Greece and Ireland but the big ones are still there to burst, and they will. The structure is so interlinked and sensitive that you can’t pop one or two bubbles without the whole structure being shaky and eventually collapsing. The bailouts just lead to a more orderly collapse or spiral.

    After we have been de industrialised I can assure you that China, India and the rest will be forced to follow suit. The WTO is just a cog in a very well oiled international governance machine and that machine is shaping a world of resource allocation and neo feudal conditons for 99%. The chinese factories will all be gone soon as well.

  • Mark

    The pols in this country know that the riots will start as soom as they cut welfare here. We have created a government dependent class of people. At some point in the future the the payments will stop or the money that the checks will bring in when cashed will be worthless. Look at the price of gold to see what the dollar is worth today. Food has gone up a lot along with many other things. About the only item to drop in price would be overpriced houses. The banks have yet to eat the losses from bad loans on over priced real estate. All that has happened is some of the bad debt has been dumped on the backs of us taxpayers. Folks, prepare for hard times coming here. I for one am not waiting for the government to solve any problems since they seem to create most of the problems or at least make them worse.

    • Old Man

      After a quarter century of Reaganism, where government is bad and big government is evil, we now reached the point of maximum hypocrisy.

      All those millions who hate useless evil governments, now living on government bailout.

  • Gary2

    I think the banks etc will need to take a big haircut. Stop privatizing the profits and socializing the looses.

    • Ben Dover

      Have to agree on this one. Let the TBTF banks fail. Somebody else will fill the viod if a need exists.

    • knightowl77

      Sheeeesh, for once Gary, I agree with you…Stop “Too Big To Fail”…If they fall, they fall.

      Taxpayer money should have never been used for TARP or other bailouts….

    • ScoutMotto

      I think the banks should switch to honest money that isn’t issued into circulation as a liability.

    • McKinley Morganfield

      Pigs do fly. I agree with Gary2 too. ;-)

    • http://lnx-bsp.net/ Tel

      For a change you have said something sensible, trouble is the Wall Street banks have already been handed the money. That horse bolted two years ago.

      Setting a strict no bailout policy from now on in would be a good start, but how to handle Fannie Mae and Freddie Mac? There are still rolling losses coming in from those two, and we haven’t seen the bottom yet.

  • Rosemary

    The figures cited in this article are beyond stunning. I feel like we are watching a slow-motion train wreck (a really big one). The only thing each of us can do is prepare; much has been posted here and other websites detailing what needs to be done. I count myself lucky that my house is nearly paid for and no other payment plans on anything. My job is as secure as any. I do have concerns about medical/dental costs as the US goes through what’s next in the economy and new health insurance laws kick in. Like the hurricane taking aim at the US East Coast, we need to keep watch on the financial storm coming and batten the hatches.

    • Old Man

      Good preparation. But I do suggest your concerns about medical/dental costs be escalated to the status of emergency.

      See, the healthcare system is not about healthcare of people. It’s about how to make the most money out of your health troubles while doing the very least to fix it. It is one of the very few industries that’s thriving as more and more people tie their careers into it, and more and more companies jump in for juicy profits.

      They need a lot of sick people to make their numbers to Wall Street expectations. The sicker the better. Get ready to be milked like cows the moment you walk into their farmhouse. Get ready to read your health insurance policy like the tax code – incomprehensible.

    • William Sturm

      Go for 100% long term refinace and let the banks carry the risk.

      Take the proceeds and buy silver coins.

      w

  • http://lastdayrapture.blogspot.com/ TK

    “Let us hope for the best, but let us also prepare for the worst.”

    Those are very wise words and should be heeded immediately. For many people, they have to prepare after losing their job, for others, they can prepare now while they still have work.

    If you do have a job, and have not prepared for the worst, your time is running out.

    Don’t forget to help others who have been devastated by the economy already, remember that it could be you next!

  • Maria

    We are going through a period of hell in this country that will not be soon forgotten. It will reshape our attitudes and lifestyles for a generation or two. Maybe for the better. It will take time, but we will rebuild our economy and our nation.

    In the meantime people want a job that will keep food on the table and a roof over their head. A lot of young people are joining the military. Those who can’t or don’t want to, might consider truck driving. There is a shortage of drivers in this country. The pay averages $40k-$45k a year and, YES, IT IS HARD WORK! But some folks are facing terrible circumstances without any job prospects. It doesn’t have to be something you do for the rest of your life, but it might just get you through this hard time. Call your local employment office or truck driving school for more info.

    I posted this before, and got quite a few negative comments about the terrible pay and the hard work. For all of you out there who are going to criticize my suggestion, let’s hear your solution/suggestion on where people will find work in this country.

    • Old Man

      Well, there are some 10 million truck drivers already. As more and more jump in, the oversuply will cheapen the job, make them even harder, and lower the already low pay. Trucks consume huge quantity of gas/diesel. Huge! As their prices go up (and they will go up), the only way to operate the business in to reduce labor cost. Get my drift?

      • Maria

        So far we do not have an oversupply of drivers in the market. Reducing labor cost is one option, but taking drivers off the road decreases income. More likely the increased fuel costs are paid by the shipper through the fuel surcharge. The ATA does not see a drop in driver wages in the foreseeable future. Conversely, wage increases are expected for most major carriers. Not sure what specifically you mean by making them even harder. More competitive? Need to be a lot closer to the saturation point before that happens. If a trucker wants to work, the work is available.

      • Maria

        What do you suggest as a better option?

        • Old Man

          Heavy equipment operators. Industrial, construction, fabrication, maintenance equipment. All requires good deal of training and licenses (state & federal).

        • DCV

          My two cents… this country is sitting atop several hundred trillion cubic feet of natural gas. Convert the diesel rugs to run on liquid natural gas (LNG) and sell the rest to a nuclear power wary world (Japan and Germany top the list). Export and processing facilities in the now-depressed but soon to be booming areas on the Marcellus Shale are starting to be constructed. Natural gas could be the only tangible product that saves our economy.

    • mondobeyondo

      If I’m not mistaken, you need a CDL (commercial drivers’ license) to qualify for training as a truck driver, or a city bus driver. That would eliminate a lot of people. Especially the people with DUI convictions, suspended licenses, and so forth. That’s a good thing.

      But still – any opportunity is better than no opportunity at all.

    • http://www.povertylinejournal.blogspot.com/ the optimist

      I hope to be starting CDL classes this fall, if I can get funding. Maybe your negative commenters can not imagine what it is like to be totally unemployed (and I mean without ANY benefits that salaried workers now unemployed receive). I couldn’t get to sleep last night until 6:30 am for the stress.

      DAMN the environmental costs! I NEED A FREAKING JOB. (and this comes from a pretty rabid environmentalist…as Bertolt Brecht wrote in The Threepenny Opera, “First feed the face, and then tell right from wrong”.

      JOBS ARE THE KEY PIECE of this collapse. I’m utterly amazed at the number of politicians and commonfolk who ignore this.

      • Maria

        I am praying for you, Optimist.

  • D

    I wonder how long the politicians and media can convince the general public that things will actually get better. They are on a roll because most people are delusional.

    People might wake up when cannibals take the streets and nuclear fallout hits the roof – I said might.

  • Colin

    “To put that in perspective, from George Washington to Ronald Reagan the U.S. government racked up a grand total of about one trillion dollars of debt.”

    For that time period, we had an economical system that worked. The tenets of that system were:
    1. Tariffs to protect US Industries
    2. A national bank to regulate US commerce
    3. Government spending on infrastructure
    This system was known as the American School. (Wikipedia – American School (economics))

    In 1981, when Ronald Reagan entered into office, the American School was replaced by the Chicago School. (Wikipedia – Chicago school of economics). Under this new philosophy, our country changed from a Manufacturing Economy to a Service Economy.

    • Old Man

      During Reagan, he elevated the Chicago School to national power by appointing some of their key thinkers to policy positions. Reagan did it in part to get them to support his Trickle Down policy, which they did. Clinton assigned to the Wall Street banks the job of the Trickle Pump by giving them unregulated unlimited powers of finance.

      Thus empowered, the banks proceeded to do the exact reverse – Trickle Up wealth by trickling down debt, and trickling out labor cost. It became a utopian capitalism system fit to perfection. The capitalists win, the consumers lost.

  • 007

    So the European governments borrow massive amounts of debt. The banks then buy the debt at 33 to 1 leverage. The ECB and FED print money to bail out the banks. The taxpayers are squeezed more and more with inflation to pay for this scheme.

    This is the most crooked thing I have ever heard in my life. It absolutely can not last much longer. You can just feel it.

  • Robert

    When, the world markets collapse, and and dollar falters , there will be riots in the street, mostly in major metropolitan areas, rural and urban areas, will be a better place to be, relocate to one of these areas If you can, if you haven’t stocked up on supplies and fire arms to protect yourself and your family, then I would do it asap
    …..here is some food for thought, your average street thug, druggie, tweaker, what ever you want to call it…., has only about enough food in there home, for one day (maybe)……..once they cannot get a fix, or a bottle of booze, beer or prescription drug, and there out of food, where do you think these crazed groups of people will be heading to…..it won’t be a foodline, or local food bank nor church, they will be at your door…..take that thought in ……..and think about it for a while, and your next reaction should be, to make a list of want you do not have, what you need to get, and any additional items for barter and trade, beans bullets and bandaids, is a start, and when SHTF, I won’t. Be taking any gold or silver, for trade or barter, it won’t do me any good, unless it can feed, cloth, or keep my family warm….or be of some use in our near future, like batteries, candles, food, etc….I hope you get my point, I could go on and on…..good luck, god bless, see you in the new point of reference……whatever that may be…..

    • http://www.fedsmack.com AceLogic

      Robert that was was a fairly interesting analogy with some merit and some of the articles you mentioned made sense to acquire and store house. Sort of reminded me of the 2 season CBS TV series Jericho and how many of the happenings resemble things today and possibly to come.

  • Ian

    Strange. I come onto this site daily to read the latest reports on the ‘devestating economy’ and yet everywhere i look, i see people buying homes, folks driving BMWs and Mercedes. I see music festivals and concerts selling out. I see tourist areas packed to the gills with large RV’S and well off families. I see people dressed in the nicest clothes. I see everyone with an ipod, Ipad, laptops. I see people shopping relentlessly at Whole Foods and buying 6 dollar lattes. I see people living it up and enjoying life.
    Can someone explain to me where the doom and gloom is coming from, because i personally dont see that we are that bad off. We are an incredibly wealthy and spoiled nation. We have no idea what hardship is. Does economic collapse in this country mean little Jimmy does not get an second iphone, or that little Suzy doesnt get that second ballet class?
    I have travelled to many third world nations and i can garuantee you that we are not facing hard times at all.
    I find that if you stop focusing on how bad things are, you will start to see how good things are.
    Maybe i am wrong and maybe i just live in a more affluent area (Northern California). However i speak to my friends and family in Colorado and Florida and Illinois, and i rarely hear anyone complaining about the economy and in fact most of them believe the recession was just a blip. Then i come to this site and you would swear we have entered the apocalypse.
    Pleae help me understand as i really DO NOT see hardship in the U.S.A.

    • William Sturm

      Jan the deterioration is clandestine. Which means it is covered over by government intervention.

      My take is we are in a depression right now. The reason folks don’t feel it is because of unemployment benefits (which never stop) and food stamps….

      Low interest rates over a long period of time steals the wealth of the people.

      And there is massive lies about the size of the GDP which claims the economy is recovering.

      Finally, folks have never experienced what is coming and they will not open their eyes to the possibility. Thus, things continue pretty much as normal…..

      And of course the wealth have pleanty and they can continue to live pretty much as you have described………….

      w

      • William Sturm

        Sorry Ian………..I didn’t look close enough for your name.

        w

    • mondobeyondo

      Ian, I see that too. There is a HUUUUGE dichotomy in this country. The parking lots at Olive Garden, Red Lobster, Sears, JC Penney, etc. seem to be packed. Shoppers appear to be happy, purchasing the latest clothing and electronic gadgets. Apparently, food stamps go a really, really long way these days. *sigh*

      At the same time, millions of Americans are struggling just to provide a decent meal for their families. ABC News is doing a week-long special during their nightly newscast, about “Hunger in America”.

      As much as I try to understand, I still do not get it. A society where everyone has a cell phone, but not everyone has a decent meal to eat. A country where a poor family in the Bronx, would be considered the royal family in a place like Haiti. Something is seriously wrong, and I can’t figure out what it is.

      Maybe we need more salt, pepper, mayo and tomatoes on our iPads and Wii’s??

    • PrepperGama35

      Ian, I also see the evidence of “wealth” that you mention – phones, lattes, vacations, new cars, etc. people who are still using their credit cards to portray the image that things are still OK.

      But just open your eyes to the other side. The homeless, the tent cities, the people who are bankrupt because of medical bills, the small businesses that have closed because of the economy, the unemployed, the hungry, and the overwhelming death of a dream of living a normal life for 1000’s of Americans.

      There are two sides here as the gap between the rich and poor widens…

    • McKinley Morganfield

      For what remains of the middle class, the consumer credit rate is very low in historical terms. Many are back to loading up their credit cards. The passengers on the Titanic were merrily gorging on caviar right up until the smack down with the iceberg. Additionally, a distinct minority have made tremendous fortunes in the stock market since the crash to 6000 back in 09. They make money on a rising market and they make money on a falling market. They top 5% are flush with cash.

  • Jerry

    If you’re already a prepper, and fine-tuning your preps, and you’re in a neighborhood where everyone else is clueless, just remember to maintain your OPSEC. Even in conversation, you might have to say something like “Collapse? What collapse? I think things will get better…”

    Just think Hawkins from “Jericho.”

    • Michael

      By the way, Hawkins was my favorite character on Jericho.

      Michael

  • patriot alice

    So is Italy to big to fail? Who will suffer if Italy defaults, Europe, USA’s banks, not Italy? Sounds like Italy has Europe, and the USA by the balls…..Not good..

  • A.S.

    The U.S., in my opinion, will be paying 25% of its GDP to interest alone by 2020. Essentially that means we will need to borrow just about 50% of our GDP to pay that 25% to interest and fund the useless social programs.

    • William Sturm

      Look friends…the government has changed the definitions for computing the GDP and EVERYONE buys this government report as Gospel!!!!!

      Are you aware deficts are added to the GDP?

      Are you aware the census was declared an emergency (to get around PAYGO) and that the cost of the funds added to the deficit and the cost of the census was added to the GDP?

      Nobody has a clue as to what the true GDP really is anymore….it has been watered down.

      Also, a computer purchased years ago had a certain compute power and cost perhaps $500. Many years later the computer still cost $500 but the compute power increased by 100 times so the number added to GDP for each one sold was
      $50,000 even if the computer was only used for e-mails!!!!!

      w

      • William Sturm

        Under moderation?

        Please e-mail me a copy of what you permit to be published.

        Thank you.

        • Michael

          William:

          Unfortunately, it is necessary for me to moderate all comments on the site. If I did not do this, the comments would be a complete mess and a total spamfest.

          Also, this is done to protect the site. Too many bloggers have gotten into trouble for comments left on their sites.

          Michael

  • r.bitting

    Michael, the debt,and for that matter, every other social and economic ill that our world is now experiencing are nothing more than the symptoms of the disease, that disease being a people thats turned it’s back on their creator. We have turned away from his teachings and his laws, and rejected his Son. Unless the people repent and return to his ways, it’s only going to get worse, a lot worse. But i must say, i don’t think that will happen, so in the words of the prophet Amos, ” prepare to meet your God “. and very soon at that.

    • Michael

      Very good comment. :)

      Michael

    • http://lastdayrapture.blogspot.com/ TK

      Amen r.bitting!!

      The reason that our country is in the mess it is in is because of our morality.

      I agree that it is very doubtful America will repent and return to serving our Creator.

      Amos has a way with words!

      • Andy

        Maybe, but Andy had the best punch lines.

  • Paul

    The interest goes to the banks.

    The banks pay billions to their shareholders and managers.

    Then they go bancrupt and get more money from the tax payer, because the banks own the politicians who decide who gets what money.

    How to get out of this crisis?
    Very easy – those lazy asses who ask for 3 dollar welfare shall get a job!

  • Fred Dawes

    Let all of us work to fix this evil and put the world bankers in prison for life after that we will understand what hell is.

  • Rev. Reggie Jackson

    This is a great article. I had no idea that Europe couldn’t print its own money like we can. And that means that they will go belly-up faster than we will. But don’t worry. The International Bankers/Illuminati kingpins have something up their sleeves for the downfall of America also. And I even heard that there are a group of powerful people who are suing the (Non) Federal Reserve Banksters.

    And when I thought about this; I am convinced that these Bankster devils will throw us into World War 3 to cover their tracks and have their hitmen to kill everybody that is responsible for them having the audacity to sue them. Money and gold and silver and Oil is their god; and they will do absolutely anything to keep it all to themselves.

    So after I thought about the prospects of them being sued and disbanded for 20 minutes; I realized that it was only a nice pipe dream and expectation. But in all reality; the Only One who can and will defeat them very soon; is Jesus Christ and His Almighty Father and their powerful angelic forces from heaven!!

  • Its the economy stupid

    Michael
    What do you recommend we do. How do we protect ourselfs from the future.

  • Rev. Reggie Jackson

    Oh my 444 billion in Euro-dollars debt. Europes gone and will pull America down with her. And I thought that California would sink us. From Washington To Reagan (my 4th best President after Washington & Lincoln and Kennedy)was only 1 trillion dollars and now it is 14.6 trillion already. Well the Banksters have to find some way to bankrupt the nation. And with Europe collasping; they can’t lose.

    But God will bring them all down with His mighty plagues soon. And He will do this because, they would have killed and martyred 100’s of millions of His people who wouldn’t take their zombie making and mind controlling, mark of the beast chip in their forehead or hand. And according to Revelation 13 and 14:9-11, if you take their Mark (chip) you will be tormented in hell 24/7, because it will mean that you have rejected God and Jesus Christ and have joined and followed Satan and his antichrist beast leader and wicked beast chipped world leaders!!

  • http://www.placeofrefuge2012.com Sheila

    My wife and I just read this and we both had the same remark,

    “go ahead and get it over with”.

    If the system is destined to collapse PLEASE LET IT HAPPEN SOON!

    http://www.placeofrefuge2012.com

    • 007

      That’s like saying get it over with and let the ship you are sitting on sink. Don’t be in to big a hurry to start swimming in ice water.

  • Donald Wilson

    There just isn’t enough money in the world to resolve the worlds financial problems. I say to hell hit the reset button, what will China do? That country along with many other asian countries are also or will soon be facing financial provlems of there own. Check out ghost citie on YouTube, you will be amazed. Bravo 2 out.

  • A Real Old Crow

    This is the part of the Keynsian model that they fail to cover in class, what happens to the graph when you can’t borrow any more money to kick the can down the road any further? When it all collapses, the world may find that Keynes has done more damage to the world then Marx and Engels.
    What amazes me is that Kensian model is given credit for bringing us out of the great depression, when its a fact that it failed then and now may be the cause of the Greatest Depression.
    “Treasury Secretary, Henry Morgenthau, angry at the Keynesian spenders, confided to his diary May 1939: “We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and now if I am wrong somebody else can have my job. I want to see this country prosper. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. I say after eight years of this administration, we have just as much unemployment as when we started. And enormous debt to boot.”

    • William Sturm

      What brought us out of the Great Depression was not World War II….

      What caused the rebound was the ‘forced savings ‘during World War II’ with rationing and all the employment!

      This pool of money was released to increase a wave of consumer spending which spurred economic growth which pulled us out!

      Businesses responding to a wave of consumer demand created jobs! What we need now is consumer demand and free markets. But, consumers are being shafted with low interest rates on savings… Wealth is being robbed in this way along with inflation which the government will never admit is going on!

      w

  • Stolengoat

    Name that Tune

    That’s great, it starts with an earthquake, birds and snakes, an aeroplane –
    Lenny Bruce is not afraid. Eye of a hurricane, listen to yourself churn –
    world serves its own needs, regardless of your own needs. Feed it up a knock,
    speed, grunt no, strength no. Ladder structure clatter with fear of height,
    down height. Wire in a fire, represent the seven games in a government for
    hire and a combat site. Left her, wasn’t coming in a hurry with the furies
    breathing down your neck. Team by team reporters baffled, trump, tethered
    crop. Look at that low plane! Fine then. Uh oh, overflow, population,
    common group, but it’ll do. Save yourself, serve yourself. World serves its
    own needs, listen to your heart bleed. Tell me with the rapture and the
    reverent in the right – right. You vitriolic, patriotic, slam, fight, bright
    light, feeling pretty psyched.

    It’s the end of the world as we know it.
    It’s the end of the world as we know it.
    It’s the end of the world as we know it and I feel fine.

    Six o’clock – TV hour. Don’t get caught in foreign tower. Slash and burn,
    return, listen to yourself churn. Lock him in uniform and book burning,
    blood letting. Every motive escalate. Automotive incinerate. Light a candle,
    light a motive. Step down, step down. Watch a heel crush, crush. Uh oh,
    this means no fear – cavalier. Renegade and steer clear! A tournament,
    a tournament, a tournament of lies. Offer me solutions, offer me alternatives
    and I decline.

    It’s the end of the world as we know it.
    It’s the end of the world as we know it.
    It’s the end of the world as we know it and I feel fine.

    The other night I tripped a nice continental drift divide. Mount St. Edelite.
    Leonard Bernstein. Leonid Breshnev, Lenny Bruce and Lester Bangs.
    Birthday party, cheesecake, jelly bean, boom! You symbiotic, patriotic,
    slam, but neck, right? Right.

    It’s the end of the world as we know it.
    It’s the end of the world as we know it.
    It’s the end of the world as we know it and I feel fine…fine…

    • William Sturm

      One of my recent posts about the lies associated with the GDP is under review before they would release it.

      So, what is this?

      w

      • Otown Right Guy

        The lyrics from the song It’s The End of the World As We Know It by REM.

  • http://www.hotbedinfo.com Kyle T

    We not only have to worry about economic collapse, but also physical collapse with the new madrid fault line.

    http://www.hotbedinfo.com

  • doc_retro

    Beyond what’s reported here, which is correct, one has to consider the unfunded liabilities for retirees, both public and private-sector. What happened at Delphi, with the company walking away from retirement obligations, is what most other systems will do, too. Even CalPERS, supposedly a well-run system, has taken massive losses on inventment holdings. Underfunded plans mean retirees who won’t get full value, or possibly anything, at a season of life when returning to work may be difficult, to say the least. Small families add to the trouble. can you imagine being childless, 70 and finding out that your pension plan is broke? To whom will you turn?

    • William Sturm

      In the good old go-go days of living beyond our means retirement fund managers assumed an 8% return to calculate the money needed to pay the retirees.

      The bubble broke. Now what? Take on riskier assets to try and save the bacon for your retirees?

      w

  • jerry O

    We are headed for a global meltdown.

    Here are the 7 stages that lead to it:

    1. Good Money – every major empire starts out with good money, either gold or backed by gold.

    2. Social Programs – as a country develops economically/socially, takes on more public works, adding layer upon layer

    3. Military Spending – as a nation’s affluence grows, so does it’s political influence and spends massively on the military

    4. War – nation puts military to use and expenditures explode and nations go to war

    5. Fiat Currency – to fund the war, the costliest endeavors, nations starts to steal wealth of its citizens by replacing their money with fiat currency (value decreed by gov’t and not backed by nothing). This occurs either at the outbreak of war, or previous ravages of war.

    6. Inflation – wealth transfer is experienced as hyperinflation. Results in riots eg. Egypt. Price of all commodities and goods go through the roof.

    7. Wealth Transfer- final stage, in mass movement, nation moves out of the currency and into the precious metals and other tangible assets. The currency collapses. This results in massive wealth transfer to those who had the foresight to position themselves in the right asset class in advance.

    We’re are between stage 6 and 7. This transition is just beginning. This move represents the largest transfer of wealth in the history of mankind. People will either end in poverty, or wealth, depending on whether we prepare NOW. This cycle is predictable as for eg. Roman Empire.

    Now is the time to prepare.

    See what a millionaire has to say
    about how to survive:

    How to Profit like the Ultra-Rich in Times of Economic Chaos

    http://theelevationgroup.net/presentation/register.php?a_aid=160667&a_bid=290b868b&chan=y

  • ScoutMotto

    This is the result of greedy bankers issuing all money as an interest-bearing debt. If the world used honest money instead of fiat money, it would not be in this mess.

    Time to switch to money 100%-backed by something of value.

    • StokeyBob

      I understand your concern. It needs to be tied down in such a way as to remain something that you can bank on. Something you can trade with and trade with, and trade with, and when the circle comes around and around again it still buys a dollars worth.

      Like a dollars worth in retirement.

      They’ve been looting us royal.

      Plus with their ability to print up what ever it takes to get their way no ones real money can stop them. When they want their way they are like those dead guys in the movies that you fight off and then when you get busy with your girlfriend, or something, and forget about them, they rise back up to get you! They can afford to. They are using our money.

    • Highspeed

      Crowder peas and pinto beans, I have plenty of those. At least that will be my new currency.

  • Lennie Pike

    ECB,

    Very good article.

    • Michael

      Thank you. :)

      Michael

  • Lennie Pike

    One world currency and government with new rules for everybody anyone? – or not?

    • StokeyBob

      Not, is my vote.

      I feel once the ability to regain control of the counterfeiting and looting of the central bank passes out of our hands, all is lost. We no longer control our government, our war department, or our borders. We have allowed others to print up what ever it takes to get their way. Not only have we printed up money we didn’t have to finance their global control over us, the system also allows others outside of our country to print as they please. When they print money we don’t have it loots the value out of the money we do have through inflation. No matter where your Aunt Martha has here retirement hid they can slither right in, like vampires in the night, and suck the life out of it.

  • Lennie Pike

    Helix,

    That is truth and very pleasant to the ears.

  • Lennie Pike

    Lovin the End Times etc.:

    I partake in many of the sins you mentioned but thank God am forgiven.

  • Lennie Pike

    Ian:

    Debt, simple mathematics, falling through the air – most have not hit the desert floor yet. You’ve watched the Road Runner cartoons I’m sure.

  • Guest

    I have to agree that the meltdown may start in Europe. A number of valid points were made in this article. Its time for Germany and Austria to withdraw from the Euro Common Currency as soon as possible. If they do not leave the Euro, then they will be drag down to a point that could lead to financial ruin for both of them.

  • StokeyBob

    The mother of all meltdowns PLUS I’m afraid the deck is stacked against law, order, and freedom.

    When I started looking into where the money was coming from to buy off the politicians and subvert the immigration laws of the world, I came across what may be the root of many of our problems. Fiat Money.

    No matter how much real money people can put together to build their countries the way they want there are those that can print up what ever it takes to dictate their way.

    Maybe this will help make the danger of fiat money clear.

    Imagine you and me are setting across from each other. We create enough money to represent all of the world’s wealth. Each one of us has one SUPER Dollar in front of him.

    You own half of everything and so do I.

    I’m the government though. I get bribed into creating a Central Bank.

    You’re not doing what I want you to be doing so I print up myself eight more SUPER Dollars to manipulate you with.

    All of a sudden your SUPER Dollar only represents one tenth of the wealth of the world!

    That isn’t the only thing though. You need to get busy and get to work because YOU’VE BEEN STIFFED with the bill for the money I PRINTED UP to get YOU TO DO what I WANTED.

    That to me represents what has been happening to the economy, and us, and why so many of our occupations just can’t keep up with the fake money presses.

    http://photos.imageevent.com/stokeybob/followthemoney/Supersingle640x537.jpg

    Not to late to turn it around.

  • Lennie Pike

    The Gold Standard has no physical limitations.

  • Paul

    The US borrowed money to pay companies to make ammunition and bombs so they can be destroyed in Irak, Afghanistan, etc.

    No investment.

    No return.

    Debt for consumption.

    Consumer credits are always a bad idea.

  • Rob Stoddard

    The Book Of The Subgenius (read it if you can) says “In case of holocaust, hoard bullets, not food”

  • Wake up

    “Moderate: see also Rationalism” opposite of “Irrationalism: a system emphasizing intuition, instinct, feeling, or faith rather than reason or holding that the universe is governed by irrational forces”

  • 007

    GDP= Government Deceives it’s People

    The government tries to make everyone comfortable about our debt by making it relative to our GDP.

    This is one statistic which just begs to be manipulated and lied about by the government. There is no downside to overstating it. It allows the government to borrow more and get away with it. If one looks what is allowed to be counted in GDP it will truly make you sick.

    All of the government spending and job killing beuracrats are part of the GDP. The job killing regulators, the IRS and business killing lawyers are all part of GDP. Lobbyists are part of GDP. I believe they now even covertly count drug dealers as part of GDP.

    Next time you hear our debt is not bad compared to GDP remember half of our GDP is total smoke and mirrors.

  • Michael

    Great website you run here Michael.

    Just wondering if you’ve watched “The Secret Of Oz” documentary by Bill Still (producer of “the money masters”)?

    Bill shows evidence that “the wizard of oz” movie was a prediction to whats going on now.

    Can anyone else see the connection? You can watch it full on youtube. God bless

    • Michael

      Michael:

      I have not seen it yet – I will have to check it out.

      And thanks for the kind words. It is great to meet another Michael. :)

      Michael

  • Old man river

    Thnx for a great article and all of the comments!A few thoughts: As Christians do you find it Christ like to be happy that so many will suffer? Secondly do you really think Reagan was a great president and why? He was the beginning of the attack on the middle class and his trickle down did not work and he left massive deficits but in his defense many could see his dementia his second term. Lastly those of you fixated on Americans milking the welfare system should consider how corporations enjoy massive welfare systems of their own by paying zero taxes and how our government blows our money giving it away to the contractors of the war machine(weapons, big oil etc) all on a credit card while killing hundreds of thousands of innocent people.

  • Yuriy

    Dear American friends, you wrote a simple guy from Siberia. You painted themselves into a dead end. Your government disinformation and washed your brain and your TV sops. You are proud of democracy and accuse Russia, that we do not have it, but let notice that the same infamous “free speech” we have more highly developed. In the U.S. moderated site does not allow adequate human voice, that he would have told you what really goes on in the U.S.. Fed. Res. owns 80% of America’s debt. It turns out that the U.S. gives itself money. this is the greatest financial scam in history.
    Soon this bubble will burst and the dollar will be cheaper than the paper on which it is printed. You are trying to reduce budget spending by cutting social security, but no word on military expenditures (which you have almost the same as the rest of the world). Because this place okorruptsii gunsmiths of the orders they give a lot of bribes.
    and it will not end until the American people as one realizes that it “led by the nose.” U.S. is now reminiscent of the Soviet Union (who said the objective of the things it immediately comes to black pativan. Your rights and freedoms interfered, explaining that “the threat of terrorism.”
    I wonder if 9 / 11 organized by the FBI or the CIA in order to limit your right and enter the total control of everyone, without his knowledge. Is not it very reminiscent of Soviet times 60-70 years? all in your hands. and I sincerely wish the American people see the light and not let a bunch of immoral people turn you into a herd that blindly following the shepherd.

  • jhunted7667

    I you take notice now how at night silver here is high and in the morning it’s low and the European and Asian are buying it all up , soon there will be no real money here unless we stop selling our silver and gold for worthless paper

  • Randy

    Comments on the trucking industry and driver jobs: Freight rates have not gone up since deregulation about thirty years ago. I have a truck on the road right now. Half of the revenue for an average load goes to fuel at the current diesel prices. Not a whole lot left to pay the driver and cover all the state and federal government fees. Forget about breakdowns. My truck blew 3 tires in one day, that cost over $400 dollars each to replace because tires are made out of oil. Operating a truck is a sure way to put yourself into the poorhouse. And besides, once the government can’t afford to pay everyone on the dole, there will be a lot less food to haul. When people can’t afford to even purchase crap from China, that will be the end of it. Way too many immigrants working in the trucking industry driving down the rates. Driver pay has been going down for a long time. When those of you talk about driver pay increasing and the need for more drivers, well, driver pay increases have never ever kept up with inflation. When the economy collapses, we won’t need half the trucks on the road. Quick way to destitution. I am getting the heck out of anything to do with trucks and getting into food manufacturing as at some point, most people are still going to have to eat and most of em don’t have a clue how to do it themselves. I expect a boom in that industry as everything collapses.

    • Jackro

      Randy,
      While I feel for you. This is a common theme across the whole American economy. Unless you are in a “critical” field, such as medicine or technology, the money just isn’t there for raises. There is just too much uncertainty for any business to make promises in the future. Our problem is that our government has the business world looking at one year before changes. That isn’t the way businesses run. They look at 5 and 10 year projections. This is why the Bush Tax Cuts worked so well for the first 6 years, and when the bubble popped, then everyone grabbed a chair and sat down. So long as DC makes their economic decisions one year at a time, we will be stuck in this malaise at best, economic collapse at worst, and a depression as the most likely.

  • thomas pardue

    The collapse of the world financial system has been planned for many years. Once collapsed…a new “World Order” emerges. The largest banks of the world are all controlled by the same families. Take a look at the Federal Reserve. It is privately owned by the Rothschilds and their banking friends. The Fed is present in every country, with the exception of only a few.
    Rothschilds can be traced back hundreds of years as money lenders. The family name was originally Bauer. But, Rothschilds means red flag or shield.

  • jerry O

    We seem to be getting
    more and more signs that
    a global meltdown is about
    to happen.

    If it does, what is the
    average person to do.

    Lifestyles as we know it
    will change dramatically.

    I am so glad I stumbled
    across a site which has
    helped to prepare me for
    what is coming our way.

    All governments to through
    this cycle. Make sure
    you are prepared for what
    is to come.

    Here are the 7 stages every
    empire goes through.

    1. Good Money –

    Every major empire
    starts out with good money,

    either gold or backed by gold.

    2. Social Programs –

    As a country develops
    economically/socially,

    it takes on more public works,
    adding layer upon layer

    3. Military Spending –

    As a nation’s affluence grows,
    so does it’s political influence

    and spends massively on the military

    4. Wars –

    Nation puts military
    to use and expenditures

    explode and nations go to war

    5. Fiat Currency –

    To fund the wars,
    the costliest endeavors,

    nations start to
    steal wealth of its citizens

    by replacing their money
    with fiat currency

    (value decreed by gov’t
    and backed by nothing).

    6. Inflation –

    Wealth transfer begins as

    hyperinflation sets in

    Results in riots eg. Egypt.

    Price of all commodities
    and goods go up.

    7. Wealth Transfer-

    Final stage,
    in mass movement,

    nation moves out
    of the currency

    and into
    precious metals

    and other tangible assets.

    The currency collapses.

    This results in
    massive wealth transfer

    to those who positioned
    themselves in the

    right asset class
    in advance.

    The US is between stage 6 and 7.

    This transition is
    just beginning.

    This move represents
    a massive transfer

    of wealth.

    This cycle is
    predictable.

    This is what
    happened to the

    Roman Empire and
    every other empire.

    If you would like to learn
    more, you can see

    his free video at

    http://theelevationgroup.net/presentation/register.php?a_aid=160667&a_bid=290b868b&chan=y

  • http://theelevationgroup.net/presentation/register.php?a_aid=a6affed9&a_bid=290b868b John Jackson

    EVG’s mission is to educate the common man about the wealth strategies of the super-rich, revealing and teaching the secret strategies the ‘elite’ have been using for years to amass more wealth for themselves.

    We introduce people to a private community of some of the world’s most successful and financially astute investors and wealthy individuals on the planet.

    Membership in this community will teach you how to invest and manage your finances, positioning yourself to profit from the largest wealth transfer the world has haven seen.

    To learn more about how YOU can become a part of our movement to restore personal wealth and freedom please visit:

    http://theelevationgroup.net/presentation/register.php?a_aid=a6affed9&a_bid=290b868b

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