We have all been lied to. For decades, the leaders of both major political parties have promised us that they can fix our current system and that they can get our national debt under control. As the 2012 election approaches, they are making all kinds of wild promises once again. Well you know what? It is all a giant sham. The United States has gotten into so much debt that there will be no coming back from this. The current system is irretrievably broken. 30 years ago the U.S. debt was a horrific crisis that was completely and totally out of control. If we would have dealt with it back then maybe we could have done something about it. But now it is 15 times larger, and we are adding more than a trillion dollars to the debt every single year. The facts that you are about to read below should set America on fire with anger. Please share them with as many people as you can. What we are doing to our children and our grandchildren is absolutely nightmarish. Words like "abuse", "financial rape", "theft" and "crime" do not even begin to describe what we are doing to future generations. We were the wealthiest nation on earth, but it wasn't good enough just to squander all of our own money. We had to squander the money of our children and our grandchildren as well. America has been so selfish and so self-centered that it is hard to argue that we don't deserve what is about to happen to this country. We have stolen the future of America, and yet we strut around as if we are the smartest generation that ever walked the face of the earth.
All of this prosperity that we see all around us is just an illusion. It is a false prosperity that has been purchased by the biggest mountain of debt in the history of the world.
Did you know that if you added up all forms of debt in the United States and divided it up equally that every single family in the country would owe more than $683,000?
We are a nation that is absolutely addicted to debt, and the U.S. debt crisis threatens to destroy everything that our forefathers built.
Yes, everything may seem fine for the moment, but what do you think would happen if the federal government suddenly adopted a balanced budget?
1.3 trillion dollars a year would be sucked right out of the economy and we would be looking at an "economic readjustment" that would be mind blowing.
Enjoy this false prosperity while you can, because it is not going to last.
Debt is a very cruel master, and our day of reckoning is almost here.
The following are 34 shocking facts about U.S. debt that should set America on fire with anger....
#1 During fiscal year 2011, the U.S. government spent 3.7 trillion dollars but it only brought in 2.4 trillion dollars.
#2 When Ronald Reagan took office, the U.S. national debt was less than 1 trillion dollars. Today, the U.S. national debt is over 15.2 trillion dollars.
#3 During 2011, U.S. debt surpassed 100 percent of GDP for the first time ever.
#4 According to Wikipedia, the monetary base "consists of coins, paper money (both as bank vault cash and as currency circulating in the public), and commercial banks' reserves with the central bank." Currently the U.S. monetary base is sitting somewhere around 2.7 trillion dollars. So if you went out and gathered all of that money up it would only make a small dent in our national debt. But afterwards there would be no currency for anyone to use.
#5 The U.S. government spent over 454 billion dollars just on interest on the national debt during fiscal 2011.
#6 The U.S. government has total assets of 2.7 trillion dollars and has total liabilities of 17.5 trillion dollars. The liabilities do not even count 4.7 trillion dollars of intragovernmental debt that is currently outstanding.
#7 During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.
#8 It is being projected that the U.S. national debt will surpass 23 trillion dollars in 2015.
#9 According to the GAO, the U.S. government is facing 34 trillion dollars in unfunded liabilities for social insurance programs such as Social Security and Medicare. These are obligations that we have already committed ourselves to but that we do not have any money for.
#10 Others estimate that the unfunded liabilities of the U.S. government now total over 117 trillion dollars.
#11 According to the GAO, the ratio of debt held by the public to GDP is projected to reach 287 percent of GDP by 2086.
#12 Others are much less optimistic. A recently revised IMF policy paper entitled “An Analysis of U.S. Fiscal and Generational Imbalances: Who Will Pay and How?” projects that U.S. government debt will rise to about 400 percent of GDP by the year 2050.
#13 The United States government is responsible for more than a third of all the government debt in the entire world.
#14 If you divide up the national debt equally among all U.S. taxpayers, each taxpayer would owe approximately $134,685.
#15 Mandatory federal spending surpassed total federal revenue for the first time ever in fiscal 2011. That was not supposed to happen until 50 years from now.
#16 Between 2007 and 2010, U.S. GDP grew by only 4.26%, but the U.S. national debt soared by 61% during that same time period.
#17 During Barack Obama's first two years in office, the U.S. government added more to the U.S. national debt than the first 100 U.S. Congresses combined.
#18 When you add up all spending by the federal government, state governments and local governments, it comes to 46.6% of GDP.
#19 Our nation is more addicted to government checks than ever before. In 1980, government transfer payments accounted for just 11.7% of all income. Today, government transfer payments account for 18.4% of all income.
#20 U.S. households are now actually receiving more money directly from the U.S. government than they are paying to the government in taxes.
#21 A staggering 48.5% of all Americans live in a household that receives some form of government benefits. Back in 1983, that number was below 30 percent.
#22 Back in 1965, only one out of every 50 Americans was on Medicaid. Today, one out of every 6 Americans is on Medicaid.
#23 In 1950, each retiree's Social Security benefit was paid for by 16 U.S. workers. According to new data from the U.S. Bureau of Labor Statistics, there are now only 1.75 full-time private sector workers for each person that is receiving Social Security benefits in the United States.
#24 The U.S. government now says that the Medicare trust fund will run out five years faster than they were projecting just last year.
#25 Right now, spending by the federal government accounts for about 24 percent of GDP. Back in 2001, it accounted for just 18 percent.
#26 If the U.S. government was forced to use GAAP accounting principles (like all publicly-traded corporations must), the U.S. government budget deficit would be somewhere in the neighborhood of $4 trillion to $5 trillion each and every year.
#27 If you were alive when Christ was born and you spent one million dollars every single day since that point, you still would not have spent one trillion dollars by now. But this year alone the U.S. government is going to add more than a trillion dollars to the national debt.
#28 If right this moment you went out and started spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.
#29 A trillion $10 bills, if they were taped end to end, would wrap around the globe more than 380 times. That amount of money would still not be enough to pay off the U.S. national debt.
#30 If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 470,000 years to pay off the national debt.
#31 If Bill Gates gave every penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for 15 days.
#32 According to Professor Laurence J. Kotlikoff, the U.S. is facing a "fiscal gap" of over 200 trillion dollars in the future. The following is a brief excerpt from a recent article that he did for CNN....
The government's total indebtedness -- its fiscal gap -- now stands at $211 trillion, by my arithmetic. The fiscal gap is the difference, measured in present value, between all projected future spending obligations -- including our huge defense expenditures and massive entitlement programs, as well as making interest and principal payments on the official debt -- and all projected future taxes.
#33 If you add up all forms of debt in the United States (government, business and consumer), it comes to more than 56 trillion dollars. That is more than $683,000 per family. Unfortunately, the average amount of savings per family in the U.S. is only about $4,735.
#34 The U.S. national debt is now more than 5000 times larger than it was when the Federal Reserve was created back in 1913.
But do our leaders care about statistics such as these?
No.
In fact, Barack Obama says that we need to raise the debt limit by another 1.2 trillion dollars.
The absurdity of raising the debt limit when we are already in so much debt is beautifully illustrated by the video posted below....
I just thought that video was so well done.
The "huge cuts" that Congress has agreed to are absolutely meaningless when compared to how rapidly our debt is exploding.
Calling those cuts "pocket change" would be an insult to pocket change.
But it is not just U.S. debt that is the problem. The European debt crisis threatens to completely unravel in 2012 and Japan actually has the highest debt to GDP ratio in the entire industrialized world.
In 2012, a total of 7,600,000,000,000 dollars of debt must be rolled over by the G-7 nations, Brazil, Russia, India and China.
That doesn't even count new borrowing. That number just represents old debts that are coming due that must be refinanced.
Anyone out there that insists that this debt bubble can be fixed under our current system is lying.
A massive amount of financial pain is coming.
It is time for Americans to wake up from their television-induced comas.
It is time for Americans to get very angry.
Your future has been destroyed and the future of your children and grandchildren has been destroyed.
You better take action while you still can.
“Forgive us our debts,
as we also have forgiven our debtors”
Wow! Speehless….I think only way USA to get out of this is by starting a war to reset the game. And they are going to do it!
let’s just do the reset part.
The wars MUST end.
A good way to look at the US
* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000 — REALLY 15 Tril +
* Recent budget cuts: $ 38,500,000,000
Let’s now remove 8 zeros and pretend it’s a household budget:
* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts: $385
Does anybody think this can be fixed ??
Great job at simplifying it so average taxpayers can see how atrocious the situation really is. I think what you have just shown needs to be broadcast to all of America, because it puts it in a perspective that most people can relate to.
That’s an excellent way to simplify the numbers so anyone can understand just how screwed we really are. Good example.
Dave Ramsey did something similar, but went into more detail.
He said it’s like we’re a family making $55,000, spending $96,000 with $386,000 of credit card debt.
Now let’s assume we cut our spending in HALF, and the BIGGEST suggested cut we’ve seen on the table is along the lines of 0.5 %, then we’d have $7,000 per year left over to put on the credit card debt meaning we can’t even pay the INTEREST !!!!!!
And NO GARY, taking everything from the wealthy wouldn’t cover the gap EITHER, so stop with your tyrannical blood lust of taking fellow citizens property. besides, it would decimate the economy, and our annual income would drop to zero over night meaning we’d be in more dire economic straights. The 51% who pay no federal income tax but sonsume the vast majority of those dollars are the ones who are going to end up bearing the brunt of the liberal spending sprees of your boys Bush and the Teleprompter Tyrant.
You cant teach a communist anything. He’s been polluted
Bush was a liberal?!?!?!?
HaHaHaHaHaHaHaHa,what have you been smoking?
I would agree that Bush was a liberal.
Michael
Michael-it is at best disinguineness to compare a family budget to the federal government budget. You must know this? This simple comparisions to the family budget may play well with the low information consetrvative/repube crowd but you are way too smart to not address this false comparrison.
agreed..Bush was a liberal. spend spend spend..big gov and intrusion on American liberties–he’s a minor leaguer though compared to the great and powerful O. Except for a few minor ideological differences on some social issues there is barely any difference between the two ( or Romney for that matter). They’re all bought and paid for by the “too big to fail” guys financing our faux illusion of a democratic election process. Wonder which 2 Ivy leaguers will be thrust upon us in 2016 to choose between?
And still you all go on and on with this Liberal vs Conservative rubbish. Can’t you see its gone way beyond that simplistic nonsense? Do you think the people who have done this (knowingly, there is no other sane explanation) care what meaningless label the plebs put on them?
As would I….he certainly was not conservative….Medicare Rx, No Child Left Behind, Comprehensive Immigration Reform are not conservative AT ALL.
Tax the rich and corporations and pay off the deficiet. see my comment to michael.
Gary2
Try using a little math. I’m sure you have the math skills to do this. Even though the liberal/socialist public school system is a big ‘fail’ for america, Simple math ( adding and subtracting) is all you need to do and you will clearly see that taxes cannot lower a 1 trillion dollar a year deficit to not exceed the growth of GDP.
just remove 8 zeros from the government numbers and it will make it soo much easier for you to understand. You wont be so confused that way.
WOW, quick!
So simple. Straight forward. Clearly understood in such terms. Thanks! I hope you don’t mind if I share your illustration.
Great summary of the video Quick! It should be printed on business cards and distributed to all those suffering from the normalcy bias syndrome who feel that our great country will find a solution to this problem just because that’s what we’ve always done in the past.
And the punch line: Let’s raise that $15 trillion debt ceiling to $17 trillion and then 21, 28, 35 etc. Why isn’t anyone laughing?
great example.
Show what the annual interest would be on the chargecard debt at say 18.99% and how much of the annual income that will represent.
Cheers
you can not possibly believe you can compare the federal budget with a household budget.
It’s not a comparison. It’s an analogy and it describes our dire situation accurately. You claim to have a bachelors degree but I can’t believe you even made it through the 3rd grade – even after your second try.
The point is not to say the federal budget is the same as a family budget. The point is to scale the numbers down to a level that people can grasp.
And the numbers show the enormity of the SPENDING problem. Government takes more than enough tax revenue to do what it is constitutionally authorized to do. Its the spending, stupid!
I don’t think it was meant as a side by side comparison as in apples to apples.
But it’s all still money in, money out… when brought down to the most basic level of that, then yes — this illustration certainly helps people understand just how ridiculous the amounts of money owed are versus what’s coming in.
The household graphic that you are quoting from is incredibly inaccurate on many levels. It’s a nice pat image that doesn’t take into account how the economy actually works.
Let’s look as some facts regarding the ‘household’ argument:
- Part of that ‘debt’ is basically one part of the government owing another part of the government money. If you owed It’s like, if you make $50K a year and have a debt of $500K (as an example), then that’s a lot. But if $495K of that money is money you borrowed from your spouse, then your household debt isn’t really that big, is it?
And why the credit card: why not call it ‘education expenses’ or ‘mortgage’. The text is trying to make it seem like these are things that should be cut, rather than investments in people or basic living needs. If you have to go to the doctor, do you suddenly just stop paying everything else?
Also, the following:
+ Essentially the household economy is tiny in relation to the rest-of-the-economy: the effects household decisions on outgoings have on incomings is tiny and can be ignored, you can treat it as an open system. Governments, though, are like a quarter of the economy or more, and the decisions they make on outgoings have a huge impact on incomings; the finite size of the total economy has a huge impact on government decisions
+ governments are indifferent to profit as such so their decisions are judged in a radically different framework anyway.
I can go on, bu the TL;DR version is that the graphic is very dishonest, created by someone that doesn’t actually understand the difference between household finance (microeconomics) and national-scale economy (macroeconomics). Debt can be an issue and we should look at reasonable ways to increase revenue and decrease wasteful spending (like corporate and farm subsidies), but hokum like this graphic really does no one a service.
Anything but logic to try and complicate a rather simple matter.
This is the agenda of those who wish to continue and increase deficit spending by government.
I really dont know why anyone would have such an agenda (continue or increase .gov deficit spending)except to really screw up this country.
Gary2
You most definately can compare the FedGov to a family budget !
The FedGov cannot grow deficits faster than growth in GDP. It presents problems such as we have now ! !
There are limits on soveriegn debt even though Low information liberals like to say soveriegns can run unlimited deficits with no problem.
Surely you are smart enough to know better than the average Low information Liberal ??
Very well written article with facts. But the missing piece is – what you want the people to do by getting angry? Go out and riot? Do you suggest anything to people to be financially safe in this situation?
This is why I say we need to elect a person like Ron Paul. More than any candidate, he is the peoples candidate. If he were elected CONgress would feel the pressure of ‘we the people’ and would have to start representing the people or they are gone. Far from perfect he is the best we have at this time and has some workable solutions. Job #1 is to restore our Constitution, remove the crooks and jail the criminals. IT doesn’t require a revolution; just a an angry and determined population of people with backbone and a voice.
#33 $64 Trillion? Try 205 trillion. Prof. Kotlikoff.
NEVER has 1 credible person, even argued, much less debunked Kotlikoff.
Include him.
Thank you.
RON PAUL 2012
Why Get Angry About the national debt?
this ship is going down faster than the titanic
and there is nothing that can be done to stop it.Find a lifeboat and enjoy the rest of the trip while you can.
I did not believe point #27 until I did the math. Wow, just staggering. The only thing that will fix this is a complete financial reset, globally.
I can’t imagine what the world will look like when every nation declares bankruptcy but that’s where this is all heading.
It’s impossible for all of this debt to be repaid. And Obamacare hasn’t kicked in yet.
Michael I hope you don’t mind but I submeiited this link to The Blaze. You can edit this portion out if you like. I hope they post this article cause that’s how I found out about your site.
Rodster:
I am so thankful for all of the people out there that submit these articles to places around the Internet.
Of course I don’t mind – in fact I am so thankful for people like you that help share these articles.
Michael
thank you for this blog michael.
I did not believe point #27 until I did the math. Wow, just staggering. The only thing that will fix this is a complete financial reset, globally.
No the world needs to take all the money the rich have stolen and we would have no debt/deficiet. Don’t beieve me-google for yourself.
What do we google? Gary2′s childish fantasies? At least TRY to document your outrageous claims.
That’s right Gary. The next question is who has created the problem so they can offer the solution of a “reset” which will of course be on their terms.
problem-reaction-solution in action.
Sham #1 – Tax Cuts
To reduce the National Debt, the government needs more tax revenue – not less tax revenue (tax cuts).
Lower taxes for offshore manufacturing corporations would not increase tax revenue.
Lower taxes for foreign owned corporations operating in the USA would not increase tax revenue.
Sham #2 – Balanced Budget / Spending Cuts
Do the math:
In late 2011, it required 9.2 million employees to generate 1.0 trillion dollars of GDP.
In 2013, it would require 1.1 trillion dollars of spending cuts to balance the budget.
Spending cuts should be increased by 25 percent to compensate for severance pay, unemployment benefits, food stamps, loss of tax revenue, etc.
Increase in unemployed = 9.2 x 1.1 x 1.25 = 12.6 million employees
Unemployment rate per Balanced Budget = (13.9 +12.6) / 154.2 =17.2 percent
Where:
13.9 = current unemployed
12.6 = increase in unemployed from spending cuts
140.3 = current employed
154.2 = current total civilian labor force (13.9 + 140.3)
Sorry, tax hikes won’t work. Why would we consent to giving them more. How foolish.
You are right because our government has no interest in debt reduction and would waste any additional tax revenue on something else.
“To reduce the National Debt, the government needs more tax revenue – not less tax revenue (tax cuts).”
Why do tax cuts always produce MORE revenue for the govt?
they don’t-look at the Bush tax cuts of 2001 and 2003. Turn off fox
The Laffer curve is typically represented as a graph which starts at 0% tax with zero revenue, rises to a maximum rate of revenue at an intermediate rate of taxation, and then falls again to zero revenue at a 100% tax rate.
One potential result of the Laffer curve is that increasing tax rates beyond a certain point will be counterproductive for raising further tax revenue.
http://en.wikipedia.org/wiki/Laffer_curve
Tax cuts DO NOT always produce MORE revenue – it depends where you are at on the above Laffer curve.
The bankers have re-instituted slavery again. Only instead of the moral high ground being with the slaves, it is now with the masters, for after all, the slaves have a debt to pay.
In Canada our central bank governor, Mr. Mark Carney has reffered to Canadas’ MINSKY MOMENT on 21 Dec. 2011, The only reference to massive doom and gloom coming our way,,,, in the last tree years, Hang on to your hats,
Why would he bring that up now?…..Al
I work in retail and it is unbelievable how many people still pull out their credit (not debit) cards to “pay” for their purchases. I’d say at least 60% of the purchases are put on credit. This is one reason why personal debt is increasing more and more. If and when inflation(even hyperinflation)sets in interest rates will also rise and those with personal debt will find themselves in a much deeper hole that they may never climb out from. In the grand scheme of things…what does it matter at this point? We are destined for a full blown depression that will make the first one look like a picnic in the park…
Here’s something amusing. This is a chart that calculates the U.S. governments FICO score, which is how our personal credit score is rated.
http://www.loansandcredit.com/calculation-of-the-united-states-credit-score/
This generously scores the government at a 620, 1 point above “poor”. So theoretically, based on that score, if the U.S. government wanted to finance a used car, they would have to go to a “Buy Here, Pay Here” joint, they would NOT qualify for a conventional mortgage, they would NOT qualify for a standard credit card and they would even have a hard time getting approved for satellite TV.
In an ironic twist, the president just today jump-started the highly controversial “Consumer Financial Protection Bureau” with the unconstitutional appointment of Richard Cordray. The CFPB is essentially a power grab by the feds to get their fingers in your mortgages, credit cards, consumer loans and yep, you guessed it, even applying for satellite TV………..
Why get mad as there is nothing the average citizen can really do other than clean the slate in 2012 by voting out everyone? But given the results yesterday in the Iowa Caucus I really question if that will happen or not. The Sheeple flock to whoever the media outlets pump that week.
Due to the massive debt, all one can do is assume that eventually something will happen to the currency in the form of a revaluation.
Instead of getting mad, use your brain and prepare for a soft landing when the rubber meets the road.
Just understand what retains value and what doesn’t as currencies are devalued. A potato or loaf of bread retains value no matter what happens to the currency. Metals ranging from gold to nickel retain value. An LCD TV, kitchen upgrade, video game or leather lounge chair does not retain value.
Right now is the time to be smart with money! When you are shopping and see that nick nack, the question you should ask is whether or not it would retain Real Dollar value no matter what happens to the currency. If the answer is no, then don’t buy it!
Smart investments or purchases right now could make a tremendous difference in living conditions in the next 1 to 5 years.
I don’t know- I think that leather lounge chair might retain it’s value!
“#20 U.S. households are now actually receiving more money directly from the U.S. government than they are paying to the government in taxes.”
Pardon me, but I receive ZERO from DC and pay about 35% of my income, earned interest, & capital gains to DC. And no, Gary2, I’m anywhere near the 1%. I’m old enough to receive social security and medicare but I refuse to sign up for either. I have paid into both systems simply because they (DC) have pointed a gun at my head and will break down my door and take every thing I own if I refuse to pay into their Ponzi scheme. My only liberty is to refuse to take their pathetic ‘charity’.
Let it all crash. Let the parasites starve. Let the elitists (Obama is elitist numero uno) cower in their mansions 50+% of the people have voted for this scam and day by day the scam is being revealed for the fraud that it is. Cry me a river but don’t expect me to cry a river over you. LIfe, liberty, and the (unsubsidized) pursuit of happiness is where the rubber meets the road. If you want guaranteed happiness move to Cuba.
That’s one of the major problems is the working middle class has gotten clobbered with taxes and fees and then more taxes.
When you figure it all out at the end of the day 45% to 50% of most middle class income is going towards some form of taxes: federal income tax, property tax, state income tax, retail tax, license fees and stealth fees like Social Security. I now call Social Security a stealth tax because I’ll be lucky to ever see a dime given that the system is nearing a breaking point and I still have a long ways to even get near the official retirement age.
I believe the number is about 24% to taxes. To the fool who paid into SSI but is not collecting-what a dolt!
Gary2, the dolt will be you as the middle class continues to collapse and your SSI is devoured and devalued in the process. In case you haven’t noticed it’s already started!
Anyway I see you regularly posting on this site and realize you live in an alternative universe.
Anyone old enough to draw SSI but continues to work should be commended for their work ethic. Many people don’t want to sit around and do nothing all day long but you probably wouldn’t understand.
The first poster was correct.
Actually, when you include sales, property and all of the hidden excise taxes, a solidly middle class family pays OVER 50 percent in taxes compared to gross income.
so Christian of you-let them starve. I said libertarism and conservatism is not compatible with Christianty. They worshiop the athesiest ayn rand
The 30 year period between 1981 and 2011 marks the destruction of America. It all began in earnest with the Ronnie Raygun tax cuts. That is when America began running hundreds of billions of dollars in the annual deficits. The coffin was nailed shut with the tax cuts of the Smirking Chimp and war criminal Bush, along with his two unfunded wars and Medicare D. To top all this lunacy off, the Obummer is a total failure. The only same voice in all the current stupidity is Ron Paul, who has no chance. Those who do not put America FIRST will ensure his defeat.
sane, vice same
Look Out! You’ve been duped.
The destruction began over a 100 years ago when progressives decided to detroy the culture, the people and the US constitution.
Is Obama a war criminal? Is everyone in the US Congress from 2003 to today? Not according to you – because you’re a DUPE and a DOPE.
AMEN to most of your comments
Americans can help my living below their means! Stop trying to keep up with the Jones!
We save 20% and the only debt we have is our mortgage, 11 yrs left but hopefully we can cut that in half. We don’t have Credit Cards, only cash and debit cards. We also help support those who arfe struggling….because it is the right thing to do. Our family of 5 is fin in a 3 bedroom, 1 bathroom, 1100 sq ft older ranch house(even though my daughters would disagree).
The amount of consumer debt in this country is astounding.
to a lot of people living below their means is either not eating or not living indoors. The shit free market is failing people. time for a change to the left. I for one do not want to be at the wim of any market.
No doubt it means that to a lot of people. However, consumerism and debt are crazy in America! Credit cards, banks and etc are evil!
Remember those old Roadrunner cartoons when you were a kid, and how Wiley Coyote would always run off the edge of the cliff while chasing the Roadrunner, then, when he realized he had run off the cliff, he would look back at the television audience and wave goodbye before dissappearing to the bottom of the canyon in a puff of smoke? Thats us, and where we are at right now. Only we got there quicker because we have Acme rockets ( politicians ) propelling us. Gerald Celente’s 3 G’S of survival are o.k, but these are better still.. God, Grace & Goodness……Better put on the parachute of God’s forgiveness ( Jesus Christ ) while you still can, beacuse you WILL NOT stop whats about to happen and any prepping you do without first knowing Christ as lord will be in vain. But if you already know him as Lord and savior, you have nothing to fear from whats coming…… On Christ the solid rock I stand, all other ground is sinking sand.
According to Mosler, Cullen & other MMT folks, the US debt is not a burden to future generations since there is no question of having to paying it off. Govt. debt is very different from the debt held by households and corporations which face a very real burden. Unlike households, the govt. is in no way constrained and does not need to raise taxes or borrow money. It simply spends money into existence and in fact the government spending becomes the savings for he non government sector. The US bond market is only a monetary operation meant to set overnight interest rates and is not needed for financing a sovereign currency issuer. In fact, it will never default simply because it is merely a reserve drain and is a preplanned and well coordinated action between US treasury and Fed. All you have said is truly applicable to private debt but not for public debt. Households and governments are completely different accounting entities. US, Japan bonds are no wonder considered default free and priced to that reality. This doomsday on public debt default is a bogeyman. However, all points related to economic collapse with regards to what is happening in the private sphere and also in Euro (all currency users) is definitely worthy of consideration
I think getting angry will be the natural reaction for those who are surprised by the natural conclusion of events.
“You better take action while you still can.”
First five tasks for those just waking up:
1. Get a water filter and source or store water.
2. Buy three month’s of nonperishable food similar to what you normally eat.
3. Start discussions with family members and high school or college friends who lives far from a major city. Facebook is great for this. It is pretty easy to spot posts by prepper friends who would likely be willing to train you.
4. Assemble a medical kit including several month’s supply of any medically necessary prescriptions.
5. Purchase a 12 gauge shotgun from a private seller or at a gun show and buy as many shells as you can afford (from several retailers).
Dude,
3 months??? Try the real truth…3 years with the ability to safely reproduce food and hunt and be off the beaten path. Then you might…just might have a chance.
#1 above: government income versus expenses.
This is incorrect.
Our government takes in much more income annually from non-taxed sources, than is required to run our entire government without any defecit whatsoever – and this “off-the-books” income would immediately eliminate all income taxation as well.
Just search for “Comprehensive Annual Financial Reports” (CAFR) or go to http://www.comprehensiveannualfinancialreport.com to read all about how our government has been ripping us all off for decades by cooking their books and keeping their real income (their CAFR’s)hidden from public view IN PLAIN SIGHT!
America and our government operated just fine for 75 years with NO domestic income taxation. And it is not necessary at all now.
It is time for Americans to take off the blinders and wake up to this truth!
CAFR Report – The United States Government 2010 (page 78)
Total debt and equity securities as of September 30, 2009 = 98.9 billion
Fred,
How do you get 3.7 trillion of income from 98.9 billion of investments?
I’ve been angry for many years now. I’ve explained our fiscal situation and its implications to friends and family. But it hasn’t made a difference. The debts continue to rise. There’s not much the common man can do, in my opinion.
David Walker started sounding the alarm shortly after he became Comptroller General of the United States in 1998. At first his efforts were directed at the Congress, whom GAO worked for. (GAO is an extension of the Congress.) But they just didn’t seem to get it. I remember Mr. Walker telling us (GAO employees) that when he presented the facts to members of Congress during his testimonies, he got “blank stares and dropped jaws.” Eventually, Mr. Walker decided to take his message directly to the American people, and, in conjunction with various public service organizations, he started the Fiscal Wake-Up Tour. Since 2005, the Tour has visited many cities across the nation warning the public about the nation’s dire fiscal situation. But even with the efforts of men like Walker and the many grassroots organizations that have appeared over the past few years to get our “leaders” to make the tough decisions necessary to restore fiscal sanity, the situation has only worsened.
I believe we passed the point of no return a while ago. The only thing we can do is prepare for the calamity that is certain to come.
This debt can’t be repaid with out printing more dollars. This will destroy the dollar. We can’t grow our way out of this mess. The interest payments will suck away any growth that might happen. Those in power will not give up their wealth in a reset. You see it is not just about money to the elite, it is all about power over you and I. Power to control as much of our lives as the can. To me it is hard to understand the desire to control others as I like to be left alone. I have always done thinge to be left alone. I worked as a plumber and most of the time you work alone. I bought old rental property to fix up and I worked alone. I bought a ranch far fron town and enjoy not having close neighbors. It seems that those in power will not leave us alone. Now the government powers might try to ruin the rental housing market. Uncle Ben thinks that the banks should start renting out all of the forclosed property or the next step, all of this government owned property to be rented out. Welcome to the next government housing project next door to you. The cost of maintance would be huge. These properties will be run down like most government projects end up. Will the government owned homes support the local property tax base? They will not pay taxes and so the costs of local government will go on your back if you own property. The rope is getting tighter around our necks. We will end up as little birds in a cage with the government feeding us just enough to live as debt serfs.
Hey GARY! You should refute each and every last one of these since you support the biggest spender and puppet of Goldman Sachs in US history without even a close rival. Explain to us again why you support a giant parasitic unsustainable gov’t that is KILLING the wealth producing segment of our country. Explain why you support an entity that generates no wealth of its own, but actually destroys all wealth generation every time it expands.
I have explained it to you many times. The fact that you even need an explanation means you would not be able to understand said explanation.
Just go back and listen to RUsh. The left will be taking over in 2012 and we will fix this conservative economic crisis called the republican great recession.
One more fact.
Our debt to GDP stands at 100.3% now. NO nation that has surpassed 80% has EVER recovered.
51% of this country pays no federal income tax.
FOUR MORE YEARS !!
FOUR MORE YEARS !!
They (not so much we)are not doing this only to our children and grandchildren – they are doing it to us – now.
The pain of the national debt is not only going to be felt at some point in the future, it is being felt NOW!
Every time you go into the grocery store and notice that prices have gone up it is due to the creation of new money to pay for the costs of government and the interest on the debt.
All of that money is not being borrowed – most of it is being created out of thin air.
The world needs a gold standard – it is going to get the mark of the beast standard instead – and it will probably be obama that introduces it.
He will be the next president – either of the U.S. or of the world.
The world loves him.
Those of us not of the world do not.
There is only one way to survive: produce more than you consume.
I left out the main reason for inflation these days – increased prices at the grocery store are also due to bailouts of the world’s banks.
Better than using the term “banks” would be to name actual people because institutions are made up of people making decisions. A “bank’ is only a word used to describe a group of actual people. Bankster Gangsters is the correct term to use – actual psychopathic people with gambling addicitions who have gambled with derivatives. Their puppet masters (and I mean masters) allow them to continue with their behavior so that the present economic system will collapse so they can introduce the one world system.
Why do we allow it to continue? I say we all get together and do an intervention – because we love one another.
If you were wondering who I meant by their masters – central banks – of which there really is only one – unless you are Hungary, or Libya, or Syria, Russia and like to be attacked militarily. Watch out Iceland! You must be on the list.
Oh yeah, I forgot about Iran.
These attacks are more about all of the countries of the world being forced to be members of the nwo and not about the threat to Israel – although it certainly is threatened.
The actual “people” behind the central banks (bank singular) I meant.
I can’t think of a name that would fit them because I am not anywhere close to being aware of their nature (thank you God) – everything that they want, plan, and do.
I just know – it’s not good.
I just want to say that it’s refreshing to see so many people awake. On the financial crisis, let’s be realistic.This is just a downward spiral and even if a solution could be found it wouldn’t be put in effect if it wasn’t for the benefit of the “upper class”.
FROM http://www.economicnoise.com/2012/01/04/paul-krugman-exposed-by-an-austrian-economist/
“If the government uses the sums borrowed for investment in those lines in which they best serve the wants of the consumers, and if it succeeds in these entrepreneurial activities in free and equal competition with all private entrepreneurs, it is in the same position as any other businessman; it can pay interest because it has made surpluses. But if the government invests funds unsuccessfully and no surplus results, or if it spends the money for current expenditure, the capital borrowed shrinks or disappears entirely, and no source is opened from which interest and principal could be paid. Then taxing the people is the only method available for complying with the articles of the credit contract. In asking taxes for such payments the government makes the citizens answerable for money squandered in the past. The taxes paid are not compensated by any present service rendered by the government’s apparatus.
The government pays interest on capital which has been consumed and no longer exists. The treasury is burdened with the unfortunate results of past policies.”
Read that last paragraph 1000 times Gary. The gov’t is paying interest on capital it DESTROYED meaning wealth destruction. We must now pay INTEREST on wealth it DESTROYED !!!!!!!!!!!!!!!
By the way, TWO of the worst products of 2011 named by some group were SUPPORTED and ENDORSED by your boy the Teleprompter Tyrant and subsidized by me, a tax payer. I know, you’re one of the 51%, the elite, the non- tax paying yet benefit receiving citizens who still get a full vote with no skin in the game. The most visible product would be the Chevy Firebomb, I mean Chevy Volt. The Volt is now going to be built in CHINA GARY! Why ?!?! because the policies YOU vote for make doing business in America IMPOSSIBLE !! YEAH GARY !!!!!
I do way more than just vote-I get many other folks who do not vote to register and vote. There are a lot of poor folks who will eargly vote if they are helped to get to polls and to register. No fraud like the right in WI does (see waukesha country clerk finding thousands of votes for her former boss processer to “win”)
All those people you refer to as paracites-they will be voting and it won’t be for ANY one on the right. I only need to point out how the right is destroying this country and they gladly volte dem and thank me in the process for helping them have their voice heard.
Like I said earlier-go back and listen to Rush. I/we on the left will take it from here. I actually do something besides post on a blog. Throwing bible verses back and forth does nothing to get people to the polls to vote. (it does provide entertainment though)
How many phones banks do you man? How many doors do you knock on? How many people do you get registered to vote and then provide a ride to the polls?
Say what you will talk is cheap and actions speak louder than words.
What amazes me is that this has lasted as long as it has. I mean, how much longer can they keep this going? Why do China and many other nations continue to buy our debt? With so much money printing by the Federal Reserve, why isn’t inflation much higher than it is? How long will be it be before the U.S. Dollar loses its remaining value? Do our elected officials in Washington really intend to do anything about getting the budget deficit under and control and paying down the debt? When the Dollar becomes worthless, what will we use as a medium of exchange in the market places?
These are just questions that I’m sure many of us have.
Please study the MMT (Modern Monetary Theory) and go to websites like pragcap and mosler and you will learn why this has gone for so long. US does not depend on China buying their bonds. Also, feds control only alter the mix of reserves and treasuries. they dont print money. oh yes. QE is not Money printing. i think the evidence by now should convince all that the folks screaming hyperinflation were wrong.
If more money came in would be less borrowered.
GE,Energy,Oil Companies,CEO’s of Companies,Hedge Funds,ETC. pay no taxes with loopholes in the Taz System Let’s add Billionaires.
Fired or Layoffed people mean less taxes collected.
Good old Congress votes $650 BILLION for the Denfense Bill. Congress votes for budget not Obama!!!!!
Congress voted not Obama.
25 million unemployed are entitled to collect unemployment insurances, even if now the time span is longer.
Where are the JOBS?
True there is so much wasted spending but again Congress votes on spending not Obama.
Leave Social Security out of entilements but Medicare and Medicaid really need the fraud cleaned up.
Please quit blaming Obama for all the MESS as most of it was created by previous Preasident.
Good Jobs, no more Loopholes, CEOS & Companies pay TAXES, Less Defense Spending=REVINUE=LESS DEBT!!!!!!!!!!!!
Oi Vay…..
Fine it is the Congress…From 2001 thru 2006 it was controlled by Repubs….From 2006 through 2010 it was controlled by Dems, where the Obummer was a member voting for the budgets and the bailouts (in 2007 and 2008 b4 becoming el presidente)….The democratically controlled senate has not passed a budget in over 900 days. Forcing the passage of massive omnibus spending bills that have so much crap and pork in them and are so large that no one can read what is in them…
So your little man child Obummer voted for the budgets and the bailouts that he campaigned against…So GET A CLUE, both parties are guilty…
Excellent article.
My Bible since 4 years :
http://www.leap2020.eu/GEAB-N-60-is-available-Global-systemic-crisis-USA-2012-2016-An-insolvent-and-ungovernable-country_a8481.html
Why should people be angry? They never cared as long as “their” needs were met. If someone else suffered well they obviously deserved it.
Most people can tell you what is on Reality TV or what is in the entertainment sections but will never keep up with the people that literally rule their lives.
People keep posting for other people to pay attention and other people keep finding excuses not to.
When Americans are all standing in the same bread lines,and only then, will they pay attention.
Americans deserve everything they get due to their willful laziness and ignorance.
Year of Jubilee.
“At the end of every seven years you shall grant a release of debts. And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the Lord’s release . . .
“For the Lord your God will bless you just as He promised you; you shall lend to many nations, but you shall not borrow; you shall reign over many nations, but they shall not reign over you. If there is among you a poor man of your brethren, within any of the gates in your land which the Lord your God is giving you, you shall not harden your heart nor shut your hand from your poor brother, but you shall open your hand wide to him and willingly lend him sufficient for his need, whatever he needs . . .
“You shall surely give to him, and your heart should not be grieved when you give to him, because for this thing the Lord your God will bless you in all your works and in all to which you put your hand. For the poor will never cease from the land; therefore I command you, saying, ‘You shall open your hand wide to your brother, to your poor and your needy, in your land.’
“If your brother, a Hebrew man, or a Hebrew woman, is sold to you and serves you six years, then in the seventh year you shall let him go free from you. “
Economic sins? You haven’t even scratched the surface of what the United States has done to itself, and the world, in terms of the near total abandonment of everything that is decent and good and moral. Money is only the SYMPTOM of the problem. Economic bankruptcy is only a symptom of what is wrong with this country. What we have done in terms of letting loose modern humanism on the world, with all its attendant diseases and psychopathies is the true evil.
The United States makes Sodom and Gommorah look like Sunday school. Starting with the Hollywood elites and the corrupt politicians and working down to the dumb sheeple who stood by and cloistered themselves away in their little climate controlled havens and consumerist Disneyworld.
Your daughters have turned into whores. Your sons are sodomites. When America is wiped off the face of the Earth, it will be a better day. We don’t need your “science” and your “progress”. What we need is a world where children can play in the streets without fear of being raped by some pedophile and gunned down by a drug dealer.
The US WILL default on its debt this year or next. Get ready for it.
At a minimum, the US dollar will devalue at least 40% overnight. Prepare for it!!!!
A concerned citizen
Another stunning and timely article, Michael. Im so grateful for you and others in the alt media for telling us like it is. If you beLIEved CNBC you would think that everything is fine and dandy, and the market has nowhere to go but up according to them. Theyre wrong, theyre fools and we all know it. Maria Bartromo has no credibility. Neither does that fool Cramer. They think the market is going to grow this year, Occupy Wall Street will go away, and the Europeans are going to fix their mess. But that figure of 1.3 trillion cut out of the budget what would that do? The same thing thats going on with Greece. Brutal austerity measures would devastate the economy, but the neoCONS and the DemoCRAPS wont even consider a peaceful resoulution with Iran. A war with Iran would cause oil to skyrocket, destabilize an already chaotic region, and most of all cost us MORE money at a time when we acnt afford another police action. We dont need to be Team America World Police anymore. Ron Paul is the only voice of sanity in this race. Rick Santorum is nothing but another neoCON warmongering shill that will say anything to get elected. He would bomb Iran without any solid proof of nuclear treat, and get us into another costly quagmire. Im sick of it. But I agree with you 100% we have crossed the point of no return.
America has been warned and warned and warned and warned, over and over and over and over. America has been laughing at those sent to warn it of so many things. The average American in 1970 would have ridiculed any suggestion that the days we are now seeing would come.
Now they are here.
Just face the facts and prepare to deal with reality. It won’t be so bad. You’re only going to have to start living with the same harsh realities that the majority of the world has had to live with since the world began. Prepare for life under an endless succession of dictators and despots. Prepare for constant uncertainty and want. Prepare to walk for miles just to earn a penny. Prepare for constant warfare and internicene hatred.
That’s a typical day everywhere else. This is what you’ve begged for for 50 years as you “criticized” yourselves for being so rich and “imperialist”. So now… enjoy it.
The knowledge is widespread that banks create checking account balances out of thin air and loan them into circulation.
This both increases the money supply and increases the amount of debt owed to banks, a nifty system for indenturing people, businesses and governments to the banks resulting in a huge transfer of wealth to the banks via interest payments. But at the same time it debases the value of the money supply. The numbers are huge, the M2 money supply having been $50 billion in 1932 and not $9,267 billion today. If I made my living as a con-artist, I would want to run this scam.
One facet of this system is that debt and the money supply must be kept at a sufficient rate of expansion to offset the effect of debt repayment, so that there is net inflation of the money supply. If the rate of expansion is not sufficient the fuel to keep the economy also expanding is not there and the economy does in fact contract.
Debt repayment causes the money supply to contract because it reverses the original transaction where money was created out of thin air and loaned into circulation. Repayment of debt to banks takes money out of circulation and send it back into thin air from whence it came. De-leveraging is deflationary, as indicated in item #4 listed above.
Trying to stimulate the economy as the Federal Reserve has undertaken via money supply expansion also increases indebtedness to banks, because the money supply increases come into existence in loan transactions. They keep interest rates artificially low to encourage borrowing, but what effect does this really have?
When interest rates are very low, the capitalization rate is low, so assets are overvalued. Why invest when the only reasonable value of assets can go is down? Doesn’t forcing interest rates to artificial lows discourage investment and encourage speculation. Who will buy assets when the only think supporting even today’s unreasonable values is low interest rates that don’t reflect reality?
Deflation is the dragon that will much more likely eat us for lunch.
One thing that annoys me is that in the math about the deficit you always see the costs of welfare programs, medicare, etc., but you never find the figure about the tax cuts for the rich and big corporations, or the military expenses: one active war, 900 bases, development of new weapons, etc. An easy way of manipulating the agenda is to take some of the biggest issues out of the debate, so they become untouchable.
One thing that annoys me is marxists that cant do math. They always seem to think taxing the rich and corporations will cover the trillions spent by the govt every year, ignoring the fact that doing so doesn’t remotely cover the expenses of the govt, and only destroys wealth and the incentive to create a job.
Who employs you – rich man or poor man? I work for a rich man.
How does a corporation pay taxes – by raising their prices so that YOU pay the tax or they fart a pixie dust check to the govt?
Sounds to me like you propose abandoning having a military – which coincidentally is what the fed gov IS for.
BTW, there’s more than one active war. Your boy started at least two more on top of Iraq and Afghanistan and lied to you by escalating the Afghan war over in Pakistan. And that doesn’t even cover aiding Al Qaeda (Hello, our enemy) in Libya.
Yes, we do need to stop being the worlds policemen, but please, blaming republicans for it is disingenuous at best, and an ignorant lie at worst.
poor people employee people when they buy products and services. Why are conservatives so ignorant and repeat the crap they hear on AM hate radio. Note to conservatives-you do not sound smart repeating what Rush said earlier in the day.
blaming republicans for it is disingenuous at best, and an ignorant lie at worst.
No Sorry-republicans are to blame for everything that is wrong with this country. Sorry to be blunt but thems the facts. Yes the Dems also leave a lot to be desired. Many are way too conservative.
Another two-party partisan. That’s what you are Gary2. Your self serving “facts” are old and passe. JFK and MLK were flaming right wing conservatives compared to people like you. Compared to you, only Chairman Mao is a leftist.
But the vast majority of us are waking up to the fact that both your precious parties are one in the same, and have been for at least 4 decades. The GOP and the Dems are both globalist, both socialist and both LYING traitors.
You have no facts. Just rhetoric. And rhetoric isn’t good enough anymore. Your Dems support the central banking system more than the GOP does. Your Dems support borrowing at interest from the banking cartel more than the GOP does. Your Dems support everything that bankrupts the nation just as much as the DEMS do. You don’t mind war, you don’t mind repression and you don’t mind trampling on the Constitution – just as long as it’s the DEMS doing it. You only get upset about big banks when Dick Cheney is in office.
Bush was the biggest liberal on the planet. Bill Clinton said Richard Nixon was a “bigger communist” than anybody. And he was right.
If there were any logic in you at all, you would love the GOP… they’ve enacted more of your agenda than the Dems have since 1970.
and corporate welfare which costs WAY more than any welfare for the poor. The conservatives are too stupid to see this.
But I bet that won’t stop you from voting for Obama and the Democrats who are funded by the corporations with billions of dollars, will it?
You should be a “conservative” too… heck, you already are one. You just don’t know it yet. Nobody is more conservative than a post-revolution Marxist.
SECESSION! The American Middle and Lower Classes should economically SECEDE from the United States and all its big bankers, robber baron, money monster corporations, war mongering military leaders, bought out politicians,autocratic government officials and exploitative employers. The secession would take place in three steps: 1st – Displaced workers should start forming Democratic Workplaces (DWP’s) where there is no CEO, no board of directors, and where they are no stockholders nor investors. The monetary income would be shared equally among all the workers. 2nd – The Middle and Lower classes should establish free or at least low cost vocational colleges to train anyone who wants to acquire the 21st Century technical skills required to work in a DWP. And, 3rd – the establishment of Democratic Banks that print INTEREST FREE money based on gold, silver, platinum and precious gems that people can redeem anytime they want. Anyone who wants a job gets a job. Anyone who wants to earn a middle class income gets to earn a middle class income. Anyone who wants to go to college gets to go to college. Anyone who wants to redeem his or her money for gold, silver, platinum or precious gems gets to redeem his or her money for gold, silver, platinum or precious gems. The American Middle and Lower Classes should set up their own Democratic Capitalism and compete with Plutocratic / Kleptocratic Capitalism until we shatter this plutocratic / kleptocratic system into pieces.
The debt WON’T be paid by future generations. The government will do two things: It will inflate the debt away as much as possible. Then it default.
More importantly, it is not to be coned debt. it is just a score of what savings the private sector holds. if govt. were to tax 100% on everything, there would be no money around. it is only because govt. spends that people have money to pay taxes. spending comes before taxes and for spending gov.t does not need permission from china. I agree that too much spending can cause inflation. but balancing the budget will definitely cause a recession like it has done everytime the budget was balanced. Please look it up and you will wonder why. Please read up on Modern Monetary theory
Years ago we were camping and I had to get up during the middle of the night to whiz. While doing so, the hair rose n the back of my neck and the adrenaline began pouring into my veins as I saw a bear only feet away. I had surprised it and it had surprised me and I ran, terrified. It chased but I dived into the tent and shushed my wife, my heart racing as the bear circled the tent, snorting, and then wandered off.
That kind of adrenaline rush accompanied my reading of this article. Never had that happen before.
Get mad, post about how wrong it is, blame others, blame yourself, blame God, demand this and that…. Truth is it is pointless. We are at the wheel of this run away over full fuel tanker truck and the tires are getting shot our from under it by us as we are doing 100 MPH down hill.
The only question is where is the hairpin curve we all know is coming up. We saw the sign warning us as we speed by but it does not say how far down the road it is….
All I know is we are going to crash and burn. But when??? That is the question which this column can not answer. That to me is the very very very most important. Much like being told to “duck” when someone is going to shoot you. Timing to make the last minute chess moves will make a huge difference in surviving the duration of the crisis crash…
Then never forget Mother Nature. She has several great volcanoes which can alter mankind for years on end on standby. They have already been test driven before so we know they work. \\Just when you thought it was safe to go swimming again, ha ha ha.
I would pay a one hundred thousand bucks to read the historical events from 2012 to 2015 if I could time travel.
Rancher,
Good illustrations, I think. You raise some interesting questions and draw some good conclusions. I think your post is well-written.
While I cannot answer the big question of WHEN nor can I grant the opportunity to read history from a point beyond 2015, I can send you a link to a website where a modern day Christian prophet posts a list of “news headlines” that the Lord has shown him spanning the next three and a half years. He may be wrong; He may be right. Time will tell. Warning: there are some scary headlines posted.
http://terrybennett.net/headlines.html
With respect to item #32, let’s assume that Professor Kotlikoff’s $200 Trillion funding gap is in the ballpark. To fully extinguish that debt, every working American would have to treated as an indentured slave (i.e., work without any pay) for 36 years based on an average annual income of $41,700. See, http://www.ssa.gov/OACT/COLA/AWI.html. The calculation is as follows:
(1) $200 Trillion divided by 132 Million Workers Equals $1,515,000 per worker;
(2) $1,515,000 divided by $41,700 per year Equals 36 years of slavery to extinguish the debt.
As President John Adams wisely said:
“There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.” John Adams 1826.
Well, this is a very timely blog post. As of the 1/4/12 Daily Treasury Statement, which is the latest available, the total debt subject to limit is only $25 million below the statutory debt limit! That’s million not billion. The statutory debt limit was increased by $400 billion on on August 2, 2011 and by $500 billion on September 22, 2011.
You can view the Daily Treasury Statment here. Go to page 2 of the Statement for the Debt Subject to Limit information.
https://www.fms.treas.gov/fmsweb/viewDTSFiles?dir=w&fname=12010400.pdf
I would imagine the Treasury will enter into a debt issuance suspension period. But I don’t see any news articles about this.
Pay for what you need and stop thinking about it if you want it get it use it and be happy.
God is my answer no man on the face of this earth really should care about things that evil makes is feel in slaved!!!
There is an alternate route out of this mess that “NO ONE” (as of yet) has been willing to discuss. A very simple but revolutionary act…Do Not Pay it!! No fiscal collapse, no grim futures for our grandchildren. But!! Are we really prepared to face TPTB and proclaim to them the majority of this debt is from a fraudulent organization, the FED. Thus the debt is a fraud!! Now here’s the real question? Who among us will stand up for this and demand our elected officals admit to this national ponzi scheme? Who will demand they dismantle and prosecute all former and present members of this PRIVATE criminal banking cabal? Who will do it?
Well I thought the economy was going to crash in 2009….then for sure in 2010….but it did not. Well as it turns out the FED funneled 20 trillion dollars “under the table” to europe in 2009. The collapse I figured would begin in europe….but no. And it is not going to happen now as we can print invisible digital money forever if we wish….it’s the ponzi scheme that never ends folks! After all who in the world can stop us??? Answer: NOBODY. So it will definitely cause inflation in the years to come but so what? What would you rather have an economic collapse or inflation over the years? Obvious answer: INFLATION. Our government is not going to let another depression happen….so they will just print…and print…and print…more invisible dollars.
dreams ill never see!!!!dreams ill never see
http://www.youtube.com/watch?v=ygUrJbmOfTY
love to keep this but i can not.
All these things are happening by Satanic design. The Lord makes things happen, allows things to happen, or stops things from happening. Since nothing happens by chance whether it seems to be insignificant or massive beyond measure it is what it is because God has willed it’s boundaries.
We are in the twilight of mankind’s attempt to employ eternal principles of freedom and individual liberty. With hot breath and saliva flowing down our back the hideous beast of Revelations is set to devour all. Through the machinations of Satan and his illuminated slaves centuries of careful manipulation have achieved the New World Order. With it’s absolute power to control and rule men the antichrist can’t be far behind.
I abandon every hope that our country can be saved or returned to it’s Constitutional beginning. Prophecy has been unfolding rapidly in the last decade. The final events will be rapid and unlike anything we could imagine in our worst nightmare. There will be lying signs and wonders. Fire called down from heaven. Gravely ill patients will be healed by demons who appear to be angels. The antichrist will deceive the earth with supernatural displays and will even appear to raise the dead!
America will drown and be brought down by it’s inescapable debt and refusal to temper the worship of materialism. For all the evil done by the wicked usurpers of our freedom… For all the lives taken unjustly in our name… For the rivers of innocent blood which are yet to flow… America has earned it’s overflowing cup… it’s wine of the wrath of indignation God has promised to pour.
I have placed my trust in Yahweh. I am not afraid. My citizenship is in heaven. I’m done contending with this fallen world or this wicked American empire. Jesus is coming again and He is bringing His long desired judgement upon all the earth. Even so Lord Jesus, please come quickly!
That video was excellent as far as breaking the federal debt down to simple terms to which most people can relate.
I’m curious to see something along the lines of that video that gives projections on our federal budget projections based on several variables could be considered for someone with the resources, time, and grasp of economics (sadly, that isn’t me or I’d try this myself).
Let’s assume raising the taxes on “the 99%” back to what they were prior to 2008, raising the taxes on the top 1% back to 35% (anyone who thinks this is bad is either in the 1% or can’t remember when that rate was over 90%), and closing the tax loopholes on corporations that allow them to offshore most of their profit tax free.
I don’t pretend to believe that this is “the answer” to our debt problems, but one of the things stressed in that video was “do you have any new sources of income?” and this would certainly help close the gap.
I’vegivenup,you apparently believe or ” assume ” that everyone who uses a credit card is a moron; unable to MANAGE his finances? Well, some time ago, I wrote comments on this blog similar to these: I acquired my FIRST EVER credit card at age 50.( I’ll be 62 in 12 days ). I’VE ALWAYS USED MY CARD TO MY ADVANTAGE – ALWAYS PAYING OFF THE BALANCE BEFORE THE FIRST DUE DATE! Have NEVER paid any interest charges! Just as with cash, if you can’t afford or don’t have the money for any article, product, or service YOU DON’T PURCHASE IT WITH ” PLASTIC ” UNTIL YOU DO! If you have common sense and self-discipline, THIS IS A NO-BRAINER! My credit card has earned me NUMEROUS airline award trips: to Europe, Japan and domestically! Why people have no concept of financial responsibility is a mystery to me! Folks who put themselves in credit card debt have nobody to blame but THEMSELF and their irresponsibility!
Numbers 10, 22, 23, 32… Wow. Consider my mind officially blown. I’ve heard (read) most of these before, but to have them all listed together like this is very effective.
Really loved the video!! That’s such a great illustration.
callmecordelia1, I love your name! Thanks for posting here–it’s been a while. I hope you, your family, and your business have a wonderful new year!
I thought the video was great too. In fact I saw my cousin post it on f/b just a few hours ago. I hope it will go viral! Americans need to wake up and comprehend the seriousness of the situation at hand.
Thanks justamom! I really appreciate the wishes. I’ve been a little nervous heading into 2012 (maybe I spend too much time reading this blog!
ha ha), but I’m hoping for a good year. I wish you a wonderful year, too! Thanks so much for thinking of me!
Hey, I have a few 100 Trillion Dollar bills from Zimbabwe.
Just think, our government could print just one of these and pay off all of it’s debts and obligations with money left over!!!
Silly DOOMERS!!
According to Dick Cheney debts dont matter anymore anyways – time to go back to dancing with the stars la la la la la!!!!
2 QUESTIONS…..1. What did all the borrowed money go for? Maybe what the Federal Government spends money on it shouldn’t. 2. Why does the Federal Government have to go to a middleman (the Federal Reserve System) to issue its currency? Why can’t it just put money into circulation debt free?
Yes, that 2nd question is very important.
Michael
America should watch this 15 part documentary “Corporation Nation” & get really angry, I can’t believe this doesn’t have millions of views & counting, this really puts the light on the astounding fraud that is the whole debt/deficit/austerity thing & gives a new perspective on the magnitude of the whole scam, some would call this “bombshell info” :
http://www.youtube.com/watch?v=vuyUjsmfTik
here’s how its author would put it in a nutshell,
please watch & share : )
“The Corporation Nation is the United States of America, U.S. Incorporated.
The United States is comprised of over 185,000 incorporated state, county, city, town, municipality, district, councils, school district, pension fund, enterprise operation, lottery, alcohol monopoly, and many other private and for-profit corporations, which have mistakenly been called our “representative government”.
The hidden wealth and investment totals for all of these “collective” 185,000 corporations (governments), when added together, equate to well over 100 trillion dollars, over 26 trillion in just pension fund investment assets.
A trillion dollars is a million, million.
With these investments, the government owns controlling ownership interest in all Fortune 500 companies, most major domestic and international companies, and most of everything you see around you. Malls, mini-malls, strip-malls, golf courses, movie theaters, etc…
Federal lands include about 87% of all state land, 97% of Utah land, 95% of Nevada, etc…
This is all easily verifiable by looking at the general accounting system of government, as required by federal law, called the Comprehensive Annual Financial Report, or CAFR.
“The Corporation Nation” documentary proves all of this without a shadow of a doubt.
It is free, it will never be for sale, and needs to be seen by all Americans.
Within this documentary is the governments own admission of corporate governance and fascism. It will not only astound you, but it will also answer just about every question you ever had with regards to the question of why…
…why is every law and every bill passed in the legislature unconstitutional?
…why has the government deregulated all industries and allowed monopolies and corporate tyranny?
…why can banks charge as much interest as they want, despite state laws against usury?
…why was the “Obama-Care” health care bill passed, and who really profits from it?
…why is our infrastructure and land being sold off to private and foreign corporations?
All of these questions will be stunningly clear once you have watched this movie. And with the information you will now possess, you will never again be left to wonder why anything happens in government…
Because you will see firsthand that government owns the corporations that it regulates through stock investment.
Government votes for each corporation’s board of directors.
Government votes on whether each company should merge with or acquire other corporations.
Government is the corporations, by controlling stock ownership.
Please watch The Corporation Nation, pass it on, download the film, make copies, and pass them out to everyone you can. For this is the only issue any of us should be focused on…
For this is the root of corporate fascism in America.
-Clint Richardson-”
this video has alot of truths, but isnt cutting to the heart it is mearly pointing at the fingers. our govornment is a pathetic pawn in the game of the Federal reserve and its other tenticals . All govorments are ran by the the same banking power houses. We are being ravaged by the same bankers that napoleon fought.
McKinley,
While I respect your decision … I WANT MY money that was extorted from me; under the guise of ” Social Security “! So should YOU! We we were compelled to ” contribute ” to Social Security – or suffer the consequences. I want to recover MY money before OWEbama and his Socialist buddies cause our ” government ” to default!!! Reaching age 62, in a few days, I applied for my ” Social Security ” payments shortly within the criteria of three months prior to my 62nd birthday. While continuing to be blessed with excellent health, I have no assurance of the date when I will finally meet my Maker! Another reason why I now want MY money that was extorted from me!