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America The Debt Pig: We Are A ‘Buy Now, Pay Later’ Society – And ‘Pay Later’ Is Rapidly Approaching

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America The Pig - Public DomainIf you really wanted to live like a millionaire, you could start doing it right now.  All you have to do is to apply for as many credit cards as possible and then begin running up credit card balances like there is no tomorrow.  At this point, I know what most of you are probably thinking.  You are probably thinking that such a lifestyle would not last for long and that a day of reckoning would eventually come, and you would be exactly right.  In fact, anyone that has ever had a tremendous amount of credit card debt knows how painful that day of reckoning can be.  To mindlessly run up credit card debt is exceedingly reckless, but unfortunately that is precisely what we have been doing as a nation as a whole.  We are a “buy now, pay later” society, and our national day of reckoning is approaching very, very quickly.

Often we like to focus on our exploding national debt, but household debt is out of control too.  In fact, the total amount of household debt in the United States is now up to a whopping 12.3 trillion dolllars

In the second quarter, total household debt increased by $35 billion to $12.3 trillion, according to the New York Fed’s latest quarterly report on household debt. That increase was driven by two categories: auto loans and credit cards.

We throw around words like “trillion” so often these days that they often start to lose their meaning.  But the truth is that 12.3 trillion dollars is an astounding amount of money.  It breaks down to about $38,557 for every man, woman and child in the entire country.  So if you have a family of four, your share comes to a grand total of $154,231, and that doesn’t even include corporate debt, local government debt, state government debt or the gigantic debt of the federal government.  That number is only for household debt, and there aren’t too many Americans that could cough up their share right at this moment.

Do you remember when I wrote about how credit card companies are specifically targeting less educated and less sophisticated consumers?  Well, that is where much of the credit card debt growth has come lately.  Just check out these numbers

Now, credit cards are returning among individuals with low credit or subprime credit scores below 660. Among people with credit scores between 620 and 660, the share that had a credit card rose to 58.8% in 2015 from a low of 54.3% in 2013. Among those with scores below 620, the number of people with a credit card increased to 50% from a low of 45.6% two years ago. Both figures for 2015 are the highest since 2008.

In America today, we are enjoying a standard of living that we do not deserve.

We consume far more wealth than we produce.  The only way we are able to do that is by going into debt.

Debt takes future consumption and brings it into the present.  In other words, we are damaging the future in order to make the present a little bit better.  On an individual level, we may enjoy the big screen television we buy with a credit card today, but we are taking away our ability to spend money later.  And on a national level, what our unprecedented debt binge is doing to future generations of Americans is beyond criminal.

Earlier this month I explained these things to a live studio audience down at Morningside, and you can view a video of that right here

In this article I haven’t even talked about corporate debt yet.  Instead of learning their lessons from the last financial crisis, big corporations have gone on the biggest debt spree of all time.  If you can believe it, corporate debt has approximately doubled since the last financial crisis.  In other words, since the last recession we have essentially matched the total amount of corporate debt that we accumulated from the beginning of the country up to 2009.

Unfortunately, a lot of that debt is now going bad.

In previous articles I have documented that corporate debt delinquencies are now the highest that they have been since the last financial crisis, and corporate debt defaults are also the highest that they have been since the last financial crisis.

At this point, even the mainstream media is acknowledging that we have a corporate debt “crisis”.  The following comes from an article that was just put out by the Denver Post

The number of companies that have defaulted so far this year has already passed the total for all of last year, which itself had the most since the financial crisis. Even among companies considered high-quality, or investment grade, credit-rating agencies say a record number are so stretched financially that they’re one bad quarter or so from being downgraded to “junk” status.

Companies whose debt is already deemed “junk” are in the worst shape in years. To pay back all they owe, they would have to set aside every dollar of their operating earnings over the next eight and a half years, more than twice as long as it would have taken during the 2008 crisis, according to Bank of America Merrill Lynch.

Are you starting to get the picture?

And I haven’t even started talking about our national debt yet.  When Barack Obama entered the White House, we were 10.6 trillion dollars in debt.  Today, we are 19.4 trillion dollars in debt.  That means that we have added 8.8 trillion dollars to the national debt under Obama, which breaks down to an average of 1.1 trillion dollars of additional debt a year.

We have been taking more than 100 million dollars of future consumption and bringing it into the present every single hour of every single day during the Obama administration.  That is why I am constantly referring to our “debt-fueled standard of living”.  We do not deserve to live the way that we do, but since we are able to steal from our children and our grandchildren we are able to enjoy a standard of living that most people in the world can only dream about.

Of course we are literally destroying the future of America in the process, but very few people seem to care about that these days.

Without all of this debt, we would be in a very deep economic depression right now.

But even with all of this “stimulus”, we are still mired in the worst economic “recovery” since 1949.  In fact, Barack Obama is actually on track to be the very first president in all of American history to not have one single year when U.S. GDP grew by 3 percent or better, and he has had two terms in which to try to get that accomplished.  The percentage of working age Americans that actually have a job is way down from where it was just prior to the last recession, and in this video I explain why the employment numbers put out by the government are not nearly as good as the administration would have us believe…

If the American people would have been willing to sacrifice and make some very hard choices a long time ago, maybe we could have gotten a handle on all of this debt.

But instead we continue to rack up debt as if there is no tomorrow, and in the process we are literally destroying tomorrow.

Every dollar of debt that we accumulate now makes life worse for our children and our grandchildren.

Unfortunately, we are a bunch of debt pigs, and we just can’t help ourselves.  We have come to believe that it is “normal” to go into so much debt, and as a society we continue to race toward economic oblivion.

  • Bob332

    A VERY wise Economics college professor, who lived thru Hitler’s Regime,said to his class one day many years years ago…..” If you don’t learn anything from this class REMEMBER this. Any country that continuously spends more than it’s revenues AND Imports MORE than it Export’s IS eventually doomed” . I never forgot those words and it’s more truer today than ever.

    • Mike Smithy

      I think we had the same macro economics professor.

      • SnodtBlossom

        “20 And God said, “Let the water teem with living creatures, and let birds fly above the earth across the vault of the sky.” 21 So God created the great creatures of the sea and every living thing with which the water teems and that moves about in it, according to their kinds, and every winged bird according to its kind. And God saw that it was good. 22 God blessed them and said, “Be fruitful and increase in number and fill the water in the seas, and let the birds increase on the earth.” 23 And there was evening, and there was morning—the fifth day.

        24 And God said, “Let the land produce living creatures according to their kinds: the livestock, the creatures that move along the ground, and the wild animals, each according to its kind.” And it was so. 25 God made the wild animals according to their kinds, the livestock according to their kinds, and all the creatures that move along the ground according to their kinds. And God saw that it was good.

        26 Then God said, “Let us make mankind in our image, in our likeness, so that they may rule over the fish in the sea and the birds in the sky, over the livestock and all the wild animals,[a] and over all the creatures that move along the ground.”

    • Jerry C

      Hmmm…I remember my Economics college professor telling our class, “What do you want the outcome to be?”

      • SnodtBlossom

        “9 And God said, “Let the water under the sky be gathered to one place, and let dry ground appear.” And it was so. 10 God called the dry ground “land,” and the gathered waters he called “seas.” And God saw that it was good.

        11 Then God said, “Let the land produce vegetation: seed-bearing plants and trees on the land that bear fruit with seed in it, according to their various kinds.” And it was so. 12 The land produced vegetation: plants bearing seed according to their kinds and trees bearing fruit with seed in it according to their kinds. And God saw that it was good. 13 And there was evening, and there was morning—the third day.

        14 And God said, “Let there be lights in the vault of the sky to separate the day from the night, and let them serve as signs to mark sacred times, and days and years, 15 and let them be lights in the vault of the sky to give light on the earth.” And it was so. 16 God made two great lights—the greater light to govern the day and the lesser light to govern the night. He also made the stars. 17 God set them in the vault of the sky to give light on the earth, 18 to govern the day and the night, and to separate light from darkness. And God saw that it was good. 19 And there was evening, and there was morning—the fourth day.”

    • SnodtBlossom

      This is just like the story of creation..
      “1 In the beginning God created the heavens and the earth. 2 Now the earth was formless and empty, darkness was over the surface of the deep, and the Spirit of God was hovering over the waters.

      3 And God said, “Let there be light,” and there was light. 4 God saw that the light was good, and he separated the light from the darkness. 5 God called the light “day,” and the darkness he called “night.” And there was evening, and there was morning—the first day.

      6 And God said, “Let there be a vault between the waters to separate water from water.” 7 So God made the vault and separated the water under the vault from the water above it. And it was so. 8 God called the vault “sky.” And there was evening, and there was morning—the second day.”

  • Ricardo

    Its all by design. Read the Jesuit oath. Read about the aims of the papacy as regards Protestantism. Very few people ever talk about the power at the apex. People talk about the elites and the Rothchilds but very few talk about the next step up. Actually its the next 2 steps up as it is Satan who controls the papacy and the papacy then controls everything else. Read about how the papacy controls Civil law.

    • BelieveInCod

      I’ve seen war. I don’t believe in god, but I believe in Cod.

      • merrileerj

        One day you will I’m sorry to say.

      • 夫人暗号は売春婦であります

        Cod are okay but I do like tilapia.

      • old fart

        I am confused, Do the Born agains have 2 navels?

      • tsf

        There’s something fishy about that.
        But if you found yourself falling off a cliff,
        I don’t think you’d be crying out, “Oh Cod!!!”

      • GSOB

        It takes faith. He is invisible. God is Spirit.

    • son of gary2

      Read about how you are insane!

      • Ricardo

        No you are the one who is insane for thinking I’m insane.

        • LIZ THE SHIZ

          bob bah looo ay carumba !!!!!!!!!!!!!!!!

    • Mike Smithy

      Tell me something new Captain Obvious. Everybody knows that Satan has controlled the Papacy for centuries.


      oh Ricardo, don’t you always say ” hey LUCY-FER you got some splainin to do”

  • john folger

    hillary ordered a kain to stand up and all she was given was tim kaine

    • SnodtBlossom

      folger is a decent coffee.. not much of a comedienne

      • LIZ THE SHIZ

        do you have gender confusion syndrome, comedian=male comedienne=female lay off the cod juice cocktails

      • Guest

        Are you the same person who trolls Greg Hunter’s site under the name “Gina Mancarella”?

        • LIZ THE SHIZ

          no you must mean Gino Macarena


      rimshot bah dum dum , thank you ladies and germs

    • 夫人暗号は売春婦であります

      Keep your day job

      • 常に明日の偉大を。

        At least he has a job.

  • Thomas D Guastavino

    The majority of voters are picking their next president on the basis of how much free stuff they think they can get. We are at the DeToqueville-Tytler tipping point.

    • 夫人暗号は売春婦であります

      Yes, voters are being bribed with their own money.

      • Jack Frost

        Voters being bribed are receiving OPM (Other People’s Money) because working people know who is funding this fraud through yearly tax payments. The EITC crowd are simply blissful recipients of largess.

      • 夫人暗号は売春婦であります

        Thanks for the testimony.

  • lmarkievich

    How do these facts correlate with the stock market? I wonder if it is being propped up for the election but I don’t know enough to understand it all. Thought the student loan bubble, or other bubbles, would bring the stock market down by now.


    How much is a trillion dollars? If you had been able to spend $1MM/day, every day, since the birth of Jesus, you would have spent around 775 Billions. You still would not have spent a Trillion! Now, put it in perspective. We owe 20 Trillions and unfunded liabilities are over 100 trillions. We are bust. The only way out is Default or Default and War. The Debt Pig faces slaughter on the Day of Reckoning.

    • Jack Frost

      War sounds nice. Especially for those who stand to gain from it but aren’t involved in fighting it.

    • JC Teecher

      Another way to see perspective of what a trillion means:

      If broken down into seconds, it goes like this:

      A million seconds is under 12 months.

      A billion seconds is about 32 years.

      A trillion seconds is about 32,000 years.


        I do not know what the point of no return on the official debt is but I suspect 24-25 Trillion will be the tipping point and there will be a run on the dollar.

      • Ninja Flex

        And 20 trillion seconds is 640,000 years. Really puts it in perspective.

        • JC Teecher

          Thank you, cause that is a real eye opener.

  • Bubba Johnson

    “Unfortunately, we are a bunch of debt pigs, and we just can’t help ourselves. We have come to believe that it is “normal” to go into so much debt, and as a society we continue to race toward economic oblivion”.
    Speak for yourself and government.

  • Cal

    In the year of our Lord 1959, the national budget was $92 billion, one billion in deficit and $300 billion in debt, a large sum for its time mostly accrued during WWII. No punch line here but just think about it…20 trillion presently with more than 100 trillion in liabilities. I wonder if the central bank had anything to do with it including 1959. The interest payments…WOW!

    • df NJ

      The numbers you are posting are meaningless unless you consider the percentage of GDP as a context.

      • Jack Frost

        The numbers are also meaningless if they were never intended to be repaid. Believing you can use inflation to erase away debt cost is akin to believing you can pick up a turd on the clean end.

  • Liborio Guaso

    These are times of unbacked money and they will lend money that is created from the air. To pay or not pay do not worry the government is responsible to compensate the losses.
    After that the government recover the money robbing other countries through the dollar and the famous free lunch.
    If other countries do not agree. Then they will be a task of the CIA.

  • Preacher62

    So which is it? The America that is the land of opportunity that we are desperately searching for the next politician to protect and restore; or the America that is a vile degenerate pig that has no control over its own appetites? You can’t have it both ways. The America that everyone seems to want to return to was created and fueled by this debt monster and is now suffering the consequences of that lust for material things. The only hope for humanity is found in the great commission. When each one reaches one in the name of Jesus Christ. If those who claim the name of Christ would cease their idolatrous worship of this world and its politics, nationalism, greed and immorality; and instead deny themselves, take up their cross and follow their creator, it won’t save the world but it will at the very least make a positive impact.

    God’s word plainly tells us what we should do and how we should live. His word also warns us what will happen when we choose not to follow and obey his word. BEHOLD, the repercussions of our own choices.

    • df NJ

      If Christ were the answer to all our problems then how come so many Christians are obscenely obese?

      Maybe the reason we are in so much debt is wage inflation has not kept up with regular inflation. The CEOs are pigging all the wages. It may have nothing to do with you judging the American people as not deserving God’s blessings.

      • Preacher62

        You either need Jesus Christ or medication. I recommend the former but please choose one or the other. The truth is so very obvious but you refuse to acknowledge it.

        • crossroads2016

          Sweetheart, ain’t he?

          • crossroads2016

            Hey dfNJ, I don’t know if you guys have a history with each other, or what it was that brought on Preacher’s curt, mean-spirited reply.

            Let me just say that society as a whole is quite obese, not just Christians. We are all affected by something – either bad eating habits, a contaminated food supply, a nasty disposition or something.

            It’s just that Christians desire something better for themselves, and for the world. So far, so good. Christians are no better than anyone else, as human beings. But Christians do recognize what’s wrong in themselves, and that there is such a spiritual need. A vacuum, if you will. As such, they turned to God, seeking to become followers of Christ. It is God in them that is better – better than ALL of us, apart from Him. It’s His divine nature that Christians become partakers of.

            So, if a Christian is around a lot of immoral stuff, it is the Holy Spirit in the Christian that does not like it. And the Christian, too, develops a change of heart by virtue of God meeting his choices, and His Spirit dwelling in them.

            There may be instant purity, but there is no such thing as instant maturity. Over time, Christians grow in God, in grace, and become more like Him.

            It’s not a mere, religious code of externals. It’s God Himself making residence in a man or woman’s heart.

            The Christian gradually becomes inwardly conformed to the image of Christ, and instead of harshness or revulsion from the world, Christ’s compassion grows in him toward his fellow man.

            God bless you.

          • GSOB

            James 4:12

        • Chris

          Preacher…ever heard that you will catch more bees with honey?
          Do you think Jesus sits up there when he reads comments like yours and smiles, high fives to the right and left, gleams with pride? Or do you think he says “opportunity missed…maybe my boy preacher will get it next time!”
          Just sayin

          • Preacher62

            Actually it is flies you catch with honey but Point taken; however even Jesus broke out the whip on more than one occasion. I did however stop short of calling him a viper and of his father the devil.

          • GSOB

            1 Corinthians 4:4, 5
            2 Corinthians 1:12

          • Preacher62

            Yes, bad decision on my part.

          • GSOB

            Revelation 19:15

    • feddup

      You can see part of the reason America is in decline when so many of its citizens feel that there’s no need to worry about anything.’ The world is fixed ‘.Dooms Day is coming’ Fairy tale logic is going to be a major contributor to the third-worlding and eventual collapse of the US ,etc.

  • Richard O. Mann

    Buy now, pay later. It’s the American way. Some where after WW2, the idea of paying on time while enjoying the product now, caught on. All good things have to end sooner or later. Guess we have just about wrung all the good out of this one.

    • Joltin Joe

      Thanks the baby boomers for that!

      • df NJ

        The good thing is most boomers have not lived a healthy life and will most likely not live past 70 anyway.

        • LIZ THE SHIZ

          why,are you waiting for mommy and daddy to die so you can inherit their money

        • James Staten

          It could be all the benefits that would have come from somewhere between 60-70 million babies that have been aborted since Roe vs Wade passed in 1973. That is a lot of buying power, brain power and taxes to be murdered through the years, and that is being kind!!!!

          • GV

            hey Einstein, we don’t have JOBS for millions of Americans.

          • James Staten

            Ignorance is not bliss, and neither is evil. Seriously do ever take time to think?

  • ali

    What goes up, has to come down. You cant beat the gravity. Question is how much time we can borrow from our future before every thing comes crashing down? Could be a year or ten who knows.

    • J.C

      Exactly. It will come down eventually. However with positive and negative economic news broadcasted all the time, it gives people hope to look towards the positives and prolongs the agony. So nobody can say for certain. Doomsayers always shifts the goalpost.

  • Liborio Guaso

    The credit is theonly way to subsidize the real economy. Because all the money created by quantitative easing is stolen by financial scum.

    If a fool buy something with a credit the bank pays to the real economy. The fool does not pay the bank and then the government compensate the bank.

    After that the peoples over the world should send their commodities for nothing as a gift or CIA boys take charge of them. And all that is called economy and even Nobels Awards are given.


      welcome to Jecklye Island , look de intrest de intrest

  • 夫人暗号は売春婦であります

    Simple solution. Don’t go into debt.

    if you don’t like my suggestion, then go into debt and stop complaining that you are in debt.

    • 夫人暗号は売春婦であります

      Good tip Mr. Cipher.

      • 常に明日の偉大を。

        We’re going to kick this game into high gear soon. Ready, set and…..

        • 常に明日の偉大を。


  • Jack Frost

    In your illustration if I had twenty credit cards I maxed out yearly, eventually I would reach my limit and be in trouble. However, if I have a printer in my basement that allows me to print unlimited quantities of paper money, and banks and creditors accept that money as payment, I can spend for an eternity, or at least until others realize my paper money is worthless and suddenly stop accepting it as payment and demand something instead of intrinsic value, like the barbarous relics of gold and silver. At that point, everything does implode, and not in a good way!

    • SnodtBlossom

      “27 So God created mankind in his own image,

      in the image of God he created them;

      male and female he created them.

      28 God blessed them and said to them, “Be fruitful and increase in number; fill the earth and subdue it. Rule over the fish in the sea and the birds in the sky and over every living creature that moves on the ground.”

      29 Then God said, “I give you every seed-bearing plant on the face of the whole earth and every tree that has fruit with seed in it. They will be yours for food. 30 And to all the beasts of the earth and all the birds in the sky and all the creatures that move along the ground—everything that has the breath of life in it—I give every green plant for food.” And it was so.”

      31 God saw all that he had made, and it was very good. And there was evening, and there was morning—the sixth day.

    • Don_in_Odessa

      The plan was/is to make sure everyone (global money printers) is/are in the same boat. No one wants to rock the boat.

  • nekksys

    “Unfortunately, we are a bunch of debt pigs, and we just can’t help ourselves.”

    Speak for yourself, Porky!

    I’ve been working very hard to get all my wife’s debts cleared so we can actually LIVE on my income alone. It’s been a tough road, to be sure, and we’re not done; close, but not quite there yet. We’re close enough that, if I could dedicate an entire months salary to cleaning up debt, we’d be just a few hundred dollars away from being in the clear. It’s an exhilarating feeling to know we’re almost free of our financial encumbrances.

    • Joltin Joe

      Congrats, my ultimate goal is to be debt free, that is the only chance at a future. This put money away for retirement scam isn’t going to cut it.

    • 夫人暗号は売春婦であります

      A big chunk of that twenty trillion national debt is yours pal.

    • Raymond Chow

      You may not have debt personally but our country is indebted to the gazoo. What are you going to do when we have economic collapse because of the country’s debt?

      • nekksys

        Go fishing. I’m not beholden to anyone for anything. I can hunt, fish, farm and forage to live and live well I shall!

    • jaxon64

      You may be close to “debt free” but the Fed Reserve and US Govt via treasuries ( also known as promissory notes) says you, your kids and grandkids will labor and toil to pay back what they are spending.
      They will take from you at the Fed level, State Level, local level, for services you may never receive, to pay for things you don’t want, they will even charge you 5 to 10% of what they let you keep if you try and spend what you labored for. They will take more from you if you own anything, buy anything or even sell anything you already were taxed on when you bought it.
      There will be hundreds of other ways they will take from you–hidden within costs and prices like phone bills to gas prices. There will be taxes that are called by other names like “registration renewal” or “license renewal”.
      Soon you will be taxed even more for using energy to stay cool or warm–and maybe for releasing “greenhouse gasses” with every exhalation…..
      You may think you are not a debt pig–but if you are an American Serf, you most certainly will be treated as such…you will pay to cover all of the debts being accrued, and those who have the guns, the force of the police and of the military will make damn sure you pay and pay, or the consequences will be dire………

      • tsf

        We have a problem dog that loves to escape, and problem neighbors who love to call the dog catcher. It’s our son’s dog,.This happened 3 times, each with a hefty cost. After the 3rd time, the city added another $100 on top of it. Just an arbitrary fine someone made up in some stench-filled back room. Just another way to come up with more money.

        How’s THAT for predatory??

        • jaxon64

          Agreed–here’s one for you.
          We have a road that heads into the beach area ( Chesapeake) and the speed limit drops from 50 MPH to 40 MPH and then again to 30 MPH–all within a quarter of a mile.
          What is 50 feet beyond the final 30 MPH speed limit sign? You guessed it, a traffic camera tower. That thing must generate hundreds of thousands a year.
          And then the small beach and pier cost money to access/use after you’ve paid to park. Luckily, for county residents whose taxes already paid to build the pier and resort area, we only have to pay half price to use the beach we paid for……

      • nekksys

        That only applies if I continue to work should things go belly up. I won’t. It also applies if I continue to own / operate a vehicle. I won’t do that either. I have far better means of providing than working a go nowhere job and I do not require as much as most from my local economy to live.

        Not all of us are beholden or dependent upon government or corporations for our well being.

        • jaxon64

          You lay your head down at night? they will tax that land–your kids, grandkids?–they are already promised by the govt to labour to pay back the Fed. You own land? Purchase food, staples anything at all?–property tax, sales tax–ownership taxes, hunting and fishing licenses–you WILL be taxed or you will be “criminal”.

          • nekksys

            First, prove to me, with evidence and not logical fallacy, that these so called laws apply to me. Just because the Constitution says it applies does not make it so. Just because a judge or police officer says they have authority, does not make it so. Just because a judge can order thugs to kidnap you and throw you in a cage against your will, doesn’t mean the laws apply. In every case where an act was committed that was, in and of itself, moral albeit unsafe or in opposition to these “laws” which are held so dear, it is to be judged under the practicality of law and therefore jurisdiction and applicability must be established with clear, hard evidence. There is none to prove applicability of “the law” to anyone except the founding fathers living at the time the constitution was written. If you can find such evidence, by all means share it with me.

            Second, I own nothing I can not carry. Neither do you. You can say, “I own this land” but you can not take it with you when you move and you can not remove it from my path should I be traveling. We, as a species, need to get over this “me, my, and mine” mentality.

            Third, I do not need to purchase food. Food is all around us if we will but learn to look for it. Is there not fish in the seas, lakes and rivers? Who owns those fish? No one. They are not the Government’s fish; they are ours, to share. And what of wildlife on the land? How about the plants of the fields which grow where no one tends them?


    well the end game is to end all forms of cash , cash makes you suspect in the eyes of those in power and debt is their trap , he who dies with the most toys never wins

    • SnodtBlossom

      I want to play with your toy 😉

      • LIZ THE SHIZ

        well first I’ll need to get a penicillin shot

  • piccadillybabe

    When the corporate entities are no longer bailed out due to their ever increasing debt, we will really be in for some lean times. Right now, they are being subsidized by the US Govt because we don’t want the whole nation to look like Detroit on steroids so we give them what they need to stay in business even if they barely come out ahead or not at the end of the year. We reward failure in America and ignore those who struggle to be fiscally responsible. Can you say double standard in America? Living frugally, not wasting food or money should be the order of the day. But banks and corporations do not make money off of people who live responsibly so debt is encouraged, sought after and highly touted by all as a fiscally responsible activity. Sadly that paradigm is unlikely to change any time soon.

    • df NJ

      All the president has to do is sign and executive order to the treasury issuing some legal tender and boom we are back in business. You would be amazed how fast politicians will act with 300 million people get highly motivated to have change.

      • Raymond Chow

        I like your thinking. Print paper or enter zero in digital and use it to buy all physical items we can get our hands on. The only question is what happens when the printed paper comes back to the issuer? Perhaps the Chinese can buy California.

      • Bill G Wilminton NC

        This Is Like Running An Ice Machine On The TITANIC……..

      • Webeq

        Yes, the Fed buys bonds with money it creates by adding numbers in a balance sheet. That means it can “unbuy” the bonds by subtracting those numbers from the balance sheet, retiring the “money” as well as the Government debt/bond.

    • SnodtBlossom

      I give up. why do brits post on american boards?

      • LIZ THE SHIZ

        because they can’t get over losing their colonies and they can’t get decent cod juice in the UK

    • feddup

      You hit it right on the nose, Piccadilly. Not only do the banks and corporations want America in debt, they want and are striving to put almost all the world’s citizens in debt. It’s part of the NWO philosophy of world takeover.

  • J.C

    It seems the mentality of the USA is, “I am too big to fall, therefore I can spend big and if I do fall the world falls along with me”. And so many people buy into this, look at the US data and stocks going through the roof.

  • Rhino Horns has our personal debt at a staggering 17.6 trillion, rather than the 12.3 trillion mentioned in this article. And don’t forget that central banks and governments are the biggest propagator of countries and individuals going into debt with their criminal money printing, all the while extracting much of that wealth for themselves and their cronies. CRIMINALS!


      don’t forget the 50 trillion or so uncapitalized derivative contracts that the Wall St firm and TBTF Banks are sitting on and guess who will get stuck with the bill when the SHTF

    • Webeq

      The 17.6 is public debt, the 12.3 is household debt. Neither includes corporate or financial debt. But you can’t add it all, since the debt of one party is an asset (wealth) for the other side.

  • Jack Fough

    It is called greed! Unfortunately, we need this developing financial and moral collapse. Until we experience the hardships brought about by godlessness and depression we will continue to believe someone somewhere will pull us out of whatever it is we get ourselves into! Right now, if we have no backbone, no moral compunction, to stop the outright murder of innocent children, where will we ever find the immorality in the stealing from our children and grandchildren? No, we must be made to suffer a great loss, to reset our moral compass, to re-establish our priorities, to find our faith…..our humanity…… find God and put him back into our everyday lives.

  • DJohn1

    Take the dollars spent, subtract the percentage of interest from a dollar, and you have a true picture of what you are spending.
    Esample: If the interest were 10% then you are spending 90 cents. Meaning if an item is a dollar it takes 1.00-90 cents=.10 plus the $1.00 it costs. Meaning you are paying 10 cents more to purchase the same product as what you might pay cash. Same formula works for 20% interest or 22% interest which is what a lot of retail stores charge on their cards.
    It adds up fast. If you bought a really good bargain on a TV for 200 dollars you are getting anywhere from 80 cents to 90 cents in purchase power.
    You are paying it back at a $1.20. 200 x 1.20 means you are now buying it for 240.00. That means it can compound and you might even pay it back at a much higher amount of interest.
    The people that encourage this practice a form of economics believe massive debt is the only way to grease the fly wheel of the economy to keep it going.
    They also believe that wars are necessary for the economic growth of a nation.
    The only thing that has ever come close to having this huge economic impact is the space program.
    Through the space program we have most of the electronic tech we enjoy today.
    The reason the entire thing is going to hell is that people are simply not making more money each year and many are losing what jobs they have to foreign manufacturing at a fraction of the cost it can be done here.
    The normal rate of inflation should be somewhere around 4.5% based on an on going real estate value in the market place. That assumes a wage increase of approximately 4.5 to 5% per year which isn’t happening.

    The government in the form of the Fed has kept inflation to 0 or less over the last 20 years with artificially low interest rates on big money.
    George Bush started it. Cliinton continued it. So have Bush Jr. and Obama kept it going.
    It is quite literally a tiger by the tail. Because eventually it will wear out and a depression of huge proportions will happen.
    Then comes the same politicians over and over again that spend 150 billion in a treaty with Iran and then poor mouth that they cannot afford to support the poor with Social Security.
    Trump is right about a whole lot of things he is saying. But the established powers that be in D.C. do not want to hear it.
    I suggest that sometime before the next election some earth shaking events are going to happen. One of which is a complete devaluation of the dollar against major currencies.
    Most of which are totally unstable.
    If and when that happens we are looking at World War III with China suckering their massive population into a suicidal war. Possibly with us.
    We came close in 1970, when Nixon threw the dollar on the open market as to its value in gold. The result was we devalued the currency by as much as 90% with inflation running around 12-14% per year.
    In the 90s, Russia went broke. They floated a lot of gold on the market that brought gold to a level about half of the 600 it was per ounce.
    Gold investors of the time lost their shirts.
    Long term it came back in value as we went further and further in debt ourselves.
    I point the finger at expensive weapons development in both Russia’s case and our own.
    WE are still designing dinosaur weapons. An aircraft carrier can cost 1 billion dollars a piece. In an actual naval conflict it might last 30 minutes.
    And that is against diesel subs.
    Our entire industrial complex of weapons is corrupt.

  • Chris Gerber

    As a nation, we are so much in debt now that we are already owned and have no control over our financial future. When we can no longer sustain ourselves, that will be the time that this country will climb aboard the global economic band wagon for a wild ride over the summit and into the spiral vortex of despair.

    • Chris Gerber

      Revelation 13: 18. “Here is wisdom. Let him who has understanding calculate the number of the beast, for it is the number of a man: His number is 666.”

      • GSOB

        Fulfilled in the first century

  • LW

    Spend like there’s no tomorrow…because there is no tomorrow!!!

    • aldownunder

      Where’s alwaystomorrow

      • Jorma

        Oh, he should be along shortly. You had to ask? What’s a new post without him chiming in. I thought 10 months ago he was chased off by a few bloggers for one of his comments…something to the effect of him jumping off a cliff. Or was that another post he made? So many to recall.

      • Chief A.T.

        Him no here no more. Him tend buffalo in Booners Ferry Idaho.

        • Jorma

          There you are. I knew you’d be along. A new handle Chief?

    • Chief A.T.

      You speak with forked tongue. There always be tomorrow pale face.

  • A.S.

    Careful Michael, as some Muslim will try to hack you, just because you have a picture of a pig in this article!

  • GSOB

    ISAIAH 66:3, 4

  • Robert

    Wait for it. Social Security collapsing. Perhaps means tested. Current benefits reduced or stopped. Wait for the old folks to get riled up.

    • tsf

      They have a feeble voice. They tend to vote to the right. For that, a leftist g o v t is willing to give them the axe.. not those who vote to keep them in power. It’s free giveaways, not hard earned SSI that motivates many of our leaders. It seems that euthanasia will be a growing trend. The rest of them can just move in with their children.
      Just saying.

  • GSOB

    Isaiah 66:2

    Everything is the product of My hand – My being and My doing –
    that’s how all you see came to be; I made it all.

    I am interested in and concerned about even just one person
    who is humble and downhearted and trembles at my word.

  • tsf

    The PIG image (above) is an interesting depiction. It shows our current bureaucracy as it is – a self-feeding monster that is eating its way into oblivion. Only it is laying on its side as it can hardly walk anymore. And whilst laying there, all the smaller piggies are feeding off the big one — out-of-control entitlements, the defense sub-economy, the pork, and multiple entities that are milking her dry. The gatekeepers are the politicians who are having an orgy with the lobbyists, special interests, banksters, and so forth.

    While some decent Americans still pine for the ghost of morality past, when words like “principle”, “character” and “civil service” were still in the collective vocabulary, when corruption was the exception and not the rule, the pigs lie there asleep as their surrogates toil thru the night, under cover of darkness to do their masters’ bidding. And rather than apply discipline, (and do the right and principled thing for now and future generations), the great pig’s stomach continues to expand, spending tomorrow to service the interest on yesterday.

    “Tis against some men’s principle to pay interest, and seems against others’ interest to pay the principle.”

    And one wonders.. as one once looked up to our nation’s leaders with childlike trust and asked:

    “What great and wonderful plan do our leaders have to pull us out of this
    mess? They – our elected leaders, entrusted with this enormous stewardship upon their laps. Surely they have a worthy plan. Or mayhap they share some secret amongst themselves, as to how they can go on & on with their endless spending and cranking of money mills, with impunity??”

    (Perhaps that secret they share is bunkers, private islands and offshore accounts.)

    Meanwhile, the concerned and decent look on, aghast, at the utter spectacle of depraved humanity (or Piggery) that lies there before their eyes. What can the great Pig do but continue down its unsustainable course of self-destruction?

    Once a domestic pig, now a boar run wild, what politician or congressional panel can hope to turn the milk tide?
    They’d be sooner shot trying.

    Or what one congress might legislate, the next will un-legislate. The gold ring is in the swine’s snout, and we know who pulls the ring.

    There is one hope, and one hope only for America before she sinks completely into the mire of moral ruin.

    That hope is the same Hope it always has been. It was God who inspired our founders as to the Vision of this great nation – the greatest experiment in human governance in modern history. It was God Who gave her her great strength, resilience, resources, blessings innumerable. And their alone may the moral impetus of a nation be restored, by a return to its Maker.

    We see the ever-encroaching P.C. all around us, the faddist atheism, the spiritual decline of a media-mesmerized culture who has lost its root; the temporal, shallow value system that has now won the day.

    Many are depressed, frightened inside, without anchor or a moral compass in a drifting society — a society full of permissive filth and a runaway, in-your-face hedonism.

    When it all comes down. I hope it doesn’t land on you.
    When the truth is found. I hope it will be true to you.
    – Hoyt Axton

    And when it all DOES comes down, many will turn to God. Whether out of sheer desperation, or some reawakening from youth, people will come when their world comes crashing down around them. They will be looking for answers.

    Many dream of a brotherhood, ot at least some sense of justice for themselves (if no one else.) Whether conscious or not, people seem to know that they have intrinsic value, and react anywhere from passive sorrow to extreme violence when respect for that value is violated.
    They may not practice it toward others, but they definitely want it for themselves. Bottom line, too many people desire to reap what they have not sown. They want harvest without seeding, effect without cause.

    They want Kingdom principle without the King.

    There is no brotherhood of man without the Fatherhood of God.

    Nothing short of a grassroots revival — a GREAT AWAKENING — will save our nation and drive back the darkness. Nothing short of this will restore God’s goodness, the principles and moral underpinnings that made our nation great, and bring us back to sanity.

    “Sanity” and “sanitary” share the same root word.
    Unclean leads to insanity.
    We take all pains to keep the outside clean, but do little for the inside.
    For this, our country is going down fast, and no amount of technology or humanistic philosophy is going to save us.

    Educate a thief and you increase his capacity to steal.
    Give a madman a nuke and he *will* use it..
    Soon… at a country near you.

    This is one reason why God has waited this long before intervening, so that we may see how utterly incapable we are of governing ourselves in an ongoing, civil fashion. When humanity is at the brink of destruction, He will intervene, so that no man may boast that it is of his own making.

    We need Him to intervene, sovereignly, NOW!
    Christians everywhere must pray for a great awakening.
    There is no good Effect without good Cause.
    People everywhere must turn to God.
    What we plant, we grow.

    This is out only hope.

    • Semere Abraham

      Brilliant post! Sums up the spiritual, physical, emotional and mental state of your nation and mine too (UK). Yes, man cannot rule himslef peacefully, prosperously (for all) and righteously without Christ-like character formed in his heart (‘For out of it spring the issues of life’ Proverbs 4:23)…I can testify…what the world needs is a SPIRITUAL awakening, not empty rituals/religion or philosophies of men. God bless you 🙂

      • tsf

        God bless you too! It’s refreshing to hear from our brothers & sisters there in ol’ jolly England – the beloved mother country. We’re in this mess together. Maybe with God’s help we can we see some restoration while here on earth, or at least slow down the bleeding.

        • Semere Abraham

          God bless you 🙂

  • GSOB

    Hosea 12:6, 7
    Therefore, return to your God, Observe kindness and justice,
    And wait for your God continually.

    A merchant, in whose hands are false balances,
    He loves to oppress.

  • JC Teecher

    Good article , Michael and good points.

    I believe our Heavenly Father must be seeing a lot of His children as like the face of that ugly porker. He divorced Israel for acting like pigs, and has been trying to reconcile with them ever since.

    Sadly, America/the House of Israel, has gotten so rotten to the core, that the majority has slid into the muck of immorality. A day of reckoning is fast approaching.

  • Priszilla

    Those who have the highest debt are bailed out by the tax payers

    • socalbeachdude


  • Prepped

    We passed the point years ago when our profligate spending allowed
    any possibility for our children and grandchildren to ever cover. It’s only fair that our (middle age and older) savings, social security and retirement will someday suddenly drop to pennies on the dollar.

  • paul mullin

    Who cares. If the day comes and I cant make the minimum payment on my credit card I just stop paying. I dont care. By then the sky will have fallen so the last thing I’ll care about is my credit rating. Those greedy bankers can kiss my pinata. So I’ll go into Armageddon with a poor credit rating? WHOOP DEE DOO!! The last thing on my mind right now is my credit card balance. I say run them up boys. Buy as much supplies as you can. Then defend your property as you normally would. Problem solved

    • JC Teecher

      That just adds to the problem, unless you are extremely connected to a vision of the timing of the very in months.

      Because, the greedy banksters will not let anyone get away with owing them or trying to con them. If one owns property, and owes debt, even credit card debt, they will come for your property or payment.

      Got gold or silver?

      • tsf

        Hey bro, I’m no expert on investments, but it seems to me gold and silver are things that thieves can easily break through and steal.

        Imagine marauders busting in with metal detectors checking your floor, walls etc. for a hidden stash.
        And can you really trust those gold companies that folks invest in?

        I think of property as a safer way, if ya can maintain the prop tax. Imagine someone coming along with earth movers and dump trucks to steal your property. Not gonna happen.

        But if it comes down to it, the g o v t can find a way to deem you an enemy of the state and confiscate it. They can do anything they want.

        I say this after observing trends over the last few decades. And if you continue with the trending, or straightline it, it’s not hard to predict, in many cases, what’s gonna happen down the road. Particularly if our nation continues down its present decline.

        • socalbeachdude

          Gold and silver are such TRIVIAL ASSETS in the big picture that the government couldn’t give the slightest bit of a hoot about that extremely volatile speculative little niche fungible commodity stuff. Combined they account for LESS THAN 1% OF ALL GLOBAL ASSETS even at today’s preposterously elevated prices.

      • socalbeachdude

        Gold and silver are PREPOSTEROUSLY ELEVATED BUBBLE ASSETS headed for huge plunges to their means of around $456 and $8 per ounce respectively.

        • JC Teecher

          You are most likely correct, and so are many economists and financial market forecasters.

          In the meantime, there are those that seek to return to a gold backed exchange medium. If enough controlling interests, can sway the economic main stream banking systems to oblige; then there may be a period of high value placed on the limited supplies of gold and/or silver.

          Otherwise; the NWO system will replace all exchanges, for a digital exchange system whereby all PMs become only worth their intrinsic value, or inherent worth for technological purposes or as jewelry/enhancement of items of collectibility.

          • socalbeachdude

            Federal Reserve Notes are the LEGAL TENDER US CURRENCY and commodities junk like gold and silver have NO MONETARY PURPOSE OR UTILITY WHATSOEVER and are just HIGHLY VOLATILE LITTLE NICHE SPECULATIVE COMMODITIES and nothing more.

            The US dollar, like all currencies, is backed by the current and future assets and labor and productivity of the citizens of the issuing government which is VASTLY MORE VALUABLE than some little junk commodity such as gold or silver.

            The so-called “gold standard” was a very brief 60 year experiment from 1873 until 1933 which proved to be a VERY STUPID AND ABYSMAL FAILURE at which point it was thrown into the garbage bin of the most stupid notions in the history of the world and incinerated.

            The US long used a “silver standard” until that was discarded around 1870 and briefly replaced with the so-called “gold standard” which was totally discarded domestically in the US in 1933 as an entirely failed experiment. No currency can be limited to the production of some irrelevant “thingy” commodity such as gold or anything else when the population of that currency’s country is vastly expanding as was the case of the US by the 1930s.

            Nixon did not “abandon gold” at all. Nixon merely ended the Bretton Woods currency fixed exchange rate agreement which had been in force from 1944 to 1971.

            Nixon had nothing to do with the “gold standard” in the US which had long ago been TOTALLY DISCARDED BY THE US DOMESTICALLY back in 1933 and only a tiny shred of gold nonsense was even left in the form of international bank transaction convertibility which is what was discarded in 1971.

            Artificially constraining the growth of money supplies while the population is growing substantially CAUSES DEPRESSIONS and causes countries to fail economically.

            Moreover, the US dollar is backed by the full faith and credit of the US government and the US economy is by far the largest single country economy in the world.

    • socalbeachdude


  • Rhialto the Marvellous

    What? You mean America’s in debt?

    Gee Michael, tell us more!!!

  • oUCH

    Does the 12.3 trillion mentioned above include mortgage debt ? I assume it does, since it is listed as total household debt. I wonder what the household debt minus mortgage debt is ?

    • Webeq

      Yes, it’s mainly mortgage debt. But doesn’t include financial debts, government debts, or corporate debts. You can’t add these altogether, since mortgage debt is an asset to the bank, and government bonds are assets to the holders.

      • socalbeachdude

        Correct, and the total aggregate debt in the US now exceeds $64 trillion.

        The breakdown of the $64 or so trillion of DEBT outstanding is approximately as follows by big picture category:

        30% Federal Government Debt
        20% Total Consumer Debt
        23% Total Corporate Debt
        27% Other debt including Municipalities

        The federal government debt is presently around $19 trillion, Total consumer debt is around $12 trillion which includes about $1 trillion in consumer unsecured credit, $1 trillion in vehicle loans, $1.36 trillion in student loans, and about $8.64 trillion in real estate loans secured by mortgages.

        The total corporate debt is around $14 trillion with a large percentage of that outstanding on corporate bonds which now have average interest rates of around 8.83%. The balance is a mix of all other types of debt outstanding with the largest portion of that $16 trillion being municipal bonds issued by state and local authorities and agencies.

        The US economy is about an $18 trillion a year economy and total assets in the US are around $180 trillion and the percentage of total debt to total assets is only about 35% which is an extremely low ratio from an accounting standpoint and the US is by far the wealthiest single country in the world.

    • socalbeachdude

      Yes, and most of it is mortgage debt. Consumer credit hasn’t changed much at all since 2007 and there is actually LESS MORTGAGE DEBT NOW that there was then. What has risen the most is STUDENT LOANS which now exceed $1.3 trillion and are non-dischargeable in bankruptcy and actual consumer credit debt is around $1 trillion currently.

  • ramrodd

    Result of decades of shipped jobs and open borders..

    Many people, their only survival is their cards?
    this has nothing to do with living the high life!!

  • Don_in_Odessa

    I already have enough consumer credit available to retire on. Trouble is I don’t have enough cash to do it for real. I don’t use any of that available credit very often. But, when I do it’s very little and it gets paid back within a month. If you really want to help your readers Michael, you would tell us how to convert that available credit to … uh … err … stuff; then tell us how to stop making the payments and still get to keep the stuff. I am near to the point of wanting to stick it to the Banksters before they, make that while they think they are sticking it to me.

  • bahmi

    Obama’s sworn task, courtesy of Tavistock, is to destroy the nation in as many ways as possible. Obama never tried to do anything but damage this nation. And he has! People divorce Obama from his part in this destruction. Why? Because Americans are easily distracted. Wave a new electronic device in front of them and they gotta have it NOW. Forget about blaming the guy in the White House.

  • GSOB

    The so called “Great Tribulation”
    has come and gone.

  • GSOB

    Man’s foot does not fit into a hand glove,
    and so –
    even the unregenerate can know that man did not
    evolve from apes.

  • Tom kauser

    Your bible has a barcode

  • Tom kauser

    The president will us every room in the White House to beg congress and the Saudis for a re capitalisation. The congress will argee to raise 10 trillion in new taxes and never do it while we all move on. Just like last time

  • STeve

    This is a staple of how many people in America makes ends meet. This and payday loans. Remove these systems and watch the devastation unfold.

    • socalbeachdude

      Very few of the 324,000,000 Americans use any sort of “payday loans” at all and removing those would have very little affect on the US financial system or economy.

  • tacoma

    This article of warning, while rational and sensible, does not apply to America. That’s because of two uniquely American Exceptional Things :

    1) The Federal Reserve, that private agency of Wall Street banks, can issue an infinite amount of money with a few computer keystrokes. In fact it has issued $20 trillion. $20 trillion is a lot but far from infinity. It can continue to issue this money and sell to Americans and foreigner as debt. But calling it debt is just for historical reason. It does not need to be repaid and carry 0%, i.e. no interest. It’s just money from a tree.

    2) But even such a magical money tree can eventually dry out. What to do? That’s where the second American Exceptional Thing comes in. Some call it the Military-Industrial Complex. I rather call it the Perpetual War Machine. This Machine turns the U.S. into the world biggest military state armed to the teeth with overflowing hyper weapon systems. It is at war all the time, sometimes big wars but mostly small scale. The small scale wars which is decades old is so routine no politician discuss them. People just treat them as normal, like car accidents. The purpose of the small scale wars is to maintain the Machine, but also to test new weapons and training. This in preparation for the Big war. The Big war comes when the Federal Reserve can no longer issue money with impunity, or foreigners won’t buy them any more. Any foreigners who dare to do so will be invaded and conquered. It’s national treasures extracted and become a colony. This way, value to the U.S. dollar is restored by the plunder and fear to those may consider such a foolish move. The last time this happened is the invasion of Iraq of course. About $1.5 trillion was spent on this conquest and colonization. But the U.S. got its money back by colonization, plunder, weapon sales, and use of Iraq oil for free for the Pentagon.

    Who’s next? Oh yes that already happened. Libya. But who’s really next? Russia. But Russia can do something about America’s Perpetual War Machine.

    • socalbeachdude

      Absolutely false. The Federal Reserve cannot and does not issue “an unlimited amount of money” at all and it NEVER GIVES ANY MONEY TO ANYONE. The QE programs were simply PURCHASES OF EXISTING SECURITIES ASSETS FROM BANKS IN EXCHANGE FOR THE DEPOSITS BEING DEPOSITED INTO THE RESERVES ACCOUNTS OF THOSE BANKS INSIDE THE FEDERAL RESERVE which is precisely where those funds have ALWAYS REMAINED with most of it in the EXCESS RESERVES ACCOUNTS of those banks which have current balances of around $2.5 trillion and which earn IOER (Interest On Excess Reserves).

  • Webeq

    This is all based on junk economics.

    Money is just numbers and pieces of paper.
    >> Think about real things, like eggs. Are we eating eggs produced in the future? Will our children have to send eggs back in time time because we ate too many and are consuming future production? Of course not. Every generation consumes what it produces, but we hope that we will leave behind some arable farmland, useful tools and machines, and well-educated youngsters that gives them a leg up when it comes to producing as much as possible. It is not possible to physically consume more eggs than are being produced, although it is possible to destroy the farm by neglect.
    >> What about that K$158 debt for every family? That is money that someone had too much of and put in a savings account run by Uncle Sam. In fact, if everything was equitable (which it definitely is not), everybody would have not only a K$158 debt but also a K$158 bond in savings, evening it out.
    >> Are we borrowing it from the Chinese? Will we have to ship all those cheap Wall-Mart things back to China in the future? No. The Chinese prefer to put the dollars we pay them in a savings account with uncle Sam. They can turn that into a chequing account any time, and buy houses, stocks in American companies, go eat at MacDonalds or shop at Wall-Mart, their dollars competing with others for whatever is on sale [our rules].

    When you eat eggs by using your credit card, you are eating eggs somebody else produced. But if everybody did that, there would be no eggs on sale to eat; so we are not all doing this together, running up our credit card. If everybody stands up at a game, it does not follow that everybody can see better. And we are not all down 0-2, down Trillion $60 altogether. The other team is 2 points up.

    >> Does that mean there is no problem? Of course not. But the real problem is the polarization between creditors and debtors, not the total debt. What are we doing to ameliorate the continually increasing polarization? We are doing things like spending counterfeit money to buy financial assets (generally owned by the rich and the pensioners) to “fix the economy”. Of course if you produce tomatoes or eggs, life would be great if the Fed bought trillions of your produce with made-up money, only to hoard it in their back yard. Everybody would wonder why only the tomato farmer? Why not me?
    >> And what if we allow ourselves to be led by the fear-mongers’ concerns over our total debt? Then everybody will try to cut back and save at the same time. There will not be enough money to buy what is on sale, which means less and less will be on sale, fewer people will find jobs, and anybody who has any money will see it’s value in eggs increasing day by day.

    Wise up. You are being lead to slaughter like hogs. The hogs at the front think they are being good and are going to get fed. At the back they are running because they think they will avoid punishment and disaster. Time for the hogs to get together, think, and do something about the forcing pen instead of trying to run faster.

    • socalbeachdude

      No, money is not just a “bunch of numbers” and the US is living VASTLY BEYOND ITS MEANS and total aggregate debt in the US is now well over $64 trillion.

  • David

    The system of Greed will destroy the civilization. And those who went for it will be perished in Hell.

    • socalbeachdude

      Not really, but there will be some major downward adjustments in the future as the value of assets return to proper, fair, and reasonable valuations.

  • socalbeachdude
  • socalbeachdude

    Bass: China bank crisis 5X worse than subprime

    China’s banks face a credit crisis with a potential hit 400% larger than U.S. banks’ subprime losses, hedge fund boss Kyle Bass warned.

    “Banking system losses – which could exceed 400 percent of the U.S. banking losses incurred during the subprime crisis – are starting to accelerate.”

    China’s banking system has grown to $34.5 trillion in assets over the past 10 years, from a base of $3 trillion, wrote Bass, who is famed as one of the few major investors to correctly call the U.S. subprime housing collapse that kicked off the 2008 global financial crisis. That prescience earned him a mention in Michael Lewis’ book “Boomerang,” which was about the European credit crisis.

    This expansion in the banking system’s asset base was fueled largely by rapid credit expansion, Bass wrote, that helped fund the huge, and often inefficient, infrastructure spending program that has propped up China’s growth.

    “China’s [banking] system is even more precarious when we realize that, even at the biggest banks, loans are not made to borrowers based on their ability to repay,” he wrote. “Instead, load decisions are political decisions made by the state.”

  • socalbeachdude

    China’s problems ‘just gargantuan’

    Despite China’s yuan hitting its highest level this year against the U.S. dollar Monday, the country’s fundamental problems are “just gargantuan”, Stewart Paterson, portfolio manager at Tiburon Partners, told CNBC.

    “They (the Chinese) have deflation, they have a slowing economy,” said Paterson, “To say there is no downward pressure on the RMB (Renminbi) or no fundamental reason for it to weaken, I think is very disingenuous and symptomatic of the fact that the Chinese population themselves are starting to lose confidence in their own currency.”

    The Chinese authorities are bolstering the yuan, in part, by selling off chunks of their foreign currency reserves and dumping dollars in the market. Nonetheless, the money stock in China is growing about twice the pace of its economy, at about 14 percent year-on-year.

  • socalbeachdude

    Why the Chinese Yuan Will Lose 30% of its Value (CHS)

    The stark truth is nobody wants yuan any more.

    The U.S. dollar (USD) has gained over 35% against major currencies since 2011.

    China’s government has pegged its currency, the yuan (renminbi) to the USD for many years. Until mid-2005, the yuan was pegged at about 8.3 to the dollar. After numerous complaints that the yuan was being kept artificially low to boost Chinese exports to the U.S., the Chinese monetary authorities let the yuan appreciate from 8.3 to about 6.8 to the dollar in 2008.

    This peg held steady until mid-2010, at which point the yuan slowly strengthened to 6 in early 2014. From that high point, the yuan has depreciated moderately to around 6.5 to the USD.

    Due to the USD peg, the yuan has appreciated in lockstep with the U.S. dollar against other currencies. On the face of it, the yuan would need to devalue by 35% just to return to its pre-USD-strength level in 2011. This would imply an eventual return to the yuan’s old peg around 8.3–or perhaps as high as 8.7.

    The stark truth is nobody wants yuan any more. Why buy something that is sure to lose value? the only question is how much value? The basic facts suggest a 30% loss and a return to the old peg of 8.3 is baked in.

    But that doesn’t mean the devaluation of the yuan has to stop at 8.3: just as the dollar’s recent strength is simply Stage One of a multi-stage liftoff, the yuan’s devaluation to 8 to the USD is only the first stage of a multi-year devaluation.

  • socalbeachdude

    Credit-Crimped Companies Rise to Most Since 2009, S&P Says

    You’d have to go back to the months following the financial crisis to find so many companies facing potentially ruinous debt problems.

    That’s according to the latest tally by S&P Global Ratings of “weakest link” issuers. S&P counted 251 with ratings at the low end of junk status and a negative outlook, the most since October 2009, when the total was 264. The issuers collectively have about $359 billion of debt outstanding, led by energy companies, according to S&P’s Sept. 1 report.

    “Weakest links maintain an important role as potential default indicators,” Diane Vazza, S&P’s head of global fixed income research, said in the report. They’re almost 10 times more likely to miss payments than ordinary speculative-grade issuers, Vazza wrote, adding that 71 of 100 companies that defaulted this year had been previously tagged as weakest links.

    The oil and gas sector contributed 62 issuers, or about 25 percent of the total, as stress on commodities markets continues. Eight of the August additions were from that industry, including Chesapeake Energy Corp. and Hornbeck Offshore Services Inc. Financial institutions followed with 34 issuers, or 14 percent.

    Other newcomers included Tesla Motors Inc., Elon Musk’s cash-strapped electric-car maker, and Intelsat SA, the satellite operator that proposed a private bond exchange offer, which S&P labeled “a distressed restructuring and tantamount to default.”

    S&P assembled the list based on the number of borrowers rated B- or lower with either negative outlooks or negative implications on Credit Watch that indicate a strong possibility of further downgrades. The number hit its record high of 300 issuers in April 2009.

  • socalbeachdude

    Retailers Seek U.S. Help With Shipping Crisis- WSJ

    Rates soar as Hanjin Shipping’s bankruptcy filing strands goods, causes confusion at ports

    U.S. retailers, bracing for a blow as they stock up for the crucial holiday sales season, asked the government to step in and help resolve a growing crisis caused by the near-collapse of South Korea’s Hanjin Shipping Co. , one of the world’s largest container shipping companies.

    Hanjin handles about 7.8% of the trans-Pacific trade volume for the U.S. market, Ms. Kennedy’s letter said. Since the shipping company filed for bankruptcy protection in a Seoul courtWednesday, terminal operators, ports, cargo handlers, truckers and others have refused to handle its cargo, for fear they won’t get paid. That is causing turmoil at U.S. ports and beyond, said shippers, importers and freight forwarders.

    U.S.-bound cargo has been delayed at the point of origin, and cargo-laden Hanjin ships are unable to get into U.S. ports. Already delivered cargo is sitting unhandled, clogging ports and occupying containers needed elsewhere.Several Hanjin ships have been seized by creditors or barred from shipping cargo from Busan, South Korea’s main port, and vessels have been turned away from ports in the U.S., China, Canada, Spain and elsewhere.

    Because Hanjin is part of an alliance of six shipping companies, the problems are even more widespread.

    Freight brokers in Asia said about 540,000 containers are expected to face delivery delays that one of them said could range from a few days to more than a month.

    Shipping rates soared as freight capacity shrank overnight. Cargo owners said rates from Busan, South Korea, to Los Angeles had risen to $2,300 a container by Thursday, up from $1,700 four days earlier. One U.S. importer said he was getting rate quotes of $2,000 a container, compared with $700 before the Hanjin news.

  • socalbeachdude

    AEP: Dollar hegemony endures as share of global transactions keeps rising

    The US dollar is tightening its grip on the global financial system at the expense of the euro, entrenching American hegemony and rendering the US Federal Reserve more powerful than at any time in history.

    Newly-released data from the Bank for International Settlements (BIS) show that the dollar’s share of the $5.1 trillion in foreign exchange trades each day has continued rising to 87.6pc of all transactions.

    It is the latest evidence confirming the extraordinary resilience of the dollar-based international order, confounding expectations of US financial decline a decade ago.

    Roughly 60pc of the global economy is either in the dollar zone or closely tied to it through currency pegs or ‘dirty floats’, and the level of debt issued in dollars outside US jurisdiction has soared to $9 trillion.

  • socalbeachdude

    You have a very substantial misunderstanding of the Glass-Steagall Act and banks DO NOT USE DEPOSITOR FUNDS TO SPECULATE IN ASSETS as you assert at present at all.

    • Pic889

      Then, why did they had to take massive government bailouts when their derivatives speculation (gambling) failed, citing danger to people’s deposits as the reason bailouts must be sent ASAP?

      • socalbeachdude

        Practically NOBODY WANTED ANY OF THOSE SO-CALLED “BAILOUTS” which were nothing other than VERY SHORT TERM LOANS WITH VERY HIGH INTEREST RATES OF 6% to 9% which were FORCED ON FINANCIAL ENTITIES and all of which were IMMEDIATELY REPAID as soon as that was allowed.

        No money was “given” to anyone from the US government and there was NO NET COST AT ALL for those “bailouts.”

        The major underlying cause of the 2008-2009 PERCEIVED (NOT REAL) LIQUIDITY SITUATION was the enactment of the Gramm Leach Bliley “Financial Services Modernization Act of 1999” which a number of folks predicted the day it was signed into law by President Bill Clinton would result in a major financial disaster within 10 years. It only took about 8 years for that to happen.

        As to 2008-2009, there was no “financial crisis” at all, but rather just an accounting issue with FASB Rule 157 (“mark to market”) and as soon as that newly implemented rule was rescinded on March 9, 2009, assets had a sudden and “miraculous” recovery.

  • littlebit43

    If you are going to run up your cards, put your assets in a trust in case you kick the bucket.

Finca Bayano

Panama Relocation Tours



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