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Barack Obama Says That What America Really Needs Is Lots More Debt

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ObamacareWhen it comes to taking a chainsaw to the future of America, nobody seems more eager than Barack Obama.  Despite the fact that the U.S. national debt is on pace to approximately double during his eight years in the White House, he has just proposed a budget that would take government spending to crazy new heights.  When Barack Obama took the oath of office, the U.S. national debt was 10.6 trillion dollars.  Today, it has surpassed the 18 trillion dollar mark.  And even though we are being told that “deficits are going down”, the truth is that the U.S. national debt increased by more than a trillion dollars in fiscal 2014.  But that isn’t good enough for Obama.  He says that we need to come out of this period of “mindless austerity” and steal money from our children and our grandchildren even faster.  In addition, Obama wants to raise taxes again.  His budget calls for 2 trillion dollars in tax increases over the next decade.  He always touts these tax increases as “tax hikes on the rich”, but somehow they almost always seem to end up hitting the middle class too.  But whether or not Congress ever adopts Obama’s new budget is not really the issue.  The reality of the matter is that the “tax and spend Democrats” and the “tax and spend Republicans” are both responsible for getting us into this mess.  Future generations of Americans are already facing the largest mountain of debt in the history of the planet, and both parties want to make this mountain of debt even higher.  The only disagreement is about how fast it should happen.  It is a national disgrace, but most Americans have come to accept this as “normal”.  If our children and our grandchildren get the opportunity, they will curse us for what we have done to them.

All debt destroys.

All debt enslaves.

And when you are talking about an 18 trillion dollar debt, you are talking about an amount of money that is almost unimaginable.

If our national debt was reduced to a stack of one dollar bills, it would circle our planet at the equator 45 times.

How could we have done such a thing?

Thomas Jefferson once said that “the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.”  He correctly understood that government debt is stealing.  We are financially raping our children, our grandchildren and all future generations of Americans.  It is an incredibly wicked thing to do.

But instead of men like Thomas Jefferson running our country, we have men like Barack Obama running it.

And to Barack Obama, running up a trillion dollars of debt a year is “mindless austerity”

“I want to work with Congress to replace mindless austerity with smart investments that strengthen America,” Obama said in a speech at the Department of Homeland Security. “I’m not going to accept a budget that locks in sequestration going forward. It would be bad for our security, and bad for our growth.”

Yes, if we steal money from future generations it will artificially inflate our current standard of living and make our economy look temporarily better than it should be.

But it is morally wrong to do this, and our current crop of politicians have no intentions of ever bringing the debt party to an end.

Even with the ridiculously optimistic economic assumptions that are used in Obama’s new budget, the federal budget is never projected to balance within the next decade.  Instead, Obama’s budget projects that the national debt will rise from 18.1 trillion dollars right now to 26.2 trillion dollars in 2025.

Of course it would greatly help if the federal government actually spent our money wisely.  But instead, the feds often waste our hard-earned tax dollars in some of the most bizarre ways imaginable.  The following is just one example

The U.S. federal government has prompted controversy after spending over $33,000 on a study to find out whether same-sex couples live closer to tobacco shops than heterosexuals.

The large sum was spent on a study by the National Institutes of Health entitled, ‘Relationship Between Tobacco Retailer Density and Sexual Minority Couples.’

Thanks to this kind of insane spending, our debt is completely and totally out of control.

While Barack Obama has been in the White House, the U.S. national debt has increased by $84,266 per full-time private sector worker.  Anyone that believes that this kind of debt accumulation is sustainable is absolutely delusional.

The only reason why our house of cards has not completely collapsed already is because the rest of the world has been willing to lend us gigantic piles of money at artificially low interest rates.

In December, the average rate of interest on the government’s marketable debt was 2.013 percent.  But in the past, interest rates have been much higher than that.  For example, in January 2000 the average rate of interest on the government’s marketable debt was 6.620 percent.  If we returned to that level today, we would be paying well over a trillion dollars a year just in interest on the national debt.

And the issue isn’t just the more than one trillion dollars in new debt that we are accumulating every 12 months.

As I have discussed previously, the U.S. government has more than seven trillion dollars of debt that must be “rolled over” each year.  In other words, the federal government must issue more than seven trillion dollars of new debt just to pay off old debts that are coming due.

If something were to happen which would cause the rest of the planet to either be unwilling or unable to lend us trillions of dollars at ridiculously low interest rates all of a sudden, the game would be over.

We were handed the keys to the greatest and most prosperous economy in the history of the planet, and our greed has totally wrecked it.

We were wealthy beyond imagination, but that was never good enough for us.  We always had to have more.

And now we are hurtling toward financial oblivion, and we have a man in the White House that wants us to go into debt even faster.

 

  • kfilly

    Most Amerikans don’t care. They were more wrapped up in the Super Bowl. If any Amerikans did care, they cared about the wrong thing like trying to get more out of the treasury for themselves (applies to businesses and individuals). Our country is morally broke as well as financially broke. This will hit people hard.

    • Lee G.

      I agree, it is hard to say what is worse; the fact that our country is in shambles or the fact that we let it happen.

      • Ray B

        Agree..but also,after reading many comments here that people believe
        Tptb can do anything they want….I am starting to agree with them…that
        this can go on forever. Oil is simply manipulated, when they need it back up it will be back up. Deritivaes? 700 gazillion. so what….if that is so much more than our gdp than what hasn’t it crashed?
        Why aren’t other countries dumping dollar faster?
        Etc etc etc
        And all these experts prediction crash for last 5 years…IT NEVER COMES.
        We need massive stock market and real estate correction to reset everything….but doubt its coming

        • Dave

          maybe you are right. oil needs to bounce back and it does.
          so, oil has been major economy predictor lately. now what? lol. agree tptb have unlimited fraud ability and secrets for this to go on forever

        • burzi

          When the East has 90% of all the gold the USA will understand that people around the world have there own trees they want real Money for there goods ! change you will have live with.

        • Daishan2015

          LOL , The USA has an enormous powerful economy still with a reputation for prosperity . Trust me debt always matters & the 1.2 QUADRILLION derivatives monster will attack soon. When this will EXACTLY happen ? No one knows as there are to many variables involved to be that precise . MANY are assuming then that it will. NEVER happen then . They are wrong , just like the Titanic was said to be impregnable , yet a few hrs after hitting the iceberg . It was on it’s way to the bottom of the Atlantic Ocean leaving people in VERY desperate straits . A similar experience awaits us that MANY will NOT survive !

      • Reddwine

        “WE?” “LET” this happen? I have done all I can to stop this. I dont have the authority to stop anything except to make my vote count. Vote for Ted Cruz and he will get us out of this mess Obama “the great” has gotten us into.

    • Daishan2015

      True, for a country like the USA to get into such a situation in the first place requires a HUGE moral collapse . Most people do not have a clue what is really occurring now !

    • ClaraThomas

      Americans get the government they deserve. The American Herd is too busy grazing and spending money they don’t have.

      “The American people are sheep. They’re comfortable, rich, working. It’s like the Romans, they’re happy with bread and their spectator sports. The Super Bowl means more to them than any right.” Jack Kevorkian

      • Reddwine

        Dang, you sound like Obama. No Americans do not deserve anyone like Obama. Who knows who he really is? He is hiding something or he would not have paid 4 million to have his past locked up. NO we are not rich, and only the Obama voters are sheep.48% are NOT working. There are no companies here anymore. The good ones have gone to a foreign land and hired there. Youre filled with hate. Move if you dont like it here.

  • K

    If you consider my belief, that they intend crashing the economy. Then this is a predictable action. You want debt so large, that paying it off becomes totally impossible. As to the debt doing great harm, to future generations. That assumes, there will be future generations. Never underestimate the pure evil, unchecked greed can cause.

  • Tim

    Is the federal budget deficit really going down?

    I just looked that the current issue of the Monthly Treasury Statement (December 2014). The cumulative deficit for the first 3 months of the current fiscal year is $176.7 billion. The cumulative deficit for the first 3 months of last fiscal year was $172.6 billion. That answers the question.

    Folks, this is not going to end well.

    • Tatiana Covington

      It isn’t, but Barry does. >;)

  • Tatiana Covington

    “The rich ruleth over the poor, and the borrower is servant to the lender.” — Proverbs 22:7

    And for once I agree with the Bible.

    • Lee G.

      Agreeing with the entire* Bible is strongly advised, ma’am.. Especially in these times. God Bless.

      • rmc9

        …amen…

      • Really?

        Hosea 13:16

        2 Kings
        2:22-23

        Judges
        9:5, BT

        1 Samuel
        18:25-27, BT

        (1
        Chronicles 11:11) & (2 Samuel
        23:8)

        1 Kings
        18:22-40

        • NowAlive

          Let’s see. In these passages, the enemies (primarily Philistines) of Israel were murdering their men, women, and children, plundering them, and taking the rest as slaves. This is no different than when God flooded the world because all men and their wives and children were purely evil. It’s true that a Holy God hates pure evil and sometimes takes severe action. You realize these enemies were often burning their own children alive, right? They had temples of prostitutes, hetero and homosexual, to worship their demons. God eradicates His enemies from time-to-time in the scriptures and He will again at the end of the age, whether your postmodern philosophy is in line with His will or not.

          • Mike Smithy

            Two of my favorite quotes from Michael Savage:

            “God sees, but waits”.

            Leave vengeance to God, it’s not your job”.

          • Tatiana Covington

            “But vengeance is such great fun when you do it yourself and spare God the bother.”–Tatiana Covington

          • alan

            We have ISIS now to do gods killing.

          • Ace

            Correction. Mohammed’s killing.

          • jsmith

            Oh please, let’s stop blaming the Philistines who had as much right to be in Palestine as the tribe. I think you have been reading way too much bible and only getting the tribe’s side of history.

          • Mike

            The Philistines are of Greek descent and the Romans named the land of Israel “Palestine” which is another way of saying “Philistine” to anger the Jews. God gave the land to the descendants of Abraham. They have the only right to be there. The Bible is the best history book available. You should try reading it.

          • Mike Smithy

            God gave the promised land to Isaac with his blessings. It was never Gods intent for Ishmael and his descendants to have rights the land.

          • jsmith

            Typical ignorance at work here, eh?

          • jsmith

            Yes, that’s very true about the Philistines or sea peoples, but whether one believes that God gave that land to the Jews is debatable. And furthermore, that God you believe in was rather callous of other people in picking one race or tribe over the other millions and calling them “chosen.” I believe there’s a God, and that he gave us Jesus as a last resort to reform the Jews, but what did the latter do to him? Sorry, I was raised a Catholic but I just don’t believe the hokum in that book. In any event, I wish religion was kept out of the posts. The problems we are having now in the world are misfortunes created by the banksters and the Federal Reserve who control the corporations and own the politicians in this country and in most of the world.

          • Gay Veteran

            oic, the Bible is a land deed
            /sarc/

      • elvisisdead

        Trade serving crooks for serving other crooks. Sorry. No.

      • common sense

        what about all the parts that command the death sentence?

    • Bryan

      For once you agree ? I recognize the hypocrisy but this nation was founded under Christian principles and values. We’ve lost our way as you’ve so clearly stated, we will regret losing our faith as suffer is an understatement for what’s coming !

  • Kent Harris

    What happens when the US economy tanks? Will the rest of the world follow suit? It would seem to me that as our economy has been on life support for the past decade and that when it crumbles China and Russia with nothing to lose will attack our country. They are building up their military for a showdown with the West it seems. On top of that they are hoarding gold and natural resources for a coming war.

    • rmc9

      …you’re right…

    • Richard

      Sorry, it’s the other way around: when the U.S. economy crumbles, it will be AMERICA WITH NOTHING TO LOSE and it will be AMERICA which attacks Russia and China. (Don’t worry… just a small detail).

      • elmcqueen3

        The US has been in the attack mode ever since Korea…No other country in the world has attacked as many foreign countries as we have…Nor killed as many foreign peoples as we have done… This is the product of our wars with which to achieve destabilization of those countries as we proclaim victory…Both G. Bush and B. Obama have stated “mission accomplished”…Yet we blame Russia for the Ukranian conflict…If it would have been the other way around and we were Russia we would have already attacked the Ukrainians and set up a puppet government whereby we would delivery truck loads of cash and commodities daily with which to support the new regime in the hopes they will become an asset paramount to the New World Order!

        • alan

          Bomb them and then give them a loan to rebuilt. Then the bankers got them!

          • elmcqueen3

            Yep!

      • alan

        I think the bankers want a war but a winnable one or at least make a lot of money off of both sides. One with Russia or Red China, not going to be a good out come.

    • GSOB

      Al-Qaeda and ISIS,…. them’s are the West biggest and greatest threat.,,,, by far. Very far.

      • elmcqueen3

        As in Vietnam…As much as we would like to…We can never kill em all…They will manifest themselves like cock-a-roaches and we will be startled in amazement how they have survived our bombs and our rockets red glare!

        • Gay Veteran

          yet another war we should NEVER have gotten involved in
          but no war profits without war

      • Priszilla

        Most Americans are killed by Americans.

      • alan

        They are created threats to run a business called bombs and bank loans.

      • Gay Veteran

        quit wetting your pants, the biggest threat is U.S. warmongering

  • We need a currency issued debt-free by an independent bureau of the Treasury in order to meet demand. Not backed by gold or silver, which merely creates an opportunity for bankers to institute deflation and beggar the people, and not backed by debt either, which requires us to pay massive interest on all economic output. Such a body should by law be charged with maintaining an average 0% inflation rate over time.

    Do this and we will immediately see lower prices for goods and services, lower rates of tax, lower spending on relief programs, and vastly improved government finances.

  • jhowell882

    crazy since the GDP as of Q4 2014 is only 17.7 trillion. get the credit card out !!!!!!

    • alan

      So i wonder what is out current GDP? Use to be 14 trillion in about 2007 or so. I bet its much lower now. I bet our real debt ratio is more like 200% GDP.
      Some other countries are double, so we have some party time left.

      • Mike Smithy

        After you factor in; hookers, blow, food stamps and murder for hire, GDP is approximately 17 trillion.

    • Copperhead Joe

      Also remember that the GDP would be much lower without all the borrowing to pay govt employees. $17 T is way overblown. Also remember that when Retailer X brings in $100 million in revenue, a significant percentage of their patronage is people borrowing and/or receiving govt benefits. There are layers and layers of recursion in that GDP.

  • Richard

    Another superb article, Michael. It is so satisfying to see all the nasty habits expunged. Your writing takes on a whole new dimension when you avoid the other stuff. Well done… and congratulations.

  • Genada

    Obama maybe right about needing to spend more. We are never going to pay back what we owe. So if the lender will still lend to you, borrow more. Then in the end default.

    This of course is part of the problem of turning vice into virtue but it’s where we are at. We will default, it will be painful but for now the best option is to keep it up till they stop us. If we were smart we would use this time to create things of value.

    The entire world is out of sorts, all debt will have to be defaulted on at some point. It’s a wicked world without virtue. It’s a world where the real sucker is not the deadbeat borrow living beyond there means, it’s the saver that is the sucker. Paper money and paper wealth will mean nothing, the only thing after the reset that will matter is what you can hold on to.

    • alan

      Party like its 1929!

      • Tatiana Covington

        We do know *who* that led to. Not FDR.

    • jimbo

      Here in lies the problem: NO ONE IS LENDING US ANY MORE MONEY !! The debt is being bought up by the Fed. By “printing more money”. So in essence we are borrowing it from ourselves. Talk about ending badly!!

      • jaxon64

        Actually it does seem to be working….somehow we ( the Fed) keep printing money out of thin air, and yet what do we have after QE1,2 and 3?…
        The dollars value worldwide vs the Euro, yen, yuan, peso, real, ruble and rupee has actually GAINED in value vs these other currencies…it’s starting to look like the USA may actually pull off their globalist NWO ambitions. The “men behind the curtain” might actually cripple everyone else enough first, that they get to be in charge of the rules during the reset.
        Unfortunately, there is no room for either a sovereign USA, a US constitution or free American citizens ( let alone a middle class) in their ultimate objectives

  • BeenThere

    What you need to understand is that America, being the world’s most nuclear armed nation, does not ever have to worry about it’s debt. No one is ever going to be able to collect. It’s like loaning money to the Mafia. So the US govt, knowing this, is totally unafraid of debt and will keep piling it on until whoever is loaning them this money wakes up.

    • jsmith

      I think China and Russia have smelled the coffee and are slowly waking up. And they got just as many nukes as we have.

  • chilller

    Our country’s economy is a run away freight train with Charles Manson at the wheel. They know they will never pay back what they owe…why should they?
    Imagine you have a maxed out credit card that you have no intention of ever paying off…yet…the bank, not only doesn’t shut down your card….it continues to let you borrow thousands on it every month. This is do different than what our treacherous traitors in DC are doing right now. And yes…they are OUR traitors as we are too stupid to vote them out let, alone man-up and do the responsible thing.

  • ChingatchCroute

    My old saying (before I filed for bankruptcy)…
    If you are going to dig a hole, make it a BIG one! ;-/

    • elmcqueen3

      Apparently that is what our government is doing…I dread the consequences we as a people must face when that happens…Hence…Stock up on guns and bullets for there are those who will come into your home and take what possessions who might still have left…Don’t be surprised if it is someone you know!

      • Avner

        Unfortunately it will most likely be someone close to you who knows what you have and where it is.

  • JailBanksters

    The windows calculator only goes up 9,999 Trillion, and there’s 1,500 Trillion worth of Gambling bets just waiting to be triggered.

  • jox

    I like this sencence of the post: “It is a national disgrace, but most Americans have come to accept this as “normal”. Change Americans for Spaniards and the sentence fits perfectly. Not only that, but here the people is asking for more government spending! The Obama’s expression ‘mindless austerity’ is deeply engrained here. People think that if government spend enaugh, magically the economy will restart.

  • krinks

    Having declared personal bankruptcy at one point, I know this. There is a point where it is silly to even consider paying the debt back as it is not possible. The only viable course of action is to stop paying on the debt and live within your means from then on. Nations can do the same. Why should the public suffer so bankers can be made whole?

  • alan

    When Barry Soetoro speaks I here bankers talking. Its coming down to desperation now.
    My theory on where this is heading.. I think the US is living way above everyone one else and on the backs of the third world. In a sence we are the 1% of the world. I think what is hapening is we are falling back into line with all the other countries. In the end our standard of living will be similar to maybe Russia or Eastern Europe.

    We are going down kicking and fighting though. We bomb a lot of oil producing countries, now we do a rebuilding bank loans for oil at a cut rate price. Then we find another ISIS type group and bomb again and then more loans, rinse and repeat.

    Hopefully it doesn’t take a bad turn and SHTF.

  • Norman Hoppenbauer

    im glad you realize it is both political parties at fault. the big question is how high can the debt go? due to having the worlds reserve currency it could go a lot higher. till? people who loan us realize there are better places to put their money. then the shtf..

    • Avner

      The other countries have already set up their currency swaps. The infrastructure is ready to go to dump the dollar. This thing you see, the currency war with Russia, is kinda like a financial battle of the bulge.. and we’re the nazis. Also, due to the fact that neither the left, or the right, have any interest in truly protecting the Constitution and Bill of Rights… unfortunately, you’re on your own. God, Family, and Tribe.

  • Avner

    Check this out if you have the time to do so (Approx 30 mins)

    Youtube search:
    Gregory Mannarino-Cracks in the Debt Bubble

    • jsmith

      Yes!

  • Leon

    The community organizer’s goal from day one was to destroy the US , he knows exactly what he is doing. What does the collapse of the British, Spanish, Rome empire have in common? They all went bankrupt

  • sherlock32555

    He looks at it like this someone has to pay back the money that both parties ran up on the idiots American’s watch. Case closed!

  • Jackie Milton

    What that stupid kneegrow cant seem to understand is that you can’t tax the rich more than they are willing to pay. Most all rich people are in a position to pass any addition taxation on themselves down to everyday working americans.

    • Laughable

      Must be why they were taxed 90% once upon a time.

    • What’s important is ending the shareholder-management and usury structures that allow certain individuals to become far more wealthy than the fair market value of their useful products and services to society, while impoverishing the laboring masses who power the economy.

  • bamalamadingdong

    Who benefits most from Americas debt. THE ILLEGAL FEDERAL RESERVE.

  • DJohn1

    It all seems to be going to hell in a hand basket.
    The ones behind this little excursion into overwhelming debt will be long gone from the scene of the crime by the time the storm hits.
    They will be in places where there are no extradition treaties to bring them home.

    It is in one of your own articles. They are splitting to Australia and New Zealand(those with nothing to hide) and Switzerland(if they do).
    By the time we get the news they will have put their money in other currencies they think will ride out the storm.
    Possibly in commodities in warehouses ready to start it all over again with a devalued currency in place.
    The question is what happens to the people that voted to make it the way it is? Do you even know who voted for what?
    That is the problem. No one knows who voted for Obamacare.
    Yet that is one of the biggest swindles government has ever made.
    Anything that promises to take 30% or more of your net income is a swindle.
    Yet find me the votes to repel it? Not likely.
    They are all in it together.

  • John Pallyswine

    No. The world no longer lends the USA any money. It is all from the printing press by the algo-programs at the FEDERAL RESERVE; an evil Rockefeller/Rothchild institution responsible for financing wars and hatred since 1913

    • jsmith

      You seem to be one of the few that has made the connection besides me JP! They are our misfortune.

    • Erin Anderson

      and the dollars that are printed on the printing press come into existence as debt for the U.S tax payer. It’s a debt scam used to enslave us, by the world central bankers.

  • Richard O. Mann

    Thanks to this mentality, I really believe that we are in the last year of this country. If we make it to 2016 with the status quo being what it is right now, I will be totally and completely amazed. The US is not going to survive much longer. We have too many enemies inside and out who are just waiting to jump in and rip this country apart. It is coming. Obama’s primary reason for being elected was to see that it happens. Sure was fun while it lasted.

    • GSOB

      Why do you say that about the POTUS?
      Do you really think that?

      “Obama’s primary reason for being elected was to see that it happens.”

      By who?

      Is not the Lord God in control?
      What do you think God is up to?

  • NowAlive

    I’ve said it once and I’ll say it again: an immoral people will never make moral decisions. Michael is spot on but nothing will change until the people do.

    • retired22

      I believe President John Adams said something like this,over 200 years ago!

    • jsmith

      It’s the elite Wall Street mafia and the tribr that needs to be reformed. The majority of the people (99.999%) including myself are being manipulated by them.

  • frank1569

    Theory: most Americans – if not most humans – believe we’ve either doomed ourselves, or some God is on his way to wipe us all out.

    And that’s why most of us are apathetic as things escalate out of control on multiple fronts. We’ve accepted the fact that we’re helpless, whether we’re willing to admit it out loud or not.

    So just crack a beer and be up for whatever happens.

    • GSOB

      The truth will set you free.

      Do you have any real answers to share as you sip your beer?

  • The Prophecy

    Both Republicans and Democrats have it wrong, Republicans are wrong because they want tax cuts and Democrats are wrong because they want spending to increase. Both policies will lead to financial oblivion. People should vote for a new party, the party of common sense and ditch Republicans and Democrats,

    • An end to usury slavery by private banks and a genuine, Treasury-issued currency may allow us to reduce the national debt to nearly zero (except in wartime where it is advantageous to get people to participate by purchasing war bonds) and reduce social spending, military spending, interest payments, and more. Along with that we may be able to reduce dramatically the tax on personal incomes.

  • BS1986

    Can anyone tell me how the debt will bite us? I get inflation BUT as long as the world uses out money it can hyperinflate can it?

    • burzi

      there are more dollars out side the US then inside , the dollars will come back home looking to buy some think real before they become worthless.

      • elvisisdead

        The prediction has existed since the gold bug days 100 years ago, then was revived in the early 30s and then in the mid-60’s.
        100 years. 80 years. 50 years.
        Still waiting. Maybe, just maybe, it’s never going to happen?

        • Mike Smithy

          Did you know that today’s USD’s can only buy about 2% of what it could buy in 1900? Compare that to gold, which today buys approximately 150% of what it could in 1900. So in just a little more than a century, gold has catapulted to 75 times as much purchasing power as USD’s. The value of PM’s does not hinge directly on a promise from a governments central bank. It is not a promise to pay. It’s just gold and silver, the real thing. Those PM’s form a safe haven for wealth, protecting people from the horrors of inflation and the destruction of fiat currencies.

      • BS1986

        So then they will inflate?

    • Mike Smithy

      It’s a trick bag. Let’s say for the sake of argument that the federal government passes a law that establishes the minimum wage at $1000 per hour. As a result, commodity prices would rise exponentially and workers income would rise accordingly and assuming all things remain constant, tax revenues would rise accordingly. All of a sudden, a 17 trillion dollar federal deficit is manageable and interest rates could return to historical norms. So what is the problem?

      Such action would significantly lower the value of the dollar and thus the US Treasury could pay off bond holders with cheap dollars. However, many of these bonds are purchased by foreign governments such as China, Japan etc. Such action would cause their economies to destabilize even further and would likely be a catalyst to WW3. Even if it didn’t lead to WW3, the USD being the world reserve currency would evaporate and it is likely that no one would ever trust the USA ever again.

      • elvisisdead

        Yes but your initial argument is absurd. You’re giving him insane hypotheticals. What happens if Godzilla attacks the East Coast? Because the scenarios you’re providing him are equally unrealistic. When you mention hyperinflation you’re no doubt thinking of Weimar Germany or Zimbabwe.
        What does the U.S 2014 have in common with those countries? Yes, we are both nation states. But what are any other similarities? We haven’t just lost a world war. We aren’t paying reparations. We haven’t sent a whole generation of young men to their deaths. There’s no 1918 flu. We aren’t a backwards African former-colony torn apart by tribalism. So those comparisons are not valid. I think he was looking for a real, lucid, answer.

        How does debt destroy America when America holds its own debt?

        • Mike Smithy

          Over 1/3 of the USA’s bond debt is foreign owned. That is over 6 trillion dollars.

          • elvisisdead

            Ok. So what are they going to do about it? Break our thumbs? If the Chinese get snotty we just stop buying their junk. They can go back to rice paddies and mass famine. The Saudis? They’re already teetering as we don’t need their oil as much anymore.
            In order for the bookie to call in his debt from you he needs to be able to scare you. Break your legs. Break your thumbs. Kill you outright. The threat of consequences if you don’t pay him back.
            What can they do to us when we’re interlinked by mutually assured economic destruction. Everything they do to us will be revisited upon them 10 times. They need us. We need them. Like a jenga tower.
            So again, how does the U.S.A collapse?

          • Mike Smithy

            The Chinese could easily focus their domestic production capacity toward domestic consumption while simultaneously dumping US Treasury bonds. The Chinese are already making internal trade deals with Russia and other nations aligned with the BRIC’s. Don’t kid yourself, USA needs China more than China needs the USA.

        • Genada

          I think deflation is what would be the most likely outcome of the current state of affairs.

          Many people thought qe would lead to some kinda of inflationary spiral but it didn’t do so because the money is not making it into the broader economy. Even in the case where the United States attempts to print it’s way out of it’s debt it would not make it into the broader economy because most people do not hold amount of debt that would create demand.

          So if we do a default in a honest way and just default, it’s deflation. If we attempt to default by inflation credit markets freeze and that leads to deflation. The problem with the economy is that not enough demand is being created at present due to too much of the money supply being sucked up to the top and there’s not enough credit at the bottom to create demand.

          The world is in a place where it needs to have a general reset and it’s going to be painful but after it will be on more of a course to sustain it’s self. The United States is living beyond it’s means and needs to began to produce more and consume less. Other countries need to produce more for their own people and raise the standard of living for it’s domestic population.

          There is going to have to be some general debt default in this process due to the inability of many to pay off their debt. Default will lead to less credit and seeing as how the system is built so much on credit will lead to a general slow down in demand. Less demand will lead to deflation.

          America will not be destroyed but it will need to learn to live more within it’s means and need to learn to produce for it’s self again.

        • Gay Veteran

          the more dollars you print the less those dollars are worth
          why do you thing the value of the dollar has decreased so much since the Federal Reserve was created

      • BS1986

        So how does it start? When it hits 20 trillion?
        That’s what bothers me I have to know, the first 48hrs will be critical.

        • Mike Smithy

          I don’t have a crystal ball nor am I a member of Yellen’s inside track club. As I have stated previously, look for a false flag event that will provide convenient plausible deniability for the banksters having stolen the wealth and destruction of the economy. One thing I can say for certain, when the controlled demolition of whats left of the economy commences in earnest, it will be too late to head for the exit doors. Buy guns, ammo, first aid supplies, canned goods and other useful provisions while you still can. Godspeed to you and yours.

          • BS1986

            You as well.

  • BS1986

    How will it start? WIll the world just drop our currency and leave us in our own filth?

    • burzi

      Trees will no longer be accepted as payment, unless your tree is back by real money Gold and silver.

      • BS1986

        HAHA fair.

    • jsmith

      What I gather from Michael’s excellent articles is that the only recourse the government has is to devalue the dollar. FDR devalued the dollar in the 1930’s, and through inflation it’s happening right now. Slowly but surely the dollar has less purchasing power to the point that a hamburger at McDonald’s will cost $10.00 and fries $5.00. Obama and the government doesn’t have the guts to tell the people to turn in 5 old dollars for a freshly printed new one. Thus, they print more fiat dollars. Worst case scenario is when the people realize overnight that their money is totally worthless, like in Mexico or Argentina or the Germans back in 1923.

      • BS1986

        I just wonder how long do we have……..

      • Mike Smithy

        What are you blathering about? “Obama and the government doesn’t have the guts to turn in 5 old dollars for a freshly printed new one”. Banks routinely swap out old mutilated currency and replace it with new currency. The old mutilated currency is then destroyed. How is your point remotely relevant to the conversation? Just say no to drugs, OK.

        • cpjohn146

          He’s talking about devaluing 5 current dollars down to one new dollar. So if you have 100,000 US in today’s currency, the government COULD (but don’t have the guts yet) say you’ll have to turn those in and take 20,000 in the “new” US dollar. In other words, you’ll lose 80 grand. He wasn’t saying anything about turning in old paper notes for new ones.

  • Gary

    It will collapse. The question is when. It is being done intentionally to establish a one world government, however, it is not going to turn out the way they think…
    James 5:1-8
    1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
    2 Your riches are corrupted, and your garments are motheaten.
    3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.
    4 Behold, the hire of the labourers who have reaped down your fields, which is of you kept back by fraud, crieth: and the cries of them which have reaped are entered into the ears of the Lord of sabaoth.
    5 Ye have lived in pleasure on the earth, and been wanton; ye have nourished your hearts, as in a day of slaughter.
    6 Ye have condemned and killed the just; and he doth not resist you.
    7 Be patient therefore, brethren, unto the coming of the Lord. Behold, the husbandman waiteth for the precious fruit of the earth, and hath long patience for it, until he receive the early and latter rain.
    8 Be ye also patient; stablish your hearts: for the coming of the Lord draweth nigh.

    • old fart

      So many yee’s so little understanding.

      • Tatiana Covington

        It must be a Chinese restaurant! (Rimshot!)

  • autofixer

    When one understands the fractional reserve banking system and the function of debt, you will understand why debt must always increase or the economy will grind to a halt. All hail the Fed!

  • Tim

    It doesn’t really matter what the debt is. It could be 18 quadrillion dollars as long as the rest of the world has the same proportion of debt. It’s just a big swap meet. All the Central Banks around the world lend each other fiat currency all the time and they, in turn, lend the money to their respective governments.
    Where the “preparation” needs to take place is on a spiritual level. The Satanic-leaning Elites are all working together on a GLOBAL level to bring about a one world government with the prince of the power of the air at the helm. Global debt is just one tool in the arsenal to get us there.
    Now is the time to place your hope and trust in the Lord Jesus Christ instead of the so-called wisdom of men with all their “proposals” to fix things which they will never be able to fix … because the whole world system is designed on purpose to “break”. And it’s going to … you can’t stop it!
    In all actuality, global catastrophic failure is actually the ultimate goal of the earthly “powers that be” and God’s going to allow them to have their “day in the sun”!

  • Bill

    The surprise upswing in oil is being called a dead cat bounce. When you add stocks to the equation there are now two dead cats or put another way–I see it as two dead canaries. Understand what I’m saying?

    • Bill

      PS: suppose the imposter selling more debt killed the two canaries?

  • Stuey

    ” cause the rest of the planet to either be unwilling or unable to lend us trillions” Michael, why do you write such things? you KNOW it is the federal reserve purchasing most of the debt. The federal reserve creates federal reserve notes out of the thin air and buys the USA debt. How much is owed back to the federal reserve now? Write an article about that!

  • CharlesH

    The entire world is nuts. When you’re dealing with fuzzy math – made up numbers/fiat money – would could really argue that this whole thing could go on indefinitely. Numbers are infinite right? To believe the U.S. debts can ever be paid off is ludicrous – they can’t be paid off and never will be but what we can do is make them even bigger and bigger. There is no reality any more – it’s all perception.

  • pornofluffer

    It doesn’t matter who is in office, if nothing changes the debt will double and the time it happens will be shortened by 50% each time, hence a hockey stick effect.

  • jrf30

    “If our national debt was reduced to a stack of one dollar bills, it would circle our planet at the equator 45 times.” Actually, if it was STACKED, it would be HIGH, but not go around the equator at all!

  • GSOB

    Hey….

    ISIS is looking like Delta force!

    All those westerners contributing their talent, collective efforts and lives over to the generation of hatred and death, joining this terrorist organization.

    The POTUS has said that their ideology is ‘bankrupt’

    Keep in mind, he was talking about them, not our economy.

    • Gay Veteran

      bilge, stop bombing Muslim countries and stop backing dictators in Muslim countries

  • cateye

    Crash the system under an immense mountain of debt. It has been his plan all along.

    • It’s a fundamental requirement of the debt-backed currency that we have now that the volume of debt that we have grows and grows without limit. 70% of money is just a debt to private banks, most of the remaining 30% being debt to the Federal Reserve. Only $50 billion exists as genuine, Treasury-created money in accordance with the Constitution.

  • “We print our own money”

    Almost all money, save for the $50 billion in coins, came from a debt created by a private bank. 70% of this debt is held in private banks while 30% is held by the Fed, so our currency is 70% bank liabilities and 30% Fed liabilities (Federal Reserve Notes and electronic reserves). Normally this ratio is 90%:10% or more and will return there as banks create more money as they loan. Meanwhile the people and government are forced to pay interest to private bankers who bear no risk whatsoever.

  • JLo

    ju knaw, you’ve got the wrong color babi to represent de usa because startin in 2012 over 50% of de babes now are minorite. Try ta represent trutfully.

  • TacticalZen

    I used to think change could occur and debt increased more slowly. Now I think the best thing is to ramp up as much debt as possible as fast as possible to force a reset and force a regime change (aka Civil War II). That our leadership has postponed collapse 7 years post 2008 is amazing! If we double or triple the QE pace we will absolutely see “change”. Very real, very tangible, very permanent. Just prepare accordingly. It beats waiting for the sword to drop as we are doing now.

  • JailBanksters

    They/you could double it, but eventually the banks will come back for more debt, it will not and can not ever end. It’s how this stupid crazy system works.

  • Donald Wilson

    Hey interesting article but when stating who is directly responsible don’t just say “us” try and nail down the the ones who are at fault here. I know for certain I didn’t cause this mess that this nation is in. I for one pay my debts and if needed do without certain things . I and my spouse we have a budget and we live within our means. So do us all a favor stop using the term all or us…be more direct and state who is really at fault here…Good luck and Good night

    Bravo Two Zero out

  • Randy Townsend

    We’ll never pay off the national debt – it will only continue to grow, regardless of which party is in charge. At some point, those lending the US money (i.e. CHINA) will decide “No more – we’d like to get paid now.” Then, it will get ugly. At that point, it’ll be too late to “do anything” about it. Our children are going to hate us for what we’ve done to their future.

  • Sandbagger

    “I want to work with Congress to replace mindless austerity
    with smart investments that strengthen America,” Obama said in a speech
    at the Department of Homeland Security. “I’m not going to accept a
    budget that locks in sequestration going forward. It would be bad for
    our security, and bad for our growth.”

    Am I the only one who sees he’s talking about funding war here?

  • f16hoser

    60% of Americans think Obozzo should Kill Himself.

  • Erin Anderson

    Once interest rates start going up, the interest on the national debt will explode. The dollar will see hyperinflation.

  • Erin Anderson

    I have a feeling that the U.S government will eventually make us all invest in U.S Treasuries through our 401K plans. Eventually, 90% of our paycheck will go directly into Treasuries and once this happens we will officially be debt slaves. We will be working our jobs to buy Treasuries so that the government can go deeper into debt to the Federal Reserve. Since the majority of your paycheck will go towards debt the government will create more debt to fund Socialist programs that are needed since you’re only taking home 10% of your pay. Socialism will be demanded by the citizens because it will be necessary for survival. I have a strong feeling this will take place soon.

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