The Beginning Of The End
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Debt Problem: Who In The World Is Going To Buy The Billions Of Dollars Of Debt The U.S. Government Is Constantly Pumping Out Now?

Is the U.S. government on the verge of a massive debt problem?  For years, the U.S. government has been able to borrow all the money that it has wanted to at extremely low interest rates.  But now many of the lending sources that the U.S. government has been depending on are drying up.  Even before this recent crisis in Japan, a number of big players were moving away from U.S. Treasuries and the U.S. Federal Reserve was having to step in to pick up the slack.  But now this debt crunch is about to get a whole lot worse.  For years, many had feared that it would be China that would start dumping U.S. government debt, but now it turns out that Japan is going to be the real problem.  Right now, Japan is the second largest foreign holder of U.S. government debt.  Japan currently holds about $882 billion in U.S. Treasury bonds and they are likely going to have to liquidate much of that in order to fund the rebuilding of their nation.  So needless to say they won't be accumulating any more U.S. government debt.  But the U.S. government still needs to borrow a trillion and a half dollars from someone every single year.  So where in the world are they going to get it?

This is called a debt problem.  Have you ever gotten to the point where you are in debt up to your eyeballs and nobody wants to lend you any more money?

Well, the U.S. government is rapidly reaching that point.

Even before the crisis in Japan, several of the big boys had starting moving away from U.S. government debt.

PIMCO, the biggest bond fund on the entire globe, recently acknowledged that they are dumping all of their U.S. Treasuries.

So if foreign nations like Japan are not gobbling up U.S. government debt and big bond funds like PIMCO are not buying any of it, then who in the world is going to be purchasing the massive amounts of debt that the U.S. government is constantly pumping out?

Well, many of you already know that answer.

The Federal Reserve is going to step in of course.  The Federal Reserve knows that if the U.S. government cannot borrow gigantic quantities of money at super low interest rates it will go broke.  So the Federal Reserve is just going to keep buying up most new U.S. government debt.  It is just that simple.

But isn't that a Ponzi scheme?

Of course it is.  Let's not mince words here.  It is a total scam.

And it is a scam that cannot go on indefinitely.

The truth is that the Ponzi Scheme of the U.S. Treasury issuing bonds and the Federal Reserve buying them up cannot last forever as PIMCO's Bill Gross noted in his March newsletter....

"Basically, the recent game plan is as simple as the Ohio State Buckeyes’ “three yards and a cloud of dust” in the 1960s. When applied to the Treasury market it translates to this: The Treasury issues bonds and the Fed buys them. What could be simpler, and who’s to worry? This Sammy Scheme as I’ve described it in recent Outlooks is as foolproof as Ponzi and Madoff until… until… well, until it isn’t."

Gross also noted in his recent newsletter that the Federal Reserve is currently buying up about 70 percent of all new U.S. government debt.

So now that Japan is out of the picture, how high will that figure go now?

80 percent?

90 percent?

Over the past several weeks there has been all kinds of speculation about whether "quantitative easing" will be extended past June or not.

Well, whether they call it "quantitative easing" or not, the truth is that the Federal Reserve is going to have to continue to "buy" most new U.S. government debt or the system will crash.

We have gotten to the point where the U.S. federal government cannot continue to function without Federal Reserve monetization of the debt.

This is a sign that we are rapidly approaching the financial endgame.

So why doesn't the U.S. government just stop spending so much stinking money and stop getting us all into so much debt?

Well, because there isn't enough political will in Washington D.C. to do any real budget cuts, and if our politicians did balance the budget at this point it would crash the economy.

Just the other day, the U.S. House of Representatives passed a continuing resolution to fund the federal government that would cut 6 billion dollars from U.S. government spending.

On that exact same day, the official U.S. national debt figure rose by 72 billion dollars.

Now the debt normally does not go up that much on a typical day.  But what this example does show is the losing battle that our politicians are fighting.

On Wednesday, U.S. Treasury Secretary Timothy Geithner warned a House of Representatives appropriations subcommittee that they should not even think about not raising the debt ceiling....

"Congress has to do it. There's no alternative."

The truth is that the U.S. government has to keep going into more debt.  Under the current system the alternative would be to collapse the economy.

But the debt that we have already piled on to the backs of future generations is absolutely criminal.

How mad do you think future generations are going to be with us for heaping 14 trillion dollars of debt on to their shoulders?

Talk about a debt problem!

But this is what we get for allowing a private central bank to run our financial system.  This debt-based system was designed to fail from its very inception.

The man supposedly "in charge" over at the Federal Reserve, Ben Bernanke, has a track of record of incompetence that is absolutely staggering.  It is a mystery why our representatives in Washington D.C. are not howling for his resignation.

Instead, most of our politicians continue to express blind faith in our current financial system and they continue to insist that everything is going to be okay.

Well, everything is not going to be okay.  The Obama administration is projecting that the federal budget deficit for this fiscal year will be an all-time record 1.65 trillion dollars.

Of course they are also trying to convince us that budget deficits will go down in future years, but by now we should all know not to trust the rosy future projections of government officials.

After all, it was only a few short years ago that Bush administration officials were promising that we would be swimming in huge budget surpluses by now.

The truth is that the government has been lying about all of this for a long time.  For now, the Federal Reserve is just going to keep monetizing U.S. government debt for as long as it can.

This Ponzi scheme will keep on working and working and working until someday it simply doesn't anymore.

When that day arrives, the U.S. government debt problem is going to unleash hell on world financial markets.

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  • Brian

    A not so minor point of clarification… The US has a current deficit of about $1.6T that is needs to go to the market to raise this debt financing which is noted in this article. However, the US debt is over $14T. The average maturity of this debt is under 4 years, so using a 4 year maturity, 25% of this debt needs to be rolled over every year. This adds another ~$3.5T of debt that needs to be sold. So, taken together, the US needs to raise over $5T in debt financing this year. This is far worse that the ‘trillion and half dollars’ noted.

  • magicjack

    what’s the difference? ain’t like we’re gonna pay em back. just jack up rates and keep the presses hummin. the u s credit card has no limit

  • Bill

    In due time………

  • Liberte

    The US has had an unpayable debt problem the moment the FED summoned from thin air its first FRN and loaned it into circulation at compounding interest.

    Principle will never equal principle plus interest.

    P < P+I

    This is riba.

  • michelle

    I think it’s almost over.

    Japan will send the entire world’s economy over the cliff.

    Now radioactivity will engulf the planet and we will melt into a runny pool of shit and vomit.

    Nice knowin’ y’all.

  • The Beast

    If you can’t finance your own expenses with your own income, you’re in trouble and is forced to borrow. If you can’t service your debts with your own income, you are in more trouble, and thus have to borrow to service those debts. This will go on and on, until you are in such a s**thole situation where nobody is willing to give you loan to even finance your debt servicings. When the Fed has purchased 100% of the issuing debts from the US Treasury, it sure is the end of the line.
    I think that the remaining debt from foreign sources are merely current outstandings and the US Treasury will be forced to issue more debt to the Fed in order to repay when it reach maturity. When that happens, I say “Welcome to Zimbabwe!”

  • Dan McDonald

    When governments spell out d-e-f-i-c-i-t long enough they will eventually learn how to spell d-e-f-a-u-l-t. The seventies are returning with stagflation only our situation is worse. There was a joke then being told in Europe as the American dollar was going down on a daily basis against other currencies. The joke went like this. A person went into a hobby shop. There were two monopoly games on sale. One had a price tag, the other said,”Ask the manager for today’s price.” The shopper being curious asked the store-owner, about the monopoly game that didn’t have a price fixed on it. The store owner answered, “That monopoly game has real American dollars in it. It goes down in value every day.” Oh well, maybe that’s why the president keeps busy playing golf, going on vacation, and filling out his brackets. At least he’s got some priorities in life. I think that is why the banksters hired him for the job.

  • LiberatedCitizen

    It’s not going to be Japan obviously and not China they have just dumped more. The Fed. is going to intervene again tomorrow because the dollars going down fast against the yen. So that leaves more monetization and brings hyperinflation. Now we are being involved in another War in Libya that is none of our business. But as the world burns and some are wondering if obama had a hand in making the nuclear armageddon worse obama’s off to Rio.

    China continues to trim its US debt to avoid risks

    http://economictimes.indiatimes.com/news/international-business/china-continues-to-trim-its-us-debt-to-avoid-risks/articleshow/7731402.cms

    HOT: On Friday, Central Banks Will Intervene in Foreign Exchange Markets

    http://www.economicpolicyjournal.com/2011/03/hot-on-friday-central-banks-will.html

    Nuclear Armageddon Did President Obama Have A Hand In It? War In Libya…Rio Baby

    http://www.allvoices.com/contributed-news/8508404-nuclear-armageddon-did-president-obama-have-a-hand-in-it-rio-baby

  • maddog

    The way I see it is that it doesnt matter any longer how much debt we are in, there is just nothing that can be done about it. The entire world economy will crash and a sufficient number of people will turn to God and we will be shown how to live correctly. We’ll probably all have to give up our cell phones though.

  • http://www.osixs.org morpheus

    Are you kidding? There’s a sucker born every minute. Including us.

    “WAKE UP PEOPLE!” – JOIN THE REVOLUTION
    Read “Common Sense 3.1” at ( http://www.revolution2.osixs.org )

    We don’t have to live like this anymore. “Spread the News”
    FIGHT THE CAUSE – NOT THE SYMPTOM

  • http://YAHOO RICHARD

    SO WHAT IS THE U.S. GOING TO DO IF JAPAN WANTS SO OF THERE MONEY BACK???

  • 007

    Kind of amusing to watch. It’s like an idiot at a monopoly board throwing ever more funny money around in hopes someone will accept it and somehow it will solve the fact that his house is burning down.

  • 007

    Kind of horrible to watch. The power drunk in Washington pay off their corrupt friends. Bernanke finances the fraud by printing the money. It is destroying the economy and our standard of living. It is a ponzie scheme. Still you hope it continues as long as it can. When the music stops and everyone scrambles to find a chair, there will be he’ll to pay.

  • http://www.planorperish.com/ Gutter Economist

    Ref: Liberated Citizen

    “some are wondering if Obama had a hand in making the nuclear armageddon worse”

    Reply: I don’t know about Obama but we do need to know more about boric acid and hydrogen.

    Engineers decided to inject sea water (mixed with boric acid – a neutron absorber) to ensure the rods remain covered with water.

    Spent fuel rods stored in a boric acid solution also release hydrogen and have caused many smaller unreported explosions in other parts of the world.

  • Maria

    This is utterly ridiculous. The world has allowed a few very nasty people to control the supply of fiat money and the creation of fiat debt. It is all fake…fiat.

    About right now, 99% of the world gets the picture, and I am supposed to believe Ben Bernanke doesn’t? Yeah, right!

    Maybe the real purpose behind all of the “money printing” is to intentionally drive the cost of commodities through the roof, grind our retirement accounts into dust and give free money to the “too bigs”. What better way to impoverish all the remaining “savers” of the world and starve all the “little people” all at the same time…with the press of a button!

    Enslavement is the name of the game. Only then can they successfully bring on their New World Order and the one world currency.

    It is time to stop the nonsense…time to get rid of the secret central banks, corrupt politicians, fiat money and stop taxing income. Time to stop sending our kids to fight their wars for them too!

    We have some very nasty slavemasters. If we want freedom, then we are going to have to take it…peacefully of course! yeah, riiight.

  • Bob

    The current debt “problem” the US faces kind of reminds me of a similar situation a friend of mine was in back in the mid 1990′s. He had a credit card. He maxed it out. He ordered another credit card from another lender to use it to pay off his maxed out credit card. Then he kept on using the NEW credit card until it too was maxed out. Then he went out and ordered another credit card from another lender and started the process all over again. In the end, when he finally filed for bankruptcy, he had 8 maxed out credit cards @ $40,000 each, a house & car payment and all the other things needed to stay alive. When it was all over he ended up with nothing and was living in a trailer park AFTER his wife divorced him for keeping it all a secret from her. This will NOT end well for the US if it keeps up.

  • Bideshi

    Roll the presses and give it to them. Simple.

  • Old Codger

    Richard,

    The USA has Japan and China by the short and curlies. They CANNOT demand repayment, they can only flog the US Bonds on the market and that will send the value through the floor.

    Neither Japan or China want to send the USA into a depression, they will follow her into hell the next day. No sane shopkeeper sends his best customer to the debtors court.

    The game of musical chairs continues until……

  • Oz Boy with Attitude

    Richard When Japan asks for their money back I would assume that what will happen will be along the lines of “remember Nagasaki? Well we can see your house from here”

  • Spencer

    Designed to fail from inception? If you want to say “doomed to fail since inception” then at least you’d have an argument (not a great one, but one not so easily destroyed).

    Either you chose the wrong word, or you have no idea what design means.

  • Matt

    “Well, because there isn’t enough political will in Washington D.C. to do any real budget cuts, point it would crash the economy.”

    THIS IS NOT THE ROOT PROBLEM – THE ROOT PROBLEM IS THE US CITIZENS WANT A NEVER-ENDING FREE LUNCH AND DEMAND IT UNDER THREAT OF DEATH – JUST LOOK AT THE WISCONSIN TEACHER UNION THUGS AS PROOF OF THAT. WE ARE GOING TO GET WHAT WE DESERVE – THOSE THAT DEMAND A FREE LUNCH SHOULD BE *********************************************.

  • mark

    We have a problem with debt. Our choices over the past 40 years created a monster. The bailouts in 2008 and beyond are making the end game a more painful future. We should have gone into a major depression in 2008 to force a correction of real estate values and pension problems. All we have done is to make the future depression worse. How bad will this become? Wars have been started for less. We need to start producing real products that people need. Who needs a service industry economy. All the lawyers, insurance agents,bankers, accountants, etc do not produce anything of real value. They only suck the blood from the people that produce. We need to mine, drill, grow, and develop usful materials and make them here. Yes our standard of living will drop, but we will not starve. Houses will be small, old people will live with adult children, young adults will help with bills and not live as babies into their twenties, people will grow gardens etc. We can do this now or wait to run off the cliff as lemmings.

  • Dan McDonald

    The likelihood of a new currency and less US sovereignty does grow. Geitner let the cat out of the bag. He would not oppose a new super currency by the IMF. The global banksters do seem to think the answer is to print a new global currency enough to monetize current national debts. I never took this possibility too seriously, but now I wonder.

  • Lennie Pike

    Brian,

    Great clarification. The inability of us Peasants to clearly see the facts concerning the fraudulent financial system is the entire problem.

    Like Henry Ford said: “There would be a revolution tomorrow if only…………”

    “Gold and silver is money and nothing else is” – J.P. Morgan. J.P. Morgan had many tricky methods of getting his hands on as much of it as he could, and used those same tricky methods to make as few people as possible think of gold and silver as money – just as J.P. Morgan Bank continues to do today.

    They hold gold and silver just in case if when their system does collapse, the Peasants refuse to accept their new version of fiat money.

    Slim chance of that happening, but they will always be prepared just in case.

    Maybe J.P. Morgan’s class already uses gold and silver for payment amongst themselves since that is what he stated, and their paper is meant for fleecing the rest of us suckers. How would we know? Why would they risk participating in their own con-game?

  • Lennie Pike

    Also, I can’t remember where I saw this fact, but with a search it can be found.

    The majority owners of just about all gold and silver mining companies (and the gold and silver in the ground itself of course) are banks – many of them Wall Street banks.

    Easy to own it if there are suckers who will accept your paper money for payment.

  • Miriam Solos

    Great post. There are lots of people on this site awake to what is happening out there.

    1) The governement are pretending to fail.

    2) Debt is just a game to help the NWO carry forth quicker than they intended.

    3) The entire real U.S. debt figure will never be released. Probably because there is not enough paper to fit all the zero’s on it LOL :)

    The guys who called the crash in 2008 http://www.forecastfortomorrow.com are forecasting some interesting events in the coming 24 months. Both economical and geographically speaking. These guys forecast the Japan Tsunami also! WOW.

    Its a strange world out there people.

  • dodiligence

    The game was started in 1913. With an end in mind. Everything going as planned. People better prepare for that END.

  • Mark

    @Richard – I guess if Japan requests some of their money back the U.S. will send them another earthquake.

  • Don Levit

    Brian:
    I am trying to understand the difference between rolling over debt and not rolling over debt.
    For example, say Japan wants to cash in $200 billion of Treasuries.
    These Treasuries are then retired.
    The Japanese get their $200 billion in cash, whether we roll over the debt or not.
    My understanding of rolling over debt is that this does not increase the total debt, but, rather, it stays the same.
    The only way debt is increased is by running a budget deficit.
    So, the choice is increase the debt by $200 billion or keep it the same.
    As a neurosurgeon would say, “That’s a no-brainer.”
    If I am correct, why wouldn’t rollling over debt increase the debt?
    Don Levit

  • http://www.danielrevelationbiblestudies.com Robert Stout

    Very inspiring article!!! Prepare today, because the last movements in the world will be rapid ones. http://www.survivorblog.com for the physical needs and http://www.danielrevelationbiblestudies.com spiritual needs!!! Think seriously about this my friends!!! Increase of food around the world, disasters coming at us from every side, and the debt load of America and the world!!!

  • http://TheEconomicCollapse Dave

    What should happen is that the government must raise the interest rate on government bonds until they get some investment people that will be nuts enough to buy them. But increasing the interest rate will increase the amount of interest the government has to pay to keep this thing above water. Eventually the interest payment will be more than the federal budget. Either way (Fed underwriting the debt or interest rate hike) we are at the end of game.

  • William

    ENDGAME by Mauldin, out earlier this year, is the best book available to explain the coming debacle. It can NOT be avoided. I have no financial interest in ENDGAME, but I do have financial interest in MY existence. There is simply no way to avert the coming disaster. The timing of the event is NOT predictable. There is no magic % of GDP in debt, or any other “metric” that can be used to predict accurately the collapse. But, it is coming.
    By 2020, the financial tsunami will be over, and a period of prosperity will ensue. Surviving to 2020 is the challenge. The bond gurus will win. Just look at PIMCO and Goss.

  • impeachRonPaul

    We need one world currency to gain stability

  • mondobeyondo

    Naturally, the Federal Reserve will buy up the excess Treasuries that foreign governments won’t/are unable to buy. All the Fed has to do is keep on printing. They’ll never run out of money.

    Of course, there will be consequences and repercussions, especially for the American people. More money created means more money chasing the same supply of goods, which makes each dollar in your wallet less valuable. Voila – inflation! Keep it up to a certain degree, and you get hyperinflation. Not fun!

    At this point it’s probably better to just throw in the towel and declare our nation bankrupt. The debts will never be paid off. Just admit our politicians and government made a colossal mistake, start over from scratch, and hope for the best.

    That will never happen, of course. But the current financial system is totally unsustainable. We all know it. Even a 6 year old can figure it out. Politicians know it, too. But they want to get re-elected…and cutting programs and entitlements is political suicide.

    And so, on goes the spending spree.

  • Mario

    What is the problem, it will all just keep on going the way it has always.
    Do you really think that the U.S. Will just stop or end, they will just keep printing money and Chinese and all the others will keep buying the bonds because they need us to keep buying. It may slow down there might be some bumps along the road but all in all the sun will come up in the morning and go down in the evening.
    I think we all need to just relax, we are far from all the doom and doom I read on this site.

  • mondobeyondo

    Obama doesn’t care.

    At least that’s the perception I get. Obama is too busy being World Traveler in Chief.

    In the past 2 years, he’s been to… hmm. England, France, Germany, Egypt, Indonesia, Hawaii, a secret trip to Iraq to visit the troops, innumerable golf courses – and at this very moment, he’s on Air Force One headed for the sunny shores of Brazil. One can assume he’s going to play a couple rounds of golf in the shadow of the Sugarloaf Mountain and the statue of Christ. And then he’ll talk about foreign trade and jobs. Maybe. Then it’s off to Peru and Central America. What’s next on the ininerary? South Africa? Australia?

    Our president is not a leader. He is a high profile frequent flier.

  • Susan

    In my opinion, I do not think the Federal Reserve will continue to print and destroy the US dollar. Why is the Fed in business? Simple…to sell US dollars. They are not going to destroy what they sell. They want to stay in business and sell US dollars at interest. Therefore, the US government will either have to go belly up or drastically raise taxes and cut off those dependent on their government checks. Austerity will be the “shock and awe” coming to a city near you. My prediction is that the Federal Reserve will hit the breaks on money printing, allow deflation to settle back in and allow the dollar to strengthen. Once the dollar index gets back up to say the high 80′s, then it will be time to hit the gas on printing until the dollar gets back down right on the edge of collapse. Then the breaks will be hit again for a slow deflation and then wash, rinse, repeat just like Japan did. During the QE cycles, the Fed will make sure the banking cartel have enough reserves to ride out the deflationary cycles in between reflation QE cycles. This way the air out of the balloon is slowly deflated over a long period of time.

  • Stray Cat

    Personally what I REALLY fear much more than the collapse of the dollar is the violent reactions that will erupt when the welfare and food stamp dependents, the race baiters, the Social Security/Medicaid/Medicare recipients realize, “WTF YOU MEAN I AIN’T GETTING MY MONEY!?!?!?!?!?!”
    We are not Japan; our welfare slobs will not sit quietly by and watch their lives go down the drain. Someone must be to blame and it damn sure isn’t going to be themselves.
    If you have not bothered to prepare with AT LEAST three months of food and water, a handgun and rifle for every able bodied person in your house along with ammo, then you are screwed. Whatever you do have when this s***storm hits, will be taken by the mobs.

  • Chuck

    Why is debt such a big problem, the big banks printed some”money”, lent it to everyone & every nation state in the world, screw them! It’s only paper anyway, barter for your stuff, we don’t owe them or any body anything real! They did nothing! We owe them nothing, pay them nothing. Everything is OK.

  • http://www.osixs.org morpheus

    People are going to be really mad when they learn how stupid we’ve been. Where does The Federal Reserve get the money? It is our money. Why do we need the Federal Reserve to loan us our own money back to us with interest. The reason our country is in such bad shape has to do with us, the people. We are treated look fools because simply put, that’s what we are. Wake up people. It’s time!

    “JOIN THE REVOLUTION”
    Read “Common Sense 3.1” at ( http://www.revolution2.osixs.org )

    We don’t have to live like this anymore. “Spread the News”

    FIGHT THE CAUSE – NOT THE SYMPTOM

  • Robbo

    The Fed will receive funds from maturing securities it purchased via TARP and likely use the proceeds to buy Government bonds thereby not increasing the size of its Balance Sheet

  • PaulF

    impeachRonPaul: “We need one world currency to gain stability.”

    I have to ask – doesn’t all the drooling you do on your keyboard affect its functionality?

  • therooster

    There’s a method to the madness. You can all breath a sigh of relief. There’s a catch, however. I’ll tell you at the conslcusion. The USD’s role, ultimately, is not that of a currency. The USD’s role was not even designed for the fiat paradigm. It’s ultimate role is as a real-time measure for gold-money and as a bridge between fiat currency pricing of goods/services that can be paid with gold or fully gold backed currency. The economy is a real-time event and the money system should reflect that, thus the fiat evolution and the development of the debt-based free floating USD. It’s been a process toward the user friendly ability to split up enhanced gold weight by using payment processors. The fixed peg was the problem for Bretton Woods, not the bullion. Debt free store of value has now married with instant global liquidity in REAL TIME. The only probelm now is marketing, not design. The marketing is up to you, me and the rest of the market. It cannot be a top-down process. That’s the catch. The elite simply “carry the stick” of inflation. That’s their prescribed role as per “the script”. Some evils are necessary !

  • gill

    ATTENTION ATTENTION USA CITIZEN THE NEXT ONE IS YOUR 401 14 trillion dollars, OBAMA WILL STEEL IT, THEN THE GAME WILL BE OVER< SO IT IS NOT DONE YET< I CAN"T BELIEVE YOU GUYS ARE SO STUPID, YOUR ARROGANCE WILL FINALY BE THE DEATH OF YOU, TOO BAD AT ONE TIME I LOOKED UP TO THE AMERICAN PEOPLE < NOW YOU HAVE ALLOWED THE BANKSTERS TO MAKE THE WHOLE WORLD LOOK DOWN AT YOU AND EVEN HATE YOU, IT IS YOUR GOVERNMENT AND CORPORATIONS, BUT NOW IT IS YOU THE COWERED US CITIZEN FOR ALLOWING THIS TO TAKE THE WORLD ON THE BRINK, WE WILL ALL PAY, AND YOU DEARLY, IF YOU THINK THE US CITY WERE MEAN STREETS BEFORE , WAIT AND SEE WHATS NEXT, F___EN AMERICAN COWARDS

  • Ghulam

    So what becomes of the Canadian economy and dollar when the US goes down the tubes? When the US crashes, which economies go down the most with it, and which weather the storm most easily? Afghanistan had a zero carbon footprint and exported oil before the Russians and the Americans played tag-team war games there, so as a rule of thumb will not a nations decline now be directly proportional to their level of “development.”

  • Ghulam

    1 Who do you think, based on past experience during recessions in the economies of European cities and nations over the last 500 years, is most likely to be blamed by the majority of the suffering public in America and Europe after the economy collapses, and does this recurring historical precedent in any way explain how the USA came to be in its present circumstances?

    2 Has the past taught us that waiting for a demagogue to tackle this issue is the best approach?

    3 Why has the entire Western religious tradition been so solidly opposed to usury for the last three millennia?

  • NadePaulKuciGravMcKi

    Emergency Japanese capital recall for rebuilding.

  • http://www.schillerinstitute.org leonardoprinciple

    The “mainstream” press is riddled with outright lies and vicious disinformation. In a vain attempt to hide from the public the true current state of the Fukushima, nuclear fission reactors. And that the fact of the matter is, according to the version presented, by the mainstream Japanese language press reports, of the actual state of the reactors to date. Is that all the reactors are back online. And the engineers are currently reconnecting them to grid, to pleasure of the local authorities.

    As long as our Sun remains in a state of solar flares from a mass polarized Corona injection after leaving its previous plasma state of a sunspot minimum in the 13th year instead of the 11th year (Ice Age climate change (cataclysmic food shortages).The West coast of the United States will face the same fate by the super earthquakes that pulverized Haiti, New Zealand, and Japan: Pacific Rim of Fire.
    Its now time, (if you failed to act thus far), is to contact your State Representatives to light a fire under the rear-ends of their U.S .Congressional delegations. To restore the Glass Steagall Act of 1933, to head off an imminent “solar flare” global style bank panic, of 1923 German state style hyper-inflation. If we the people fail to restore Glass Steagall in the hours and days ahead. The human species will eventually go extinct like the dinosaurs. Obama being a Narcissistic personality like Hitler and the Emperor Nero be removed from office now, under Article 25 Section 4 of our U.S Federal Constitution.

    Furthermore: If we the people of these United States fail to pass the Glass Steagall Act with a two thirds majority in both houses. President Obama’s Wall Street and City of London interests using him (like they used Hitler and Mussolini), will veto the bill. And then the planet will descend into a New Fourteen Century “New” Dark Age. Without Glass Steagall, the states of the Unites States will disintegrate, and also there will be no credit of the United States, for the states to recover from a high state and federal revenue generating; high technology platforms (not infrastructure). Based upon new physical principles that our physical universe operates from: To domesticate nuclear plasma energy, of our Sun, with 1st generation “magnetic confined” thermal nuclear fusion reactors. To power high speed rail with trains without wheels and domesticate cosmic radiation to regulate the self development process of the human embryo from developing degenerated diseases of cancers, and physical and mental induced birth defects. To quote a great German poet Friedrich Von Schiller: “Mankind is greater than it fate, and we are born for that which is better.”

  • BudleighS

    “When that day arrives, the U.S. government debt problem is going to unleash hell on world financial markets.”

    This final statement is the key to what is going on.

    And guess who wins. Nobody but the rich.

  • Lennie Pike

    therooster:

    That was the biggest pile of bullsh**!, I mean chickenshi*!# I have ever heard. Use a few fancy words to disguise it and serve it up to people who may have a weak bullshit detector, or be a little weak in the focusing department.

    Nobody’s is breathing a sigh of relief that the Elite are helping us all by carrying the stick of inflation. We can all feel where that inflation stick is being shoved, not carried dillweed.

    You must have either been being sarcastic, or you think we’re all idiots. Most of you Elite pricks do think that of the Peasants and the reason must be because we have not yet risen up against your abuse. But we’re starting to get steamed and are warning you fella – we’ve taken about all we’re gonna take. Pike.

    Necessary evil? You’ve gotta be kiddin me.

    Gold and silver is honest money that works. Fiat money is FRAUD!!!!!!!!!!!!!!!!

  • http://www.pathtoasia.com rhea

    Until we solve the problem with income and wealth inequality nothing will change. When the richest 400 people have more wealth and income than the bottom 155 million something is wrong with our country. Tax the rich HARD and spread the wealth.

    We help Americans find jobs and prosperity in Asia. For details, visit http://www.pathtoasia.com/jobs/

  • dandiar

    Our monetary system precisely described by W.Shakespeare in “The Merchant Of Venice”. Welcome to the world of no return …

  • mondobeyondo

    Sorry, my credit card is maxed out. I cannot contribute my personal share of the national debt to the federal government. Uh-huh. My apologies, Mr. I.R.S. Agent.

    What’s that, you say? You’ll sue me for some $400 grand and if I don’t pay up, you’ll raid my 401(k) and then my annuities, and if it still isn’t enough, the feds will imprison me? Oh dear. This isn’t looking so good.

    Peru, here I come…

  • kenezen

    The article is very accurate in depicting the “Monetization” process ongoing by the Federal Reserve and the country’s condition. We are testing the Keynesian theories of Fiat Currency to an extreme. The right way to fix this problem at this stage may well be the following. Get federal Spending and State spending in Government vastly reduced. We have seen that neither party has accomplished this to date.

    The way to truly begin this process is to freeze hiring at the Federal level of Government for ten years.

    Require all State and Federal Government Pensions to fix their shortfalls without any tax payer assistance by reducing future benefits and increasing age allowances for beginning retirement. This would be matched by Social Security modifications.

    The Federal Government has grown since 1910 6500% in size and costs. population has grown a mere 300%. Compare the served to the servers.

    Also,It is time to either control the Financial Institutions of have another crash. A Glass Steagall Act, only more stringent, about not allowing any trading Institution or security issuing Corporation to own, manage or control in any way “Bank” licenses or the operations therein.

    (CDS),Consumer default swaps, must have a formal public exchange with initial margin and daily marked to market and cash payments daily immediately put into place.

    Derivatives can only be “Tranched” once. Never be a part of any re-thanching.

    These steps will assist our country to grow if possible at this stage of devolution.

  • Dan D

    Please, look at the world. What we have done, and not done.
    Just declare:
    We owe no-one, and declare all debts due and owed null and void.
    We start a new day on equal footing.
    Now lets see if others can compete.
    Example is China. The prosperity of that nation is linked to opening trade with us, the USA. We, the people of the United States, and not the Chinese government, have been the major player in increasing the wealth of the people of China.
    That which they claim is owed by us (US), is nothing but the cost of welcoming them to the wealth, that they are now enjoying.
    Our current debt, or so they claim, is the price for their gains.
    eh?

  • Visitor

    Quote from article:

    “Japan currently holds about $882 billion in U.S. Treasury bonds and they are likely going to have to liquidate much of that in order to fund the rebuilding of their nation.”

    Nonsense! It is highly unlikely that Japan will have to liquidate much of their holdings in U.S. Treasury debt. The total cost of the earthquake is estimated to be between $200 to $300 billion dollars. The majority of this will not even have to come from liquidating U.S. debt holdings. Japan has other ways to pay for most of the cost without having to dump it’s Treasury holdings which would even cause more problems for Japan. The bond market is not worried about it and for good reason. The amount needed would only be small, relatively speaking.

  • Shakyboo Lacy

    I think that the democrats will help change the debt level to go down.

  • James C

    Can you elaborate as to some of the things that would end this ponzi scheme? The Fed continues to have the power to print money. The US military continues to have the strength to force the US dollars upon other countries. This is a serious question because I am trying to understand timing.

  • Anarchy!

    Anarchy will come you will see, once the people are tired of their government fudging up, once prices of oil have climbed to the point that only Brittany spears can fill up her 12 mpg Suv and the poor are left to weep while they cant go to work with out having to spend half of their pay check. Civilizations rise and fall, and like Rome shall we fall. and the rise will be local

  • http://www.fairtax.org/site/PageServer Dragon

    Get rid of the Fed and adopt the FairTax.

  • GG

    What the hell is going on here eh?

  • W Cotter

    Get Real people we really owe 160 TRILLION Dollars in unfunded liabilities booth parties are out to ruin America. check out http://www.usdebtclock.org and governmentgonewild.org WAKE UP before it is to late.

  • JW

    If the Fed is buying the debt and paying the Treasury in Federal Reserve Notes then who cares? New money will always be available to pay off the old debt and the interest as well. Just think of it as direct issue and spending of the currency. Of course someone is getting juiced above all that when you think of the interest but that is a detail.

    Politicians can also make hay out of complaining about how it is sending the U.S. to the poor house. It all makes for good theater.

    Why can’t this go on forever? Tell me! I think the burden of proof is on those who think it must terminate. Even if you don’t believe it lets here the argument for why it can go on forever.

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