The Beginning Of The End
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Obama’s Five Trillion Dollar Lie

Why isn’t the U.S. economy in a depression right now?  The number one reason is because the federal government has stolen more than five trillion dollars from future generations since Barack Obama was elected and has used that money to pump up our grossly inflated standard of living.  Whether the federal government spends money wisely or foolishly, the truth is that the vast majority of it still ends up in the pockets of the American people who then use it to buy the things they need for their daily lives.  If the U.S. government had not borrowed and spent an extra five trillion dollars that we did not have over the past several years, we would be in the middle of a rip-roaring economic depression right now.  So any talk that Barack Obama is “improving the economy” is a total farce.  It is a five trillion dollar lie.  The reality is that Barack Obama and the U.S. Congress have been stealing trillions of dollars from future generations in order to make things tolerable in the present.  If the federal government adopted a balanced budget next year, the debt-fueled prosperity that we are currently enjoying would start disappearing very rapidly and all hell would break loose in America.

At this point, the U.S. national debt is over 15.7 trillion dollars.

When Ronald Reagan took office it was less than a trillion dollars.

If you were to divide the national debt up equally, it would come to more than $50,000 for every man, woman and child in the United States.

So the share of the national debt for an average family of four would be about $200,000.

When the government borrows and spends money that it does not have, that increases the amount of dollars in circulation and it causes GDP to go up.

That is one of the reasons why our politicians like to borrow and spend money that we do not have.  It makes the economic statistics look good.  They can point to those economic statistics as a reason to send them back for another term.

This is a major flaw in our system.  Most of our politicians do not care about how they are raping future generations financially.  Most of them just care about getting elected again.

If you will notice carefully, neither Mitt Romney nor Barack Obama are promising to balance the budget any time soon.  Like so many politicians in the past, they promise to do it “eventually”, but “eventually” never arrives.

According to a recent article in the Washington Times, Mitt Romney declared during a recent campaign appearance that he has no plans to balance the federal budget in his first year….

“My job is to get America back on track to have a balanced budget. Now I’m not going to cut $1 trillion in the first year”

Why would he say that?

Why wouldn’t he want to balance the budget?

He went on to explain that….

“The reason,” he explained, “is taking a trillion dollars out of a $15 trillion economy would cause our economy to shrink [and] would put a lot of people out of work.”

Romney is right about this.  Taking a trillion dollars out of a 15 trillion dollar economy would plunge us into an economic nightmare.

And that would make him look bad.

Of course if Obama wins the election we can just expect more of the same from him as well.

For example, just check out what White House Chief of Staff Jack Lew had to say about balancing the budget recently….

“The time for austerity is not today,” Lew told NBC News “Meet the Press.” “If we were to put in austerity measures right now, it would take the economy in the wrong way.”

Why is the time for austerity not today?

It is because the 2012 election is coming up and Obama wants the economic statistics to look good.

But can you blame our politicians for being cowardly?

Just look at what is happening in Greece.  After several years of austerity they are in the midst of a full-blown economic depression and they still have not balanced their budget.

Do we want to end up like Greece?

Most Americans do not realize this, but the U.S. already has more government debt per capita than Greece, Portugal, Italy, Ireland or Spain.

So why haven’t we collapsed yet?

Well, because we continue to borrow larger and larger amounts of money.

It took from the founding of America until 1995 for the federal government to accumulate 5 trillion dollars of debt.

Under Obama, we have accumulated more than 5 trillion dollars of new debt in just over 3 years.

Amazingly, Obama has added more to the national debt than George W. Bush did during his entire 8 year term.

And let there be no mistake – George W. Bush was a wild spender.  A fiscal conservative he most certainly was not.

But Barack Obama does not seem troubled by any of this.

Barack Obama is prancing about the countryside touting his great “economic plan”, but the truth is that the only reason the economy has not totally collapsed is because he is stealing 150 million dollars an hour from our children and our grandchildren.

Sadly, most Americans don’t understand that the current level of prosperity that we are enjoying is a grand illusion.  Most Americans still expect things to return to the way that they used to be, and they are increasingly becoming angry that it is taking so long to get back there.

In fact, a whole host of recent surveys have shown that Americans are very dissatisfied with the direction the economy is heading in….

Four recent surveys have found that on average only 28% of Americans are satisfied with the condition of the country, while 70% are dissatisfied. Three recent surveys have found that between 69% and 83% of Americans believe that the country is still in recession (it isn’t), and only half believe that a recovery is under way.

What they don’t realize is that if we were not massively ripping off our kids and our grandkids things would be much, much worse.

Thomas Jefferson understood that government borrowing is essentially the same as theft from future generations.

He once made the following statement….

And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.

What we are doing to our children and our grandchildren is so immoral that it is hard to put into words.

We are running up trillions upon trillions of dollars of debt in their name just so that our lives can be more comfortable right now.

How could we be so selfish?

The sad thing is that even with all of this reckless spending our economy is still not in great shape.

In fact, the middle class continues to shrink at an alarming rate.  The following are just a few statistics from a recent article I did about this phenomenon….

-Today, approximately 48 percent of all Americans are currently either considered to be “low income” or are living in poverty.

-Back in 1960, social welfare benefits made up approximately 10 percent of all salaries and wages.  In the year 2000, social welfare benefits made up approximately 21 percent of all salaries and wages.  Today, social welfare benefits make up approximately 35 percent of all salaries and wages.

-The United States actually has a higher percentage of workers doing low wage work than any other major industrialized nation does.

-Every year now, we see millions of Americans fall out of the middle class.  In 2010, 2.6 million more Americans descended into poverty.  That was the largest increase that we have seen since the U.S. government began keeping statistics on this back in 1959.

-At this point, approximately 22 percent of all American children are living in poverty.

-When Barack Obama took office, there were 32 million Americans on food stamps.  Now, there are more than 46 million Americans on food stamps.

So how much worse would things be if a trillion dollars of federal spending was suddenly removed from the economy?

Are you starting to get the picture?

As bad as things are right now, they are about to get a whole lot worse.

So why can’t we just keep on borrowing and spending forever?

Well, just like Greece found out, debt always catches up with you eventually.

During fiscal 2011, the U.S. government spent over 454 billion dollars just on interest on the national debt.

But just like we are seeing in Europe, if confidence in U.S. government debt starts to disappear the U.S. government could end up facing much higher interest rates to borrow money.

If the average rate on U.S. government debt only rose to 7 percent (in the past it has actually been much higher than that), then the U.S. government would be spending about 1.1 trillion dollars a year just on interest on the national debt.

During fiscal year 2011, the U.S. government spent 3.7 trillion dollars but it only brought in about 2.4 trillion dollars.

So if we were spending 1.1 trillion dollars just on interest, that would be close to half of all the revenue the federal government brings in.

Right now, the Federal Reserve is manipulating the system in a desperate attempt to keep interest rates down.  During 2011, the Federal Reserve bought up approximately 61 percent of all government debt issued by the U.S. Treasury Department.

But most Americans have no idea how fragile our financial system is.

Most Americans just assume that we will always be the greatest economy on the planet and that there is nothing to be worried about.

Sadly, one way or another this debt bubble is going to burst and then our debt-fueled false prosperity is going to disappear.

Most Americans are not going to understand what is happening and they are going to go absolutely nuts.

  • Rain23

    Our grandchildren are going to live in a third world country where subsistence living is considered the norm, and we can’t stop that. All we can do is hopefully teach the children in our families why it’s happening. Maybe a couple generations from now they can get back on a gold standard and start living within their means.

    I look at my great-nephew and feel sick for every time I used a credit card or took a loan before I knew how the economy worked. He is going to spend his lifetime paying for my education, my vacation, my hobby stuff. It’s not like I was putting the electricity or the groceries on those cards. I was just borrowing to have what I considered a “moderate” standard of living that I, and the rest of this country, couldn’t really afford. I paid back the cards, but how long will it take him to work off the 14,000 student loan? I am making minimum wage at age 50 and with compounding interest it certainly won’t be paid off in my lifetime. There are no do-overs for this, only trying to mitigate the damage.

    • http://msn.com thisonewilldo

      It will take your great-nephew a long time to earn what the ptb have stolen. What you said about your situation, how you didn’t intend for this economy (our your loved ones) and your choices to cause everyone to suffer because of your legacy is true. However, RE-do’s are always possible. You and all of us can change the future.
      We cannot always mitigate the damage. But wecan build a future. Teach and move forward.
      Learn and do somethings different the next time.
      There is no third world country. There is only the next do – over. This time let’s make sure it’s done right!

    • http://endzone2.weebly.com Craig

      My dad is 80, and he has a great-grandson that is just a baby. I wonder when this great-grandson is his age what the USA will look like. That would be in the year 2092. What do you think it will look like? Will the majority population be Mexicans and Chinese? What will be left of the middle class?

      Great video I highly recommend called “General Motors is becoming China Motors”. It is 9 minutes and 15 seconds long:

      http://www.youtube.com/watch?v=Lvl5Gan69Wo

      • GaryToo

        predicted from last cencus 2042 white in america minority. relax usa will not exist as such then.

  • Tim

    From the start of the current fiscal year on 10/1/11 through last Friday, 5/18/12, the federal debt increased $922 billion! That’s only $78 billion shy of a trillion. And we still have over 4 months left in the fiscal year, which ends 9/30/12. This will be the fourth consecutive year that the federal government has had an annual budget deficit greater than $1 trillion.

    I have this memory from childhood that’s very vivid. My maternal grandfather was at our home and he was having a conversation with another family member. He was troubled that the federal debt was $2 trillion. If only he could see what it is now.

  • E.G.

    RON PAUL FOR PRESIDENT!

    ( from an Aussie )

    • Joe

      People here won’t support Ron Paul because they have bought the lie that we need to spend over a trillion dollars combined pentagon and discretionary spending a year on “defence”.

    • GaryToo

      yes and Bob Katter for PM

    • http://EconomicCollapse Yabba

      RON PAUL FOR PRESIDENT (from another Aussie)

    • Alasha

      They say he is a mason.. even his campaign admits he goes to the masonic temple. i say let’s vote for Jehovah God who will make a Global change:

      (Matthew 6:9, 10) “YOU must pray, then, this way: “‘Our Father in the heavens, let your name be sanctified. 10 Let your kingdom come. Let your will take place, as in heaven, also upon earth.
      AMEN!! Luv to Aussies everywhere

  • Tim

    Federal employees received $439 million in bonuses in 2011! I am former federal employee, but this is obscene. I never received a “bonus” in all the years I worked for the federal government.

    http://federaldaily.com/articles/2012/05/16/agg-annual-bonuses-down-for-fed-workers.aspx#

    • Gay Veteran

      I work for USDA. There were NO cash bonuses.

      • knightowl77

        The TSA gets cash bonuses

  • Note from Idaho

    I see generational theft occuring on several levels. The future debt which will never paid off, inflated away as much as politcians can bear until hyperinflation robs us all young ang old.

    Unsubstainable entitlement programs Social Security/Medicaid and Medicare.
    No answer to these they are simply too large to comprehend.

    Lastly old boomers staying in the workforce occupying career positions that should have been turned over to younger workers who need to start to accumulate wealth for their lives. As it is, young workers are cut out of these higher paying jobs for years until the boomers die off.

    What a mess.

    • Rancher

      You best have been prepping you and your family for this. It is happening whether you want it to or not.

    • Rhynn

      Turned over?

      You earn your position. That’s what today’s graduates simply don’t seem to get. Nobody owes them a job. Back in 2000 up until 2005, nobody could tell these kids a thing. It was all about IPOs, gibbering on about nothing in particular and using far too many buzzwords to do it and walking around with chips on shoulder claiming the “old folks” and their prehistoric ways of doing business were ready for the home.

      Then they ran companies into the ground, pulled in billions in venture capital and failed to turn profits. Back to the mail room fella. It’s over. Whomever told you that fly paper you got from college meant you knew how to lead and everyone else had to follow should have taken his bong back before you got too high. There is no substitute for hard work.

      These people you claim should have simply “turned over” their positions broke their behinds working up to those positions for decades. Turn them over for what? How are Boomers or Gen X’ers going to pay for Gen Y’s rent, food, and iPhones if we all “turn over” our jobs?

      • GaryToo

        gen x too? Im gen x and i cant even work out how y pay for their tattoos.

    • http://msn.com thisonewilldo

      No, that is not true. We are wise enough to make room for the next generation.

    • GaryToo

      If the boomers retired at 55 or 60, their kids generation x and y could not generate the tax base to fund the govts stupid increasing contributions from employers. The retirees would be lucky to get what they themselves have put in, no chance of the rest. So they get told 50 is the new 40, then 60 is the new 50 then 70 is the new 60 until they die.

  • Rodster

    Barney Frank says we need to be more like Greece and France and say hell no to austerity. He says European voters want Obama economic policies.

    http://campaign2012.washingtonexaminer.com/blogs/beltway-confidential/rep-frank-euro-voters-want-obama/554801

    • Rodster

      I vote to send Barney Frank, Obama and Gary2 over there. :)

      • GaryToo

        Santa, easter bunny and robin hood.

      • http://urbansurvivalguidesecrets.com Urban Survival Guide

        You got my vote Rodster, but can we include the idiot Biden too? :-)

        • Rodster

          Done and done !!! :)

      • MisterC

        Don’t forget to send Pelosi too

        • http://urbansurvivalguidesecrets.com Urban Survival Guide

          Ah yes MisterC, let’s not forget the Wicked Witch of the West. :-o

  • William

    You should read all you can find by an economist named John Williams. He has a for pay web site, but there are parts that are free, and he frequently writes articles that are available online. He is also interviewed a lot. One of his latest interviews that was written down and put online was about the “recovery”. There is no recovery. GDP growth is affected by inflation. The federal government LIES about the real inflation rates, for many reasons, not the least of which is to reduce COLAs to S/S, and to keep interest rates LOW on federal debt. If the federal government was paying interest rates that were connected to REAL inflation (about 3-3.5% OVER real inflation, then the yield on a 10 year note would not be about 2%, but 9%. This is all a scam to get the failed Obummer back into the WH. Of course, Romney will do no better. The end game nears……………Got Gold????

    • http://endzone2.weebly.com Craig

      When the USD is no longer the world’s reserve currency, that’s when we will know we are past the point of no return.

    • Nexus789

      What are you going to do with gold…can’t eat it.

    • Snoopy_The_Economist

      What good will gold do when after paying taxes on the investment income you lost most of teh gain after taking inflation into consideration?

    • Gay Veteran

      everyone should be reading Paul Craig Roberts’s blog (he was in the Reagan administration):

      “…Few Americans and no Washington policymakers understand the dire situation. They are too busy hyping a non-existent recovery and the next war. Statistician John Williams reports that when correctly measured as a cost of living indicator, which the CPI no longer is, the current inflation rate in the US is 5 to 7 percentage points higher than the officially reported rate, as every consumer knows. The unemployment rate falls because, and only because, people unable to find jobs drop out of the labor force and are no longer counted as unemployed. Every informed person knows that the official inflation and unemployment rates are fictions; yet, the presstitute media continue to report the rates with a straight face as fact….”

      http://www.paulcraigroberts.org/

  • David

    Dead on right. Sad I have to live during this time of complete fiscal irrationality.

    • http://urbansurvivalguidesecrets.com Urban Survival Guide

      I hear you David, sadly, we’ve seen this happen before…

      During the Roaring 20’s, bankers provided easy loans and low interest rates(sound familiar to the Housing Bubble/Crisis of 2008?), which let people borrow lots of money to live the good life, and it inflated the stock market.

      Then the elite constricted the money supply, causing people to panic and make runs on their banks, which crashed the stock market.

      Then they snapped up the stock market for pennies on the Dollar, which is why so many people became millionaires after the Great Depression.

      The irony is that the justification for creating the Federal Reserve, was so that we wouldn’t have market crashes, recessions or depressions.

      The joke is on us, because they are the one’s who control the money supply and interest rates, and they’ve abused that power to steal the wealth of Americans :-(

      Thomas Jefferson warned “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”

      • Michael

        Very good comment.

        Michael

  • Trialboy

    This commentary is not only inaccurate but it is also a complete crock. Bush literally destroyed the economy and left a gigantic mess for Obama to deal with. By the time Obama came on the scene he was confronted with the worst economy since the depression and two ongoing wars. The spending for the wars was already set in stone and the budget for all of 2009 was already in place. That situation had nothing to with Obama. Moreover you are blaming Obama for the spending and problems that has already occurred before he was president. The second major fallacy of this commentary is that you ASSUME that allowing a depression to occur would have resolved the debt crisis and things would be OK now. There is nothing to suggest that having a full blown crash and depression would have resolved any debt problems. In fact a depression could have made things much worse and there is no way to know whether we would have ever pulled out of such a severe economic tailspin. The reality is that not enough real money was infused into the economy and all of the funds delivered to the banks did not actually reach main street. That catastrophe had nothing to do with Obama as it was Bernanke who decided to save the banks instead of the rest of us

    • Michael

      No, I do not assume that a depression would have resolved anything.

      How did you get that from the article?

      Michael

      • xander cross

        Very simple. You blame Obama for this mess time and time again, espeically on food stamps, but many of your viewers don’t realize that there are 30 million WHITE people on food stamps than black people and yet, your tea party friends (especially knighowl7)attacks any color other than white for being on food stams, and yes, the only reason why the tea party want to get rid of food stamps is because black people are on them. So, my point is valid by the many responds that people leave on your site stating such things.

        • knightowl77

          You are simply clueless…Believe what you wish to believe and please do not let any facts get in your way…

          Neither the Tea Party or I have advocated eliminating food stamps or welfare or unemployment compensation. Nor have they or I ever argued which race is using these services which is totally immaterial to the discussion..

          How about you actually read what someone says before you FLIP your “they must be a racist” switch????? Probably too much effort for that. If someone disagrees with you they have to be a Racist, Hatemonger, Xenophobe, Homophobe, Bigot. You must be soooooo enlightened, much more than the average American. Congratulations ;-)

          • GaryToo

            Niteowl i played ypur post backwards and it was all that.

        • GaryToo

          xander, as long as i have been reading this blog the writer has never mentioned black or white (BUT IT IS CLEARLY SUBLIMINALLY IMPLIED). Its a bit like watching “pawn stars” they never show all the crazy whites in detroits 8 mile swearing and tantrumming to get something for nothing. Racist conspiracy Michael and Gold’s. (from a man of color like obama).

      • Trialboy

        I have read this commentary very carefully. You suggest that reducing the spending and addressing the debt should have been the primary goal of the Obama administration since 2009. Had that been the case a depression of great magnitude would have occurred because of massive ongoing deflation.That may have ameliorated the national debt by destroying what was left of our economy. The reality is that we HAD NO CHOICE BUT TO INCUR DEBT TO GET OUR ECONOMY OFF LIFE SUPPORT. While I have some disagreements with Obama’s failure to prosecute those who we’re responsible for this economic maelstrom the president had virtually no options when it came to saving this economy. We will just have to continue the government spending until the private sector revives and we will just have to accept that the debt is part of the recovery process. One last point, THE UNITED STATES IS NOT GREECE AND NEVER WILL BE AS LONG AS WE CONTROL OUR OWN CURRENCY. The more apt analogy is that some of our states are like Greece but to say our country will face the same fate as Greece is a fallacy.

        • Michael

          #1 Stealing from future generations to make our lives more comfortable now is highly immoral.

          #2 We don’t control our own currency. The Federal Reserve controls our currency.

          Michael

          • Diane C

            Wow Michael — looks like the libs have been visiting. I am one of many who reads you everyday and as far as I am concerned, you are right on! With the backup to prove it.

          • Michael

            Thank you for the kind words Diane. :)

            Michael

    • Mal R.

      “Bush literally destroyed the economy and left a gigantic mess for Obama to deal with.”

      LOL! You’re a moron

      • Gay Veteran

        yeah, Bush was a great president, eyeroll. He lied us into war in Iraq which has and will cost us $TRILLIONS
        and Obama is no better

    • Sid Davis

      Depression is the inevitable consequence of a monetary system that provides for creation of money out of thin air. In our economy this new money is created by the Federal Reserve Bank and the Commercial Banks in a “reserve” system. The boom phase is a consequence of new money stimulating business activity and driving up prices. Higher prices depress economic activity because at a given supply of money, less can be bought at higher prices. Later repayment of the debts that arose when the “new” money was loaned into circulation has the effect of reducing economic activity as money in circulation goes to banks as debt repayment instead of to businesses for purchase of goods.

      As each recession occurs more money is created until after successive recessions and recoveries prices and debt become too high and overwhelm any attempt at economic stimulation from government deficit spending and federal reserve easy credit policies. This has been the experience since the last depression and we are probably at the point where no more recoveries can occur until the debt is liquidated in a massive collapse. Any successful attempt to keep the house of cards from falling will just stretch out the pain for a longer period of time until the collapse comes anyway.

      When you personally can’t pay your debts because they are too high and you can’t afford to live, you are bankrupt. This is the case with the federal government, many State governments, many businesses, and individuals. Default and depression can’t be avoided. You can’t solve a high price and high debt problem by trying to increase prices and debt; that only postpones the eventual collapse.

      So it is not so much Bush or Obama but all the politicians who disobey the Constitution which provides for Congress to Coin our money in Article 1, Section 8 and prohibits the States from making anything but gold and silver coins legal tender in Section 10. Politicians are mostly interested in their own careers. They don’t understand the basis for most of the laws they pass. They simply respond to whomever puts the most pressure on them. Essentially they are puppets complete with wooden heads.

      Unless we quit playing this left/right game of blame, and address the reality that government is mostly bad for us, and should be very limited, we will continue to be slaves of government and banks.

      • GaryToo

        excellent post sid

    • Radioman

      Here we go again, “it’s all Bushes fault”, 50 years from now they will still be blaming every woe on GW Bush! I do think Bush did a LOT of bad stuff along with every pres. since tricky Dick, history will show that Barry was about the most unqualified person to hold that high office.

    • LaserBeam

      Trialboy, what exactly is inaccurate? Nobody doubts that Bush left Obama a burned out hull of an economy, but Obama has done nothing but (a) add to the spending, and (b) accelerate the movement into a police state.

      Since 2008, the deficit has increased by about $800B a year, equivalent to more than 5% of the GDP and perhaps 8M jobs. If our government ever returns to 2008-level spending, which was already unsustainable, then we will see a depression that will make 1929-1939 look very easy in comparison.

      Look at Iceland. They let the banks go under, and the economy revived within 3 years. Read Rogoff and Reinhart’s books — this economic downturn will not and can not end until the debt has been reduced relative to GDP. And in fact, were it not for the artificial stimulus of 5% that the author alludes to, the statistics would show that Debt / GDP has continued to increase since 2008. The US has not deleveraged at all.

    • whteshark

      Forget him, Michael, he’s an O Bot. No fact can change an O Bot’s opinion. It’s always going to be Bush’s fault with these people. Bush is secretly still, 4 years later, making Obama run 1.5 trillion dollar deficits. Somewhere out there, Bush made Obama pass a trillion dollar stimulus bill that has been a total failure and was nothing but a reward for his union buddies. The War in Iraq was pretty much over when Obama took over but Bush “made” Obama increase our troop strength in Afghanistan. I love how Bush started these wars but the Democrats voted on these wars and gave him the authority to do so. Selective memory must be so nice.

      This Bush character, whew! Man, my life would so much easier if I could just be one of these “useful idiots” like Trialboy and Gary2.

      I will admit Bush’s Presidency was a failure. No doubt. But Obama is Bush on steroids. And what Obama is doing is dangerous. These deficits could destroy the country; the world isn’t going to accept this forever. And with the Boomer’s retiring these deficits are only going to get worse.

      My question is why….why is Obama purposely trying to destroy the country?

    • Rodster

      And Obummer started more wars than Bush and has piled on more debt in the 3 years he’s been in office than any previous president. And it “HAS ACCOMPLISHED NOTHING”. We are deeper in debt and are in worse fiscal shape than when he entered office.

      He we go again, it’s Bush’s fault. When is your side going to accept responsibility for the bad economy this failed President has produced? He has done nothing for small businesses but made it more difficult to produce jobs. Wait till ObummerCare starts in 2014. That will be a SHTF scenerio.

      Since you are a liberal and probably a socialist like Gary2 I can understand how you find this article a crock. I guess the street riots in Greece are made up too?

    • a cruel accountant

      Trialboy

      Whether we have a depression or not ripping your grandchildren is not very nice.

      Bush and Obama are 6 of one half dozen of the other. There is no difference.

      • a cruel accountant

        Whether we have a depression or not ripping OFF your grandchildren is not very nice.

    • knightowl77

      Hey TrialBoy….where was the JR Senator from Illinois (BHO) in 2007, 2008? Thats right, he was in the U.S. Senate which was run by Harry Reid, and little Queen Nancy ran the House where ALL budgets start.
      BHO and the democratically controlled House and Senate voted in 07 for the budget Bush would sign, and they voted again in 2008 for the budget that Bush would sign and Obama would “inherit” in 2009. Obama and McCain were BOTH at the table when TARP was discussed and voted on and both voted in favor….
      So for you and BHO to claim that he “inherited” something which was not something of his making is flat out cow excrement…If the Dems and BHO thought Bush was way off course (and he was) they should’ve done something about it starting in 2007 when they took control of the Congress. They didn’t. They debated and passed the budgets and spending that Bush signed off on (shame on him), but if it was so bad, why did Nancy Pelosi, Barry Obama, and Harry Reid vote in favor of it???
      Let’s for once, be honest. Bush was BAD, but Barry has taken bad to a whole new level.

    • Steve

      Trialboy, quit pounding the koolade. Fool.

    • Watcher

      You watching the same game trailboy? I see you are still living in an illusion of our governments deceitfulness. You keep believing the smoke and mirrors and good luck to you.

    • uncurable wound

      Tell me boy,who decided to keep on berstinky and sec gates.I dont remember a time,where a new president has kept the people from the previous admin.Didnt gates run the bush wars?
      wake up!Both parties have sold us out and its time to stop fighting each other and focus on the ENEMY,the repubs and the dems!!!

    • Useless Redneck

      Trialboy, please stop. There are a lot of people here that are trying to be serious and you are cracking jokes. I had to stop reading I was laughing so hard. You should do stand-up.

    • Witness the End

      Bush?!!

      Are you kidding?!!

      Obama hasn’t even been able to pass a budget! Can’t get one Dem to vote for his budgets.

      Bozo the Clown could come up with better economic policy.

    • WM

      Hey trialboy: Then Obummer should not have made all his empty lies, I mean promises to the American sheeple. He promised change, and change we got, that I will give him. He is the most liberal president this nation has ever had. Yes, he inherited the mess Bush created, but he has done nothing of significant positive change for this nation.

    • dinsy

      You missed the point completely. The names are NOT important here. The information is correct. Don’t be delusional.

    • http://urbansurvivalguidesecrets.com Urban Survival Guide

      Get your facts straight Trialboy.

      Clinton repealed part of the Glass–Steagall Act, which allowed investment companies to gamble with banks money.

      This effectively led to the Housing Bubble and resulting crisis of 2008, and the coming derivatives crisis.

      http://theeconomiccollapseblog.com/archives/the-coming-derivatives-crisis-that-could-destroy-the-entire-global-financial-system

      Clinton, Bush Jr., Obama, Romney… are all puppets of the shadow government that controls this country.

    • Mike

      You need to dig your head out of the sand. Obviously, Bush was a terrible president and did a lot that hurt the country. But the time for blaming Bush is OVER. Obama had 2 years with a super-majority and did NOTHING but make things worse. And it continues to this day. He’s already added more to our debt than even Bush did in his ENTIRE 8 years. Obama is nothing more than a continuation of Bush.

    • Jodi

      You are right Bush spent a lot of money, but what has Obama done to fix the mess? Obama Increased debt more than all Presidents from George Washington through George H.W. Bush combined.

    • Gay Veteran

      I might be able to tolerate Obama if he had sent the banksters to jail. But he didn’t, they his biggest campaign contributors.

      VERY little difference between Bush and Obama, especially when it comes to serving the top 1% and supporting bloated Pentagon spending and the national security/surveilance state.

    • Ian

      Amen….I am sick of hearing conservatives froth at the mouth over Obama. I dont agree with certain things he has done since in office, but to blame him for the failed economy is equivalent to blowing up a building and blaming the clean up crew for the destruction. Conservatives and right wingers will never be able to see beyond party lines and have very very short memories…. What the hell happened for the previous eight years before obama stepped into office?

      • knightowl77

        No one here said Bush was good…The point most are trying to make is that Obama took Bushes bad policies and made them worse…
        Bush spent A LOT. Obama is spending MORE.

        The Dems controlled the Congress where Barry sat voting in the budgets and many of the policies that he would “inherit” when he became prez in 2009….Pay Attention, both parties have screwed us over and Obama has doubled down on this train wreck.

    • Todd

      Infusing cash is temporary and the same as using a credit card to pay your bills. The only answer is to once again become a nation of producers that include well paying jobs. The more money the average citizen makes, the more taxes the government receives to fund the programs they want and the fewer number of people that require government assistance. The opposite is simply a downward spiral.

    • Cinderella Man

      I want to know what drugs are you taking to keep being this delusional after almost 4 years of the Obamanation running us into the ground? Whatever it is it must be good! How can you even say with a straight face that 50 million on food stamps and a 20 plus real unemployment rate that things are so much better under your benelovent dictator? Not to mention he has kept and expanded Bush’s illegal wars and has totally shredded our civil liberties. Believe me Im no fan of Bush but come on the bastards been gone for almost 4 years!! Time to wise up.

  • Washington

    Key Vote on Republican Budgets in the Senate: See How They Voted Here!  By Max Pappas on May 16, 2012
    http://www.freedomworks.org/blog/max/kev-vote-on-republican-budgets-in-the-senate-see-h?source=M20

  • Kevin2

    We have not just the ability but the dependency to export our inflationary money creation virtually world wide. That created from nothing money funds a Military Industrial Complex that now has a major directive of “persuading” nations to accept a decreasing US dollar. A change in the present global system would require a rearrangement of power that would dramatically reduce US dominance. Continuing down the present path will eventually lead to collapse.

    Joe Biden said it’s not debt, it’s an investment; Say it ain’t so Joe.

    • GaryToo

      It is exactly so.

  • Steve

    Expect the worst of the worst to hit around 2020, according to the economic historians who wrote “The Fourth Turning”.

  • http://EconomicCollapse Already Gone

    “Most Americans are not going to understand what is happening and they are going to go absolutely nuts” Well,what the ************ does a person have to do to make these
    people “Understand” Print up a children’s story book and sit them down around the camp fire at kiddy camp and have them all hold hands while somebody reads the book to them and when they are done have a question and answer period?

    • Michael

      Good comment.

      Made me smile. :)

      Michael

    • Rhynn

      Haven’t you heard? Americans don’t do “books”.

      Back to the drawing board…perhaps you have a Cliff Note app for that?

    • Alex

      Btw there are two brilliant comic books writen by Erwin Shiff (Peter Shiff’s father). They are really writen in a way that even a kid can grasp the meaning, but at the same time they are so witty and insightful.

    • Kevin2

      Already Gone

      First they have to receive a Time Out and drag them away from worshipping the sphere and dancing with the stars.

  • Jon Q. Public Menace

    Down here in Tampa Florida, the restaurants are packed, shopping mall parking lots are jammed and the massage joints have no appointments. Yes indeed, thank you obama for the 5 trillion dollar party.

    • Ian

      I keep saying the same thing. Things dont look like they are collapsing. Anywhere i look i see the nicest cars, people with the most high tech gadgets, restaurants packed and new businesses sprouting up everywhere,music festivals selling out at record pace, Whole foods packed every time i go in, everyone i know making grand plans for memorial day weekend,and a general sense that things are fine and on the right track.

      This is not what economic devestation looks like.

      Sorry to bust your bubble, but something is occuring that this sight is not reporting on.

      • mondobeyondo

        Glad you enjoyed the party! It was great, wasn’t it?

        Here’s your bill…

        • GaryToo

          funny for once mondo

    • RevArt

      Sickening, isn’t it?

    • Cinderella Man

      Hows all them forclosed properties and sinking home values doing there in the ol Sunshine state? You can keep your rank ass oranges! Enjoy the party while it lasts bozo!

  • Imaplaneiac

    Michael, did you do a ” typo ” in Paragraph 1, Sentence 4? Did you intend to type ” expansion ” instead of ” depression “?

    • Michael

      Nope the wording is correct.

      Sadly, even most fiscal conservatives do not understand that debt can buy false prosperity and that our current standard of living is way above what is should be.

      Michael

      • Jim

        Just like most people dont understand that inflation is good for the government, bad for people (debt buying false prosperity) and can eventually lead to our demise.

  • Stan522

    “this debt bubble is going to burst and then our debt-fueled false prosperity is going to disappear”

    It will disappear and our entire financial system as we know it will go with it…..and that’s what I have been preparing for the past two years. I no longer trust any government, but especially this corrupt, incestuous government let by chairman obama.

    • xander cross

      But you don’t get mad at the tea party members that uses target credit card to buy groceries, thus, making the problems worse. Interesting that you all claim that you’re against big government, but you use government assist when it benefits white people the most. How sad this country truly is.

      • Stan522

        You mean to tell me only “TEA Party” members use credit cards and shop at Target? I had no idea……..

        Question…. how would I recognize one, if I saw one–?

  • Jeff

    What a great summary of the present state of the economy. thank you.

  • Jane B

    Just like the BIG ONE earthquake in California. When it comes, the idiot masses will be surprised! just like the Greeks.

  • SC23

    I had a mini epiphany about debt and the ever-increasing money supply the other day. When we borrow money we dont have and especially when we just print money from thin air adding to the pool not only does it dilute the value of the money, it is actually worse.

    Lets say there are 10 people and 100 dollars total in circulation. One of the people is “rich” and the other people are..lets say.. “average”. The rich person has..lets say.. 1/2 the money.. $50. That leaves the other 9 people to split the rest.. $5.55 or so.. quick math says the “average” have 5.5% of the pool.

    What happens as this scales up is not that the rich stays at %50 and the average at 5.5%.. what happens is the value not only goes down in purchasing power due to dilution, but the perception of having more allows the “rich” person to actually have a larger percentage. Say the pool grows to $200 over time. $7 looks like a good deal compared to $5.55 but in reality the illusion of having more allows the rich to steal even more from the poor. In this little example the $7 turns into 3.5% and the “rich” guy ends up with 68.5%

    The numbers of course are arbitrary..its the concept that hit me.. that even as we have more money we have less not only by dilution but by the illusion of more money in our pockets as the pool and the rich..continue to grow.

    • http://urbansurvivalguidesecrets.com Urban Survival Guide

      Great epiphany SC23!

      Ludwig von Mises words agree with you “If you increase the quantity of money, you bring about the lowering of the purchasing power of the monetary unit.”

      Since the Federal Reserve Act was established in 1913, the US Dollar has lost 95% of its value in relation to gold. So not only are they enslaving our country in debt, but they are reducing the value of our hard earned money.

      When they increase the money supply, such as with the recent Quantitative Easing programs, this causes the prices of commodities, food and goods to rise (inflation).

      The government changed the way they report the inflation rate and it doesn’t include food and energy. The actual inflation rate is 12%, so if you’re not increasing your income by 12% per year, then you’re falling behind.

      Daniel Webster said “We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not gold nor silver; no sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors and a ruined people.”

    • Mal R.

      “rich to steal even more from the poor”

      Go back to the epiphany well and see if you can pull up a bucket on the fallacy of that statement.

    • Optimistic Pessimist

      It has recently occurred to me that depending on what the currency markets are doing sometimes during the year the pounds in my pocket have “lost value” or “gained value”. I have started to look into this so that when the pound is strong I could convert into a weaker currency and then when the pound gets weaker against this currency convert back to preserve the value of the pound in my pocket.

      • GaryToo

        No, you lose a LOT in the conversion process. I do not know how anyone “plays” the currency markets, they must have different set of rules than plain old FOREX which robs you blind.

  • JackieG

    The derivative market is beginning to implode.
    China is now buying Treasury direct eliminating Goldman Sachs as the dealer of choice.
    Many European banks are in hot water over loans for new ships coming on stream in excess of #120,000,000,000.00
    Many shipping firms are refusing to take delivery of their new ships.
    Shipping rates have fell off the cliff and hover at ’08 levels.
    Ships are heading for port to anchor worldwide.
    Especially the big ones.
    http://www.dryships.com/pages/report.asp

    • http://msn.com thisonewilldo

      This is not good. Lindsey Williams warned that the signal of the collapse to occur would be when something happens to the derivative market and for everyone to “watch” what China does. Looks like we are getting close. His other warning to everyone was that once Euro goes down everyone has two to three weeks to get out of all paper.

    • mondobeyondo

      Looks like the Baltic Dry Index is really slowing down.
      That is Bad. Bad, Bad BAD.

      • GaryToo

        A very reliable indicator of futuire trade.

    • http://endzone2.weebly.com Craig

      JackieG, are they still going to build those 12,000 TEU container ships in China? How can there be a market for those now?

    • sharonsj

      Apparently the Baltic Dry Index has been negative for a while. I read that some firms are so desperate that instead of charging customers they are paying customers. Last year I read that tons of ships and freight trains were idled because demand was so low. I wonder if that’s still the case?

    • Steve

      The good news! In all this mess!
      The bankers got a bonus for signing all these great loans.:-)

      Many European banks are in hot water over loans for new ships coming on stream in excess of #120,000,000,000.00

  • Mark

    It just doesn’t make any since to go more in debt to keep this economy a float. The government is adding $1.2 trillion per year to the national debt. If you believe the conventional media that economy is growing the deficit is larger than the growth of the economy. Even if our economy is growing at 5% rate, which is overly optimistic, the amount added to our GDP is $750 billion a year which is smaller than our $1.2 trillion deficit. We are not getting ahead.

    Sadly, it seems that Obamney* is for more debt and supports the Federal Reserve.

    Obamney= Obama + Romney

    Mark

    • http://urbansurvivalguidesecrets.com Urban Survival Guide

      Mark, nothing they do will ever make any sense, until you realize that they are not working for us…

      Obummer, Geitner, Bernanke, etc., all work for the financial elite, Rothchild, Rockefeller, etc., who control the government, banks, and corporations, through their Council On Foreign Relations.

      Their goal is to maximize the debt of America and Americans, so that when the economy collapses, they will own everything, including your house if you don’t have it paid off.

      Stop looking at what the puppets are doing, with the fake battle of Republicans vs. Democrats, and focus on the Puppet Masters, who control Goldman Sachs, Citibank, JP Morgan, the Federal Reserve, all the large oil companies, the media and Washington D.C.

  • Colin

    Michael, why do you speak about the president as if he is the only individual in our federal government who can legislate and execute a budget?

    According to the US Constitution, Article I, Section 7:

    “All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.”

    The President can propose a budget, but it is the constitutional role of the House to create and to pass a bill. This bill is then sent to the Senate for approval.

    In the last few years, the Republicans in the Senate have created a situation by manipulating the filibuster so that a bill can’t pass the Senate if there are less than 60 votes. This is part of the Republican agenda to stifle President Obama’s agenda.

    So, I think we are lucky that the economy is not worse than it is.

    I would like to see you address the issues raised by a Congress that is obstructing the legislative process, and is slowing down economic recovery.

    Unlike Rep. Nancy Pelosi, who believes that the Democrats will win back the House, I believe the House will remain in Republican hands, and the Democrats will have a tenuous hold on the Senate, and the President will continue to fight for his agenda as his opponents are set on dismantling his legacy and setting the ground work for a Republican presidency in 2017.

  • mark

    Those in Washington are scared of the riots that will come from cuts in benefits.I guess we will borrow until the loans stop and we go over the cliff. Well if we were smart we would use this last bit of borrowed time and money to develop our energy resources in the US, because when the dollar crashes I don’t know what we are going to pay for the arabs oil with. Life will be hard but it will be a whole lot harder without fuel to farm, transport food and other goods to stores and you will wear out a lot of shoes with out the use of a car or bike. In the end we might as well default and stiff the chinese and the others dumb enough to loan us the cash. A lower style of living is coming like it or not. Better start prepping.

  • Paranoid

    Well if no one else is going to say it. “5 Trillion here. 5 trillion there, soon we will be talking real money.” But a man named Vern Meyers said 20 years ago: “Once you go off the cliff it does not matter if you push the brake or the gas” IMHO we are well off the edge. Get ready to hit, don’t sweat the small stuff; It no longer matters what the Gov does, it’s up to you when the financial system dies don’t figure you can get ready then. Don’t count on any help

  • http://globalschoolchoice.com Scott Christie

    The big question is when and how does this all flush out. Are they planning on barrowing our way to prosperity? I feel like a gambler in Vegas who just can’t stop when I think about the debt we have :-(

  • mondobeyondo

    One day, our children will raise families and have children of their own.
    They will go to school, and study 20th and 21st century history among other things.
    And ohhhh… will they be angry at our present generation, for what we have given them.
    What happened to Joan of Arc, would be rather pleasant – considering what our future generations will have in store for us. We stole their future, so that we can live our lives in abundance in the present.

    “Congratulations! You have a new baby! He just came out of the womb, and he owes the government $50,000!”

  • JR

    There are 46.5 freaking MILLION now on food stamps, up 47% since Obumbler took office. Google or go to the USDA site, look for SNAP (supplemental nutrition assistance prog), and check it out for yourself. Then google “tent cities California” (or the state of your choice). Then ask any reasonable person it they would still vote for Obama

    OBAMA WHITE HOUSE: A FULLY OWNED DIV. OF GOLDMAN SUCHS

  • mondobeyondo

    Old Irish saying:

    “May you see the light at the end of the tunnel, before you reach the end of the rope”.

    Okay, that’s not really Irish. I made that up.

  • 007

    Obama has no plan for the economy. Any jackass can spend money and run up debt. It is like you are broke and they are coming for your house and furniture. Does it really help anyone for Obama to throw a party in your house and order out for beer and pizza on your credit card so the guests won’t know how bad things really are.

  • Mike

    Michael,
    I believe you. What should we do to prepare in the meantime for what is coming? I’m at a loss and don’t know what to do. Please give some advice here.
    Thanks.

  • Joe

    So what is the answer? Or is there one? Is it too late now? I think an economic collapse of the magnitude that looks like is coming will result in riots followed with famine. Maybe even revolution.

  • Sid Davis

    Plenty of what the federal government borrows is newly created money. The Federal Reserve Bank or some Commercial Bank creates a checking account balance out of thin air and loans it to the Treasury. When the federal government writes checks against the balance it does have a stimulating economic effect which often does drive up prices.

    But higher prices then thwart economic activity because the money supply buys less at higher prices than at lower prices and sales slump. Also the money must be repaid at some point, and this drains money from circulation back into the banks from the netherworld from which it was originally created; writing a check to a bank cancels the debt obligation and simultaneously cancels an equal amount of one’s checking account balance, just the opposite of when the money was originally borrowed.

    And then there is the fear factor which slows spending when the psychology is negative.

    So there are three factors offsetting the expansion effect of newly created money: higher prices, debt repayment, and fear.

    What has happened is that more of the economy has become government spending and less has become private spending. This is very destructive to wealth because most government spending is a wasteful allocation of resources. Bombs to maintain an empire, and bureaucrats don’t add much value, if any, to my life.

    The root cause of boom and bust is monetary inflation which disrupts steady economic activity otherwise affected only by natural causes. And when government has seemingly unlimited access to the loan window at the Federal Reserve Bank, venal politicians increase the size of government spending exponentially.

    The answer, of course, is to end the Federal Reserve Bank. In its place, we should follow the Constitution which in Article 1, Section 8 authorized Congress to COIN money, and in Section 10 prohibits the States from making anything but gold and silver COINS legal tender. In conjunction with this Commercial Banks must be required to hold 100% reserves against deposit liabilities, and Commercial Banking and Savings & Loan banking must be in separate institutions. This limits the size of the federal government to what they can tax without causing revolt. This ends the debt based society where people become indentured servants of the money creating banks. No more federal government debt crisis, no more student loan debt crisis, no more housing crisis, no more consumer debt crisis, no more bubbles. Most borrowing is eliminated because the only available funds to loan out would be the gold and silver coins that savers are willing make available for loans.

    The economy would function quite well without debt. I know many people can’t envision a debt free society because they have not seen on in their lifetimes. In a low debt society, people instead of paying twice the price for a house (when interest is added) would save and actually be able to buy for prices at a discount equal to the interest they earned to put toward the purchase price. Houses, cars, appliances and business investment would not go away. They would be easier to acquire because the monetary system would not be draining wealth from the average man into the hands of the bankers. Bankers would not go away because they would be needed to facilitate money movement and their revenue would come from fees to provide this service.

    The profits to banks are so huge and the control they exert on politicians is so strong that it is unlikely that this will go away, easily. But Utah has enacted legislation in line with Article 1, Section 10 and the Missouri House just this month passed and sent to the Senate an Honest Money bill which would also help lead the way back to sanity.

    Whether it will take revolution to restore freedom or it can be accomplished politically is yet to be seen, but the more people understand money, credit, circulation, and debt, the better chance we have of effecting change peacefully.

    The transition from debt based money to commodity money will be painful, but there is no other choice. Since all our money is now bank debt, it will disappear as the banks and federal government collapse. This debt collapse will wipe out much of the present money and those holding the wrong assets will suffer. If we want liberty and have the best chance of dealing with the major problems that nature seems to periodically present us, we will go back to using the modern day version of gold and silver coins, the money of free men, and reduce government to the least possible as Thomas Jefferson suggested.

    • GaryToo

      Yes sid all too true. I would add only that while there have often in history been debt slaves in the past, it has been eg unavoidable debt for eg small farmers to carry them through till harvest, or poor blacks after their emancipation paying trumped up penalties to effectivel reenslave them. It is only the present recent generations that have gone (lured) into huge debt for nonessential luxuries. A big house instead of a modest one, and a new car instead of keeping the old one, anything have it now payit later etc.

  • David G.

    Mark:

    It actually does make sense in a perverted sort of way. If you become so indebted, and dependent on debt-based spending to fuel an economy, turning that around and letting the market clear away the debt ends up reducing spending in such a large degree that a lot of people really suffer. If you recognize early on that a debt-driven economy is in the cards, and you’re familiar enough with the history of fiat money, and debt-based economies, then you sound the alarm (as we’ve done in this country), you make a plan to reverse to outcome (which we’ve also done in this country), and you slowly turn the ship around (which we should have done forty years ago, but didn’t). Instead, we piled on. And on. And on. We are now so far in debt, and so addicted to deficit spending, that any attempt to right the ship will put millions of Americans out of work, and on the street. Its just that terrible a situation. The unwinding of both public and private debt would be so toxic that the choice of most in charge has been to kick the can, and hope that the music keeps playing, not until they’re no longer in charge, but no longer alive. And don’t have to deal with the mess. I’m sure you’ve heard the adage: the longer we wait, the worse it will be. That’s, essentially, the subtitle of this article. We’re past the point of a mildly painful unwinding of debt. And we’re well into the very painful zone. The worst case would be to have a debt unwinding event that was forced upon us, since that would not allow us to control the unwinding. It would be a chaotic, panic-driven event. Which is precisely the direction we’re headed. If you choose no austerity, you end up choosing the fate of a catastrophic debt-unwinding event which no government or central bank can control. If you choose yes, austerity, you end up with a number of very difficult, painful debt-unwinding events over a longer period of time which governments and central banks will be able to exercise some degree of control. I don’t think there are any options left to us at this point. Houston, we have a problem.

  • http://endzone2.weebly.com Craig

    The thing that is really killing us in America is the murder of 53 million young Americans that were replaced by Mexicans and other 3rd worlders that were willing to work for minimum wage and work like slaves. Then the greed took over at the top and they (government and CEOs) starting exporting millions of middle class jobs to enrich themselves even more. We must return to a Christian cultured society that we once were, or we are finished. Our form of capitalism can only work for the middle class in a culture of Christianity. Otherwise the greed of the politicians and the CEOS and Wall Streeters will destroy the middle class. We are becoming a society of “every man for himself”, and only the people at the top win in that situation.

    • Gay Veteran

      what the hell does “Christian cultured society” have to do with illegal aliens???

    • GaryToo

      before you call the mexicans 3rd worlders, realise they have now been rated in the top 3 performing economies in the world. thats a 3rd americans can envy.

  • Mike

    Hi Michael. According to these measurements – http://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html – the amount the US is spending just on servicing its massive debts is roughly the equivalent of the GDP of Pakistan! In fact there are only 27 countries with a GDP greater than than US’s 2011 debt interest payments. Puts it in perspective…
    Mike, UK.

    • Michael

      Good comment Mike.

      Michael

    • mondobeyondo

      Scary stuff.
      We could feed everyone in several African countries with the amount of interest we’re paying toward the debt. Instead, all that money is going toward… nothing.

  • http://n/a jgouig

    I generally agree with your line of thinking. I guess the big problem I have with your blog–and I’ve been reading it for a couple of years now–is that you keep predicting things that will happen “someday”. Exactly what day will this be–day, month, year–and what exactly will happen? You otherwise seem like a clueless doomsmongerer…though I’m planting my carrots now!

    • Michael

      The “economic collapse” is not a single event.

      It is playing out over time.

      Michael

  • GaryToo

    as long as USD is the reserve currency and the petrodollar system is in place, that oil is tracded and priced in US dollars, also forex goes through USD, real hyperinflation of USD wont happen. THe us military does not tolerate any countries trying to move away from selling oil in dollars, think of libya/gaddafi, iraq/saddam. These countries people are transferred from evil enenmy to rehab’d good ally and then back again to enemy number 1 when they try jnot trading oil for usd and are removed.

    The current instigator of selling crude oil for gold or other currency is Iran. They will not be tolerated, however a tidy 3 week operation is relly optimistic and unpredictable, it could trigger ww3.

    That would not be so bad for us economy, they manufacture and export munitions and weaponry at massive price in billions. That all gearing up into top gear production (again) would make ford, gm, and chrysler in full output seem small small potatoes.

    At the same time a state of emergency being declared on either purely economic crises or war as a reason would be welcome and there is a lot of preparation in that direction.

  • markthetruth

    If you will notice carefully, neither Mitt Romney nor Barack Obama are promising to balance the budget any time soon. Like so many politicians in the past, they promise to do it “eventually”, but “eventually” never arrives.

    Elections are not Won anymore, they are Brought……..

    The Presidents(Puppets) now have to appease the hands that feed them. They can not do what they preach…..

    Every day we are temped buy the snake to take a bite of the apple. And we Do….

    The end….

  • bobnoxy

    Trialboy is spot on. Blaming Obama for the dreadful situation created by Bush and the Republicans that now hammer Obama for the deficits is a complete piece of drivel.

    What’s causing the deficits? It would be the Bush tax cuts, and two losing wars that not only costs many multiples of what the neo-cons assured us they would, and have lasted far longer than we were told they would.

    The first nine months of Obama’s term was operating under the last Bush budget, so pin that first trillion dollar deficit where it belongs.

    When Obama took office, 84% of the debt on the books was put there during Reagan and Bush terms of office. Now it’s all Obama’s fault? What of Congress and their power of the purse?

    I didn’t vote for Obama and won’t the next time around either. But let’s stand on facts here, which are so skewed in the piece as to represent yet another re-write of recent history.

    Reagan, himself a huge deficit creator, teamed with Clinton and Jesus himself couldn’t have fixed the mess made by Bush and Cheney. A hole that deep will take a decade or more to fill.

    In the meantime, Obama is what we have. Divided we fall, and article like this one only divide us further than Bush and Rove did.

    Total nonsense.

  • andrew leiner

    I and a lot of other people out there believe that the Office of the President of the United States is occupied by a puppet. I also believe that the whole world is being
    changed into a third world hopeless state. All this “money” – as everyone knows – was and is being created out of nothing. But these magic money markers are not going to forgive one cent of this debt. They will take something, land, property, souls. They have been taking Greek islands.
    Thank God it is all going to be over soon.

  • Frank J

    One article & 25 comments and no one mentions that we have a REVENUE problem. Go back to the Reagan tax rates. Provide tax benefits to corporations that remain here, NOT for moving overseas. Revamp our trade policies, there has NEVER been so called ‘Free’ trade. Problem solved.

  • Evie

    I am a boomer and the money has already been stolen from us. Higher health care costs and insurance cost, our well paying jobs and the value of our homes. The young have it good. Free breakfast,lunch and dinner, ride on their parents health care until 26. A nonperforming, unsocialized bunch who expect to start as ceo. People will not sacrifice unless there is reward to do so. We have been fed too much propaganda about the young when most money goes to the military and the elite.

  • BillF

    cutting a trillion from this next budget will not send us into a tailspin. Romney would have nearly $2T come into play the minute we get Obama’s jack boot off capital.

    if he wanted another trillion or two, and serious tax revenue, he could lower the ‘repatriation of overseas profits’ tax to 11 or 12%, from 35% and wrangle another $100B to $200B in a one time windfall tax revenue.

    the key here is dumping Obama and his leftist thuggee.

  • http://TheEconomicCollapse Dave in OK

    “What we are doing to our children and our grandchildren is so immoral that it is hard to put into words.”

    Add this to the rest of our immorality: abortion, confusion and destruction of marriage, distributing of immorality around the world by our entertainment media, immodesty of our women, wholesale distribution of guns and violence around the world, etc. And we call ourselves a Christian nation. I don’t think God is blessing America and is about to withdraw any shred of blessings that we have left.

    • GaryToo

      thanks dave, too many people are focussed solely on greed and economics, those condemned in scriptures but the ones you mentioned cause untold misery and suffering and are higher on the list in the scriptures eastern and western.

  • Barn cat

    No, it hasn’t been stolen from future generations. It will be stolen from people in the next few years due to hyperinflation. America as we know it today won’t exist in five years. We’ll have a hyperinflationary collapse followed by anarchy and mass starvation.

  • Excalibur

    “Most Americans are not going to understand what is happening and they are going to go absolutely nuts.” Wait until there is a run on the banks in America, as in Europe right now, and people find out there isn’t any physical cash in the bank branches.

    We erroneously pulled our money (digital) out of the stock market at the low of the last crash. In an attempt to preserve what we had left we moved it into a money market (digital). After watching our purchasing power be eaten away with negative returns, we recently decided to buy physical precious metals by first closing out the money market account, and then move it to our bank account(digital). In an effort not to alert the Feds that I was wanting to withdraw our own money from the bank. I kept withdrawals just under 10k per day.

    This process was a major eye opener! I was soon to discover that the branches, especially the “smaller” ones don’t have very much physical cash on hand! Tellers seemed freaked out at the withdrawal amount. Managers were called in to do over rides. I was told on more than one occasion to call at least a day in advance so they could bring the money in from another branch. At one branch I was told they only get one shipment a week of cash, and a withdrawal of “that size” could throw off what they have available to get them through the week!

    Bottom line is when the SHTF in America, good luck to people if they think they’re going to be able to access their cash!

  • E. Stanton

    This article is stupid. Maybe Obama should have cut spending to the bone and make all of you losers lose your jobs and then really suffer. Things are bad but there’s no social unrest in the U.S. Go ahead and vote for Romeny and then watch the ****** hit the fan and then you’ll wonder why everyone was so focused on the debt.

  • Piglet

    [Three recent surveys have found that between 69% and 83% of Americans believe that the country is still in recession (it isn’t), and only half believe that a recovery is under way.]

    The Economist article is probably right. We’re not having a recession. “Depression” is a much better description of what we have.

    How can the idiots at The Economist writing that BS look at what’s happening here and claim this isn’t, at the very least, a recession?

  • Witness the End

    Truth is Obama or Romney won’t be able to pass a balanced budget.

    Paul Ryan is trying to pass a plan to balance the budget BY 2040, but he is being tar and feathered as being too extreme.

    We are doomed by our own greed.

  • brimp

    The problem with terms like 5 trillion dollars is that the average person cannot comprehend it. If this number is divided by the number of American tax payers (from usdebtclock.org) you will get $44,000. Forty four thousand dollars added to their credit card is a number that people can understand.

  • Piglet

    [During fiscal 2011, the U.S. government spent over 454 billion dollars just on interest on the national debt.]

    That translates to 454 billion reasons why this won’t get any better. Those making money on the interest payments have every incentive to ensure the gravy train keeps on rolling and that we keep paying more and more on the debt.

  • erheault

    All good partys as well as nations come to a end so we will eventually pay the piper for all of the dance tunes we now have, Our federal debt now adds up to 50 thousand dollars for every Man Woman and Child in the USA and the gov is tossing money around the world like there is no end to the taxpayers wealth, Enjoy yhe ride while it lasts.

  • http://urbansurvivalguidesecrets.com Urban Survival Guide

    I’m on Obummer’s email list, not because I like him, but because I want to know the lies he is spinning.

    Today’s email implied that everything was okay when Clinton was in office, but the economy imploded after that, and Obummer is still trying to get it back on track, and of course, he needs four more years to get the job done.

    The joke is that Clinton repealed part of the Glass–Steagall Act, which allowed investment companies to gamble with banks money, and create the housing/derivatives crisis.

    Then Bush spent massive money on wars and bailouts, followed by Obummer’s 5 Trillion Dollar contribution.

    It matters not who is in the White House, they’re all controlled puppets.

    Mayer Anschel Rothschild said “Let me issue and control a nation’s money and I care not who write the laws.”

    And the Rothchild’s control the Federal Reserve…

  • sharonsj

    You forgot to mention Dubya, who ran up the debt to almost $11 Trillion with the help of the war-mongering GOP (and their Dem counterparts). There wasnt much of a debt when he first took office.

    Obama and the government didn’t steal trillions, the banking system did–and still does. The problem is that the banks and big business own the government and will continue to steal from us through nonsense such as privatization. That’s why they use the debt as a distraction (along with abortion, contraception and gay rights) for the mass of Americans who are too stupid to see what’s happening.

    Still waiting for the effing politicians to help the economy by getting us jobs…and if Romney and the Repubs get in, you’ll see no jobs but austerity programs guaranteed to screw us even more. Take a look at the Republican governors now in charge: all they do is give tax breaks to the rich and then use it as an excuse to fire teachers, police and firefighters.

  • Randy

    Here in CA, the bubble is bursting already. 30 billion dollar deficit, liberal pols who will not stop spending, and a retread Governor is asking for the voters to approve higher taxes which, if passed, will not be enough to cover the deficit. Yet Dems hold every state wide elected office and the voters keep sending them back. As bad as it is, we do this to ourselves so we deserve it.

  • sensetti

    This will end in tears and wailing, you can’t cure drunkenness with more alcohol, likewise debt with more borrowing. The party must end at some point; our politicians are incapable of solving the problem ahead of a collapse.

  • El Pollo de Oro

    “There’s a depression in Spain, a depression in Greece, a depression in Italy, a depression in Ireland, a depression in Romania, a depression in Hungary. There’s a depression in the world. American’s in a depression. There are no jobs being created that can give you a minimum wage. What comes next? Currency wars.”—Gerald Celente

    Truth be told, The Banana Republic of America (formerly Gli Stati Uniti) has been in a depression since September 2008. All the stimulus, bailouts, etc. don’t erase the fact that what started as a recession for the BRA in 2007 became a depression in September 2008. It’s been a managed depression so far, but it is going to become unmanageable. As bad as things have been for millions of Americans, they are going to become much, much worse—and Michael T. Snyder is absolutely right when he says that Americans are “going to go absolutely nuts.” Gerald Celente is known for saying that when people lose everything and have nothing left to lose, they lose it; a lot of Americans are going to absolutely lose it when this managed depression becomes unmanageable.

    Economist John Williams (Shadow Statistics) has been saying that the REAL unemployment rate in the BRA (not the bogus government figures) in December 2011 was 22.4 percent. And that figure will go much higher. Americans can look forward to the unrest of Greece combined with the violent crime of Honduras and Papua New Guinea. When the Roman Empire falls, the blood will flow like rivers from both the political/social unrest and a pandemic of violent crime. To make matters worse, there is not only a depression in the BRA, but also, a depression in major economies like Italy (the third largest economy in Europe) and Spain (where the unemployment rate among youths aged 18-25 is higher than 50%). And if the neocons go to war with Iran, that will push the BRA (and other UN-developing countries as well) even deeper into the abyss.

    “How can a country have a world empire when it can’t finance its domestic budget? It’s not possible.”—Paul Craig Roberts

    “If there is war against Iran, it is going to be the beginning of World War III—and we will go into a depression, the likes of which people have never seen. This will reverberate worldwide.”—Gerald Celente

    “There is going to be financial anarchy in Europe, and it is going to cause a slowdown worldwide.”—Jim Cramer

    “If you’ve studied Rome, you know that wealthy nations do collapse into Third World squalor when they allow their currency to be debased.”—Alex Jones

    “The World Health Organization calculates that one in four people in the United States suffers from chronic anxiety, a mood disorder or depression—which seems to me to be a normal reaction to our march toward collective suicide. Welcome to the asylum.”—Chris Hedges

    “If you want to get into a good entrepreneurial business, guillotines may be in fashion.”—Gerald Celente

    These are dark, perilous times we’re living in. There will be no happy ending for The Banana Republic of America, only violence, misery and widespread suffering. Bienvenidos al fin del Imperio Romano. Aquí no hay esperanza—solo dolor, sufrimiento, tristeza, miséria y lágrimas. Que dios nos ayude.

  • Richard

    ”Neither a borrower or lender be.” – Shakespeare

    • mondobeyondo

      Proverbs 22:7

  • NickelthroweR

    Greetings,

    None of this should surprise anyone. Once the PTB saw how easily everyone was manipulated into believing that Iraq was going to attack us with nuclear weapons they knew that it was “game time”. Frankly, they know that they can tell us anything they want and if they politicize if properly, half the people will believe it.

    A great example is climate change. All that had to be done was to politicize the issue and the entire right closed their eyes and ears to the 99.9% of climate scientists and the proof that was literally coming down to them from the tortured skies.

    They will print money until it goes into hyperinflation and then some “strong man” will take over and will be become an openly fascist state. The majority no longer have the will or the education to understand what is happening.

    Save yourself.

  • Edgar

    IT’S TIME FOR AN AUTHENTIC SOCIAL REVOLUTION

  • http://worldendsat5newsat11.blogspot.com Tony Lamb

    When I look at my Grand kids I feel so sad, I feel like I have betrayed them, lied to them, I feel like, my local government, state government and federal government have all lied and stole from them. Because they are the ones who will have to pay to clean up OUR mess. IF they only knew they would be hiring attorneys and sueing everyone in charge from Obama on down for the trillions we are spending of their future, their inheritance. Woe is me!
    I feel so sad when I look at my Grandkids playing, so sad.
    What is happening in Greece will happen to America and worse.
    The whole world is going to hell in a hand basket and our politicians are pushing us over the cliff. What happened to Citizens rights? Derivatives? money printing? the money we owe (15 trillion dollars)? the money we have promised (about 200 trillion dollars)? the run on Greek banks? the run on Spanish banks? the run on Italian banks? the collapse of the European Union? the recession/depression in Europe? What about QE3? What about the 16 trillion the FED secretly gave/lent to world countries, business and banks from 2007 to 2010?
    Now that money is gone they are now facing collapse again.
    You can’t eat Gold and Silver can not keep you warm and diamonds will not protect your family. At least maybe we can save our family.
    See a Serious and REAL FREE survival plan for you and your family at:
    http://Surviving12-21-2012.blogspot.com

    • Prepared Pastor

      While you cannot eat gold and silver, you can eat quite well on what they buy. Except for a few short-term disasters, they have been a store of value for thousands of years. When Joseph stored grain for the famine in the Old Testament, he did not give it away. The narrative shows his brothers took silver with them to purchase it. There are generations of people today who ancestors were spared death camps because they were able to trade a tiny amount of precious metals or gems for a well-fed guard to look the other way or for a meal and safe place to sleep from a farmer.

      Sure I own a free and clear solar-powered, wood-heated retreat with a couple years food storage, and plenty of guns and ammo and farming equipment, but to completely dismiss the reality that not everyone will be equally poor for long. There will be winners and losers and the winners will want precious metals and gems as they always have. People never change.

      A good man leaves and inheritance to his children’s children (Proverbs 13:22). That’s why I buried a monster box of Silver Eagles. In 50 years not everyone will be just getting by.

      Gold is the money of kings
      Silver is the money of gentlemen
      Barter is the money of peasants
      But debt is the money of slaves

      What will your grandchildren be?

      • William

        You are CORRECT. Those who say that one can not eat gold know NOTHING! When paper money in America is burned for fuel, as it was in Weimer Germany in the earty 1920s; and when paper money is used for sanitation, as it was in Zimbabwe more recently, gold will buy a LOT of things, including FOOD!!

      • The Mirror

        Yes you are correct Prepared Pastor:
        Gold is the money of kings
        Silver is the money of gentlemen
        Barter is the money of peasants
        But debt is the money of slaves

        Also it is said that it is far easier to push a camel through the eye of a needle than for rich man to enter into the gates of heaven. For the man that pushes to save his life shall lose his eternal life but the one who sacrifices his life shall receive eternal life.

        I find it amazing how a man who claims to be of the cloth is so quick to support the faith in coin before the faith in his god. Shame on you. At a time like this you should be guiding people to find their spirituality and know that there is a place far better than this rather than guiding them into the panic created by man himself.

        “Sure I own a free and clear solar-powered, wood-heated retreat with a couple years food storage, and plenty of guns and ammo and farming equipment, but to completely dismiss the reality that not everyone will be equally poor for long. There will be winners and losers and the winners will want precious metals and gems as they always have. People never change.”

        You brag about what you have but I will enjoy seeing what good the things you have on this plane does you in the next.

    • Kelby

      Dont be sad, Tony, you never did mean to betray them or anything like that. You’re a good Grandpa obviously because you care.

      Yeah be prepared, as much as you can be. Dont worry, after all is said and done, your grandkids will live in a MUCH better world than now. I like to call it “The New Golden Age.” :)

    • Zedge Hero

      I feel sorry for your kids too Tony, if you think Gold and Silver are what they are, then you should do more than apologize for ignorance on finicial issues regarding either. If you knew what me and the pastor knew regarding the history of such, you would actually realize what you say is very sinful and hurtful to those who believe your BS. And like the Pastor and myself who are prepped seriously, your fear tactic is a joke at best. Gold and silver won’t save you!!! BS-if I have any extra crops and I always do, I will be happy to take silver or gold for them. As the prepared pastor says and is spot on, silver and gold are not for everyone, get your basics down first, but once you have everything else in place, putting your money in # 10 cans is at a certain point not very logical. I think it’s going to be more like 1865 A.D. than 1865 B.C. which is the last time gold and silver were irrelevant in civilization. I know it’s just a spam post, but it does upset the fundamental understanding about assests and liabilities people that are educated on here. Now don’t get me wrong, I was as stupid a few years ago because we are taught to be, but please don’t spread the ignorance.

  • Jim

    I read an economic study showing that the great depression was prolonged and made worse by all the government involvement. I believe that is what is happening now.

    • Kyle S

      That’s exactly what is happening now. The markets should be allowed to clear out but they can’t because the gov’t is propping up failed businesses/industries

  • Washington

    “If I wanted America to fail”
    http://www.youtube.com/watch?v=CZ-4gnNz0vc

  • Rain23

    @Idaho: I agree Boomers working keeps younger people out of the workforce, but the Boomers who are working now are doing so because their pension plans are gone and their Social Security won’t pay for food and an apartment. Working as a greeter at age 74 sure wasn’t in my neighbor’s plans; her husband’s pension and her Social Security were supposed to let them live modestly in the home they paid off. Instead, the pension plan folded and Social Security just pays her utilities, food and property taxes. If she wants to buy a magazine once in a while or buy her grandkids a Christmas present and stay off food stamps, she has to work. Is there a way out of this? Whether it’s paying into Social Security and Medicare or having mom and dad in the back bedroom, either way the younger generation is stuck with us. I think I speak for a lot of people who tried to put by for their old age and saw the money disappear. I seriously would be open to anyone in the younger generation saying what we can do to help. I don’t ever want to be a parasite and I’m not quite dead yet; it’s an uncomfortable position.

  • David

    We’re screwed. We’re like that family living at the exclusive country club. Everyone says, “Aren’t they awesome, they got it all.” Only thing is, their mortgage is 90 days behind, cars loans are delinquent, Dad just got laid off, and the credit cards have now been locked out.

    You can live like the wealthy, for a while – but eventually, you run out of credit. That’s where we are. The repo man and the eviction notice are on their way.

    • mondobeyondo

      Very, very true. That’s how a lot of Americans are living these days.
      The Porsche in the driveway is very impressive – for now. But just wait, the repo man is coming…

  • josh

    Most Americans are not going to understand what is happening and they are going to go absolutely nuts.

    the going nuts part is already starting to play out.

  • Washington

    Judicial Watch Announces List of Washington’s “Ten Most Wanted Corrupt Politicians” for 2011 December 26, 2011

    http://www.judicialwatch.org/corrupt-politicians-lists/washingtons-ten-most-wanted-corrupt-politicians-for-2011/

  • Tatiana Covington

    You were expecting what?

  • john

    I agree that we in the US, like much of the world, are in way over our heads in regards to spending. Most may not agree but I think that we have passed the point of no return. I see alot of comparisons to the US and Greece… There is no comparison. There is no country like the US, and when a country like the US is going to be asked to make some very painful cuts I see things becoming a heck of alot worse than Greece. Unlike other countries, we have enjoyed an illusion of absolute freedom and entitlement. When that is taken away… I just dont see US citizens as the whipped Europeans that will take it. We are heading down a path of division, rage, and arcade humor. When the masses here lose it I fear that it will become much worse than anything you are seeing in Europe. I hear people say that we have survived one great depression and will survive another… During the first Great Depression many families slept in houses with dirt floors already. Do you really think that with the divisions being created now, combined with our standard of living you will see anything but chaos like the world has never seen?

    • JackFlash

      Dead on, John..

  • Gary2

    Hey I rather like my standard of living you know things like living indoors and eating are downright luxuries.

    I like the std of living way more when I was making a decent wage. Tax the rich spread the wealth give everyone a good std of living. It is a right and not a privilege to have a good std of living if you are a citizen of this country. Tax the greedy to help the needy.

    • A.S.

      RichDear Gary2,
      My guess is that u are some rich guy who ony cares about himself.

      • A.S.

        Just kidding = l

    • Ian

      And how is the financial rape of future generations not greed? You are inconsistent and envious of those who actually work for a living. Socialist blood suckers are all about taking from those who work to give to those who do not. America is a freeloader nation now, but was built by hard working, family helping good people. Now we are failed debt slaves,all thanks to the parasite socialists who reward sloth.

    • Ian

      Why are people jealous of those who are “rich”? Just because they aren’t smart enough or ambitious enough to make something of their lives? Just because they don’t want to depend on other people for their livelihood? If you tax the rich too much, they LEAVE the country and you have ZERO jobs. Common sense

  • Gary2

    Whether the federal government spends money wisely or foolishly, the truth is that the vast majority of it still ends up in the pockets of the American people who then use it to buy the things they need for their daily lives.

    See this proves we need a big stimulus. The first was way too small. Keynesian economic is correct. See Dr. Krugman new book “End this Depression Now” Excellent read.

    I do not know anyone who cares or ever talks about the debt/deficit except for my friends on this site.

    No One cares about it. We can tax the rich and grow our way out of any debt. We can also tax the rich hard and pay down the debt.

    The debt talk is just a ruse for the right to cut social programs and give tax cuts to the rich. Even boy wonder boy paul ryan increases the debt/deficit. (yeah I know he is a fool)

    • Michael

      Gary:

      It is immoral to pile even more debt on to the backs of future generations in order to improve the economy in the present.

      Michael

      • Gary2

        true only if you think the debt is a big issue which it is not.

        • justamom

          Gary,
          The debt IS a big issue. By definition debt is money that is borrowed(intended to be paid back); the money doesn’t belong to us. It is called stealing or thievery.

        • ScoutMotto

          Gary2 says: “true only if you think the debt is a big issue which it is not.”

          And just how do you figure that? I’d say 15+ trillion dollars is a pretty big issue.

        • Laurus

          Oh, my gosh, G2. What would happen if you spent money like the govt.? People would be on your door step, taking your car and whatever other items you bought and didn’t pay for. I know! I remember when I was young and my dad got into the debt trap. Somebody actually came to our door and took the damn vacuum cleaner. But, then I suppose you’d just shirk responsibility and file bankruptcy.

        • McKinley Morganfield

          I like your calmer, less rabid posts; but only an utter, totally ignorant fool would say “true only if you think the debt is a big issue which it is not.” Do you think you can walk on the sun wearing flip-flops? Presuming debt is not a “big issue” is as nonsensical and stupid as presuming you can walk on the sun wearing flip-flops. It is devoid of all reason, reality, and demonstrates a total lack of historical awareness. BTW, I have some tulip bulbs I would be glad to sell you provided you have hard currency (gold, silver, etc.).

        • Bob Basher

          Oh sure just ignor it and it will go away….when we borrow 40 cents for every dollar we spend…thats a problem….Kensian economics do not work it is inherently flawed…and whats your answer tax the rich!! well I have news for you the rich will move their money elswhere why should they be penalized for being successful? How on earth do so many hate profit love taxes on anybody but themselves and seem ok with redistribution of wealth?? If you want to live a socialist society..get a plane ticket to China or Cuba but for the rest of us the free market works fine when government gets out of the way…

      • Rodster

        Krugman is a liberal/socialist. It wouldn’t surprise me he’s really Gary2. :)

        • Gary2

          thanks for the compliment.

          Dr. Krugman who won a noble prize in economics is 100% correct. With the extremly low intrest rates I see no issue with a debt.

          as he said and I agree all the talk about the debt by the right who suqandered a surplus in tax cuts for the rich and wars of choice and corporate welfare medicare part D never uttered a word about any debt deficiet until Obama was elected. The right has zero creditability. All they want to do is to undo the new deal and they are simply using the debt as an excuess. Consider this–the right was offered $10 in tax cuts for every $1 tax increase and they said no. No One on the right has any creditability to lecture anyone on any debt deficiet issues.

          • McKinley Morganfield

            You are a hoot! You might as well be quoting Chairman Mao as to quote Paul Enron Krugman. You are such a clueless puppy. What to date have the conflicts in Iraq & Afghanistan cost over the last 10+ years compared to Medicare-Medicaid payments? Note I’m not talking about whether its right or wrong, I’m asking about your knowledge of the cost of these items. Don’t know? Didn’t think so.

          • Bob Basher

            that is totally erroneous

    • john

      @gary2- I dont believe that taxing the wealthy will do it. I heard another talking head say, “Who cares if the S&P downgrades us.” I heard another say, “Who cares if we have debt, or if we increase the amount we borrow.” When I hear that it makes me want to ask those we borrow from if they care about the status of their investment. I know personally that if I kept increasing the spending limit on my credit cards and spending much more than I was taking in on them I would have a personal financial collapse.
      My point is that at this point, no matter what, we will have to take measures to get our spending under control and the simple fact is that taxing the wealthy just wont do it. I stand by my last statement. We as a nation are not ready to live the way we have to in order to get our house in order. The people dependent on the system will never accept it. Everyone knows this. My greatest fear is that it happens slowly. I think thats why we hear the apocalyptic talk from site visitors. Anyone who pays attention knows that we cannot sustain things this way. We can however prolong it and keep it at bay, but for how long? And that slow collapse is what scares me. During the next few years do we keep our heads down and scrape by, watching our neighbors and countrymen as they lose things slowly? Buying less and less, becoming accustomed to a life of poverty ourselves.
      I dont have any answers, but we as a country have choices. Do we allow politicians to make promises they never keep on both sides, while they keep us entertained with debates about gay rights and get us arguing with eachother? Its what they want. Leaders on both sides have failed us miserably, and we keep that system going.
      Michael, You do good work. I check out your site daily, you seem to care about the trials people who have been affected by this economic situation we find ourselves in, and its good to hear their stories. I have been lucky, as has my family, but I can feel now that the situation could easily change.
      Do we keep our heads down and wait for it to come to us? Because it will.

  • http://defeatobama.us Robert

    Anyone will be better for the United States
    than Obama.

  • Colin

    Michael,

    Here is an article, with a chart, that shows the amount of spending per a president since 1982:

    http://www.marketwatch.com/story/obama-spending-binge-never-happened-2012-05-22

    The Republicans argue that the president is an extravagant spender of federal money. This article dispels that argument.

    • Michael

      Colin:

      The key is the amount of debt, not the amount of spending.

      We are running deficits well in excess of a trillion dollars every single year now. This is utter insanity and it is going to destroy our financial system if it continues.

      Michael

      • Gary2

        worring about the debt and cutting prematurally is going to do more to ruin the economy than any debt will. Tell that to the younger generation who are graduating and there are no jobs, or the kids in school with larger class sizes. There are real people and not some “future grandkids” bs.

        • GaryToo

          thats what the greeks thought. about 15 trillion people have told you the same and given up.

          • Gary2

            we are not greece and can not be greece.

          • mondobeyondo

            Greece is the word, is the word, is the word…
            It’s got groove, it’s got motion…

            (sorry, can’t recall if those are the exact words. Haven’t seen that movie since 1978. John Travolta and Olivia Newton-John starred in it)

  • Chris

    Does anyone here know how long it would take to count to a trillion? You should hear some of the answers i get when i ask this question.

    • Kelby

      Oh wow, let me think…maybe like five months, depending how busy your life is, and how many times you lose count! XD

  • http://lizmasterson@aol.com Liz M

    It all makes sense if you want to topple this country in order to insure one world bank, one world government, and they are already embracing Islam as the new world religion, be wise read whats really going on don’t follow only US news. The rest of the world laughs and mocks us. This country divides us by pushing race issues, women’s right, abortion, gay marriage. And envy over the rich people that HAVE worked to get ahead and made their money by hard work and ingenuity. What ever it takes to divide the masses, so they won’t look behind the smoke screen at whats really going on.

    • GaryToo

      exactly right. al debt to be forgiven witrh new currency. wrong re islam: the war against islamic countries and rebuilding efforts specify shoving westewrn immorality down their throats. They retain old ashioned family values, not the millisecond blip in history that is progtrerssive values, destruuction of marriage and family etc.

  • Clint

    Throw out capitalism and control the global birth rate.
    Allow families that want more children to have them, but tax them stiffly for the privilege of more global consumption.

    All the consumer goods and food stuffs that we use are controlled by the consumption of oil, the world is already past peak oil.

    The only way to have a sustainable global population is if we lower the amount of incoming births.

    Running the world as all of these separate entities, makes no sense.

    • whteshark

      Wow, Clint, sounds like communism. I think you would be happier living in Cuba or North Korea.

      • GaryToo

        no sounds like all forms of civilization prior to age of agriculture and industrialization who maintained stable/sustainable population and use of earth resources.

    • Laurus

      I can see you have bought into globalism, the big sustainabilty lie and God knows what else. All of those things are about control…meaning your loss of freedom and giving everything over to the Govt. What have they ever gotten right? Do you really want the Govt. telling you how to sort your trash, how many children you can have, etc., etc. Think about it??

      • GaryToo

        Laurus 2plus 2 equals 4 whether you work it out for yourself or attribute it to govt. I fully disagree govts are polluting the earth and will do way too little way too late regarding sustainability. What is YOUR projected estimate for a sustainable population? humans occupying space like factory farmed chickens drawing food from mars and all the garbage exiting to pluto? Human hydroponics.

        as you spelled God with a capital G you probably have respect for him. try the bibles future estimate for population “If those days were not cut short no flesh would be saved”.

        • Laurus

          Gtoo – I am not a mathmetician or a scientist and can’t give you the “correct” population number, if there is such a thing. I know it sure isn’t the 500,000,000 number touted by some early evironmentalists. How many bil should we kill off and how?? Look what is happening in China w/their population control experiment? Oops, where’d all the females go? Killed, in favor of a baby boy.
          You quoted from Matthew regarding the shortened days. I think read in context it refers to wars, famine and pestilence. We can have famine for many reasons, not just too many people (floods, fires, draught),etc.
          Environmentalism is all about control. Besides, I think we have done a pretty good job reducing pollution, recycling, etc. Nobody wants to live on a trashy earth. I just don’t think the US should be the world’s resource, financially or otherwise. From what I have read about Agenda 21, Rio Summit, Cap and Trade, etc. The US will pick up the majority of the cost, which we cannot afford. $15 Trill…remember? Enjoy your posts…

  • joe

    “So any talk that Barack Obama is “improving the economy” is a total farce. ”

    yeah, Barry Obama is a TOTAL FARCE!

  • joe

    And any loser who votes for this loser the second time around is fully to share in the blame.

    I was stupid enough to buy into his bullcrap the first time around and I voted for him, I voted for Ron Paul in the primaries, but I will vote for Romney over Barry Obama. At least with Romney I don’t have to hear the complicit media cover for romney over and over again like they do with their precious messaih Barry.

    • Kelby

      I’d take Ron Paul ANY DAY, no contest!

  • Jerry

    I’m glad to see someone has the courage to tell the truth.
    This country is not the strong nation it once was.

    Our government continues to spend, spend, spend
    thinking they can make things look good enough
    to get re elected.

    They are in great shape regardless of what the
    economy does and they don’t care about the
    average person any longer.

    This nation is on it’s way down fast and it
    looks like we are almost at the tipping point.

    When that happens, we will collapse just like
    every major government in the history of the
    world.

    A lot of people are preparing now for what is
    about to come our way.

    I found that if I do what the ultra rich
    are doing that I have a chance for survival.

    http://theelevationgroup.net/presentation/register.php?a_aid=160667&a_bid=e6b01db8&chan=y

    We are continually being lied to.

    We are going down and when we do,
    the government will not be able to
    take care of us.

    Printing more money will be worthless
    because it won’t be worth anything.

    Make sure you find out what you
    can do to be able to survive
    and make it through what is
    about to come our way.

  • Kelby

    If the federal government adopted a balanced budget next year, the debt-fueled prosperity that we are currently enjoying would start disappearing very rapidly and all hell would break loose in America.

    So we’re damned if we do and damned if we dont. This is just terrible!!

  • Washington

    The current path to WWIII and total social collapse
    http://www.youtube.com/watch?v=m5D9fM5gEXY

  • Evie

    Do we waant to be like greece. Ask goldman sacs they lent them money it os in the book boomerang. Very few pay taxes most are self employed and tax cheat would fill a library. Why are for profit prisons not tjere? In the usa they woild imprison you for .50. It os not like they do npt get money in the usa. Money is squandered.

    • Gary2

      we can never be grease-that is a right wing myth for low information people.

      • GaryToo

        give your reasons, 300 million odd dead people decomposing would amount to grease.

  • George

    If the federal government adopted a truly balanced budget– a budget in which annual appropriations plus new bonded indebtedness plus loan guarantees could not exceed the prior fiscal year revenues– the federal government could only pay for defense, social security, medicare/medicaid and interest on the national debt. All other departments (except the IRS)would be unfunded. GDP would immediately fall by at least 10%. The collateral economic fallout from the ensuing depression would be impossible to predict. Breaking the deficit spending addiction by means of a truly balanced budget would involve excruciating withdrawal pains for all Americans.

  • El Gordo

    Dick Cheney, to Paul O’Neill, then Treasury Secretary: “You know, Paul, Reagan proved that deficits don’t matter. We won the mid-term elections, this is our due.”

  • erheault

    The current batch of demopublicans are trying their damdest to hold together the bag of wild cats that is our ecenomy untill after Captain Zero is reelected then all hell will breakout at that time all finincial products will be boiling over meanwhile the rich will be getting richer and the poor will be getting poorer

  • http://economiccollapseblog.com bill

    do you want bad times nobody does,BUT MAN UP AND TAKE YOUR PUNISHMENT FOR LIVING PAST YOUR MEANS,is everyone sissys,yes its going to be rough but we need to stop being theives and start being men.Where are the true men,during the depression they toke it and done what needed done,they didnt steal from us.
    so bring on the collapse and anyone that says no,get off your welfare butt get a job and bring the collapse on.
    COME ON AND MAN UP AMERICA

  • http://economyincrisis.org Eric

    First of all, when Obama took office the debt was somewhere between 12 and 13 trillion. The first of two major economic stimulas packages was approaved and created by the Bush administration. The two wars, hello this is the real cost of our doing buisness right now, were still around. The wars did not just evaporate when the Democrats took office.

    I’ve said enough, reading this article made me feel you are very bias between the current regime. I think they have done more for the American people then any president since RR. Ops, I went the other way! Look up your money facts, and figure out the costs of the wars before you tried to act so sofisticated!!!

  • i’vegivenup

    Once America falls into an economic depression WWIII will begin and the End of Days will be at hand….

    • GaryToo

      true but maybe cart b4 horse there i’vegp

  • Gary2

    Here is what I think–The future of republicans and conservatives is pretty dim due to demographics. There are almost no young conservatives. Simply look at a tea party rally-all over 45 and many in their government scooters. We just had more minority babies born than white. I doubt many minorities vote conservative. In fact I know and work with many and NONE of them would ever vote republican.

    Michael–what do you think? Strictly looking at demographics the conservative movement is doomed. Full disclosure–this is a good thing.

    The tea party is the rights last gasp.

    • GaryToo

      Minorities get more conservative with future generations, however elections in usa will be a moot point soon enough. 450 million hollow points TSA, homeland security, FEMA camps, all under democrat president GARY2, so the current democrat admin is the last one regardless of whether the minority majority ever come down from their hopium high.

    • Louise in MO

      GARY2

      It is nothing to be proud of that young minorities in particular would never vote Republican.

      Are you aware that 70 percent of minority black babies are born OUT OF WEDLOCK to SINGLE WOMEN! Guess who pays to take care of these babies!

      America is so morally bankrupt, and most of it is due to the young….not all, but most.

      Know you aren’t keen on the Bible, Gary2, but it foretells that “the end will come when everyone does what is right in their own eyes.” I’d say we are just about there!

  • Robert

    Sadly, there will be no avoiding this calamity. Even more unfortunate is the squabbling among those replying to this article. The enormity of this situation requires unity among those gettig screwed and a clear understanding of who is doing the screwing. Obama, Bush belong to the same club tell the same lies and and have the same agenda. You can’t save yourself or your loved ones while you are busy cutting each other’s throats.

    • GaryToo

      insignificant little people like to identify with something large like a political party, especially fighting an enemy that can do them no real harm, real brave warriors left against right. Ingroup/outgroup bravado. thats why this diversion comes up again and again regardless of how many times the sensible point out its two sides of same coin.

  • John McNamara

    Why don’t we just go to the record and avoid the Fox News-type reporting on such issues. Why do these morons continue to send these chain e-mails, spewing lies and character assassinations. Why do they open their mouths without factchecking what they say, then ask those who read their terrible lies to “PASS THIS ALONG, IF YOU LOVE YOUR COUNTRY,” or some other obnocuous parallell phrase. Here is the truth on Obama’s spending, and if you think that Ryan’s hope of austerity is the answer, you have not been reading the European headlines as of late. Here is the truth:
    http://tucsoncitizen.com/baja-democrats/2012/05/23/president-obama-out-of-control-spending-not-hardly/

    John McNamara

    • Louise in MO

      TObama lied about EVERYTHING during the 2008 campaign. He did NOT do one thing he promised…nothing!

      Our troops are still overseas.

      Guantanomo prison…still there.

      A transparent president…..he lies every time he opens his mouth!

      No lobbyists in his White House….get real, they have a revolving door into the oval office all to themselves.

      Will do away with pork barrel spending….go over bills line by line…..more LIES.

      These are just a few. Anyone who votes for him again are not paying attention.

      Furthermore “I AM NOT BETTER OFF THEN I WAS THREE AND A HALF YEARS AGO!

  • Scooter

    The borrower is always slave to the lender. Many are laboring under the notion that it is our nation that is at stake here. Rather, it is our very souls. If you are naive enough to believe that the president matters at all in this equation, you are lost already. These powers that we are wrestling against are far from stupid. They always get their desired outcome because they control all of the pieces. I urge each of you to step back and consider this from a spiritual perspective and abandon your patriotic dillusions. America was never what you thought it was. It is part of the final phase of a 6000+ year old plan that will end very badly.

  • http://thegreatrecession.info David Haggith

    While your article is right on about the problems of the national debt, the comparison between George Bush II and Obama is unfair for a few reasons:

    “the Obama years do not afford a fair comparison of Republican vs Democrat on the national debt because we entered what may eventually be called the Great Depression II during the Bush II years”

    “Obama has carried out exactly the economic policies that Bush switched to in his final year. He has used the same resident “experts” Bush was relying on, such as Ben Bernanke”

    “George W. Bush said he had to “give up on my Capitalist principles” and approved a 900-billion dollar bailout to be followed by ANOTHER 900 billion later if necessary. This second 900 billion was already scheduled to happen during the next administration (whether the next election turned out to yield a Republican president or a Democrat) and amounts to almost half of Obama’s accumulated debt. With his first bailout, Obama merely carried out what had been established in the final Bush year. ”

    ( Exerpts from: “Deficits, Debts and Democrats vs Republicans — US national debt in graphs by year and president” http://thegreatrecession.info/blog/?p=2213 )

    Much to my own surprise Republicans do not come out at all well compared to Democrats when one looks at the national debt and which part has been in control during the years when it grew the most. I say that as one who used to vote Republican far more than Democrat, but who is amending his ways now that he’s studied who has really done the most financial harm to this country.

    You do a great blog with lots of valuable content, so we are in agreement on many things, but I think it’s time to set the record straight on where a lot of Obama’s debt came from. He still doesn’t get a free pass by any means, since he has certainly done NO BETTER than George Bush.

    –Knave Dave

  • Washington

    Cold Case Posse – Obama’s Birth Certificate Investigation – Sheriff Joe Arpaio – Full Version

    http://www.youtube.com/watch?v=8muZ1Pe9OAo&feature=related

  • Bob Basher

    Ignorance truly is the nations worst enemy….and gary2 is at the top of the list sadly….very soon there will be too many in the wagon for the rest to pull anymore.

  • Ed_B

    “Why isn’t the U.S. economy in a depression right now?”

    Who says that it isn’t? One definition for a depression is “an extended period of time in which an economy contracts coupled with pervasively high unemployment”. Hmmm… is that sounding familiar to anyone else? Seems to me that the US economy has sucked since late 2007 and unemployment is so bad that the Fed and the gov are forced to lie about it lest there be armed insurrection. Check out the REAL numbers on http://www.shadowstats.com sometime. Unemployment is not 8%. It is closer to double that. Add in those who have simply given up looking for work any more and it is nearly triple. Inflation? Uncle Ben said that it was 3.5% in 2011. Real world numbers say that it was triple that. My shopping experiences indicate that the real world numbers are correct and that the Fed / gov numbers are pure BS. Yeah, I know that is not a huge surprise for most of us… just saying.

    • mondobeyondo

      The U.S. economy IS in a depression. The people running the country/pulling the strings just won’t admit it. It makes for bad press. The CBS Evening News ratings would plummet, and Diane Sawyer would be unemployed like so many of the rest of us. (Don’t worry, Diane! I still think you’re hotter than a cat on a hot tin roof!)

      And for you clueless out there – the mainstream media does not always tell the truth. It’s lies and manipulation.

      The real, true unemployment rate is far higher than 8.1 percent – or whatever they’re saying now. It’s more like 22 percent. That is Great Depression statistics.

  • Randy

    Gary2 is right. Dr. Krugman is right and if some of you would read his work with an open mind you would probably be surprised it makes a whole lot of sense. I was a Business Major in college and was gung ho Republican for many years. Over the last 10 years I have seen the light. I knew the financial industry deregulation was insanity. I knew that the housing market was a bubble of insane proportions and that a collapse was coming. There are very few people in this country that read as much as I do on economics, history, human psychology etc. etc.

    The bottom line is it is “NOT” Repeat “NOT” about the current level of debt or spending. I repeat for the millionth time, WE ARE ALL TO BLAME for the current level of debt and the current spending. Where were all of you people while Congress was ramping up spending to unheard of levels and also deregulating the financial industry? Our problems have mostly been created by policy started back in the 80’s thru recently and the biggest problem has been LOBBYISTS. Lobbyists and our government sold us all down the road and allowed policy that shipped all the good jobs overseas and a whole host of other things.

    The current level of debt is what it is. It is a well known fact and history proves it time and again: AUSTERITY NEVER EVER EVER helps the situation in a severe economic downturn. If we cut cut cut, we will eliminate tens of thousands of more jobs. It just creates a self feeding downward spiral.

    Okay, so eliminate a trillion dollars or two in Federal Spending, cut the welfare, medicare, foodstamps, social security. Not only will the economy completely crash, but there will be rioting in the streets and the end of Amerika as we know it. We can’t gut the middle class and ship those jobs overseas then cut taxes for the rich and expect to pay our bills. When our government allows a huge corporation like GE pay no taxes, then the party is over. The middle class is gutted and still shrinking. That leaves the rich and the corporations to pay more of the tax bill. Unfortunatley they are spending the tax money on lobbyists to ensure they pay as little taxes as possible.

    Michael says it is immoral to push off trillions of dollars in spending to future generations. I say it is immoral to allow lobbyists in Washington DC to push policy that benefits the few at the expense of the masses, I say it is immoral for someone who is making tens of millions of dollars to only pay a 13% tax rate. I say it is immoral for a multi billion dollar corporation to pay NO taxes. This country is broke because of lobbyists, special interest groups and corruption to the core. Fix the system and the debt will be fixed. Will it happen? I doubt it.

  • Howard Kahn

    Indian IT Engineer coming on H1b visa hacked into every US server and system. One the major reason of our economy collapse. They shifted many businesses to India, like Software and call center etc.
    Indian intelligence is sending more and more Indian engineers to hack and access almost every network and server for illegitimate economic gains.

  • bambi

    Debt-hawks tell us that by reducing the federal deficit, they protect our children and grandchildren. But in fact, they condemn our children, grandchildren and us to more costly medical services, fewer doctors, nurses and hospitals, as well as to lower paying Social Security, poorer roads and bridges, a less-equipped military, worse schools and indeed less of every benefit our monetarily sovereign government easily is able to pay for.

    Yes, the EU nations were foolish to surrender their ability to control their money supply. That control is one of the prime duties of any government. But we are even more foolish not to understand that we have that control, yet we neglect to use it.

    Our leaders fear deficits, not realizing that “federal deficit” merely is a synonym for “money created this year.” Rather than being a negative, it’s a positive; it’s an absolute necessity.

    Our leaders fear “federal debt” (which contrary to popular belief is not the total of deficits, but rather the total of outstanding T-securities). Federal debt could be eliminated by the simple act of no longer creating and selling T-securities. They became obsolete in 1971, the end of the gold standard. It is difficult to understand why Congress believes we must borrow the dollars we previously created and have the unlimited ability to create.

    Our leaders fear ” uncontrollable inflation.” They do not understand we are so far from uncontrollable inflation that since we went of the gold standard, there has been no relationship between federal spending and inflation, . Further, our leaders don’t realize inflation easily can be controlled by raising interest rates, which is exactly how the Fed has controlled inflation all these years.

    By what logic could these fears and the resultant actions, be considered “prudent” or “protecting our grandchildren”?

  • Peter

    I didn’t read further than this:

    “At this point, the U.S. national debt is over 15.7 trillion dollars.

    When Ronald Reagan took office it was less than a trillion dollars.”

    Shows me that this article isn’t only highly manipulative but outrightly dumb. Why compare with the time when Reagan took over (from whom?) and not with when he left office? Or when Bush junior left office? Because then you wouldn’t have a point anymore. This is sooo weak!

  • http://www.babyspittle.com babyspittle

    Republicans are insane or stupid.

    Obama inherited a 1.2 trillion dollar deficit.
    without fixing those bush policies that built the deficit, how much does that add up to over 4 years?

    4 x 1.2 trillion = 4.8 trillion without considering any of obama’s policies.

    you idiot conservatives continue to try and blame obama for republican policy.
    F-you, moronic anti-american POS’s.

  • donkey

    Er maybe this guy isnt smart enough to realize 1 trillion when reagan took office had a far greater value than 1 trillion today.

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