Destroying America: It Is Being Projected That The U.S. National Debt Will Hit 99 Trillion Dollars By 2048

Temporary prosperity that is created by exploding levels of debt is not actually prosperity at all.  At this moment, the U.S. government is 21.4 trillion dollars in debt, and we have been adding an average of more than a trillion dollars a year to that debt since 2009.  And if we stay on the path that we are currently on, the trajectory of our debt will soon accelerate dramatically.  In fact, as you will see below, the Congressional Budget Office is now projecting that the U.S. national debt will reach 99 trillion dollars by 2048 if nothing changes.  Congressional Budget Office projections always tend to be overly optimistic, and so the reality will probably be much worse than that.  Of course we will never actually see the day when our national debt reaches 99 trillion dollars.  Our government (and our entire society along with it) will collapse long before we ever get to that point.  In our endless greed, we are literally destroying America, and emergency action must be taken immediately if we are to survive.

Debt always makes things seem better in the short-term, and it is always destructive in the long-term.

When we go into debt as a nation, we are literally stealing from the bright future that our children and our grandchildren were supposed to have.  Through the first 11 months of this fiscal year, the official U.S. budget deficit was $895,000,000,000, which means that we continue to steal more than 100 million dollars from future generations of Americans every single hour of every single day.

And it is important to remember that not all additions to the national debt are included in the official budget deficit.  One year ago, our national debt was sitting at 20.1 trillion dollars, and that means that we have added an astounding 1.3 trillion dollars to the debt over the past 12 months.

This is complete and utter insanity, and it must stop now.

Let me try to put this into perspective.  Not too long ago, Venezuela was once one of the wealthiest countries in South America.  These days, many Americans like to laugh at them, but we are on the exact same path that Venezuela has gone down.  Eventually, the day comes when there is not enough of someone else’s money to spend, and suffocating levels of debt make the option of printing giant mountains of money too tempting to resist.  At that point it is just a matter of time before the currency is destroyed and society devolves into chaos.

If current Congressional Budget Office projections area anywhere close to accurate, America’s date with destiny is rapidly approaching.  The following comes from CBS News

Under the new baseline incorporating recent changes in law, the national debt reaches $99 trillion in 2048 — equivalent to 152 percent of GDP.

And the CBO is also projecting that our yearly budget deficit will go from one trillion dollars today to 6 trillion dollars by 2048…

The federal budget deficit is expected to break through a trillion dollars in 2020 and never look back, reaching $2 trillion in 2032 and $6 trillion in 2048.

But like I said, we will never actually get there, because our society will collapse by then.

So we only have a limited amount of time to save America, and the clock is ticking.

At this point, the total amount of U.S. government debt held by the public has already surpassed all household debt

Debt held by the public will top $127,000 per household by the end of the year, according to JPMorgan. Personal debt per household will average about $126,000.

“This is an astonishing statistic,” said David Kelly, chief global strategist at JPMorgan Funds. “Americans have a lot of debt. I always feel nervous signing a mortgage or a car loan. I think, can I afford all this debt? Then you realize the government is busy borrowing even more money on your behalf.”

I wish that I could get more people to understand just how serious this is.

Do you know what the inflation rate will be in Venezuela this year?

The IMF is projecting that it will be more than a million percent.

Chaos is everywhere, crime is out of control and people are starving, and yet we refuse to learn from what has happened to them.

We just keep spending and spending, and we think that we have found the key to prosperity.

But what we have really found is an accelerated path to economic hell.

And it isn’t just the U.S. that is in deep trouble.  The entire globe has been on a massive debt binge, and it is only a matter of time before this gigantic debt bubble implodes.  The following comes from an excellent piece by Larry Elliott

The BIS says in its latest annual report that there are already material risks to financial stability. “In some respects, the risks mirror the unbalanced post-crisis recovery and its excessive reliance on monetary policy. Where financial vulnerabilities exist, they have been building up, in their usual gradual and persistent way. More generally, financial markets are overstretched … and we have seen a continuous rise in the global stock of debt, private plus public, in relation to GDP. This has extended a trend that goes back to well before the crisis and that has coincided with a long-term decline in interest rates.”

Behind the dry official language, the message is clear. A recovery that is based around high and rising levels of debt is really no recovery at all. The world economy is, in all material respects, the same as it was in the run-up to the 2008 crisis. The necessary reforms to a flawed model have not taken place, which is why the BIS warning should not be ignored.

On a personal level, have you ever gotten into debt trouble?

At first, it was a lot of fun enjoying all of the new things that all of that debt bought, but the pain afterwards greatly outweighed the initial temporary prosperity.

The same principle is going to also apply on a global scale.  The U.S. government is now more than 20 trillion dollars in debt, and the entire globe is now more than 250 trillion dollars in debt, and a day of reckoning is coming.  The following comes from David Stockman

And it’s that $20 trillion, built up over the last two decades, that has basically distorted everything – falsified prices, repressed interest rates, caused an explosion of debt. Twenty years ago there was $40 trillion of debt in the world today there is $250 trillion worth of debt in the world. The leverage of the world has gone from 1.3 times which is stable…to 3.3 times, which basically means the world has created a huge temporary prosperity by burying itself in debt.

It would take an unprecedented effort to turn things around, but right now hardly anyone seems concerned about bringing all of this debt under control.

So we continue to roll on toward our date with financial disaster, and most people are completely oblivious to what is about to happen to us.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

10 Numbers That Prove That America’s Current Financial Condition Is A Horror Show

America’s long-term “balance sheet numbers” just continue to get progressively worse.  Unfortunately, since the stock market has been soaring and the GDP numbers look okay, most Americans assume that the U.S. economy is doing just fine.  But the stock market was soaring and the GDP numbers looked okay just prior to the great financial crisis of 2008 as well, and we saw how that turned out.  The truth is that GDP is not the best measure for the health of the economy.  Judging the U.S. economy by GDP is basically like measuring the financial health of an individual by how much money he or she spends, and I will attempt to illustrate that in this article.

If I went out right now and got a whole bunch of new credit cards and started spending money like there was no tomorrow, would that mean that my financial condition had improved?

No, in fact it would mean that my long-term financial condition just got a whole lot worse.

GDP is a measurement of how much economic activity is happening in our society, and it is basically an indication of how much money is changing hands.

But just because more money is changing hands does not mean that things are going well.  What really matters is what is happening to assets and liabilities.  In other words, is wealth being built or is more debt just being accumulated?

Sadly, there are only a handful of bright spots in our economy.  A couple of very large tech companies such as Apple are accumulating wealth, but just about everywhere else you look debt is growing at an unprecedented pace.  Household debt has never been higher, corporate debt has doubled since the last financial crisis, state and local government debt is at record highs, and the U.S. national debt is wildly out of control.

If I went out tomorrow and spent $20,000 with a bunch of new credit cards, I could claim that my “personal GDP” was soaring because I was spending a lot more money then before.  But my boasting would be pointless because in reality I would just be putting my family in an extremely precarious financial position.

Economic growth that is produced by continually increasing amounts of debt is not a positive thing.  I wish that more people understood this very basic concept.  The following are 10 numbers that prove that America’s current financial condition is a horror show…

#1 U.S. consumer credit just hit another all-time record high.  In the second quarter of 2008, total consumer credit reached a grand total of 2.63 trillion dollars, and now ten years later that number has soared to 3.87 trillion dollars.  That is an increase of 48 percent in just one decade.

#2 Student loan debt has surpassed 1.5 trillion dollars for the first time ever.  Over the last 8 years, the total amount of student loan debt has shot up 79 percent in the United States.

#3 According to the Federal Reserve, the credit card default rate in the U.S. has risen for 7 quarters in a row.

#4 One recent survey found that 42 percent of American consumers paid their credit card bill late “at least once in the last year”, and 24 percent of Americans consumers paid their credit card bills late “more than once in the last year”.

#5 Real wage growth in the United States just declined by the most that we have seen in 6 years.

#6 According to one recent study, the “rate of people 65 and older filing for bankruptcy is three times what it was in 1991”.

#7 We are in the midst of the greatest “retail apocalypse” in American history.  At this point, 57 major retailers have announced store closings so far in 2018.

#8 The size of the official U.S. budget deficit is up 21 percent under President Trump.

#9 It is being projected that interest on the national debt will surpass half a trillion dollars for the first time ever this year.

#10 Goldman Sachs is projecting that the yearly U.S. budget deficit will surpass 2 trillion dollars by 2028.

And I haven’t even talked about unfunded liabilities.  Those are essentially future commitments that we have made that we don’t have the money for at the moment.

According to Professor Larry Kotlikoff, our unfunded liabilities are well in excess of 200 trillion dollars right now.

If individuals, corporations, state and local governments and the federal government all stopped going into more debt, we would plunge into the greatest economic depression in U.S. history immediately.

The system is deeply, deeply broken, and the only way that we can keep this debt bubble going is go keep accumulating even more debt.

Anyone out there that believes that the U.S. economy has been “fixed” is completely deceived.  NOTHING has been fixed.  Instead, our long-term financial imbalances are getting worse at an escalating pace.

Unfortunately, the attitude of the general public is so similar to what it was just prior to the great financial crisis of 2008.  Most people seem to assume that just because we have not experienced great consequences for our very foolish decisions up to this point that no great consequences are coming.

And many also assume that since control of the White House has switched parties that somehow things must magically be better as well.

Of course the truth is that the only way that our long-term problems are ever going to be fixed is if we start addressing the issues that caused those long-term problems in the first place, and that simply is not happening.

As I have traveled extensively over the course of the past year, I discovered that most Americans do not want to make fundamental changes to the system, because they are under the illusion that the current system is working just fine.  So it will probably take another major crisis before most people are ready to consider fundamental changes, and when it finally arrives we will need to be ready to educate the public.

The system that we have today is not fundamentally sound at all.  We desperately need to return to the values and principles that this nation was founded upon, but until things start getting really, really bad it is highly unlikely that the American people will be ready to embrace those changes.

Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

Bankrupt America: Bankruptcy Soars As The Country Grapples With An Unprecedented Debt Problem

America, you officially have a debt problem, and I am not just talking about the national debt.  Consumer bankruptcies are surging, corporate debt has doubled since the last financial crisis, state and local government debt loads have never been higher, and the federal government has been adding more than a trillion dollars a year to the federal debt ever since Barack Obama entered the White House.  We have been on the greatest debt binge in human history, and it has enabled us to enjoy our ridiculously high standard of living for far longer than we deserved.  Many of us have been sounding the alarm about our debt problem for a very long time, but now even the mainstream news is freaking out about it.  I have a feeling that they just want something else to hammer President Trump over the head with, but they are actually speaking the truth when they say that we are facing an unprecedented debt crisis.

For example, the New York Times just published a piece that discussed the fact that the bankruptcy rate among retirees is about three times higher than it was in 1991…

For a rapidly growing share of older Americans, traditional ideas about life in retirement are being upended by a dismal reality: bankruptcy.

The signs of potential trouble — vanishing pensions, soaring medical expenses, inadequate savings — have been building for years. Now, new research sheds light on the scope of the problem: The rate of people 65 and older filing for bankruptcy is three times what it was in 1991, the study found, and the same group accounts for a far greater share of all filers.

Overall, Baby Boomers are doing a whole lot better financially than the generations coming after them, and so this is very troubling news.

And here is another very troubling fact from that same article

Not only are more older people seeking relief through bankruptcy, but they also represent a widening slice of all filers: 12.2 percent of filers are now 65 or older, up from 2.1 percent in 1991.

The jump is so pronounced, the study says, that the aging of the baby boom generation cannot explain it.

Of course it isn’t just Baby Boomers that are drowning in debt.

Collectively, U.S. households are 13.15 trillion dollars in debt, which is the highest level in American history.

All over the nation, companies are also going bankrupt at a staggering pace.  This week we learned that the biggest mattress retailer in the entire country “Is considering a potential bankruptcy filing”

Mattress Firm Inc, the largest U.S. mattress retailer, is considering a potential bankruptcy filing as it seeks ways to get out of costly store leases and shut some of its 3,000 locations that are losing money, people familiar with the matter said.

Mattress Firm’s deliberations offer the latest example of a U.S. brick-and-mortar retailer struggling financially amid competition from e-commerce firms such as Amazon.com Inc (AMZN.O).

We have seen retailer after retailer go down, and it is being projected that this will be the worst year for retail store closings ever.

But it isn’t just retailers that are hurting.  Yesterday, I came across an article about a television manufacturer in South Carolina that just had to lay off “94 percent of their workforce”

A TV manufacturer based in South Carolina have blamed Trump’s trade tariffs for laying off 94 percent of their workforce.

Element Electronics now has just eight employees in their company after letting 126 members of staff go.

They said the tariffs imposed on goods from China mean they can no longer buy essential components for their TVs.

During this next economic downturn, I believe that we are going to see the biggest wave of corporate bankruptcies that this country has ever seen.

State and local governments don’t go bankrupt, but they are drowning in debt as well.  State and local government debt has ballooned to the highest levels on record in recent years, and one of the big reasons for this is because we are facing a coming pension crisis that threatens to absolutely overwhelm us

Many cities and states can no longer afford the unsustainable retirement promises made to millions of public workers over many years. By one estimate they are short $5 trillion, an amount that is roughly equal to the output of the world’s third-largest economy.

Certain pension funds face the prospect of insolvency unless governments increase taxes, divert funds or persuade workers to relinquish money they are owed. It is increasingly likely that retirees, as well as new workers, will be forced to take deeper benefit cuts.

Meanwhile, the federal government continues to engage in incredibly reckless financial behavior.  When Barack Obama was elected, we were 10 trillion dollars in debt, and now we are 21 trillion dollars in debt.

What that means is that we have been adding more than a trillion dollars to the national debt per year since 2008, and we continue to steal more than 100 million dollars every single hour of every single day from future generations of Americans.

And even though the Republicans have been in control in Washington, very few of our leaders seem to want to alter the trajectory that we are on.  But if something is not done, absolute disaster is a certainty.  At this point, it is being projected that our debt will reach 30 trillion dollars by 2028 if we stay on this current path.  It would be difficult to overstate the grave danger that we are facing, but nothing is being done to turn things around.  Here are some more projections from the Congressional Budget Office

In 2022, the Highway Trust Fund will run out of full funding. In 2026, the Medicare Hospital Insurance Trust Fund follows. In 2032, the Social Security trust fund surpluses run dry, and all beneficiaries regardless of age or income level will face a 21 percent across-the-board benefit cut. Before 2030, we could have trillion-dollar annual interest payments. Interest rates have been low until now, but that is changing. As rates go up, we have to pay more on new debt and on all accumulated debt.

The amount we pay in interest on the debt is set to triple over the next ten years. But if interest rates rise just 1 point higher than expected, the government will owe an extra $1.9 trillion over 10 years.

On top of everything else, everyone else around the world has been on a massive debt binge as well.

Total global debt is well above 200 trillion dollars, and it has nearly quadrupled over the past 17 years.

Are you starting to understand why they call this a “debt bubble”?

Unfortunately, all debt bubbles must burst eventually, and the one that we are in right now is definitely on borrowed time.

Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

We Are About To See A Great, Big Debt-Fueled GDP Number For The 2nd Quarter, But There Is A Catch…

What kind of number for GDP growth in the 2nd quarter will we get on Friday? The market consensus is somewhere around 4 percent, but there are many out there that are expecting a number above 5 percent. The last time we witnessed such a number was during the third quarter of 2014 when the U.S. economy grew by 5.2 percent. If Friday’s GDP figure is better than that, it will be the best report that we have had since 2003. But let’s keep things in perspective. In seven of the last 10 years, GDP growth was much lower than anticipated in the first quarter and much higher than anticipated in the second quarter. It looks like that pattern may play out again in 2018, and analysts are already warning us to expect a much lower number for the third quarter.

And even though we have seen good quarters before, we still have not had a full year of 3 percent growth since the middle of the Bush administration.

Last year the U.S. economy grew by only 2.3 percent, which would be a horrible figure even if the government was using honest numbers. According to John Williams of shadowstats.com, GDP growth for 2017 would have actually been negative if honest numbers were being used.

So let’s not get too excited over one quarter. According to the official government numbers, the U.S. economy has not grown by at least 3 percent on an annual basis in 14 years. That is the longest stretch in all of U.S. history by a wide margin, and it is going to take a really good second half to break that string this year.

But that isn’t stopping people from hyping tomorrow’s number. According to White House economic adviser Larry Kudlow, we should see a number “in the 4 to 5 percent zone”

“You’re going to get a GDP number on Friday that’s going to be a very impressive number. Some people are in the 4 to 5 percent zone,” Larry Kudlow, the White House economic adviser, told CBS This Morning.

And he is probably right.

In fact, we might see a number that is even better than that.

As CBS News has noted, the second quarter came after the new tax cuts were implemented but before the trade war started…

The second-quarter figure will be widely seen as a referendum on the GOP tax cuts of late 2017. This quarter benefits from a timing sweet spot, coming after the deficit-busting cuts trickled through the economy, but before the effects of the White House’s protectionist trade policies are fully felt.

If we get a really good number, it may actually be bad news for investors.

As Marketwatch has deftly observed, a high GDP growth number may affirm the Federal Reserve’s narrative that they need to keep raising rates in order to keep the economy from “overheating”…

Ultimately, a reading that comes in too hot could fuel expectations that the Federal Reserve may need to ramp up its pace of rate increases, with the possibility of a further two rate increases in September and December likely to tamp down too-hot growth. That could knock bond prices lower, conversely pushing rates up and pressuring equity markets lower as investors worry about rising borrowing costs.

Ultimately, most of the analysis that you are going to hear about this GDP number is a load of nonsense.

The only reason why the U.S. economy is showing a little bit of growth is because we are on the greatest debt binge in our history.

When Donald Trump entered the White House the U.S. government was 19.9 trillion dollars in debt, and now that figure has ballooned to 21.2 trillion dollars in debt.

If we had not added 1.3 trillion dollars to the national debt over the past year and a half, there is no way that the economy would be growing right now.

And to be honest, it wouldn’t be too difficult to ramp up GDP growth to 10 percent. All we would have to do would be to borrow and spend enough money.

So why don’t we do that?

Well, it is because we are already on a path to national suicide. It is being projected that our national debt will hit 30 trillion dollars by 2028, and neither the Republicans nor the Democrats seem concerned about doing anything to alter this trajectory.

If we do get to 30 trillion dollars in debt and interest rates return to their long-term averages, we will be paying more than 1.5 trillion dollars a year just in interest on the national debt and our nation will be financially destroyed.

Many of our largest states are absolutely drowning in debt as well. The following comes from Fox Business

In Illinois, for instance, vendors wait months to be paid by a government that’s $30 billion in debt, and one whose bonds are just one notch above junk bond status, according to Daniels. New York’s more than $356 billion in debt; New Jersey more than $104 billion; and California more than $428 billion.

As I have explained so many times, we are living a debt-fueled standard of living that is way above what we deserve.

If we only spent what we had, the economy would immediately plunge into a depression and our standard of living would collapse. The only way to keep the party going is to borrow and spend increasingly larger amounts of money, but everyone knows that this is simply not sustainable.

And it isn’t just government debt that is the problem.

Since the last financial crisis, corporate debt has doubled.

A massive consumer debt binge has pushed credit card debt to an all-time record high, and at this point the average American household is nearly $140,000 in debt.

When you add all forms of debt together, Americans are nearly 70 trillion dollars in the hole right now. For much more on all of this, please see my previous article entitled “Why America Is Heading Straight Toward The Worst Debt Crisis In History”.

So enjoy the debt-fueled GDP numbers for now, because the truth is that they aren’t going to last for long.

Our endless appetite for debt is literally destroying the bright future that our children and our grandchildren were supposed to have, and someday they will look back and curse us for what we have done to their country.

Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

When They Shall Say “Peace And Safety”: Polls Show Americans Are The Most Optimistic They Have Been In A Very Long Time

By a very wide margin, this is the most optimistic that Americans have been about the future since I started The Economic Collapse Blog in late 2009.  Even though the middle class is shrinking, 102 million working age Americans do not have a job, and we are now 21 trillion dollars in debt, most people are feeling really good about things right now.  Especially among Republicans, there is an overwhelming consensus that the United States is starting to head in the right direction and that better times are ahead.  As a result, so many of the exact same people that were “prepping” while Barack Obama was in the White House are now partying now that Donald Trump is president.  But none of the long-term trends that are systematically destroying our nation have been significantly altered, and none of our long-term problems have been solved.  We are still steamrolling down a path toward national suicide, but most Americans simply do not care.

What Americans do care about is that it seems to be easier to find a job at the moment than it has in a very long time.  In fact, the percentage of Americans that believe that it is “a good time to find a quality job” is at the highest level that Gallup has ever recorded

Sixty-seven percent of Americans believe that now is a good time to find a quality job in the U.S., the highest percentage in 17 years of Gallup polling. Optimism about the availability of good jobs has grown by 25 percentage points since Donald Trump was elected president.

Gallup has asked Americans to say whether it is a good time or bad time to find a quality job monthly since August 2001. Prior to 2017, the percentage saying “good time” never reached 50%, but since Trump took office in January that year, the percentage has stayed at or above 50% and has been higher than 60% in eight of the past nine months.

A Rasmussen survey that asked a similar question came up with very similar results.

Of course the reality of the matter is that 66 percent of all jobs in the United States pay less than 20 dollars an hour, and 78 million Americans are participating in the “gig economy” because they need to supplement their normal incomes in order to make ends meet.

But perception is sometimes more powerful than reality, and right now the perception is that the U.S. economy is doing well

“Nothing is better for the issues about trade wars or issues about G-7 than a good economy,” Omar Aguilar, chief investment officer for equities at Charles Schwab Investment Management, said by phone. “The jobs report on Friday gave a lot of people confidence that the U.S. economy is still pretty solid.”

Small businesses in the United States are also feeling extremely optimistic right now.

In fact, one survey found that small business optimism has surged to record highs

The Q2 MetLife & U.S. Chamber of Commerce Small Business Index (Index) released today recorded an overall score of 68.7, up 2.4 points from the Q1 score of 66.3, driven in part by the strongest local economic outlook on record, a firmer hiring environment, and a stronger backdrop for investing. Two out of every three small business owners are optimistic about their company and the small business environment in the United States.

That is definitely a good sign, because we desperately need small businesses to do well, but is all of this optimism really warranted?

The financial markets continue to be filled with optimism as well.  Despite the outbreak of an international trade war and tremendous turmoil over in Europe, the Nasdaq closed at a brand new record high on Tuesday.

In recent years stock prices have just continued to go up and up and up no matter what news breaks, and now we are facing the greatest stock market bubble in our history.

How long do we have until it finally bursts?

There is a lot of optimism in the housing market as well.  At this point, a staggering 64 percent of all adults in this country believe that housing prices will continue to go up over the next year.  The following comes from Marketwatch

A majority of U.S. adults (64%) continue to believe home prices in their local area will increase over the next year, a recent survey released by polling firm Gallup concluded. That’s up nine percentage points over the past two years and is the highest percentage since before the housing market crash and Great Recession in the mid-2000s.

The level of optimism is edging closer to the 70% of adults in 2005 who said prices would continue rising. That, of course, was less than one year before the peak of the housing market bubble in early 2006, which was largely fueled by a wave of subprime lending.

Moving beyond short-term concerns, Americans are also becoming increasingly optimistic about the long-term future too.  A recent Gallup survey discovered that approximately 60 percent of all Americans believe that our young people “will have a better life than their parents did”…

About six in 10 Americans say it is very or somewhat likely that today’s young people will have a better life than their parents did. The latest reading marks continued improvement since the low of 44% in 2011 but is still not back to the level of 66% measured in February 2008.

Hopefully the optimists will be correct, but I do not believe they will be.  If we keep doing the same things that we have been doing as a nation, it is simply not possible that there will be any sort of a bright future for America.

And I will tell you one area where Americans are quite pessimistic.  One recent survey found that 77 percent of all Americans believe that morality is in decline in this country.  Our national character continues to deteriorate at a frightening pace, and most Americans appear to be quite aware that this is happening.

But instead of changing our ways, we proudly believe that our “greatness” will allow us to continue to enjoy a massively inflated debt-fueled standard of living for a very long time to come.

Unfortunately for us, it simply does not work that way, and as a nation we are way overdue for a very serious wake up call.

Michael Snyder is a nationally syndicated writer, media personality and political activist. He is the author of four books including The Beginning Of The End and Living A Life That Really Matters.

 

Why America Is Heading Straight Toward The Worst Debt Crisis In History

Today, America is nearly 70 trillion dollars in debt, and that debt is shooting higher at an exponential rate.  Usually most of the focus in on the national debt, which is now 21 trillion dollars and rising, but when you total all forms of debt in our society together it comes to a grand total just short of 70 trillion dollars.  Many people seem to believe that the debt imbalances that existed prior to the great financial crisis of 2008 have been solved, but that is not the case at all.  We are living in the terminal phase of the greatest debt bubble in history, and with each passing day that mountain of debt just keeps on getting bigger and bigger.  It simply is not mathematically possible for debt to keep on growing at a pace that is many times greater than GDP growth, and at some point this absurd bubble will come to an abrupt end.  So those that are forecasting many years of prosperity to come are simply being delusional.  Our current standard of living is very heavily fueled by debt, and at some point we are going to hit a wall.

Let’s talk about consumer debt first.  Excluding mortgage debt, consumer debt is projected to hit the 4 trillion dollar mark by the end of the year

Americans are in a borrowing mood, and their total tab for consumer debt could reach a record $4 trillion by the end of 2018.

That’s according to LendingTree, a loan comparison website, which analyzed data from the Federal Reserve on nonmortgage debts including credit cards, and auto, personal and student loans.

Americans owe more than 26 percent of their annual income to this debt. That’s up from 22 percent in 2010. It’s also higher than debt levels during the mid-2000s when credit availability soared.

We have never seen this level of consumer debt before in all of U.S. history.  Just a few days ago I wrote about how tens of millions of Americans are living on the edge financially, and this is yet more evidence to back up that claim.

Right now, Americans owe more than a trillion dollars on auto loans, and we are clearly in the greatest auto loan debt bubble that we have ever seen.

Americans also owe more than a trillion dollars on their credit cards, and credit card delinquency rates are rising.  In fact, in some ways what we witnessed during the first quarter of 2018 was quite reminiscent of the peak of the last financial crisis

In the first quarter, the delinquency rate on credit-card loan balances at commercial banks other than the largest 100 – so at the 4,788 smaller banks in the US – spiked in to 5.9%. This exceeds the peak during the Financial Crisis. The credit-card charge-off rate at these banks spiked to 8%. This is approaching the peak during the Financial Crisis.

The student loan debt bubble has also surpassed a trillion dollars, and the average young adult with student loan debt has a negative net worth

Despite economic and stock market gains over the past nine years, many young adults are still struggling to get ahead in their financial lives and, in some ways, things may have actually gotten worse.

Americans age 25 to 34 with college degrees and student debt have a median net wealth of negative $1,900, according to a report analyzing 2016 Federal Reserve data released Thursday by Young Invincibles, a young adult advocacy group. That’s a drop of $9,000 from 2013, YI’s analysis found.

Meanwhile, corporate debt has doubled since the last financial crisis.  Thousands of companies are so highly leveraged that even a slight economic downturn could completely wipe them out.

State and local government debt levels are also at record highs, but nobody seems to care.  And if we never have another recession everything might work out okay.

The biggest offender of all, of course, is the United States federal government.  We have been adding about a trillion dollars a year to the national debt since Barack Obama first entered the White House, and Goldman Sachs is projecting that number will surpass 2 trillion dollars by 2028

The fiscal outlook for the United States “is not good,” according to Goldman Sachs, and could pose a threat to the country’s economic security during the next recession.

According to forecasts from the bank’s chief economist, the federal deficit will increase from $825 billion (or 4.1 percent of gross domestic product) to $1.25 trillion (5.5 percent of GDP) by 2021. And by 2028, the bank expects the number to balloon to $2.05 trillion (7 percent of GDP).

Our national debt has been growing at an exponential rate for decades, and because total disaster has not struck yet many people seem to believe that we can keep on doing this.

But the truth is that it simply is not possible.  There is only so much debt that a society can take on before the entire system implodes.

So how close are we to that point?

The following chart comes from Charles Hugh Smith, and it shows the exponential rise in overall debt levels that has taken us to the brink of nearly 70 trillion dollars in debt…

And this next chart from the SRSrocco Report shows how our rate of overall debt growth has compared to our rate of GDP growth…

We are literally on a path to national suicide.

Whether it happens next month, next year or five years from now, it is inevitable that we are going to slam into a brick wall of financial reality.

For the moment, the only way that we can continue to enjoy our current debt-fueled standard of living is to continue increasing our debt bubble at an exponential rate.

But that can only go on for so long, and when the party ends we are going to experience the greatest debt crisis in history.

Today, the average American household is nearly $140,000 in debt, and that is more than double median household income.  And if we were to include each household’s share of corporate debt, local government debt, state government debt and federal government debt, that number would be many times higher.

All of this debt will never be repaid.  Ultimately there will come a day when the system will completely collapse under the weight of so much debt, and most Americans are completely unaware that such a day of reckoning is rapidly approaching.

Michael Snyder is a nationally syndicated writer, media personality and political activist.  He is the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Budget-Busting $1.3 Trillion Spending Bill That Was Just Passed By Congress Is A Betrayal Of The American People

I don’t know if I even have the words to express how disgusted I am with the omnibus spending bill that was just rushed through Congress.  Members of the House of Representatives were given less than 24 hours to read this 2,232 page monstrosity of a bill before they were expected to vote on it, and so obviously nobody was able to read the entire thing before the vote was held.  This is the kind of thing that Democrats were greatly criticized for in the past, but now it is Republicans that are doing it.  The Republican Party is supposed to stand for limited government, and this is yet another example that shows how badly broken the system in Washington has become.

I am running for Congress in Idaho’s first congressional district, and I want to make it exceedingly clear that I would have voted against this bill.  In addition to fully funding Planned Parenthood, this bill also funds a whole host of other liberal priorities.  But other than an increase in military spending, conservative priorities are almost entirely ignored by this bill.

Over the past decade, we have been adding more than a trillion dollars a year to the national debt, and this omnibus spending bill dramatically increases government spending at a time when we should be desperately trying to get our financial house in order.

On Twitter, Rand Paul documented just a few of the examples of the tremendous waste in this bill…

o $12m for Scholarships for Lebanon
o $20m for Middle East Partnership Initiative Scholarship Program
o $12m in military funding for Vietnam
o $3.5m in nutrition assistance to Laos
o $15m in Developmental assistance to China
o $10m for Women LEOs in Afghanistan
o $1m for the World Meteorological Organization
o $218m for Promoting Democracy Development in Europe
o $10m for disadvantaged Egyptian Students
o $1.371bn for Contributions to International Organizations
o $51m to promote International Family Planning and Reproductive Health
o $7m promoting International Conservation
o $10m for UN Environmental Programs
o $5m for Vietnam Education Foundation Grants
o $2.579m for Commission on Security and Co-operation in Europe
o $15m to USAID for promoting international higher education between universities
o $1m for the Cultural Antiquities Task Force
o $6.25m for the Ambassadors Fund for Cultural Preservation
o $20m for Countering Foreign State Propaganda
o $12m for Countering State Disinformation and Pressure

After it passed, Democratic leaders were jubilant.  The following comes from the American Mirror

House Minority Leader Nancy Pelosi and her esteemed counterpart in the Senate, Sen. Chuck Schumer, are declaring the spending bill rushed through by Republicans this week as “a victory.”

“The distinguished leader has clearly put forth many of the priorities that we’re very proud of in a bill that’s one yard high,” Pelosi said of House Speaker Paul Ryan at a joint press conference with Schumer on Thursday.

Senator Schumer also admitted that the Democrats got more accomplished in this bill than they did during any of the spending bills when Barack Obama was in the White House, and Nancy Pelosi added that Republican leadership rushed this legislation through so quickly because “they didn’t want their colleagues to see what was in the bill.”

What we have in Washington D.C. today doesn’t look anything like what our founders originally intended.  It is time to take our government back, and we need fresh leadership in Washington.

I am not going to Washington to be a cog in the system.  Rather, I am going to Washington to drain the swamp and to turn the current corrupt system completely upside down.  If you would like to learn more about what we are trying to do, please visit MichaelSnyderForCongress.com.

Michael Snyder is a pro-Trump candidate for Congress in Idaho’s First Congressional District.  If you would like to help him win on May 15th, you can donate online, by Paypal or by sending a check made out to “Michael Snyder for Congress” to P.O. Box 1136 – Bonners Ferry, ID 83805.  To learn more, please visit MichaelSnyderForCongress.com.