Get Prepared Now

New DVDs By Michael Snyder

Economic Collapse DVD
The Regathering Of Israel
Gold Buying Guide: Golden Eagle Coins
Buy Trees & Shrubs Online at The Tree Center

Recent Posts


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

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

All debt destroys.

All debt enslaves.

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

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

How could we have done such a thing?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


Happy New Year Middle Class: The Fiscal Cliff Is Going To Rip You To Shreds

Happy New Year Middle Class - The Fiscal Cliff Is Going To Rip You To ShredsThe middle class has quite a gift welcoming them as the calendar flips over to 2013.  Their payroll taxes are going to go up, their income taxes are going to go up, and approximately 28 million households are going to be hit with a huge, unexpected AMT tax bill on their 2012 earnings.  So happy New Year middle class!  You are about to be ripped to shreds.  In addition to the tax increases that I just mentioned, approximately two million unemployed Americans will instantly lose their extended unemployment benefits when 2013 begins, and new Obamacare tax hikes which will cost American taxpayers about a trillion dollars over the next decade will start to go into effect.  If Congress is not able to come to some sort of a deal, all middle class families in America will be sending thousands more dollars to Uncle Sam next year than they were previously.  And considering the fact that the middle class is already steadily shrinking and that the U.S. economy is already in an advanced state of decline, that is not good news.  You would think that both major political parties would want to do something to keep the middle class from being hit with this kind of tax sledgehammer.  Unfortunately, at this point it appears that our “leaders” in Washington D.C. are incapable of getting anything done.  So get ready for much smaller paychecks and much larger tax bills.  What is coming is not going to be pleasant.

So what happened?

Weren’t the tax increases only supposed to be for the wealthy?

Well, that is what the politicians always promise, but it is always the middle class that ends up getting hit the hardest.

In this day and age, the big corporations and the ultra-wealthy are absolute masters at avoiding taxes.

For example, Facebook paid approximately $4.64 million in taxes on their entire foreign profits of $1.344 billion for 2011.

That comes out to a tax rate of about 0.3 percent.

Overall, the global elite have approximately 18 trillion dollars parked in offshore tax havens such as the Cayman Islands.

Keep in mind that U.S. GDP for 2011 was only slightly above 15 trillion dollars.

So the global elite have an amount of money parked in offshore banks that is substantially larger than the total value of all goods and services produced in the United States each year.

According to one estimate, a third of all the wealth in the entire world is stationed in offshore banks.  Our politicians are playing checkers and the global elite are playing chess when it comes to taxes.  Our current system of taxation is irreversibly broken and should be entirely thrown out and replaced with something else.

And of course under our current system those that are poor don’t pay much in taxes because they are just trying to survive.

So who always ends up getting the painful end of the hammer?

The middle class does, and that really stinks.

Let us hope and pray that our politicians can come together and do something for the middle class.  In particular, we should all be screaming and yelling at our politicians about the Alternative Minimum Tax.  It was originally designed as a method to “tax the rich”, but unless Congress does something the middle class is about to be ripped to shreds by it.  The following is from a recent CNBC article about the AMT…

In a cruel epilogue to 2012, roughly 28 million families would owe the IRS $86 billion more than they anticipated for this year should the country plunge off the cliff, according to the nonpartisan Tax Policy Center.

Those families would face the “Alternative Minimum Tax,” which was introduced in 1969 to supposedly guarantee that wealthy Americans could not elude the taxman. But the AMT not only flopped, it was never indexed to inflation. So with each passing year, it seeps away from high society and into the wallets of Target and Wal-Mart shoppers. That sets up a disaster for April 15.

So how much money are we talking about?

According to that same article, many families are about to be socked by tax bills that will be absolutely huge…

On the whole, 98 percent of those with incomes between $200,000 to $500,000 would pay an additional $11,000 in AMT this year, according to the center’s estimates. About 88 percent of those with incomes of $100,000 to $200,000 would need to fork over another $3100, and even the majority of Americans with earnings between $75,000 and $100,000 would have an AMT liability.

Most of the tax increases that will be coming as a result of the fiscal cliff will be for 2013 earnings, but the AMT tax hike will apply to 2012 earnings.  So if you end up falling under the AMT, you better get ready to write a very large check to Uncle Sam in just a couple of months.

And the AMT is only just one of the very painful tax increases that American families will be facing.  If no deal is reached in Congress, every single middle class American taxpayer will be dealing with significantly higher taxes.

A recent ABC News report entitled “Fiscal Cliff: By The Numbers” detailed some of the other tax increases that you can expect in 2013…

So why don’t our politicians do something about all of this?

What are they fighting so bitterly about anyway?

Sadly, neither side is actually serious about substantially reducing the size of government deficits or about getting government spending under control.

During a recent interview on CNBC, Ron Paul explained that “they pretend they are fighting up there, but they really aren’t. They are arguing over power, spin, who looks good, who looks bad; all trying to preserve the system where they can spend what they want, take care of their friends and print money when they need it.”

Most in the mainstream media are making it sound like some kind of a “battle royal” is going on in Washington, but as Lou Dobbs recently pointed out, the U.S. national debt is going to end up in just about the same place no matter what happens.

According to Dobbs, if we “do nothing” the U.S. national debt will be approximately 25.8 trillion dollars in 2022.

If “Obama wins”, the U.S. national debt will be approximately 25.4 trillion dollars in 2022.

If “Boehner wins”, the U.S. national debt will be approximately 25.2 trillion dollars in 2022.

You can watch the entire analysis by Lou Dobbs right here

So they are putting all of us through all of this torture even though nothing will really change in the long run no matter who wins?

What kind of a circus is this?

Meanwhile, the reckless spending continues.

Barack Obama has just issued a new executive order that ends the pay freeze for federal workers that had been in place.

So now all federal employees will be getting a nice hefty pay raise.

For example, Vice President Joe Biden brought in $225,521 this year.

Next year, he will make $231,900.

Not that our politicians really need the money.  Most members of Congress are millionaires anyway.  But if they can get us to pay for it, they might as well go for it, eh?

There are now close to half a million federal employees that bring home at least $100,000 a year.  Plus, it is important to keep in mind that the benefits that federal employees get are absolutely outstanding, and it is close to impossible to actually fire a federal worker.

Life is good if you are working for Uncle Sam.

Meanwhile, our politicians seem determined to keep draining more blood out of the middle class.  Even if a “deal” is reached, we will still be hit by some categories of tax increases.  Let’s just hope and pray that we don’t get hit by all of the tax increases that are scheduled to go into effect.  That would be a financial disaster for millions of families.

So happy New Year middle class.  Your taxes are about to go through the roof and our politicians are too busy fighting with each other to do anything about it.

What else will 2013 bring?

Funny Baby

DVDs By Michael

Economic Collapse DVD
Ready Made Resources 2015
Shocking Forecast
High Blood Pressure?

Economic Collapse Investing
Thrive Banner
The End Of All Disease
The Day Of The Lord Is At Hand
Panama Relocation Tours
The 1 Must Own Gold Stock
The Babylon Code
Print Friendly and PDF
Facebook Twitter More...