The Beginning Of The End
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The United States Of Debt: Total Debt In America Hits A New Record High Of Nearly 60 Trillion Dollars

America Is BrokeWhat would you say if I told you that Americans are nearly 60 TRILLION dollars in debt?  Well, it is true.  When you total up all forms of debt including government debt, business debt, mortgage debt and consumer debt, we are 59.4 trillion dollars in debt.  That is an amount of money so large that it is difficult to describe it with words.  For example, if you were alive when Jesus Christ was born and you had spent 80 million dollars every single day since then, you still would not have spent 59.4 trillion dollars by now.  And most of this debt has been accumulated in recent decades.  If you go back 40 years ago, total debt in America was sitting at about 2.2 trillion dollars.  Somehow over the past four decades we have allowed the total amount of debt in the United States to get approximately 27 times larger.  This is utter insanity, and anyone that thinks this is sustainable is completely deluded.  We are living in the greatest debt bubble of all time, and there is no way that this is going to end well.  Just check out the chart…

Total Debt

When the last recession hit, total debt in America actually started going down for a short period of time.

But then the Federal Reserve and our politicians in Washington worked feverishly to reinflate the bubble and they assured everyone that everything was going to be just fine.  So Americans once again resorted to their free spending ways, and now total debt in the United States is rising at almost the same trajectory as before and has hit a new all-time record high.

We see a similar thing when we look at a chart for consumer debt in America…

Total Consumer Credit

For a while after the recession it was trendy to cut up your credit cards and get out of debt.

But that fad wore off rather quickly, didn’t it?

It is almost as if 2008 never happened.  We are making the same mistakes with debt that we did before.

As I noted recently, total consumer credit in the U.S. has risen by 22 percent over the past three years alone, and at this point 56 percent of all Americans have a subprime credit rating.

And have you noticed that a lot of people are not afraid to extend themselves in order to buy shiny new vehicles these days?

During the first quarter 0f this year, the size of the average vehicle loan soared to a new all-time record high of $27,612.

Five years ago, that number was just $24,174.

And as I noted in one recent article, the size of the average monthly car payment in this country is now up to $474.

That is practically a mortgage payment.

Speaking of mortgage payments, even though home sales have been falling and the rate of homeownership in the United States is the lowest that it has been in 19 years, a very large percentage of those who own homes are still overextended.

In fact, one recent survey discovered that a whopping 52 percent of Americans cannot even afford the house that they are living in right now.

At the same time, an increasing number of Americans are acting as if the last financial crisis never happened and are treating their homes like piggy banks.   Home equity loans are soaring again, and when the next great crisis strikes a lot of those people are going to end up getting into a lot of financial trouble.

There has been much written about what is wrong with the housing industry, but the truth is that home prices are still way too high and young adults cannot afford to purchase homes because they are already loaded down by huge amounts of debt even before they get to the point where they are ready to buy.

In fact, a newly released survey found that 47 percent of millennials are spending at least half of their paychecks on paying off debt…

Four in 10 millennials say they are “overwhelmed” by their debt — nearly double the number of baby boomers who feel that way, according to a Wells Fargo survey of more than 1,600 millennials between 22 and 33 years old, and 1,500 baby boomers between 49 and 59 years old.

To try to get out from underneath it, 47% said they spend at least half of their monthly paychecks on paying off their debts.

When I read that I was absolutely astounded.

Of course the biggest debt that many young adults are facing is student loan debt.  According to the Federal Reserve, there is now more than 1.2 trillion dollars of student loan debt in this country, and about 124 billion dollars of that total is more than 90 days delinquent.

What we have done to our young people is shameful.  We have encouraged them to sign up for a lifetime of debt slavery before they even understand what life is all about.  The following is an excerpt from my previous article entitled “Is College A Waste Of Time And Money?“…

In America today, approximately two-thirds of all college students graduate with student loan debt, and the average debt level has been steadily rising.  In fact, one study found that “70 percent of the class of 2013 is graduating with college-related debt – averaging $35,200 – including federal, state and private loans, as well as debt owed to family and accumulated through credit cards.”

That would be bad enough if most of these students were getting decent jobs that enabled them to service that debt.

But unfortunately, that is often not the case.  It has been estimated that about half of all recent college graduates are working jobs that do not even require a college degree.

Considering what you just read, is it a surprise that half of all college graduates in America are still financially dependent on their parents when they are two years out of college?

According to the U.S. Census Bureau, only 36 percent of all Americans under the age of 35 own a home at this point.  That is the lowest level that has ever been recorded.

And we are passing on to our young people the largest single debt in all of human history.  Weighing in at 17.5 trillion dollars, the U.S. national debt is a colossal behemoth.  And almost all of that debt has been accumulated over the past 40 years.  In fact, 40 years ago the U.S. national debt was less than half a trillion dollars.

But this is just the beginning.  As the Baby Boomer “demographic tsunami” washes through our economy, we are going to be facing a wave of red ink unlike anything we have ever contemplated before.

Meanwhile, the rest of the planet is drowning in debt as well.

As I wrote about the other day, the total amount of debt in the world has risen to a new all-time record high of $223,300,000,000,000.

Our “leaders” keep acting as if these debt levels can keep growing much faster than the overall level of economic growth indefinitely.

But anyone with even a shred of common sense knows that you can’t spend more money that you bring in forever.

At some point, a day of reckoning arrives.

2008 should have been a major wake up call that resulted in massive changes.  But instead, our leaders just patched up the old system and reinflated the old bubbles so that they are now even larger than they were before.

They assure us that they know exactly what they are doing and that everything will be just fine.

Unfortunately, they are dead wrong.

Share This Chart With Anyone That Believes The U.S. Economy Is Not Going To Crash

Total Debt Growth vs. GDP GrowthAnyone that thinks that the U.S. economy can keep going along like this is absolutely crazy.  We are in the terminal phase of an unprecedented debt spiral which has allowed us to live far, far beyond our means for the last several decades.  Unfortunately, all debt spirals eventually end, and they usually do so in a very disorderly manner.  The chart that you are about to see is one of my favorite economic charts.  It compares the growth of U.S. GDP to the growth of total debt in the United States.  Yes, U.S. GDP has certainly grown at a decent pace over the years, but our total debt has absolutely exploded.  40 years ago, the total amount of debt in our system (government debt + corporate debt + consumer debt, etc.) was about 2 trillion dollars.  Today it has grown to more than 56 trillion dollars.  Our debt has grown at a much, much faster rate than our economy has, and there is no way in the world that we will be able to continue to do that for long.

Posted below is the chart that I was talking about.  The blue line is our total debt, and the red line is our GDP.  As you can see, this chart kind of speaks for itself…

Total Debt Growth vs. GDP Growth

So how did we get here?

Well, of course the federal government has been the biggest offender.  It would be a tremendous understatement to say that the politicians in Washington D.C. have been reckless.  Since the year 2000, the size of the U.S. national debt has grown by more than 11 trillion dollars.

Posted below is a chart that demonstrates the dramatic growth of the national debt as a percentage of GDP.  In particular, our debt has absolutely exploded as a percentage of GDP since the financial crisis of 2008…

National Debt As A Percentage Of GDP

Does that look sustainable to you?

Of course it isn’t.

Right now, the mainstream media is very excited that the federal budget deficit for this year might be less than a trillion dollars, but they are really missing the point.  The debt of the U.S. government is still growing much, much faster than the economy is, and the United States already has more government debt per capita than Greece, Portugal, Italy, Ireland or Spain.

What we are doing to future generations is absolutely criminal.  We are piling up mountains of debt that will haunt them for the rest of their lives just so that we can make the present a little bit more pleasant for ourselves.

As I noted in another article, during Obama’s first term the federal government accumulated more debt than it did under the first 42 U.S presidents combined.  And now we are entering a time period when demographic forces are going to put a tremendous amount of pressure on the finances of the federal government.

The Baby Boomers have started to retire, and they are going to want to start collecting on all of the financial promises that we have made to them.

As I have written about previously, the number of Americans on Medicare is projected to grow from a little bit more than 50 million today to 73.2 million in 2025.

The number of Americans collecting Social Security benefits is projected to grow from about 56 million today to 91 million in 2035.

Where are we going to get the money to pay for all of that?

Boston University economist Laurence Kotlikoff has calculated that the U.S. government is facing unfunded liabilities of 222 trillion dollars in the years ahead.

There is no simply no way that the U.S. government is going to be able to meet those obligations without wildly printing up money.

And of course the federal government is not the only one with massive debt problems.  We just saw the city of Detroit go bankrupt, and there are lots of other communities all over the nation that could soon follow.

Posted below is a chart that shows the growth of state and local government debt over the years.  In particular, please take note that the total amount of state and local government debt has grown from about 1.2 trillion dollars in the year 2000 to about 3 trillion dollars today…

State And Local Government Debt

But the chart posted above does not even take into account the massive unfunded pension obligations that state and local governments are facing.  According to the Detroit Free Press, state governments are facing unfunded pension obligations of nearly a trillion and a half dollars…

From Baltimore to Los Angeles, and many points in between, municipalities are increasingly confronted with how to pay for these massive promises. The Pew Center for the States, in Washington, estimated states’ public pension plans across the U.S. were underfunded by a whopping $1.4 trillion in 2010.

And many large cities are dealing with similar situations.  Detroit was the first to go down, but could Chicago or Los Angeles eventually be forced to declare bankruptcy too?…

Chicago recently saw its credit rating downgraded because of a $19-billion unfunded pension liability that the ratings service Moody’s puts closer to $36 billion. And Los Angeles could be facing a liability of more than $30 billion, by some estimates.

According to a report that was released earlier this year, the largest U.S. cities are facing hundreds of billions of dollars in unfunded pension liabilities at this point…

Early this year, the Pew Center released a survey showing that 61 of the nation’s largest cities — limiting the survey to the largest city in each state and all other cities with more than 500,000 people — had a gap of more than $217 billion in unfunded pension and health care liabilities. While cities had long promised health care, life insurance and other benefits to retirees, “few … started saving to cover the long-term costs,” the report said.

So where will all of that money come from?

That is a good question, and nobody has an easy answer at this point.

Meanwhile, U.S. consumers have been racking up staggering amounts of debt over the past several decades.  Just consider the following numbers…

-Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.

-Car loans just keep getting longer and longer, and approximately 70 percent of all car purchases in the United States now involve an auto loan.

-The total amount of student loan debt in America recently surpassed the one trillion dollar mark.

-One study discovered that approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt, and according to a report published in The American Journal of Medicine medical bills are a major factor in more than 60 percent of the personal bankruptcies in the United States.

-Consumer debt in the United States has risen by a whopping 1700% since 1971, and 46% of all Americans carry a credit card balance from month to month.

Sadly, most people don’t realize how damaging credit card debt can be.  If you just carry an “average balance” on your credit cards each month, and those credit cards have just an “average” interest rate, you could end up paying millions of dollars to the credit card companies by the end of your life…

Let’s say you are an average American household, and you carry an average balance of $15,956 in credit card debt.

Also, as an average American household, let’s assume you pay an average current rate of 12.83%.

Finally, let’s assume you carry this average balance for 40 years, between ages 25 and 65.  How much did your credit card company make off of you and your extreme averageness?

Answer: $2,629,618.64

Incredibly, a large percentage of the population does not seem to understand these things.  An astounding 43 percent of all American families spend more than they earn each year.

Are you starting to understand why approximately half of all Americans die broke?

We are a nation that is completely and addicted to debt.

If you do not believe that it will ever catch up with us you are being delusional.

We have piled up the biggest mountain of debt in the history of the planet, and a day of reckoning is fast approaching.

Why Is The World Economy Doomed? The Global Financial Pyramid Scheme By The Numbers

Why Is The World Economy Doomed? The Global Financial Pyramid Scheme By The NumbersWhy is the global economy in so much trouble?  How can so many people be so absolutely certain that the world financial system is going to crash?  Well, the truth is that when you take a look at the cold, hard numbers it is not difficult to see why the global financial pyramid scheme is destined to fail.  In the United States today, there is approximately 56 trillion dollars of total debt in our financial system, but there is only about 9 trillion dollars in our bank accounts.  So you could take every single penny out of the banks, multiply it by six, and you still would not have enough money to pay off all of our debts.  Overall, there is about 190 trillion dollars of total debt on the planet.  But global GDP is only about 70 trillion dollars.  And the total notional value of all derivatives around the globe is somewhere between 600 trillion and 1500 trillion dollars.  So we have a gigantic problem on our hands.  The global financial system is a very shaky house of cards that has been constructed on a foundation of debt, leverage and incredibly risky derivatives.  We are living in the greatest financial bubble in world history, and it isn’t going to take much to topple the entire thing.  And when it falls, it is going to be the largest financial disaster in the history of the planet.

The global financial system is more interconnected today than ever before, and a crisis at one major bank or in one area of the world can spread at lightning speed.  As I wrote about yesterday, the entire European banking system is leveraged 26 to 1 at this point.  A decline in asset values of just 4 percent would totally wipe out the equity of many of those banks, and once a financial panic begins we could potentially see major financial institutions start to go down like dominoes.

We got a small taste of what that is like back in 2008, and it is inevitable that it will happen again.

Anyone that would tell you that the current global financial system is sustainable does not know what they are talking about.  Just look at the numbers that I have posted below.

The following is the global financial pyramid scheme by the numbers…

-$9,283,000,000,000 – The total amount of all bank deposits in the United States.  The FDIC has just 25 billion dollars in the deposit insurance fund that is supposed to “guarantee” those deposits.  In other words, the ratio of total bank deposits to insurance fund money is more than 371 to 1.

-$10,012,800,000,000 – The total amount of mortgage debt in the United States.  As you can see, you could take every penny out of every bank account in America and it still would not cover it.

-$10,409,500,000,000 – The M2 money supply in the United States.  This is probably the most commonly used measure of the total amount of money in the U.S. economy.

-$15,094,000,000,000 – U.S. GDP.  It is a measure of all economic activity in the United States for a single year.

-$16,749,269,587,407.53 – The size of the U.S. national debt.  It has grown by more than 10 trillion dollars over the past ten years.

-$32,000,000,000,000 – The total amount of money that the global elite have stashed in offshore banks (that we know about).

-$50,230,844,000,000 – The total amount of government debt in the world.

-$56,280,790,000,000 – The total amount of debt (government, corporate, consumer, etc.) in the U.S. financial system.

-$61,000,000,000,000 – The combined total assets of the 50 largest banks in the world.

-$70,000,000,000,000 – The approximate size of total world GDP.

-$190,000,000,000,000 – The approximate size of the total amount of debt in the entire world.  It has nearly doubled in size over the past decade.

-$212,525,587,000,000 – According to the U.S. government, this is the notional value of the derivatives that are being held by the top 25 banks in the United States.  But those banks only have total assets of about 8.9 trillion dollars combined.  In other words, the exposure of our largest banks to derivatives outweighs their total assets by a ratio of about 24 to 1.

-$600,000,000,000,000 to $1,500,000,000,000,000 – The estimates of the total notional value of all global derivatives generally fall within this range.  At the high end of the range, the ratio of derivatives to global GDP is more than 21 to 1.

Are you starting to get the picture?

Every single day, the total amount of debt will continue to grow faster than the total amount of money until the day that this bubble bursts.

What we witnessed back in 2008 was just a little “hiccup” in the system.  It caused the worst economic downturn since the Great Depression, but global financial authorities were able to get things stabilized.

Next time it won’t be so easy.

The next wave of the economic collapse is quickly approaching.  A full-blown economic depression has already started in southern Europe.  Unemployment is at record highs and economic activity is contracting rapidly.

The major offshore banking centers in Cyprus are on the verge of collapsing.  It was just announced that they will now be closed until Tuesday, but nobody really knows for sure when they will be allowed to reopen.  And there is already talk that when they do reopen that there will be strict limits on how much money people can take out.

And now the IMF is warning that the three biggest banks in Slovenia are failing and that a billion euros will be needed to bail them out.

The dominoes are starting to tumble, and the United States won’t be immune.  In fact, the greatest financial problems that the United States has ever seen are on the horizon.

But you can just have faith that Ben Bernanke, Barack Obama and the U.S. Congress know exactly what they are doing and will be able to save us from the coming financial collapse if you want.

The mainstream media will provide you with all of the positive economic news that you could possibly want.  They are giddy about the fact that the Dow keeps hitting all-time highs and they would have us all believe that we are in the midst of a robust economic recovery.  You can listen to them if you want to.

But when you are tempted to believe that everything is going to be “okay” somehow, just go back and look at the numbers there were posted above one more time.

There is no way that the global financial pyramid scheme is going to be able to hold up for too much longer.  At some point it is going to totally collapse.  When that happens, will you be ready?

The New World Order Is Coming

The Tim Tebow Comeback Story Continues But There Will Be No Miracle Comebacks For The U.S. Economy

Never in the history of the NFL has there ever been anything like this.  Today, Tim Tebow engineered yet another miraculous 4th quarter comeback.  Almost everyone has been expecting this unprecedented string of comebacks to come to an end, yet Tebow just keeps pulling off miracle after miracle.  It seems like nearly every week now we are talking about another unbelievable Tim Tebow comeback.  It is truly a great story, and what is wonderful about Tebow is that he is not out to glorify himself.  He is very humble, he always recognizes his teammates and he is a terrific role model for a generation of American youth that is in desperate need of one.  Unfortunately, there is not going to be a similar comeback story for the U.S. economy.  It is late in the 4th quarter, we have accumulated over 50 trillion dollars of total debt as a nation, and our economic guts are being ripped out at a rate that is almost impossible to believe.  The game is essentially over and we are headed for an incredible amount of economic pain as a nation.

We desperately need a “political Tim Tebow” to come along to dismantle our current debt-based economic system.  But instead, the corrupt politicians in Washington D.C. just keep patching up our current system and hope that somehow it will recover.

Unfortunately, this is about as good as things are going to get for the U.S. economy.  The federal government and the Federal Reserve are already pushing things to the “red line”, and all of that effort has not accomplished much.

We have been experiencing “economic stagnation” for much of the past year, and there is not much more that they can do to improve things under our current system.

Right now, the Federal Reserve has pushed interest rates as low as they can go.  They can’t go any lower.

Right now, the federal government is borrowing and spending unprecedented amounts of money.  Federal spending cannot go much higher.

Right now, we have already seen tax cut after tax cut and virtually none of them have been paid for.  Any additional tax cuts will just send our budget deficits even higher.

Right now, we have already seen unprecedented intervention by the Federal Reserve.  They have done just about everything short of dropping huge bags of money over the countryside from helicopters.

The federal government and the Federal Reserve have done just about everything that they can possibly do to “stimulate” the economy, and yet things just keep getting worse.

So what is going to happen when the federal government and the Federal Reserve quit stimulating the economy?

As I wrote about the other day, when evaluating the future of the U.S. economy, it is vitally important to look at the balance sheet numbers and the long-term trends.

When you do that, you suddenly do not feel so good about the upward “blips” that we have seen in the economy lately.

Yes, the “official” unemployment rate recently went down slightly.  But as Mac Slavo recently pointed out, even with the recent “improvement” the truth is that the “real” level of unemployment in the United States is still well over 20 percent.

And all of the long-term trends indicate that we heading for a massive amount of trouble.

The number of good jobs continues to decline.  Even though our population is rapidly increasing, there are 10 percent fewer middle income jobs in the U.S. today than there were a decade ago.

In recent years, the employment to population ratio has been steadily declining.  At the start of the recession it was at 62.7%.  Today, it is at 58.5%.

Household incomes continue to go down as well.  Since December 2007, median household income in the United States has declined by a total of 6.8% once you account for inflation.

So why is this happening?  Well, as I wrote about recently, the United States has the worst balance of trade in the entire world by far.

Wealth, jobs and economic infrastructure are pouring out of this country and very few politicians are trying to stop it.

An average of 23 manufacturing facilities were shut down every single day in the United States last year.

That represents a huge amount of lost jobs.

So do you hear any political candidates talking about how they are going to stop this from happening or about how they are going to get all of those lost jobs back?

Overall, the U.S. has lost a total of more than 56,000 manufacturing facilities since 2001.

So how can an economy be great when it is constantly bleeding huge amounts of economic infrastructure?

We have become way too dependent on other nations for the things that we need.

How much trouble would we be in if Saudi Arabia suddenly decided to quit shipping us oil or if China suddenly decided to quit shipping us cheap plastic products to sell in our stores?

Right now, businesses are absolutely racing to get out of the United States.  Big corporations are shipping as many jobs as they possibly can out of the country.  Our insane economic policies have turned American workers into tremendous liabilities.

One economist from Princeton University is warning that 40 million more U.S. jobs could be sent offshore over the next two decades if nothing is done to stop this.

So why aren’t more politicians screaming and yelling about this?

Without good jobs, Americans are falling out of the middle class in staggering numbers.

Since 2007, the number of children living in poverty in the state of California has increased by 30 percent.

So is that a sign that things are getting better or that things are getting worse?

A higher percentage of Americans is living in extreme poverty than has ever been measured before.  Not only that, 2.6 million more Americans fell into poverty last year.  That was also a new all-time record.

So are those signs that things are getting better or that things are getting worse?

The American people generally do not understand why these things are happening, but they are clearly getting frustrated.

A recent Gallup poll found that an all-time record 76 percent of all Americans believe that most members of Congress do not deserve to be reelected.

But when election time rolls around, they will probably send most of them back to Washington D.C. anyway.

Our politicians keep kicking the can down the road, but time for doing that is running out.  The unprecedented “stimulus” efforts by the federal government will be coming to an end sooner or later.

In a recent article, author Bruce Krasting listed a whole bunch of reasons why the economic can is not going to be able to be kicked down the road much farther.  The following are some of the things that he says are scheduled to end by the beginning of 2013….

A) The Bush tax cuts on those making more than $200k will expire.

B) The Bush tax cuts on those making less than $200k will also expire.

C) The Patch on AMT will expire.

D) The 2% payroll tax holiday will expire for all workers on 12/31/12 (I’m sure the current holiday will be rolled for another year)

E) The 99-week extended unemployment benefits die on 12/31. (The emergency benefits will also be extended for 2012)

F) There will have to be a budget that is approved. Alternatively, a series of continuing resolutions is required to avert a government shutdown. We have not had an approved budget in over 900 days.

G) 2013 is the first year that there will be mandatory caps on discretionary spending. These limits will result in a YoY decline in government spending.

H) The Federal Reserve has promised to keep interest rates at zero into 2013. While it is possible that the Fed could continue the madness for even longer, the reality is that interest rates have nowhere to go but up.

I) By January 2013 it will be painfully evident that the country’s key social programs, Social Security and Medicare will be running in the red at a pace that is far higher than anyone considered possible. The need for dramatic changes in these programs will have to come onto the table. The implications of this will be significant.

J) In 2013 the issues of Fannie, Freddie, FHA and the Federal Home Loan Banks must be addressed. The problems at the housing agencies has festered too long.

K) The country will face another debt ceiling extension. The last time cost us our AAA.

Sadly, we will probably not have to wait until 2013 to feel a whole lot of economic pain.

The reality is that a 15 trillion dollar debt and trillion dollar yearly budget deficits are not sustainable.  We have created a situation where a horrible crash is inevitable, and there is no way that our current debt-based system can be fixed to keep a nightmarish collapse from happening.

During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.  That is a recipe for national financial suicide.

Meanwhile, despite what you may have heard, the European debt crisis has not been fixed.

Not at all.

The truth is that none of the fundamental problems were fixed by this recent “agreement” as Ambrose Evans-Pritchard recently noted in one of his columns….

There is no shared debt issuance, no fiscal transfers, no move to an EU Treasury, no banking licence for the ESM rescue fund, and no change in the mandate of the European Central Bank.

In short, there is no breakthrough of any kind that will convince Asian investors that this monetary union has viable governance or even a future.

Germany has kept the focus exclusively on fiscal deficits even though everybody must understand by now that this crisis was not caused by fiscal deficits (except in the case of Greece). Spain and Ireland were in surplus, and Italy had a primary surplus.

For many more reasons why Europe is headed for big trouble, please read this article: “22 Reasons Why We Could See An Economic Collapse In Europe In 2012“.

When Europe goes down, it is going to have a devastating impact on the United States.

Meanwhile, the economies of China and Japan are also steamrolling toward recession.

There is simply way too much debt in the world, and a great day of reckoning is coming.

Combined, the industrialized nations of the world borrowed more than 10 trillion dollars this year, and that number is expected to soar even higher next year.

Jim Cramer of CNBC stated recently that the global economy is at “DEFCON 3, two stages from a financial collapse so huge it’s hard to get your mind around.”

Most Americans don’t understand this yet.  But hopefully we can get more of them educated while there is still time.

The global financial system is a big shell game.  It is a gigantic mountain of debt, leverage and risk.

You would have thought that we would have learned some key lessons from the financial crisis of 2008, but we didn’t.

Back in 2002, the top 10 U.S. banks controlled 55 percent of all U.S. banking assets.  Right now, the top 10 U.S. banks control 77 percent of all U.S. banking assets.

Today, the “too big to fail” banks are larger than ever.  The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011.

So instead of doing something about the “too big to fail” banks, they are now more “too big to fail” than ever.

As big banks and big corporations have come to dominate our economy more than ever before, wealth and power have also become much more concentrated….

*The wealthiest 1 percent of all Americans now own more than a third of all the wealth in the United States.

*The poorest 50 percent of all Americans collectively own just 2.5% of all the wealth in the United States.

*The six heirs of Wal-Mart founder Sam Walton have a net worth that is roughly equal to the bottom 30 percent of all Americans combined.

*Overall, the wealthiest one percent of all Americans have a greater net worth than the bottom 90 percent combined.

It would be wonderful if we could send a “Tim Tebow of politics” to Washington D.C., but instead the Democrats and the Republicans look like they just plan to give us more of the same.

Are the Republicans really going to nominate someone who co-sponsored 418 bills with Nancy Pelosi?  The truth is that the latest “anti-Romney candidate” is almost a clone of Mitt Romney.

Newt Gingrich is essentially an older, ruder version of Barack Obama.  If you are counting on him to “save America” then you are going to be incredibly disappointed.

Sadly, we just do not have nearly enough men like Tim Tebow in America today.  The following comes from a recent profile of Tebow that recently appeared in the Wall Street Journal….

While at Florida, Mr. Tebow became well known for spending his summers helping the poor and needy in the Philippines. He also spoke in prisons and appeared to accept every opportunity to volunteer. He encouraged his teammates and classmates to follow his lead.

You can see video of Tim Tebow speaking to a group of prisoners at the Lake City Correctional Facility while he was still attending the University of Florida right here.

Unfortunately, there is no “Tim Tebow comeback” on the horizon for the U.S. economy at this point.

But when the U.S. economy does get worse, we can take a cue from Tim Tebow and be very generous with those in need.  There are going to be a lot of people that will be really hurting, and those of us that have been blessed should do what we can to help them out.

A lot of people say that my site is all about “doom and gloom”, but telling the truth to the American people is never a bad thing.

We do not do ourselves any favors by sticking our heads in the sand and pretending that everything is going to be okay.

There is going to be no miracle comeback for the U.S. economy.

A horrific economic collapse is coming.

You better get ready.

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