The Beginning Of The End
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What Is Wrong With The U.S. Economy? Here Are 10 Economic Charts That Will Blow Your Mind

The 10 economic charts that you are about to see are completely and totally shocking.  If you know anyone that still does not believe that the United States is in the midst of a long-term economic decline, just show them these charts.  Sometimes you can quote economic statistics to people until you are blue in the face and it won't do any good, but when those same people see charts and pictures suddenly it all sinks in.  What is great about charts is that you can very easily demonstrate what has been happening to the economy over an extended period of time.  As you examine the economic charts below, pay special attention to what has been happening to the U.S. economy over the last 30 or 40 years.  The truth is that what is wrong with the U.S. economy is not a great mystery.  All of the economic problems that we are experiencing now have taken decades to develop.  Hopefully the charts in this article will help people realize just how nightmarish our economic problems have become, because until people start realizing how incredibly bad things have gotten they will never be willing to accept the dramatic solutions that are necessary to fix our financial system.

The sad fact of the matter is that we have been living in the biggest debt bubble in the history of the world over the last 40 years.  All of this debt has purchased a wonderful standard of living for the vast majority of us, but all of this debt has also destroyed the economic future of our children and our grandchildren.  Someday future generations will look back on what we have done in absolute horror.

The 10 economic charts posted below are meant to shock you.  Most Americans today need to be shocked before they will be motivated to take action.  Please share these charts with as many people as you can.  Hopefully we can wake enough people up that something will be done about all of these problems while there is still time.

1 - Government spending is expanding at an exponential rate.  As you can see from the chart below, federal spending is almost 18 times higher than it was back in 1970.  Now Barack Obama has proposed a budget that would increase U.S. government spending to 5.6 trillion dollars in 2021.  Just imagine what the following chart would look like if that happens....

2 - U.S. government debt is absolutely exploding.  The U.S. national debt is currently $14,081,561,324,681.83.  It is more than 14 times larger than it was back in 1980.  Unfortunately, the national debt continues to grow at breathtaking speed.  In fact, the Obama administration is projecting that the federal budget deficit for this year will be an all-time record 1.6 trillion dollars.  Can we afford to continue to accumulate debt at this rate?....

3 - Unless something changes right now, the outlook for U.S. government finances in future years is downright apocalyptic.  The chart posted below is from an official U.S. government report to Congress.  As you can see, it is projected that interest on our exploding national debt is absolutely going to spiral out of control if we continue on the path that we are currently on....

4 - Household debt has soared to almost unbelievable levels over the last 30 years.  The sad truth is that it is not just the U.S. government that has a massive debt problem.  U.S. households have also been accumulating debt at a staggering rate.  Total U.S. household debt did not pass the 2 trillion dollar mark until the mid-1980s, but now total U.S. household debt is well over 13 trillion dollars....

5 - The total of all debt (government, business and consumer) in the United States is now well over 50 trillion dollars.  For the past couple of years this figure has been hovering around a level that is equivalent to approximately 360 percent of GDP.  This is a debt bubble that is absolutely unprecedented in U.S. history....

6 - As tens of thousands of U.S. factories get shut down and as millions of our jobs get shipped overseas, the number of unemployed Americans continues to go up and up and up.  As you can see from the chart below, there has been a long-term trend of increasing unemployment in the United States.  In fact, there are about 3 and a half times as many unemployed workers in the United States today as there were when 1970 began.  These jobs losses are going to continue as long as we allow our corporations to pay slave labor wages to workers on the other side of the globe.  All of the major trends in global trade are very bad for the U.S. middle class.  For example, the U.S. trade deficit with China for 2010 was 27 times larger than it was back in 1990.  How long will our politicians stand by as our nation bleeds jobs?....

7 - The median duration of unemployment in the United States is in unprecedented territory.  For most of the post-World War 2 era, when the median duration of unemployment in America reached 10 weeks that was considered a national crisis.  Well, today competition for jobs is so intense that the median duration of unemployment is now well over 20 weeks....

8 - Since the Federal Reserve was created in 1913, the value of the U.S. dollar has declined by over 95 percent.  One of the reasons given for the existence of the Federal Reserve is that the Fed helps control inflation.  But that is a huge lie.  The truth is that the United States never had consistently rampant inflation until the Federal Reserve took control.  In particular, once the U.S. totally went off the gold standard in the 1970s inflation really started escalating out of control....

9 - Now the Federal Reserve says that the solution to our current economic problems is to print even more money out of thin air.  The games that the Federal Reserve is playing with our money supply are simply inexcusable.  Just look at what the Federal Reserve has done to the monetary base since the beginning of the recession....

10 - All of this new money is creating tremendous inflation.  In particular, the price of oil is now ridiculously high.  A high price for oil is very, very bad for the U.S. economy.  Our entire economic system is based on being able to use massive quantities of very cheap oil.  Unfortunately, that paradigm is starting to break down and the consequences will be very bitter.  Back in mid-2008, the price of oil hit an all-time record of $147 a barrel and subsequently the world financial system imploded a few months later.  Well, the price of oil is on the march again and that is very bad news for the U.S. economy....

Needless to say, if the economic trends documented by the charts above continue the U.S. economy will be totally wiped out.  The U.S. economy as it currently exists is unsustainable by definition.  It is only a matter of time before we slam into an economic brick wall.

We have developed an economy that cannot function without debt, and at this point it seems like almost everyone is drowning in red ink.  The federal government is massively overextended, most of our state and local governments are massively overextended, most of our major corporations are massively overextended and the majority of U.S. consumers are massively overextended.

The only way that the game can continue is for the Federal Reserve to print increasingly larger amounts of paper money out of thin air and for everyone in the economic food chain to go into increasingly larger amounts of debt.

But no debt spiral can go on forever.  At some point this entire house of cards is going to collapse.

When that happens, there is going to be economic pain that is greater than anything that this country has ever seen before.

Someday we will all desperately wish that we could go back to the "good times" of 2011.  A great economic collapse is coming, and all of us had better get ready.

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  • ricardomaago@yahoo.com

    many of comments in US economy is quite satisfied but many of you has a wrong vision,I want to clear to everybody that the adams smith theory of free enterprize is no longer workable but inadequate in the present system or democracy (or the wrong implementation of definition) the defintion is a goverment of the people for the people by the people where all men are created equal,now where is the equality,none so, wrong implementation.many americans almost live in this kind of wrong implementation,now,you have to face the real defintion of democracy and this things is very hard to admit thats why you blame the govertment.

  • frank donovan

    Dave (comment below) is right on the money. the origional deficit spender was Reagan. this is largely forgotten about today. The current administration has essentially inherited thirty plus years of bad policy. The Tea Party is not the solution either. Look at the tea party candidate websites and you will see fundamentalist christian themes throughout. We dont need more faith based policies by our government. We need science based policies, like the rest of the world uses. Alas, it won’t happen until it is too late. We are too polarized here and our candidates by and large care about nothing but reelection, and our citizens, both rich and poor, want more handouts.

    dave
    February 16th, 2011 at 8:32 pm
    This chart shows the beginning of the Reaganism that took hold of the Republican party, Carter left office , with high interest and high unemployment. Growth was slow but staple . Reagan deregulated banks, broke the unions and increased tax breaks for the rich. This trend was continued by Bush. As you can see by the charts, This is one of the reasons for the complete downfall of our economy. That is what happens when you go to war and don’t fund it. And at the same time cut taxes.

  • frank donovan

    I agree it is both parties, but the republicans are ‘more wrong’ than the democrats. Democrats tax and spend, and republicans tax cut and spend (spend our children’s money). Take your pick. I say the democrat way at least has a semblence of paying our own way, and not giving all of our kids money to rich contributors. Oh, and remember that big perscription drug bill passed under Bush, a big expansion of medicare, the Bush bill. I remember at the time Bush saying “get the bill on my desk so I can sign it”. With phoney numbers. And bush also did not fund the program. So yes, we do blame Bush 2 for a lot, and Reagan (the original deficit spender). How about an illegitimate war, also to enrich the rich, i.e. defense contractors, the military complex, etc. Wake up.

    You blame Reagan and Bush. Where does Bill Clinton fit in beings he twisted arms to get vital democratic votes to pass NAFTA and signed it into law, signed the Free Trade agreement with China and abolished what was left of Glass Stegall paving the way for Wall Street corruption? Do you just happen to forget that 80% of US Senate democrats voted for China Free trade?

  • http://www.signsoftheend.net/index.html Signs of the End

    What amazes me is how quickly we have gone from thinking in billions to thinking in trillions and larger figures. And if this many trillions can’t fix the economy, nothing will! Give me 1 trillion and I’ll fix the whole thing so that the economy will stand for a 100 years, the intent to fix ain’t there, the PTB are not failing in their mission, they are being wildly successful. I think the Coup d’etat will be completed with some sort of catastrophic events(s) that will eventually leave the world looking like the 21st century world of The Matrix movies.

    Mys guesses would be

    1. A Major Oil shock – Revolution in Saudi Arabia?
    2. A Cyber attack on financial markets (how convenient!)
    3. One or more terrorist attacks
    4. One or major wars breaking out – Mideast, Korea, India – Pakistan, many powder kegs in the world

    And I would not be at all surprised if one or more of the above scenarios manifests in 2011.

    The Bible tells us unequivocally that the world is going to end but the world cannot end without a collapse of the global economy. We cannot have people living it up in one part of the world (as has been the norm) while people in other parts are literally living in hell. So hell in some form or the other is coming worldwide and it begins with a devastation of the global economy, signified by a collapse of the US dollar. Good times ain’t never coming back, head for the hills!

  • http://www.signsoftheend.net/index.html Signs of the End

    Can you please add a Blogger link for sharing? I would like to share some of your article on my blog.

    Apocalypse 2010 – http://apocalypse2010.blogspot.com/

  • Frank

    Looking at these charts should start to open anyone’s eyes to reality. But sadly, yes, most people have been “dumbed down” & are still more interested in other things. (I wonder what the people in Rome were doing as the Barbarians closed in on them)? I would advise reading “Lords of Finance” because despite the fact that everyone thinks the Germans after WWI had an insurmountable debt to pay, THEY ACTUALLY COULD HAVE PAID IT AND WERE ABLE TO PAY IT AT TIMES, but both politicians & the German people gave in to social wishes & foolish expenditures and, in fact, preferred to shoot themselves in the foot and cause a financial meltdown rather than do the right thing & continue paying down the debt. In the end, they got Hitler. We are actually in a similar position to post WWI Germany: we can do the right thing & face reality by cutting back social programs, balance the budget & begin to pay back the debt… or we can go the way of the Weimar Republic, ignore reality, ignore the debt & wait to see what happens. The outcome will not be pretty. (I think I hear the Barbarians coming)!

  • randal

    The answer you’re seeking, Roscoe, is addressed in Porter Stansbury’s “The End of America”. Google it online. Otherwise, I’d suggest the following:
    - pay off your debts
    - have some food and clothing storage. Buy your cotton’s – jeans, socks, shirts now, also rice & corn. They’re all going up in price dramatically this year
    - plant a garden- learn to grow as much of your own food as possible
    - consider investing in a good commodity – oil, precious metals, farm land, etc.

    Hope this helps.

  • Cheryl

    It was already happening in the 80′s when the book America: What Went Wrong? came out- where it chronicled the dismantling of the middle class. Now the economy itself is in unbelievable peril as well as the average American. Debt is a SIN and nearly everyone does it, yes, including me…get ready for a serious correction!

  • Laszlo Bajomi-Nagy

    We will miss the train.
    Soon the dollar will lose its reserve currency status…
    Guess what will happen is the Chinese gov. start to get rid of the dollar?
    Cold war ended still we maintain expensive atomic weapons, expensive military(personals and equipment cost)…
    Somebody can explain the difference between the democrats and the republicans? In essence there are no real difference.
    Please somebody ****************************************!
    Soooorrrryyyy I’m mad as hell at the Feds incompetence(left or right same pigs)
    regards:
    laszlobn

  • im4freedom

    Both Republicans and Democrats share in the blame for both the Federal and Trade Deficits. What’s done is done. The time now is to shrink the size of government, by freezing the budget and instituting a no new hire policy in new government jobs for five years letting attrition thin the ranks. Any new hires would need a corresponding non attrition related staff reduction to be filled. The second key is to reduce government regulations to allow the entrepreneurs and the free market econmomy to grow again.

  • Adam

    Dave,

    Obama has added more to the national debt in his first 19 months than all presidents from Washington through Reagan combined. Of course this has absolutely nothing to do with our current state of affairs. (sarcasm) This is according to government data. Your blaming a couple conservative presidents makes you look foolish.

  • Sal

    Response to ROSCOE’s “How do I prepare myself” ? I recommend that you STUDY and understand this, or you will make decisions on partial knowledge. This should spring you forward:

    First, if you think of the following topics as “insurance” it makes more sense. You buy insurance on your car in the event of an accident, and spend perhaps $1000-$1500 per vehicle per year; and you buy life insurance and fire insurance… but where is the insurance on your (a) food supply, (b) fuel/heating, (c) money in your bank (in real terms the FDIC fund is woefully short for the task) and the second threat is inflation (mild to hyper), (d) physical safety/security, (e) access to medical/dental care.

    There are a range of future scenarios. Taken from history and people’s real experience will give you some idea what to do and how they handled the situation. I spent 2 months heads-down researching this, then developed a plan and am executing the plan. This is a high-level summary of what I came up with, in no particular order:

    a) Buy “junk” silver US quarters (pre 1964 these quarters are 90% silver, but they are circulated coin and not “pretty.” A bit more than 5 of them = 1oz of silver. PURPOSE: as a trading/barter item. If supplies are short and fiat money is in trouble, the name of the game is securing what you need. You can buy these from multiple sources on the web and at coin shops, but the physical silver is becoming more scarce in some places.

    b) Buy Silver Eagles, Silver Maple Leafs or Silver Austrian Philharmonics as a hedge against currency devaluation, but not more than 5%-10% (max) of your net worth. SILVER IS VOLATILE. A few weeks ago it spot traded in the $26 range and its $31.44 as I write this. KITCO.COM has metals prices you can watch. The nice thing about silver is it is affordable; and its unlikely someone will kill you over $30 of silver, while an oz of gold is worth $1385… and harder to trade in a pinch.

    c) Silver and gold prices crashed with the market in 2008. Keep this in mind. Panic and sell will leave you without your insurance plan if the market crashes again. Could create a fantastic buying opportunity -if you can can get the metal…

    d) IMO, if you are in the stock or commodity markets, you should expect a near-term correction of 10-20%. You don’t have to exactly hit the market top, but in a correction you want to preserve your capital. If the broad markets move below their 10-day moving average, keep a closer eye on it and on high volumes; if it hits the 20-day moving average (going down) you can then decide what to do. High volumes and dropping prices for multiple days could spell a correction. Determine a ‘sell’ price for your stock assets now, and then execute if it reaches it. (SELL). You can also put “trailing stops” on your assets if you have Scottrade or Schwab – in essence these automatically trigger a sell when the price of the stock falls more than X% below the high for the stock. BOTTOM LINE: if you are in the market you should know how and when to get out of the market. This is a topic far beyond the scope of this response. Get professional help if you need it.

    e) Start stocking up your pantry, particularly if you have kids/family. In an economic crisis people panic and hoard, so store shelves empty in a day or 2. Make sure you have water storage, e.g. PETE(2) food-grade containers. There are nitrogen-packed foods with remarkable shelf-life (8-25 years). Buy stuff you regularly eat or will eat. Batteries, lighting, propane cylinders for a propane camp stove (careful about using indoors w/out ventilation). In essence think of this as an exercise in emergency planning.

    f) If things get really testy, a lot of people have purchased guns/ammo. There are a variety of opinions on this subject. If you own a gun, better know the law and get firearms safety training. Guns don’t work without ammo… Discharging a firearm in an urban or suburban neighborhood is dangerous and bullets can hit other people and property. Get informed.

    g) Beware placing items in your safety deposit boxes at the bank. California literally confiscated over a estimated $1b from supposedly ‘unclaimed’ boxes – even tho the banks had the name/address of their customers. Sounds far fetched, but there is news video recently from california on this subject. Also, Feds ‘monitored’ safe deposit boxes in the 30′s when they made holding gold illegal. Just sayin…

    h) Physical security – your home. Alarms: entirely depend on police; and it things are rowdy “people issues” will come far ahead of property issues. You can get “break films” put on windows that make breaking through them far more difficult. Exterior lighting at night. Alarms that make noise; security cameras… all things to consider.

    INFLATION

    Is a tricky devil that destroys the value of your wealth. This is a major concern in any country where the central bank can ‘turn on’ money printing with an entry on a computer screen. It is being done very day in a dance between the Federal Reserve and the Treasury.

    I believe the inflation scenario is more probable than a deflation scenario for the following reasons:
    a) Bernanke’s policy is to create inflation
    b) The policy is creating ‘asset inflation’ in the stock market
    c) Ask yourself who is going to loan the US government money to support a government that borrows 40% of its annual operating expenses?
    d) Obama just proposed a whopping $1.65 TRILLION deficit spend, and the “R” team is suggesting a mere $68b of cuts. Uhhhh – how is this going to work out?

    Answer: QE3- e.g, more money printing. A little math will explain why:

    2010 revenues were about $2.3 trillion. If today we decided to give an across-the-board tax increase, such that every entity in the US paid 10% more in taxes (social security, medicare, income tax, duties, etc) it would raise about $230 billion. Add another 10% to “der rich” (so their tax went up a whopping 20%) and you’d maybe hit $300b – and we’d STILL be running a $1.3 trillion deficit based on Obama’s budget. … Just to pay off the 2010 deficit alone, would take a 10% tax increase for everyone and 9 years.

    ============
    How to hedge against inflation. This is beyond what can be written here, but here’s a couple of principles: (a) interest rates go up, bond prices go down. You can lose substantial principle in bonds in this scenario. (b) People who have borrowed money at low rates will be winners because even with moderate inflation, the dollars to repay the loan will be worth less. HENCE – it is not necessarily the best plan to ‘pay off’ your mortgage. (I know there will be some people who disagree but I have run the numbers and the *financial* aspects favor borrowers not lenders in these cases).

    ============

    Scenarios (feel free to create your own):

    1) Stagflation. Forming. Inflationary pressure on input costs to US business will start being passed along now and will start to show more in Q1 profit problems for wall street.

    2) Stagflation with moderate inflation. Poor economy and economic growth. Think 1970s. 8% INFLATION WILL KILL THE VALUE OF YOUR CASH.

    3) Add higher levels of inflation, and people’s buying behavior changes (buy it today, it’ll cost more tomorrow). When inflation hits upper teens to 20%, watch out below. Could signal a monetary crash.

    4) Housing: interest rates will put downward pressure on housing *until* inflation starts to heat up and people start using houses as an inflation hedge. Or not. If things get crazy, plan to hold real-estate for 5-7 years, or selling could put you at a disadvantage.

    5) DEFLATION: if you consider the economy getting worse, then who is going to have the money to buy stuff? Doesn’t this put deflationary pressure on things? Perhaps, but it depends on the asset class. E..g, you could have food, energy, education, healthcare inflation and real-estate prices going down. This is *not* a deflation scenario per-se.

    In the 1930s we did not have the Fed Reserve printing money ad-infinitum (until Roosevelt revalued the dollar and diluted it when he confiscated gold. Today we have a different situation. Can you really have deflation with a constantly devalued currency?

    If a major crisis occurs, it will take, on average, 16 quarters+ for the situation to stabilize and correct.

    REFERENCES: Niall Ferguson/historian (Video, australia, 2010) and any of his books “Cash Nexus”; “I.O.U.S.A” video on YouTube (2008), “Surviving the Economic Collapse” Fernando Aguirre (Argentina 2001)- written by someone who went through it. Very practical and eye-opening. “This time is Different” Rogoff. Historical with tons of charts of countries going broke. WIKIPEDIA: search US Federal Budget – they have 10 years of budgets so you can see where the money goes. Precious Metals: Casey Research, Sprott Capital Mgmt (canada). Current events: Zero Hedge.com, UK Telegraph, Wall St. Journal, Bloomberg, Yahoo! Tech Ticker.

    ———–
    DISCLAIMER: it is up to you to do your own research and come to your own conclusions, decisions and plan. Seek professional advice on investing and estate planning (particularly if you are older than 45).

    ————-
    Hope this helps…

  • http://PrimeTimeTours.com Wayne Harris

    At the moment all of us are riding in the deck chairs on the Titanic…. And there are not enough life boats for rescue after the impending crash.

  • EndGame

    Damn the country that used to be our precious United States of America.

  • mondobeyondo

    How to prepare?

    1) Pray. Pray to God… not to the Federal Reserve. The Fed won’t help you.

    2) Buy gold or silver, or even copper. These are tangible items. Yes, even a humble penny or nickel. They’re made of metal. Federal Reserve Notes have no inherent value. They are backed by nothing, and are just paper. A $1 bill has as much “real” value as a $100 bill – it’s only paper. It’s just the number and the picture of the front that makes the difference.

    3) Stock up on food. Rice, beans, water, even the proverbial Spam if you want. (I hate Spam.) If you have a back yard, grow your own food. Sell it to your neighbors. You know the ones – who are begging you for a carrot or two because Wal-Mart just ran out. If you have a spare freezer, now is the time to put it to good use. But be prudent. Freezer-burned beef steaks don’t taste good.

    4) Start buying clothes. Now. Especially cotton clothes. The price of cotton, as in other commodities, will go through the roof. Jeans, underwear and T-shirts may be as cheap as they’re gonna be right now, for a long time.

    Aside from that… well, go to your local Netflix kiosk and rent a movie about Justin Bieber.

  • mondobeyondo

    The Fed cannot keep interest rates at scraping-close to zero forever. It’s impossible. If there is any hope of future economic growth, interest rates will have to go up, some way, some how. Paul Volcker knew this back in the early ’80′s. He went a bit nuts though, raising rates to 20%.

    But they’re scared [bleep]less to raise them. Why? The national debt will go up like a Saturn V rocket on steroids (yeah, go ahead and use that nail gun on the wooden coffin!), and there would be no “recovery”. Do you know what a 20% interest rate would do to our current “recovering” economy?

    Our economy is stuck between Iraq and a hard place.

    (Okay, that joke was bad. Couldn’t resist though)

  • fedup

    -the REAL problem here is our 2 party system.
    -the 2 parties behave like 2 football teams at the superbowl.
    -all they worry about is the “other” team.
    -they have no time to truly deal with ANY real issues outside of their own power struggle.
    -don’t get me wrong, every now and then they take a time out and throw one of their corporate or political supporters a bone.

  • http://www.fidbus.com Paul Perkins

    Most of these charts would benefit by having the Y-axis presented in log(n) values which would remove the effect of compounding rates. The linear representations make it appear that values are “exploding” and going hyperbolic when, in fact, the growth trends are not changing nearly as significantly as depicted in the charts.

  • falcon2006

    You missed one:

    China holds at least $2 trillion of U.S. bonds

    http://finance.fortune.cnn.com/2011/02/09/our-dollar-chinas-2-trillion-problem

  • http://kimilco.com John

    Democrat or Republican we are spoiled our poorest of poor live better than most of the world.What we consider poor is better than most of the educated in the developing world. Until we understand what our forefathers knew and that is the only thing this great country offered was oppurtunity and not entiltiment and any time central goverment gains to much control there is tyranny.I just pray that with over 40 percent on the receiving end it is not to late.

  • impeachRonPaul

    God is a myth for the less intelligent to cling to. The republicans push religion to keep the poor content. The Ron Paul types want to divide us with social issues.

  • Proudmanoffaith

    Really? The less intelligent? Not sure if it is arrogance or ignorance on your part however us one-tooth, shot-gun carrying, tank top wearing, tobacco drooling, bible toting, intellectually inferior epsilon semi-morons are a bit smarter than you obviously believe. Only in the elitist, pseudo-intellectual, self absorbed mind of those who have been “enlightened” are people of faith dumb blind sheep – or partakers of the opiate of the masses. Karl thought the same thing you apparently do… funny, he and his ideology is gone and religion is still here. Go figure… I guess like roaches, we will always be around.

  • mondobeyondo

    Ummm…no. God is not a myth. God is a very real entity.

    There are enough myths though. Goldilocks, the Wizard of Oz, and the Federal Reserve’s fiscal policies, to name a few. But God is not one of them.

  • Mikyla

    I love your blogs, they tell me exactly what I want to know. I don’t understand some of it, but I think I get the main picture. The charts are very helpful, I’ve been trying to find some like those on the internet, but didn’t get anywhere. Your blog is very helpful.
    Mikyla Bunnett

  • mondobeyondo

    For those who insist on the denial of the existence of God (*sigh*)

    I want to see you create an amoeba in a lab dish. Just one amoeba, not half a dozen. Make it reproduce. Simple stuff – just have your one celled pet divide in half.

    No human scientist has been able to do it yet.

    • Isaac Zoligman

      i like your illustration. I tell my sunday school students to do a similar little exercize whenever they think they know more about how they should live than God does. I tell them to hold out their hand, palm up and create just one little grian of sand. Not much to ask for, really.

  • Nikhil

    This is a very strong possibility…optimists may say I am just being a pessimist…well I don’t live in fantasy…more like a realist ;)…but i seem to be in the minority with most I interact with and the general atmosphere/public/bankers/investors = everyone/masses….etc around me…time will tell

  • Kevin

    Ron Paul wanted to keep good jobs in the USA voting against NAFTA and China Free Trade.

    Democrats want to do as their corporate masters tell them and then blame the republicans for being the exclusive friend of big business hiding behind the BS of “We’re the friend of the working class”. On inspection that might be true; they sure helped Chinese and Mexican labor.

    I’ll give you a social issue, loosing your job to Free Trade with slave labor nations and being one of the approximately 50 million on food stamps.

  • David H Eberly

    Society and Government must return to conservative processes to regain sustainable life styles. No more experimenting with failed systems.

  • joesomebody

    “Religion keeps the poor from killing the rich.” spoken by someone of importance at one time.

  • Athiest for Ron Paul

    LOL only a stupid person would insult a “myth” then refuse to look at any “facts” and blame “Ron Paul” one of the few speaking about facts!
    Religion aside, when we dump these “social issues” and let Survival of the Fit take hold, all of those whiners who are “entitled” will only be “entitled” to worthless paper money and will only eat if they can contribute. Those in government who what to play god and those who want to make-beleive they can pray for the government to bless them at the expense of others will be determined by evolution not make-beleive economics.

  • Greyfox

    “impeachRonPaul” , you are an agnostic/atheist fool.

    Ron Paul is the only “Statesman” in the entire Congress, the balance are just politicians. He is the only one to have consistently cast his vote based on the Constitution for the past almost 40 years. The only social issue division is those who desire Liberty and those who want socialism and big-brother federal government. May this country be saved from fools such as yourself.

  • chux03

    Gold is a myth?? Those thoughts will help you wake up standing in the breadline, Ace. And that “myth” has far outlived the govt and private sector paper promises to pay that you seem to be so fond of. Real wealth like gold and silver, is measured with the scale and come in grams, ounces and kilos as has been the case for over 5000 years. Your paper promises to pay have failed EVERY time they’ve been used. EVERY time. Less intelligent in truth are the paper pushers (like yourself?). Don’t worry as the gold punisher, lest you forget, will remind eveyone soon as to what is real money and what isn’t.
    Got gold??

  • http://theplanet.com David Cunnins

    impeachRonPaul — just brief — you are stupid as the day is long.

    That’s about it.

  • Kathleen

    Your argument is interesting and maybe true. However I resent the misleading way the graphs are presented. For example all debt graphs should be divided by the GDP and/or use inflation adjusted dollars and/or divided by the average annual wage rate to get the real picture.

  • http://CaseyResearch Nicholas Gold

    The graphs illustrate that despite religious views or hopes of impeaching Ron Paul, one cannot under any circumstances spend more than one makes and expect to prosper. This principle goes for sovereign entities as well as individuals. Sorry, but impeaching Ron Paul or tarring Republicans for being social neanderthals does not in any way negate basic financial tenets. The religious left is every bit as reprehensible as the religious right.

  • http://www.silverminingclaims.com Barry Murray

    How come nobody seems to pay any interest to the “Silver Standard.”

    Remember that FDR used the March of Dimes (silver) to fight polio. Remember that a silver dime in WWII would buy a War Bond stamp, pasted into a full book that cost $18.70 to fill, could be traded in for a paper certificate (bond) that in 10-years could be cashed in for $25.00.

    Wow, thanks to Bunker Hunt, and NASDAQ director Bernie Maddox, we don’t need to understand what is really happening to our economy.

  • Jonny Canuck

    America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves.
    Abraham Lincoln

    These capitalists generally act harmoniously and in concert, to fleece the people.
    Abraham Lincoln

    Being from Canada I have a clearer view of what is happening in the States as I can be more objective. I am not sure which is more evil to the USA the Fed the CIA or the IMF. JFK was assassinated because he signed law to terminate the CIA. The CIA is not a government agency. It is for the money mongers by the money mongers and for their benefit only. Your greatest threat to your security is right at home. Not coming from another country. Lincoln warned you 100 years ago. Wake up and sound the alarm. Where is Paul Revere when you need him?
    The Banks are coming! The Banks are coming!

  • Jonny Canuck

    Maybe some of those unemployed Americans would be willing to work on a farm to produce food to sell to those who still have or can get jobs.
    You dont need the multinatioinal food producers to feed yourselves. You were once a self sufficient country and with a little planning you can be again.
    This is the banks interventions again. Telling you that you are in a depression and millions of acres are not being used to produce foodstuffs.
    Small farms was what made America great. The closing of the small farm is causing its downfall.

  • http://www.harbingersoftheapocalypse.com Stanley

    The vertical scales should be logarithmic to give an accurate picture. I don’t dispute the seriousness of the situation, but the linear scales distort and exaggerate everything.

  • Marisol

    LaRouche has been consistently right about this, going back to the 1970s. This is now confirmed by the Angelides Commissin. Now it has become fashionable to make dire forecasts, but what is really needed is a plan to avert disaster. LaRouche proposes the restoration of the Glass-Steagall Act to halt speculation by banks (and the bailout of the speculation by banks,) combined with a major infrastructure project to revive the generation of physical wealth in the economy.

  • Think clearly

    Funny that you would want to impeach one of the only guys that is calling out the Federal Reserve for helping destroy the US economy, middle class, and national currency which will be inflated into oblivion.

    • RJH

      You’re an uneducated idiot….

  • Tim
    • West

      Well done, Tim.

      These charts would be a lot more useful – but a lot less persuasive – if they used inflation-adjusted dollars.

      As Tim’s link shows, anything financial can be scary when looked at over 100 years.

  • http://www.thecandidbull.com richard crisalli

    WE need to make tough decisions as a country,Change needs to be made otherwise we are headed down a road of no return. Ron Paul 2012

  • Frank

    Looking at these charts forces me to consider the possibility of the intentional destruction of the economy and the middle class. The severity of the decline seems to be more than a matter of greed. It seems to indicate “intention”. I am wondering if others see the situation this way?

  • Ron Paul was right all along.

    This site proves Ron Paul was right all the time.. Any imbecile can see that. And without God there is no sanctity to human life, no eternal life, no enduring joy, no lasting peace, no redemption, no hope. The last people who claimed God did not exist and came to power murdered over 120 MILLION of their own people, and they are called communists.. Vile iniquity has consequences. Without God evil has no consequences.

  • William Clopton

    Ron Paul is one of the few in Congress who know the real score. The U.S. is bankrupt, the dollar will soon become worthless, and gold and silver will soar.

  • Adam

    These are the same people that profit from taking your money and put into investment accounts overseas. There is no doubt we have debut crises, but someone could have looked at the chart and predicated the same thing during 35 years ago when Reagan was president.

  • Joe

    “God is a myth for the less intelligent to cling to”

    The reality is that only fools do not comprehend or recognize the existence of God. Another reality is that such fools will go the way of the dinosaur soon enough… and no amount of fools, no matter how great their number or how “brilliant” their arguments, will be able to change that anymore than an ant on a rail can stop a speeding freight train…

  • Dineen

    Charts 6 and 7 – baby boomers are retiring NOW! It seems logical that available jobs are being created by their retirements.

  • FuturesMan

    Debt – a preview of cause / effect
    The State of Wisconsin tried to peacefully overthrow corrupt government officials who chose anarcy over following the State Balance Budget over the last four years.
    The newly elected officials attempted to follow the demands of the peaceful revolution and address the budget. But, the hard-core “entitled” minority stopped work and came to protest (while still on the payroll no less).
    According to ABC News, President Obama accused the voters of “Attacking” them. (funny, just the opposit off Egypt).
    Eventually, the voters must either confront the anarchist who do not believe in democracy or the laws of economics or they must submit to the new form of government.
    Do Americans have what it takes to maintain freedom? Maybe, maybe not. Wisconsin may show the rest of the nation how things will shape up.

  • frobn

    Joe said: “The reality is that only fools do not comprehend or recognize the existence of God.”

    When the Buddha was asked if there was a god he replied with a questions, ‘would the existence of god make you a better person’?” Perhaps in the context of the US economy the we could ask “would the existence of god solve our economic problems?”

  • Thank Goodness

    Not sure what religion has to do with the US economy…. assuming we still have some basic freedons in this country to discuss anything. But you started it.
    Thank Goodness (not some supreme diety) that most people on this planet believe in God and something “of greater power” to have hope in. Without it, who knows how many of you might not have enough intelligence – yes, intelligence – to believe that in billions of years on this planet that a great ecosystem of life can come to be, alive and abundant, and able to regenerate itself…. but anyway… many of you would be dangerous, evil beings, without law or intelligent capacity to function in a world with others. Thank Goodness… you have God.

    • God

      Nice bro, I give you props. but id say that’s blasphemy. Apologize before i smite you.

  • David Klappstein

    Folks;

    Let me say up front that I am from Canada, and I am somewhat shocked at many of your childish answers. Surely, the graphs deserve some intelligent comments. I don’t pretend to be an economics major, and I agree that there are some faults with some of the graphs, but it seems to me that the graphs in general are telling us that there will not be an easy solution and even if the politicians and their economic advisors did everything right, this will be a long long hard road back to health. That means that everything will only improve slowly, gradually, and any hicups along the way are going to hurt a lot of people. It seems to me that this problem is like the global warming phenomena(if you believe in it).It can be solved and every day you delay in taking positive steps will make it much harder to achieve a positive result, until you arrive at a tipping point, where even if you can quotes”recover”, your country will never be the same, for your future generations. Surely your future generations would want you to tackle the problem and do your best, rather than some of the nonsense I have seen in some of your comments. You are not making a very good impression on the rest of the world. And remember, there is no place to hide anymore.

    Dave

  • Martin F

    National debt needs to be represented in terms of a percent of Gross Domestic Product, otherwise the linear represenation distorts the reality. This was not done. When will the scary economist posting the article take the correct steps in this regard?

  • Zev

    I completely agree with GREYFOX’s comment about Ron Paul – he is likely the ONLY Statesman amongst a body of politicians whom mostly carry out self-serving agendas. How do I know about the self-serving agenda aspect? Well, I already told you.. They’re politicians.

  • Lar

    We need more thinkers like David K. Stay with us DK and shoot down the naysayers and mush brains. LB

  • timothy

    As for the answer to your personal economic problems being gold…remember FDR. When he needed the money, he took everyone’s gold with the stroke of a pen…paid you $20/oz fiat money and sold it to the banksters in Europe for $35/oz. It will happen again!!! “That which hath been is that which shall be; and that which hath been done is that which shall be done: and there is no new thing under the sun.” (King Solomon)

  • http://www.insuranceprosguides.com James “Jim” L. Young

    Two observations:

    1. I do believe in God; I doubt that He is threatened by people who mock Him.

    2. Social Security and Medicare are not “giveaway” programs for those who have or are paying into them. We’re giving away our citizenship and birth rights to people who have no right to them.

    • God

      I believe in you too James.

  • Daniel

    This “impeachRonPaul” person has shown up with ridiculous, unproven, obscene comments on this site before just to cause a stir. I just want to say this, mostly because I can spend time debating with people that have intelligence; I once heard a very wise person say: “It takes far more ‘faith’ and ‘hope’ to be an atheist, as more evidence and reason is needed to show God does not existence, than it ever will for those of us that know God is very real. All of this wasn’t just an accident by chance that so happened to take place in the right degree on space and reality that placed all the planets around one Sun in perfect harmony.”

  • Graham Palmer

    From an Australian perspective it is both strange and a pity that comments on an economic issue are dominated by questions of religion and God.
    That aside, the arguments that jobs have been exported is a no brainer since both Republicans and Democrats have foisted World read ‘Free’ Trade on the world as it was initially seen to be an advantage to the US economy. Cheap goods in Walmart etc. has freed up money to speculate on real estate or Wall Street. Just call it the chickens coming home to roost.

  • Frank

    I also can’t understand why God is being discussed when this article clearly outlines what will be the USA’s future for a number of years to come. The only real question is when will the ultimate bubble finally cause the total collapse of our daily way of life. I believe with Ben printing $$$$$’s like a drunken sailor on shore leave it is just a matter of time. (Less than 3 years). What is missing in the article is, what will be the effect to our economy if China has a real disruption (runaway inflation, etc.) to their economy. That is also a very distinct possibility. Not a thing I see today either in Washington, Wall Street or the world stage gives me a warm and fuzzy. I hope I am wrong but I think the next 3 to 5 years will be the ultimate test of our economy.

    • God

      Forex :), ill see you in St. Tropez… or Vegas if it still exists (which I prefer)

  • http://hubpages.com/profile/Treasuresofheaven Sima

    This is amazing! Thank you for waking us up. Wake Up America!

  • faithsaves

    Most people who deny the existence of God do so because of fear. A fear of what they have done that will condemn them. then there are those that deny because they don’t want to believe so they can continue treating those as they choose to and so in the hereafter they will claim ignorance when they are damned! there they will say “Lord I did not know”. I pity those that choose to deny for you will never know the true living God. I am sorry you believe the Lord is some kind of trick to maintain a benevolence in your outlook as if that would be any kind of crime against your free will. Also for you people out there that
    believe the world can plan, work or engineer our way out of the current crises we now face around the world but more so in the USA. I don’t believe we can enslave or threaten our way out of this one and don’t want to see us
    try. Lord knows we can only continue to borrow so much money. You know your in trouble when you need to borrow money just to pay your debt. I have been uterly ashamed of the way our foreign policy has been handled and the way the corperate media covers it up. I would like to apologize to anyone out there that have been persecuted by my government, military or intelligents agencies of the USA. I only wish that others in my country believed as i did and feel it totally unfair that 4% of the worlds population purchases 30% of the goods and 25% of the fuels. My prayers are with you allways and forever. God help you poor people living in poverty and if you don’t
    prosper in this world I pray you do in the next. God help us all to see the light of truth and to help those around us as we would have unto ourselves !!!!!
    A disgruntaled American …..

  • ed hurley

    Wisdom and intelligence are not equally the same.

    “The fool has said in his heart ‘there is no God’. Psalm 53

    and,

    Then the LORD answered Job out of the whirlwind, and said: ​​​​”Where were you when I laid the foundations of the earth?
    ​​Tell Me, if you have understanding. Job 38

  • http://www.pubcrawlnyc.com/ Ryan S

    I concur with comments posted by Kathleen and Martin F. Aren’t we missing something, like an adjustment for inflation. I’m certainly not an economist, but it would make sense to me that the calculations done here are lacking something. Unless, the results were adjusted appropriately, and I don’t see any evidence that they were.

    Take a look at this:
    http://www.simplestockinvesting.com/SP500-historical-real-total-returns.htm

  • AreYouKiddingMe?

    Most of those that deny God’s existence do so not out of fear but due to an utter lack of proof. Many of those that deny God’s existence accept the ethical and moral values written in the Bible- they just do not need to have God exist in order to act ethically and morally.

    Most of those that do believe in God however shut off any possible discussion. Religion is based on faith not science. You can’t quote the Bible as ‘proof’ of God’s existence because it says so. Science has refusted many dogmas. Look at the Muslim countries where they are slavishly following the Koran. Not much different than want happened in Europe during the Dark Ages.

    • God

      No I am right here. Now the truth is that anyone who believes that morals exist is retarded because they will never figure out the truth about anything because of their subconscious. Many of you minions may have already come to the conclusion that “I Am” a what you would call a sociopath. WTF i thought we were talking red white and blue

  • Visitor

    These charts remind me of the gold and silver markets. Can we say bubble and blow-off top.

  • Paul Lohr

    How can you believe that applying wage laws to US-based corporations with overseas workers will increase the salaries of those workers? Capital seeks the most efficient use except when in the hands go government. Once these these new laws are in place, a company will move its entire operation from the US to a more friendly nation (which is just about any other nation). Many companies have already done this. You do not own the companies that you speak of. Nor do you own the workers outside of the US. Most of the morons in the US believe the answer to any problem is to tax companies. The tax is simply added to the provided good or service until the tax can no longer be afforded, then the entire company seeks a new home nation. Now how many jobs have left the United States? The worst part about this is nothing restricts you from bringing your ignorance to the ballot box where you can spray that ignorance on the rest of us.

  • yo

    politics is too complicated! and it shouldnt be

  • dan

    these charts are rediculous. there is no way we can get out of this one. this is just one example of how the government has screwed its citizens.

  • ROb

    Some obvious points:

    The first thing America has to do is dismantle or retool it’s huge military to address public works projects. If we’re going to pay soldiers, might as well have them fix the roads, the bridges, etc.

    Next, Wall St. needs to be defanged. In other words, once again separate Investment banks from Commercial banks in order to guarantee that your savings aren’t gambled on the Wall St. roulette wheel. Also, make sure that derivatives traders are on their own, with no government bailout guarantees.

    Next, tax imports to equalize the cost of labour in the exporting country with labour costs at home. No more cheap Chinese junk taking local jobs.

    Lastly, lay off social programs. The American people are suffering. Social programs are there to address inequality at home. Poverty is not a good thing. It leads to crime and drug abuse which eventually lead to larger expenses like prisons. If there aren’t enough jobs to go around, let the government (yes the government) create infrastructure employment.

    Lastly, the rich are robbing you blind. Tax them till they hurt. It really is tome to wake up and smell the coffee before being an American becomes an international joke.

  • LHS

    First of all we shouldn’t be getting into any war it causes major debt as we all know from the past. For example our military fighting in Afghanistan yeah that’s undeclared war and why are fighting there when the people we are killing they most of them had nothing to do with 9/11 so why are wasting money killing them it makes no sense and wake up people we were attacked on that day because we had us stations in afganistan with out afganistan’s permission to be there so how would you feel if someone invaded your country like that and an invasion of another’s country is an act of war just to point that out so stop blaming 9/11 on them mostly and killing those people on 9/11 is not going to bring back our loved ones from that horrible day another thing is that the government needs to definetly stop giving loans out to American citizens the government is only there to protect the rights of the people. If they do anything other wise they aren’t doing their job right and the government is always passing laws that go against our constitution and bill of rights which takes advantage of us as American citizens so please just please know your rights so they are not taken away….even though its too late because the government already did that . Bringing back the issue on the government giving out loans they give loans to us and when we can’t pay it back we are put in debt and so is the government the government has way too much power and the government’s power can only come from the people and we can abolish or alter the government when they are not doing their job we have that right and when the government wants more money they just print more which causes major inflation

    • LHS

      I would just like to take the moment to say that I am only 13 years of age, now doesn’t that just make you feel so disgusted that our country is so bad right now that a kid my age is speaking out about it. Stand up for your self because you cannot sit around waiting for someone else to because it may never happen.

  • Al

    How did Hoover and FDR get out of it? More regulations ……

  • Rich Grise

    A Hockey Stick Graph! Somebody call Al Gore!

  • STUPID

    Banks and goverment are bad, they cause us in debt! They are dumb!! They think they could rob us, one day we will have nothing for them to rob, if we die they will die too, they can’t continue without us! They want to hurt us all they want, they want turn all of us into slaves, but slaves have their jobs and works to do, but we are the slaves without jobs. They don’t provide enough jobs for us but they just want to rob our money! We don’t have enough of jobs, so they will go down with us! They are stupid!

  • Oct

    stop blaming your government for everything and stop blaming chinese for everything, do u know what your problem is? all this time you never realized who your enemy is.bcoz you try to hard to figure out to stop chinese and you never keep your noses out from middle east.but the real culprit who’s responsible for your economic mess is india.middle class is the engine of a country’s economy.Although obama did tried to control the outsourcing he wasn’t able to succeed.i live in india,i know how things work here,as you’ve seen middle class economy crashing there,the middle class economy here is growing in an unbelievable rate.still don’t make sense to you HuH!As an american loses a job a indian gets his. “STUPID” commented about banks and governments,well replace it with indian call centres.The writer is completely correct about one thing,you’ve let down the next generations.The chinese export low price/low quality goods.Indians not only get your job virtually from their country,they also send sorry export people too.

  • Robert Osenenko

    I enjoyed the article for what its worth, but it lacks foresight. Robert author, Family Faith Land and Mysticism.

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