Other • Economic collapse is inevitable, here’s why…
Economic collapse is inevitable, here’s why…
15 Aug 2012banks, budget, economic collapse, economy, federal government, finance, financial crisis, founding fathers, hyperinflation, investment, money, national debt, ponzi, prepare, unemployment by Jacque Fresco
America is quickly approaching a catastrophic economic collapse. Before you dismiss this as hype or paranoia, take a few minutes to review the facts outlined on this page. The numbers don’t lie. At this point, the dollar crash is unavoidable… far from an exaggeration this is a mathematical certainty. As repelling as that sounds, it’s in your own best interest to learn just how bad the situation is.
According to the talking heads of mainstream press the economy is slowly recovering and the financial crisis is all but behind us, but we need a reality check. It’s time to stop being naive and start being more discerning. Instead of more false hope, we need the truth as bitter as it might sound… and the truth is, from our local municipalities, to our states to our federal government, we are broke… the truth is we can’t payback our debt without getting into even more debt… the truth is the housing crash of 2008 was just a small preview of what’s to come.
America is drowning in debt. The government’s liabilities are now growing at an exponential rate. Our national debt is on a vicious downward spiral.
To our detriment our government continues to pretend that we can borrow our way out of debt and only handful of our politicians are willing to admit that our nation is now bankrupt.
Contrary to rhetoric coming out of Washington, no tax hike or budget cut will get us out of this mess. The kind of measures that would actually bring about meaningful change to curb the financial collapse are deemed too severe to be even considered.
Examine the evidence outlined below, connect the dots and think for yourself.
“All truth passes through three stages.
First, it is ridiculed.
Second, it is violently opposed.
Third, it is accepted as being self-evident.”
– Arthur Schopenhauer
What does the “national debt” even mean?
Let’s cover the basics first… When the government can not cover its spending using the collected revenue from corporate and income taxes and other fees it imposes, it goes into debt. The U.S. national debt is the sum of all outstanding debt owed by the federal government. It includes the money government borrowed, plus the interest it must pay on this debt.
Let’s also clear up the difference between debt and deficit. The deficit is the shortfall we have in any one year. If you take in $100 billion and spend $130 billion, you get a deficit of $30 billion. Now at the end of that year, you’ve got to do something with that $30 billion you owe, so you move it over to your long-term shortfall – which is the national debt.
Obviously, like any other debt, the national debt must be paid back to the holders. Of course, having a little debt is just fine as long as it’s manageable. On the other hand, if a country borrows too much it can drown in its debt, like Greece did.
So how bad is our situation? Numbers don’t lie, so let’s compare our debt and deficit to 1974 just to get a feel for our path and pace (later on we’ll look at national debt chart spanning 1940-2011).
In 1974 the deficit (annual shortfall) was $4 billion and the total debt was $484 billion. It had taken us 200 years from the start of the republic until 1974 to create that debt of $484 billion.
However, since 1974, our deficit went from $4 billion to a shocking $1.33 trillion… stop and think about that for a second… this means that our current annual budget shortfall is roughly triple the size of the total U.S. debt in 1974. Our national debt in 1974 was $484 billion… it is now approaching an unprecedented $16 trillion!
How is that possible? How do you go through World War I, World War II, the Korean War, Vietnam War – and have only $484 billion debt, then skyrocket to 16 trillion in such a short time?! The answer to this question has to do with a key event in 1971 that we’ll go over in a moment… for now, let’s stick with the national debt, so we can understand why it is no longer sustainable.
In a letter to Thomas Jefferson, 1787
“All of the perplexities, confusion, and distress in America arises, not from the defects of the Constitution or Confederation, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit, and circulation.”
– John Adams, Founding Father
Sixteen trillion dollars, so what?
Sixteen trillion dollars is certainly a lot of money, but most people usually don’t deal with that many zeros in their life. It’s hard to really appreciate this almost unfathomable sum and the dire consequences it represents for us. But to understand how deep of a hole the government is in, we need to grasp the enormity of this dollar amount.
So, how big is one trillion? Here are a few helpful illustrations.
Imagine you decided to count to one million out loud. How long do you think it would take you at a pace of one number per second?. If you do it non stop, it would take about 12 DAYS. Now, how long would it take you to count to one trillion?… The answer?… 32,000 YEARS!!!
Here’s another illustration.
If you were alive when Christ was born and you spent one million dollars every single day since that point, you still would not have spent one trillion dollars by now.
Last one… If you had a trillion $10 bills and you taped them all end to end. Your money ribbon will become so long that you would actually be able to wrap it around planet Earth more than 380 times!!!… But, that amount of money would still not be enough to pay off the U.S. national debt.
Are you getting the picture yet?
On the right is an illustration of our federal debt that might help you get a better idea visually. You can click on that image to see a larger size.
Keep in mind that what you are looking at are pallets of $100 bills stacked on top of each other. To give you an idea of the size and height of these pallets, in the center is standing the Statue of Liberty in proper scale relative to the money towers. The cash surrounding and dwarfing the Stature of Liberty taken together constitute 16.394 trillion. This represents our current debt ceiling that we’re scheduled to hit in September of 2012.
It’s interesting to note that when we hit this debt ceiling this year, our government will once again move the ceiling up to allow for the debt to grow. Now ask yourself, what is the point of a movable ceiling? A movable ceiling is an oxymoron. If you can move your debt limit on demand, why bother pretending that you have a debt limit in the first place?
“I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. Corporations have been enthroned, an era of corruption will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people, until the wealth is aggregated in a few hands, and the republic destroyed.”
– Abraham Lincoln, 16th President of the United States
Statistics: Posted by yoda — Sun Aug 19, 2012 9:31 pm
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