The United States of America is currently going through a managed bankruptcy and only those who are paying extreme
attention have any idea that it's going on. The government at all levels is bankrupt and we are working through the G-20 to sell off our assets and reset our system into a global framework.
Understand what's being said. It's not that we may someday be bankrupt or that there is a good chance we will be
bankrupt, we are already bankrupt and right now our politicians are working with foreign governments to manage a slow decline of our currency and our standard of living.
How can I say this with such certainty? If you add up the mandatory budget items(entitlements and interest on debt)they consume 88% of all tax revenues. If you add in a host of other automatic items such as food stamps, unemployment and SSI that number jumps to 107%. With that we spend 7% more than we take in and have yet to spend a penny on anything that the federal government is required to do by the constitution. Every dollar for defense, roads,the postal service, the state department and much more must be borrowed or printed. With 60% of our debt being owned by foreign governments we are dependent on other nations for our ability to defend ourselves. To see all this information and much more go to US Debt Clock.org.
The amount of money we have promised to pay via entitlements over the next 75 years has unfunded liabilities estimated to be between 110 to 200 trillion dollars. This is in the ballpark of 2 to 4 times the value of every single thing produced in the world in a single year. If we were a business we would have been closed long ago.
The bankruptcy of a nation is different than a personal or corporate bankruptcy. Countries go bankrupt by
printing money once they can no longer borrow enough money to pay the bills. That is exactly the situation we
find ourselves in with the Federal Reserve promising to print 75 billion dollars every month to be used to
buy US Treasury bonds. Every dollar they print to buy our own debt reduces the value of every other dollar in
existence. Since the US dollar is the world reserve currency, universally accepted and exchanged all over the world
the cost of buying any real commodity will go up as the value of the dollar declines.
The critical thing that you have to understand is that the only reason we are able to import all the oil and
imported products we require is because these nations still accept the US dollar as payment. When these
countries decide that printed US dollars are not acceptable anymore we will have to trade something real in order
to get oil and every other thing we need to import.
What exactly does the rest of the world need from us that they cannot get elsewhere?
If you're drawing a blank on that one it's not your fault. We have over the last 50 years gone from a nation of
producers to a nation of consumers. We no longer make appliances or electronics. We don't make clothing or shoes.
Our auto industry has been eclipsed by China, Japan and Germany. All we really have left is coal, natural gas and
food. Actually there is one other thing, weapons.
That should send a chill up your spine. We are now being enslaved to deliver our food, energy and weapons in exchange for the things we no longer can make but need to survive. Americans are going to learn how to live with less food and less energy per person than we have seen in many generations. This rationing will be done very simply, by making food and energy extremely expensive forcing people to make due with much less.
You may be thinking that we just had a major election and that the new people we put in office will change
course and get us heading back in the right direction. Have you heard anyone talking about making major cuts
or changes to Social Security, Medicare or Federal Pensions? What about food stamps and unemployment? These are
automatic budget items that congress does not have to vote on and automatically renew and increase each year.
The ratio of workers to retirees is projected to decrease from around 3.3 to 1 as it is now to 2 to 1 in the not
so distant future. We will never reach this point. The system will collapse long before then.
What to do with this information is up to you. Knowing that the price of everything you need is going to rise
rapidly might make you consider stocking up on necessities before prices go up. It may also encourage you to shed as
much debt as possible and cut unnecessary expenses to prepare for a tighter budget. Even if you decide to do nothing, by knowing in advance what is going to happen you will avoid the panic and irrational behavior many will experience as these changes begin to set in. Prepare for the worst and hope for the best. The only downside if I'm completely wrong is that you'll be out of debt and possibly look foolish. Ask yourself though, what if he's right, what then?