Things are out of control and beyond fixing. That’s not being negative, it’s being honest and realistic. Why so?
Soon we won’t be able to pay the INTEREST on our National Debt.
We have been spending more than one trillion each year than we collect in taxes and have been doing so for years
The government borrows $0.43 of EACH DOLLAR they spend. This can’t continue.
Our tax revenues are $2.3 trillion. Our entitlement expenditures and interest on the debt total $2.4 trillion. We don’t have enough left to run the country or support the military. The interest is compounding. For every one percent increase in the interest rate, it increases our National Debt by $160. The Fed IS stuck with QE to Infinity. They cannot allow interest rates to rise and are therefore buying most of the government’s bonds with newly printed money. We use the Fed to print the money to finance our life style but it will ultimately destroy our once great nation.
All of this printing is causing massive dollar de-valuation. Prices are not rising, the dollar is losing value due to wanton Federal Reserve money creation. All of this “free money” the government borrows will never be paid back. We keep borrowing more money just to pay the interest on the debt.
In the last three years, the U.S. Monetary Base has tripled! Here is the graph, courtesy of the St. Louis Federal Reserve Branch:
This can’t continue – but it will! There will be consequences!
The Fiscal Cliff is not the problem. The media, as usual, is keeping Americans in the dark. We don’t collect enough taxes – not because the rich don’t pay their fair share, but because 47% of all U.S. households pay NO taxes. One in six qualifies for anti-poverty aid. Half of ALL Americans will get Food Stamps at some point in their lifetime. People make more money from Unemployment and other related government benefits than they could get from a job paying $15.00/hr. The benefits now run for two years. We are paying millions and millions of people NOT to work for two years, and we wonder why we are going broke.
56% of all Federal spending goes to entitlements and soon, they will take all of our tax revenues. And this doesn’t include over $120 trillion in unfunded liabilities via Medicare, Medicaid and Social Security. Do you really think there is any way out of this ghastly situation? Sure, hyperinflation will reduce the debt to manageable levels and also bankrupt most Americans. Those who stay in dollars and dollar-based assets will soon experience what real inflation is all about.
A recent study published by New York University shows the median net worth of American households has dropped to the same level as 1969. And they reach this conclusion using the government’s CPI calculation, so it is safe to say that average Americans are poorer now than in 1969.
In short, the central planners are decimating the American middle class with government and central bank policies, which is frightening because the middle class is the backbone of capitalism. It is the middle class that accumulates the savings and drives the production which raises standards of living.
American families are making ends meet by borrowing. Consumer debt as a percentage of income in 2006 was 143% and it is most certainly higher today. In 1946 it was 24%. Do these numbers resonate with you? They better.
This will all end very badly – not tomorrow, but most likely before this decade is over.
Here’s the kicker. Even if you prepare and set aside enough gold and silver to weather the financial Armageddon, those who escape with their wealth will be the target of envy and hatred. Where will you spend your money? What will you say to your friends, neighbors and relatives who come to you looking for assistance? Will you dare drive down the street in an expensive car? Will you go out in public wearing a Rolex watch or will you allow you wife to wear a big diamond? No, and even now, in many parts of the country it is not a wise idea to show your wealth. You better learn how to be low-key. Ain’t that a b#$%*! You work hard all your life so you can lead “the good life,” and then, when you can afford it, you will have to think twice about living it. replica watches.
This is just a teaser – if you want to experience a detailed presentation of where we are, where we are headed, how we got there and who is to blame, check out the following link to a new Porter Stansberry presentation. It is worth your time.
Disclaimer: The above video does not reflect the views of Miles Franklin Ltd., and are solely the views of the author Porter Stansbury. The presentation is intended for mature audiences. It contains potentially disturbing footage and coarse language about the sensitive issues of race and class in America today.
Andy Hoffman keeps tabs on 2012 performance year to date. Here it is and silver leads the pack by a mile.
Here are a couple more great charts that our own Ranting Andy published in his Rant yesterday: