At The Same Time That We Are Going Into So Much Debt, Our Ability To Produce Wealth Continues To Decline….Show This To Anyone That Believes That “Things Are Getting Better” In America

by Michael

Show This To Anyone That Believes That Things Are Getting Better In America

How can anyone not see that the U.S. economy is collapsing all around us?  It just astounds me when people try to tell me that “everything is just fine” and that “things are getting better” in America.  Are there people out there that are really that blind?  If you want to see the economic collapse, just open up your eyes and look around you.  By almost every economic and financial measure, the U.S. economy has been steadily declining for many years.  But most Americans are so tied into “the matrix” that they can only understand the cheerful propaganda that is endlessly being spoon-fed to them by the mainstream media.  As I have said so many times, the economic collapse is not a single event.  The economic collapse has been happening, it is is happening right now, and it will continue to happen.  Yes, there will be times when our decline will be punctuated by moments of great crisis, but that will be the exception rather than the rule.  A lot of people that write about “the economic collapse” hype it up as if it will be some huge “event” that will happen very rapidly and then once it is all over we will rebuild.  Unfortunately, that is not how the real world works.  We are living in the greatest debt bubble in the history of the world, and once it completely bursts there will be no going back to how things were before.  Right now, we are living in a “credit card economy”.  As long as we can keep borrowing more money, most people think that things are just fine.  But anyone that has lived on credit cards knows that eventually there comes a point when the game is over, and we are rapidly approaching that point as a nation.

Have you ever been there?  Have you ever desperately hoped that you could just get one more credit card or one more loan so that you could keep things going?

At first, living on credit can be a lot of fun.  You can live a much higher standard of living than you otherwise would be able to.

But inevitably a day of reckoning comes.

If the federal government and the American people were forced at this moment to live within their means, the U.S. economy would immediately plunge into a depression.

That is a 100% rock solid guarantee.

But our politicians and the mainstream media continue to perpetuate the fiction that we can live in this credit card economic fantasy land indefinitely.

And most Americans could not care less about the future.  As long as “things are good” today, they don’t really think much about what the future will hold.

As a result of our very foolish short-term thinking, we have now run up a national debt of 16.4 trillion dollars.  It is the largest debt in the history of the world, and it has gotten more than 23 times larger since Jimmy Carter first entered the White House.

The chart that you see below is a recipe for national financial suicide…

U.S. National Debt

Of course things have accelerated over the past four years.  Since Barack Obama entered the White House, the U.S. government has run a budget deficit of well over a trillion dollars every single year, and we have stolen more than 100 million dollars from our children and our grandchildren every single hour of every single day.

It is the biggest theft of all time.  What we are doing to our children and our grandchildren is beyond criminal.

And now our debt is at a level that most economists would consider terminal.  When Barack Obama first entered the White House, the U.S. debt to GDP ratio was under 70 percent.  Today, it is up to 103 percent.

We are officially in “the danger zone”.

If things really were “getting better” in America, we would not need toborrow so much money.

Our politicians are stealing from the future in order to make the present look better.  During Obama’s first term, the federal government accumulated more debt than it did under the first 42 U.S presidents combined.

That is utter insanity!

If you started paying off just the new debt that the U.S. has accumulated during the Obama administration at the rate of one dollar per second, it would take more than 184,000 years to pay it off.

So what is the solution?

Get ready to laugh.

The most prominent economic journalist in the entire country, Paul Krugman of the New York Times, recently suggested the following in an article that he wrote entitled “Kick That Can“…

Realistically, we’re not going to resolve our long-run fiscal issues any time soon, which is O.K. — not ideal, but nothing terrible will happen if we don’t fix everything this year. Meanwhile, we face the imminent threat of severe economic damage from short-term spending cuts.

So we should avoid that damage by kicking the can down the road. It’s the responsible thing to do.

You mean that we might actually do damage to the debt-fueled economic fantasy world that we are living in if we stopped stealing so much money from future generations?

Oh the humanity!

It is horrifying to think that all that one of the “top economic minds” in America can come up with is to “kick the can” down the road some more.

Unfortunately, neither Paul Krugman nor most of the American people understand that our financial system is actually designed to create government debt.

The bankers that helped create the Federal Reserve intended to permanently enslave the U.S. government to a perpetually expanding spiral of debt, and their plans worked.

At this point, the U.S. national debt is more than 5000 times larger than it was when the Federal Reserve was first created.

So why don’t the American people understand what the Federal Reserve system is doing to us?

It is because most of them are still plugged into the matrix.  A Zero Hedge article that I came across today put it beautifully…

US society in a nutshell: Chris Dorner has been around for a week and has 222 million results on Google; the Federal Reserve has been around for one hundred years and has 187 million results.

If nothing is done about our exploding debt, it is only a matter of time before we reach financial oblivion.

According to Boston University economist Laurence Kotlikoff, the U.S. government is facing a “present value difference between projected future spending and revenue” of 222 trillion dollars in the years ahead.

So how in the world are we going to come up with an extra 222 trillion dollars?

But it is not just the U.S. government that is drowning in debt.

Just check out this chart which shows the astounding growth of state and local government debt in recent years…

State And Local Government Debt

All over the United States there are state and local governments that are on the verge of bankruptcy.  Just check out what is going on in Detroit.  The only way that most of our state and local governments can keep going at this point is to also “kick the can” down the road some more.

And of course most of the rest of us are drowning in debt as well.

40 years ago, the total amount of debt in the U.S. economic system (government + business + consumer) was less than 2 trillion dollars.

Today, the total amount of debt in the U.S. economic system has grown to more than 55 trillion dollars.

Can anyone say bubble?

The good news is that U.S. GDP is now more than 12 times larger than it was 40 years ago.

The bad news is that the total amount of debt in our financial system is now more than 30 times larger than it was 40 years ago…

Total Credit Market Debt Owed

At the same time that we are going into so much debt, our ability to produce wealth continues to decline.

According to the World Bank, U.S. GDP accounted for 31.8 percent of all global economic activity in 2001.  That number dropped to 21.6 percent in 2011.  That is not just a decline – that is a nightmarish freefall.  Just check out the chart in this article.

We are becoming less competitive as a nation with each passing year.  In fact, the U.S. has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.

Most Americans don’t understand this, but the United States buys far more from the rest of the world than they buy from us each year.  In 2012, we had a trade deficit of more than 500 billion dollars with the rest of the world.

That means that more than 500 billion dollars that could have gone to U.S. workers and U.S. businesses went out of the country instead.

So how does our country survive if hundreds of billions of dollars more is flowing out of the country than is flowing into it?

Well, to make up the shortfall we go to the countries that we sent our money to and we beg them to lend it back to us.  If that doesn’t work, we just print and borrow even more money.

Overall, the United States has run a trade deficit of more than 8 trillion dollars with the rest of the world since 1975.

That is 8 trillion dollars that could have saved U.S. businesses, paid the salaries of U.S. workers and that would have helped fund government.

But instead, our foolish policies have greatly enriched China and the oil barons of the Middle East.

Sadly, politicians from both political parties continue to boldly support the one world economic agenda of the global elite.

Just consider how destructive many of these “free trade” deals have been to our economy…

When NAFTA was pushed through Congress in 1993, the United States had a trade surplus with Mexico of 1.6 billion dollars.

By 2010, we had a trade deficit with Mexico of 61.6 billion dollars.

Back in 1985, our trade deficit with China was approximately milliondollars (million with a little “m”) for the entire year.

In 2012, our trade deficit with China was 315 billion dollars.  That was the largest trade deficit that one nation has had with another nation in the history of the world.

In particular, our trade with China is extremely unbalanced.  Today, U.S. consumers spend approximately 4 dollars on goods and services from China for every one dollar that Chinese consumers spend on goods and services from the United States.

But isn’t getting cheap stuff from China good?

No, because it costs us good paying jobs.

According to the Economic Policy Institute, the United States is losinghalf a million jobs to China every single year.

Overall, more than 56,000 manufacturing facilities in the United States have been shut down since 2001.  During 2010, manufacturing facilities in the United States were shutting down at a rate of 23 per day.  How can anyone say that “things are getting better” when our economic infrastructure is being absolutely gutted?

The truth is that there are never going to be enough jobs in America ever again, because millions of our jobs are being sent overseas and millions of our jobs are being lost to technology.

You won’t hear this on the news, but the percentage of the civilian labor force in the United States that is employed has been steadily declining every single year since 2006.

Younger workers have been hit particularly hard.  In 2007, the unemployment rate for the 20 to 29 age bracket was about 6.5 percent.  Today, the unemployment rate for that same age group is about 13 percent.

If you are under the age of 30 and you aren’t living with your parents, there is a really good chance that you are living in poverty.  If you can believe it, U.S. families that have a head of household that is under the age of 30 have a poverty rate of 37 percent.

Our economy has been steadily bleeding huge numbers of middle class jobs, and many of those jobs have been replaced by low paying jobs in recent years.

According to one study, 60 percent of the jobs lost during the last recession were mid-wage jobs, but 58 percent of the jobs created since then have been low wage jobs.

And at this point, an astounding 53 percent of all American workers make less than $30,000 a year.

Oh, but “things are getting better”, right?

Maybe if you live on Wall Street or if you are an employee of the federal government.

But for most families this economic decline has been a total nightmare.  Median household income in America has fallen for four consecutive years.  Overall, it has declined by over $4000 during that time span.

Sometimes people forget how good things were about a decade ago.  About three times as many new homes were sold in the United States in 2005 as were sold in 2012.

But we like to live in denial.

In fact, a lot of families are trying to keep up their standards of living by going into tremendous amounts of debt.

Back in 1983, the bottom 95 percent of all income earners in the United States had 62 cents of debt for every dollar that they earned.  By 2007, that figure had soared to $1.48.

Fake it until you make it, right?

But how much debt can our system possibly handle?

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

Total credit card debt in the United States is now more than 8 times larger than it was just 30 years ago.

We are a nation that is completely addicted to debt, but as the financial crisis of 2008 demonstrated, all of that debt can have horrific consequences.

As the economy has slowed in recent years, the Federal Reserve has decided that “the solution” is to recklessly print money in an attempt to get the debt spiral cranked up again.

Have they gone overboard?  You be the judge…

Monetary Base 2013

And of course this won’t have any affect on the value of the money that you have been saving up all these years right?


Every single dollar that you own is continually losing value…

Purchasing Power Of The Dollar

Overall, the value of the U.S. dollar has declined by more than 96 percent since the Federal Reserve was first created.

As the cost of living continues to go up and wages continue to go down, millions of American families have fallen out of the middle class and into poverty.

If you can believe it, the number of Americans on food stamps has grown from about 17 million in the year 2000 to more than 47 milliontoday.

But “things are getting better”, right?

Incredibly, more than a million public school students in the United States are homeless.  This is the first time that has ever happened in our history.

But “things are getting better”, right?

There are now 20.2 million Americans that spend more than half of their incomes on housing.  That represents a 46 percent increase from 2001.

But “things are getting better”, right?

In 1999, 64.1 percent of all Americans were covered by employment-based health insurance.  Today, only 55.1 percent are covered by employment-based health insurance.

But “things are getting better”, right?

Today, more Americans than ever have found themselves forced to turn to the federal government for help.

Overall, the federal government runs nearly 80 different “means-tested welfare programs”, and at this point more than 100 million Americans are enrolled in at least one of them.

According to the U.S. Census Bureau, 49 percent of all Americans live in a home that receives direct monetary benefits from the federal government.  Back in 1983, less than a third of all Americans lived in a home that received direct monetary benefits from the federal government.

So is it a good sign or a bad sign that the percentage of Americans that are financially dependent on the federal government is at an all-time high?

And in future years the number of Americans that are receiving benefits from the federal government is projected to absolutely skyrocket.

Back in 1965, only one out of every 50 Americans was on Medicaid.  Today, one out of every 6 Americans is on Medicaid, and things are about to get a whole lot worse.  It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.

If you take a look at Medicare, things are very more sobering.

As I wrote recently, it is being projected that the number of Americans on Medicare will grow from 50.7 million in 2012 to 73.2 million in 2025.

At this point, Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years.  That comes to approximately$328,404 for every single household in the United States.

Are you ready to contribute your share?

Social Security is a complete and total nightmare as well.

Right now, there are approximately 56 million Americans collecting Social Security benefits.

By 2035, that number is projected to soar to an astounding 91 million.

Overall, the Social Security system is facing a 134 trillion dollar shortfall over the next 75 years.

Oh, but don’t worry because “things are getting better”, right?

I honestly do not know how anyone can look at the numbers above and come to the conclusion that the economy is in good shape.

We have accumulated the largest mountain of debt in the history of the world, our economic infrastructure is being gutted, we are bleeding good jobs, government dependence is at an all-time high and we are getting poorer as a nation with each passing day.

But other than that, everything is rainbows and lollipops, right?

If you want to see the economic collapse, just open up your eyes.

And if dramatic changes are not made quickly, things are going to get much, much worse from here.

Please share this article with as many people as possible.  Time is quickly running out and there are a whole lot of people out there that we need to wake up while we still can.

The Economic Collapse Is Happening


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  • Honest Bob’s Used Cars

    And the solution is…

    EVERYONE SHOULD BUY GOLD. (And hump their brains out because a growth in the population will mean growth in the economy, which is good -at least- until we’re all standing shoulder to shoulder, knee-high in our own excrement. And when we get to that point, of course the bloggers will have a better solution. Cough, cough!)

    Yeah, right. How about all the under-achievers who write all these -KNOW IT ALL- blogs actually go out and get a job instead of endlessly predicting the end of the world as we know it?

    Believe me. If it looks like the end of the world is coming, someone very clever has decided to make it look that way, so they can make a killing shorting hog bellies or some such market swindle.

    The real problem is a deficit in everyone’s education. Everyone thinks they know what is going on. But they don’t have the tools to comprehend what is going on.

    Don’t believe it? Then let me prove it to you.

    What is the most important human knowable?

    This is a pretty remedial question. Come on! Answer the question!

    What is the most important human knowable?

    See? Your knowledge is deficient, inadequate, and leading to massive assumption mistakes, because not one of you chumps -knows what the world is really about.

    The most important human knowable is that reality is infinitely complex. In fact, reality is not only infinitely complex, it is so in an infinitely manifold way -infinitely complex.

    Without knowing this one simple fact about reality, few of all these self-proclaimed experts have a clue just how small a pile of steaming dung it is that they’re jumping up and down about -as if they discovered something really important. Ha!

    LoL! Trust me. There are some very smart people in this world who have intentionally cooked up this problem you’re so excited about. They’ve made it all so black and white, it simply screams that what you are saying is true.

    But in the bigger picture, it is not true. The truth is -you are being used as a pawn. You are being controlled by an intentional missed-perception planted in your mind by the powers that be.

    Honestly, what you are saying is, SURRENDER!

    No way will I ever surrender. I know reality is infinitely complex in an infinitely manifold way, and I will squirm out of this, just like I’ve squirmed out of every other tight spot I’ve ever found myself in -IF- it comes to that.

    And in the mean time, no one is going to convince me to buy gold at $1600-1700 per ounce. The powers that be have been pushing that on us all for going on four years.

    It’s a sucker’s game. I’ll steal gold before I will buy it!

    • Mike Lowery

      Talk about sitting around, coming up with the plan on turning the economy around! Try some of your own medicine! There is no turning around this bloated money cow that’s called the USA! That ship sunk decades ago. Riding out an endless storm sounds pretty stupid to me. The people who come out of the coming mess still intact will hopefully have learned the steps needed to put usury and central banking to rest eternally. If not it will be another fun couple of centuries until implosion happens again. By then the new bloggers will have no inkling as to what today’s bloggers were doing. Even though they will be blogging about the same exact thing! Being a banker should become a worldwide capital offense!

    • PJ London

      ” In fact, reality is not only infinitely complex, it is so in an infinitely manifold way -infinitely complex.”

      Wow that is profound, totally meaningless BS, but very profound.

    • ken

      Denial is a bitch for some.

  • kcb

    @HBUC – Knowable is an adjective not a noun.

  • firehammer

    Nobody….but a few…care.

  • Mike Lowery

    This way of thinking can be linked to the very way the US decided to accept the Fed as it’s sole money supplier and agreed to the impossible loan stipulation of having it’s ENTIRE money supply given to it as a loan with interest. So usury was accepted across the board. If the US paid back the principle of it’s original loan from the fed, that being it’s ENTIRE money supply, how could it even pay a dollar of the interest? Since paying back the loan will cost the same amount as the loan itself another loan has to be taken to service the interest! Are you getting the picture of just how ignorant and illegal this relationship with the fed truly is? There is no wondering why Americans are doing the credit to the max way of life. Subconsciously every person knows it’s all really part of a huge ponzi scheme and sorta like playing a real game of monopoly! Hell, other than the money being a higher quality looking piece of paper, it has the same god damn value as actual monopoly money! That being… NADA, ZERO, ZILCH!

  • Shark Soul

    is this real life?

  • hvaiallverden

    This “policy” of conducting movments of work is solely based on the facts that Companys of any size can effordlessly move their entire production to China, to expand their Income, by reducing Wages.
    Thats it.
    This new “jobbs” are not even paid well anouf even in China to properly manage the rise of consts in China, incl, housing.
    It is simply Salve work, as it has been since time immemorial, and everybody knows this.
    Have the “gods” been better, have the quality impoved, the material it was intntionaly builded on, changed to cheep shitt/plastic, lousy electonics with components that are even lousyer, you know, save costs where we can.

    Thats why the Multinational comp. want “free marked”, to simply earn more. Their capasity to implode markeds and shears of marked is mutch bigger than lesser Brands and/or national Brands, to press the prices to sutch lows that any “competition” against the bigg once is hopless and devestating. The biggonce are protecting eatch others by been inside their Malls. And Malls have pulverised Main Street.
    This “trasition” does not creates More jobbs, infact this policy, also helped by Tax/a.s.o. aka: subsidicing this policy, I would simply Ban them and throw them out of the Land, if they dont move the procduction to the Main land USA, then Kick them completly Out.
    I can shure you, they will aply, simply by reducing their Massive bennefits from Slave labor, and the marked is and will become more open, the drive is and must be Quality and as one of the reasons for me bying expencive equipment is Quality and the fact that its been produced with pride.
    Not by a wipp on the brick of starvation, as a slave.
    Slave labor is more widely Now in this days than ever befor in Human history, there are millions of humans, children to, no exeprtions, dying like flies.
    Never forgett this, WE made them Ritch, They need Us, We dont need them.

    And as the Banking/FeD, the solutions are glearingly obvious, the must be erazed compleatly, and since the debth is your anyway, and have no walue what so ever, in other aspects as to give the Parasittic entety a insanely high income solely based on Intress, Usury a.s.o.,
    Money for Nothing.
    Then it can also cease to exist.
    I know they will eventualy go that road, they will, its the costs brouth up on us all, before the “revelation” comes, I am afraid of, the waccos are infact dragging our asses into wars, a world war that has been ongoing since 2001.
    That is on the verge to explode in scale and scope, its their final card, they dont have anything left.
    They bennefit from wars, WE never do.

    We live indeed in Barbaric times, where Kings and RobberBarons ruler, their slaughter will never end, unless we do something, they will never gibve this away freely, are you nutts, this is the cross road, to obey or not.
    And for the first time in history, have Truth been so dangerous. Consequences so wast, and dogmas, paradigms, false teatchings, flattour pyramidic sceems, all is on the line, even our monetary system, and they all know it.

    Intress/Ususry is canser.
    The only way to deal with it is to kill it compleatly, to eraze it from the face of the eaarth.
    To kill the Parasittic entety, called Private own Sentral Banks, humankinds biggest enemy, for half a millenium, they have looted us, all that cash is infact ours.
    Imagine what we could have done.


  • Josef Zack

    human history, over a 50,000 year span, has ALAYS been one of tragedy, hunger, conquest, suffering, injustice, etcetera. the people who make believe that now, as in NOW, (in real time), of the past 40-50 years of history were the historical norm, are quite simply nuts. the (nowadays) AMerican Empire, will continue to rot within, until it is so weak, that out side invaders will come onto our lands and conquer us. when that happens, though, there aint gonna to be much to lot or pillage. and if the now “minority” population members get their wish to “exterminate the white man”; then whoever IS within our borders, will be the targets of rapine, slaughter and the like. something that blacks, mestizos, asians might want to devote a few minutes of rumination. but whatever. I was bless to live here during a time of great freedoms, great prosperity and now live during the decline.

    yes this decline will become more obvious over time, but I am old, unhealthy and thankfully, will miss when things become worse than things are now. sorry future generations, the various AMerica hating factions, WERE most successful. but that’s just how it goes. eventually, (100 years + ??), there might be a renaissance, but then again, there may not be one.

    whatever. now everyone don’t worry at all. go out and get a cheese burger or some pizza, drink some Pepsi or a nice cld beer, have at it with some oral sex, and just chill out.

  • bubba

    and yet the total off book assets held by all the government entities that comprise the corporation (see cafr) is in excess of what? 60 trillion?