Our county sits at over 16 trillion dollars in debt, with unfunded obligations that make the actual debt number about $120 trillion. The reality of the situation is there’s really no way out of the situation. Our government, thanks to both political parties, has spent us into a hole that we cannot dig ourselves out of. The facts, that nobody seems to want to talk about, indicate our country is still heading towards a complete meltdown of the financial system.
You can choose to believe the lies that are being spoon feed to you by the mainstream media, or you can look at the reality of the situation; our Economy is still facing some enormous challenges, and the prospects for a full economic recovery don’t look very good. The financial problems that lead to the housing / financial market crash of 2008 have not been fixed; in fact, many of these problems are even worse today than they were in 2008.
Preparing for an economic collapse
Twenty years ago, most people would have said you were crazy for thinking our system could collapse. Even today, most of our country is either unaware, or has forgotten how closely we came to a complete collapse of the financial system during the banking crisis of 2008.
When it comes to the nation’s debt, payback time might be here.
Years of low tax rates and rising federal spending, amplified by the devastating economic effect of the Great Recession, have driven the U.S. borrowing tab to more than $16 trillion from less than $1 trillion in 1981.
Deficit reduction has become the dominant issue in Washington. The first major tax increase since 1993 took effect last month. And large automatic spending cuts – $1.2 trillion in the next decade – are set to kick in Friday.
The result: Average Americans are starting to feel the pain.
“The day of reckoning is here,” said David Walker, a former U.S. comptroller general who has been warning about the nation’s long-term fiscal problems for several years.
“We’re at the end of an era where we have Democratic spending policies and Republican tax policies,” he said. “The result has been huge deficits and mounting debt burdens. It doesn’t work.”
In attempts to solve the problem, Republicans have focused on reducing government spending. Democrats have aimed at increasing taxes on the wealthy. And both parties leveraged their influence in the past two years to get their way.
AltInvestors has released an interview with GoldMoney’s Alasdair Macleod regarding the recent sell-off in the gold and silver markets.
Macleod states that gold and silver have nothing to worry about, and the long-anticipated global financial collapse will finally occur in 2013.
… BofA strategist for FX and rates David Woo said that the U.S. economy was about to see the “moment of truth.” At the time he reckoned that the data over the coming weeks would show whether the U.S. recovery would survive or not.
So we asked Woo what he thought of the latest good data that has the market and folks like Goldman Sachs so excited.
He remains skeptical.
Via email he writes:
The Feb data have been impressive but I still think March data will be decisively slower. The Rasmussen daily consumer confidence is down nearly 10 points from mid-Feb and the impact of the sequester will start to show up in the next 2-3 weeks (CBO is forecasting 750K job looses this year from sequester implementation).
Monetary base expansion about to go into TURBO DRIVE! Are you ready for unintended outcomes?
Federal Reserve Monetary Base:
03-05-13-Macro Analytics – The Global End Game – with Charles Hugh Smith
Reckless money printing by Federal Reserve Chairman Ben Bernanke has pumped up the Dow to a brand new all-time high. So what comes next? Will the Dow go even higher? Hopefully it will. In fact, it would be great if the Dow was able to hit 15,000 before it finally came crashing down. That would give all of us some more time to prepare for the nightmarish economic crisis that is rapidly approaching. As you will see below, the U.S. economy is in far, far worse shape than it was the last time the Dow reached a record high back in 2007. In addition, all of the long-term trends that are ripping our economy to shreds just continue to get even worse and our debt just continues to explode. Unfortunately, the Dow has become completely divorced from economic reality in recent years because of Fed manipulation. All of this funny money that the Federal Reserve has been cranking out has made the wealthy even wealthier, but this bubble will not last for too much longer. What goes up must come down. And remember, a bubble is always biggest right before it bursts.