Trillion dollar debt day of reckoning is quickly approaching! Jim Willie: “When the losses from the debt write-downs come, I see tremendous national wealth lost because private accounts are really just bank assets.”

The day of reckoning for global total debt – total credit market debt up from $28 trillion in 2001 to $53 trillion in 2012. US consumer debt went up in last few months but largely because of giant amounts of student loan debt taken on.

You have to really question what passes for financial analysis these days. One financial show was discussing the recent increase in consumer debt as something positive. In the same breath this person also said that households increased savings. Now think about this statement. If you financed a $2,000 vacation on your credit card but increased savings by $500 did your balance sheet improve? Of course not. Let us not even dive into the fact that most of the recent consumer debt increase has come at the hands of student debt which is already in a massive bubble. We are simply repeating the same mistakes with a different soundtrack. We are trying to get out of a debt led crisis with more debt. The facts even show this and we have compiled some of the more troubling data by putting the entire debt market into perspective here. Is it really possible to solve a problem based on too much debt with more debt?

The total market of debt shows our addiction to borrowed money

We flat out have an addiction to borrowing.  Total market debt is now up to an astonishing$53 trillion and continues to grow.  Take a look at this frightening data:

total credit market debt



US is facing debt restructuring similar to Greece, Italy, Spain and Cyprus

Out of Control Debt

Third World countries have spiraling out-of-control debt. Standard & Poor’s made it official when it changed its label for America’s national debt from “stable” to “negative.” Subsequently, America is now officially a “Third World country”. Meanwhile, JP Morgan Chase, Citigroup and Bank of America each report billions in quarterly profit, while the US is facing debt restructuring similar to Greece, Italy, Spain and Cyprus.

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The debt crisis has also spread to nearly every state, as 46 states out of 50 states are on the verge of bankruptcy and many of our cities are going broke. Detroit is the epitome of a Third World city. America’s infrastructure is collapsing as evidenced by the pitiful condition of our roads which are quickly obtaining Third World status.

The out-of-control debt found in the Third World is constantly being used against these countries by organizations such as the World Bank and the IMF. Globalist banking organizations use the debt to begin to acquire a nation’s infrastructure. It happened in Bolivia through an unholy alliance between Bechtel and the World Bank when water rates quadrupled and it became illegal to even reuse irrigation water runoff and to trap rainwater. Colorado just enacted the same two laws within the past year. Very soon America, the banksters will own every aspect of sustenance. Does anyone still believe the movie, The Hunger Games, wasn’t delivering a clear message as to what lies ahead for all of us unless we can wake up enough people in time and change our course?


Jim Willie: “When the losses from the debt write-downs come, I see tremendous national wealth lost because private accounts are really just bank assets.”


Barack Obama ready to cut US pensions to strike deficit deal with Republicans, but wants higher taxes on the rich

The president will outline his  next Wednesday, April 10.

Barack Obama’s proposal is to cut the deficit by $1.8 trillion over 10 years, say administration officials.

But Democrats would oppose cuts to pensions, while Republicans have refused to accept tax rises.

President Barack Obama is ready to offer cuts to Americans’ pensions to strike a deficit deal with Republicans

Under the deal trailed by the White House, Barack Obama would support lowering the inflation measure used to calculate cost-of-living increases in .

The plan will also include reductions in Medicare spending for the elderly, much of it by targeting payments to healthcare providers and drug firms.




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