Collapse of U.S. Economy Imminent?

According to this news article, the U.S economy is on the brink of collapsing, igniting Martial Law:

It lists 5 arguments.

Consider these five important points:

-Point #1 The U.S., Great Britain and Israel are preparing to attack Iran. As it appears the main reason for invading Iraq was to stop it from selling oil in Euros, likewise Iran has plans to dump the dollar come March 2006.

-Point #2 U.S. Treasury Secretary John Snow issued a warning recently that the U.S. Government is on the verge of collapse - as the statutory debt limit imposed by Congress of $8.184 trillion dollars would be reached in mid-February - the government would then be unable to continue its normal operations. Considering the current total U.S. debt stands at $8.162 trillion dollars, once the official debt ceiling ($8.184 trillion) is reached, the U.S. government’s credit abroad (its borrowing power) is gone. Those countries (mainly China) who presently keep America afloat by holding U.S. Treasury Notes, will most likely no longer continue doing so.

-Point #3 Bank Of America and Compass Bank managers (probably all other U.S. banks too) have been instructing their employees in the last few weeks on how to respond to customer demands in the event of a collapse of the U.S. economy - specifically telling the employees that only agents from the Department Of Homeland Security will have authority to decide what belongings customers may have from their safe deposit boxes - and that precious metals and other valuables will not be released to U.S. citizens. The bank employees have been strictly prohibited from revealing the banks’ new "guidelines" to anyone. (however, employees have been talking to friends and family)

The next time you visit your bank, ask them about it - then ask yourself, why is this information being kept secret from customers and the public - what’s really going on?

-Point #4 FEMA has activated and is currently staffing its vast network of empty internment camps with armed military personnel - unknown to most Americans, these large federal facilities are strategically positioned across the U.S. landscape to "manage" the population in the event of a "terrorist" attack, a civilian uprising, large-scale dissent ,or an insurrection against the government. Some of these razor-wired facilities have the capacity of detaining a million people.

-Point #5 The Patriot Act and the US Senate’s vote to ban habeas corpus (Nov 14th) - along with George W. Bush having signed executive orders giving him sole authority to impose martial law, suspend habeas corpus and ignore the Posse Comitatus Act, have together pretty much destroyed any notions of freedom and justice for Americans.

-Summary: The U.S. economy is broken, the United States is bankrupt - the unchecked spending by this administration, the illegally waged wars against Afghanistan and Iraq, the cost of unprecedented weapons and military build-up - have all contributed to an irreversible emergency which is threatening our nation’s existence and our very lives.

Source: bellaciao.org...

We've been in more debt before than we are now (percentage of GDP wise)
We've had higher inflation.
We've had higher unemployment.
There are prophecies of doom for the US 3 times a year since 1776.

isnt it past march 2006 already i dont see the us economy collasping

1- US, UK and Israel about to attack Iran? At best highly debatable. Does this guy have a seat at the NSC?

2- Hmm, as I recall we reached it but only after it was raised. And as far as China is concerned the mainstay of their monetary policy is to keep the Yuan weak against the dollar to boost exports to the US their main economic partner. To do that they must prop the dollar up. If they don't the dollar wwill fall the price of chinese goods won't be so cheap and americans will quit buying which means Chinese firms will lose money then lay people off then Revolution.

3- I'd have to say thats news to me. And with no supporting information provided I think I'll remain skeptical.

4- Again how about some info to substantiate these claims.

5-

Summary- The author of this article should provide proof of his/her age because its written about as well as a Junior High School students essay. No supporting info for outrageous claims complete lack of knowledge of the global economic system.

Gain is only acheived through sacrifice.
If this is what it takes to rid the world of the cancer that is the CURRENT
United States admin, then thankgod it is on its way.

We just might have a chance at peace.

I have no doubt that this is going to happen , jobs are getting really "soft" for the people that have them, the job market suxs to the point that jobs are far and few.

The Democrats are going to have a hard road ahead of them when they take over the house and senate to straighten out and try to right the wrongs done by Bush&co to the US citizens, and the world,.... but the first thing they need to do is Impeach and arrest Bush and his Administration for their war crimes and high treason against the Citizens of the USA and Iraq

With all due respect to the disbelievers, I personally find you all pretty ignorant.
I'm not planning to yet write another topic on it as you know I did that several times before.

Though, some among us have read what I've been writing lately. If ex Reagan advisor like Professor Kotlikoff, the US comptroller general, Walker, say a ''fiscal hurricane'' is on the horizon you should think people would stop denying the word they are trying to spread.

Even neo cons are scared of what is going to happen if no action will be taken. In one of my threads I've posted a link to a 45 minutes during interview with several people, including Comptroller General, David Walker.

This time it's not just some people saying the American ecomomy could go down. It's Bill Gates, it's Warren Buffet, it's scolar Philip Swagel, Ron Paul and many other powerful people.

Few have monitored the country's financial pulse as closely as David Walker -- Comptroller General at the Government Accountability Office. When he says America's heading toward financial Armageddon, it's time to take notice.

Though President Bush has announced some rosy budget numbers this month, Walker is still crying "fire" over America's giant federal deficit.

Hear a conversation with U.S. Comptroller General David Walker about what he calls a chilling picture of America's financial future.


David Walker, Comptroller General at the Government Accountability Office, a 3,200-employee government body that monitors all federal programs. He was appointed by President Clinton for a 15-year term in 1998

Phillip Swagel, former chief of staff at the Council of Economic Advisers under George W. Bush from 2002 until February, 2005. He is currently a resident scholar at the American Enterprise Institute.

• Sixty percent of our federal spending is now mandatory, primarily Medicare, Social Security, interest on the national debt, programs over which the budget process has no control.

• While the 2005 budget deficit was widely reported at $318 billion, on an operating basis as most companies report, the year's deficit was easily double that amount.

• We finance our deficits by borrowing -- and now 50 percent of our public debt is owned by foreigners.

• Interest on the national debt is expected to be about $200 billion this year, about the same as we spend on Medicare.

• We currently have a $46 trillion dollar liability for future promises of Medicare and Social Security, and the new drug bill will easily add another $8 trillion in promises.

• In the next 25 years, Medicare spending will grow at nearly five times the rate of economic growth.

• Every newborn arrives with an immediate debt of $156,000

Source

Originally posted by La Balance
According to this news article, the U.S economy is on the brink of collapsing, igniting Martial Law:

Source: bellaciao.org...

That article was written in January, so I guess you and I have different notions of what “imminent” means.

Since that article was written, America's economy has grown more than 4%, the deficit and debt burden have shrunk (and continue to shrink) and unemployment has fallen to near record lows. In fact America's “broken” economy is the best performing industrial economy on earth. For an economy that is in peril of “imminent collapse” it sure looks healthy.

The economy looks great...until you realize how the fed works. You ever wondered what the difference is between the gold standard and now?

During the gold standard, for every paper dollar floating around, there was a dollar's worth of gold in the bank. But now it's all electronic.

50% (possibly more) of our nation's money exists only on computer. The budget deficit is still growing; it just doesn't look so bad because they artificially raised the money supply. Basically, somebody said "We need about $40B more in there plz" and someone in the fed typed in a new amount. That's the way it's been done for years.

This kind of national money management isn't going to last forever.

Originally posted by Astygia
The economy looks great...until you realize how the fed works. You ever wondered what the difference is between the gold standard and now?

During the gold standard, for every paper dollar floating around, there was a dollar's worth of gold in the bank. But now it's all electronic.

50% (possibly more) of our nation's money exists only on computer. The budget deficit is still growing; it just doesn't look so bad because they artificially raised the money supply. Basically, somebody said "We need about $40B more in there plz" and someone in the fed typed in a new amount. That's the way it's been done for years.

This kind of national money management isn't going to last forever.

Fiat money is a very unintuitive and complex notion and I won't attempt to go into details here. There's been plenty written on the subject by people far smarter than I. Your post indicates a rather unsophisticated understating of the subject and would encourage you to do some research.

The premise that gold standard = good and fiat money = bad is simplistic and wrong. If one is to grow an economy, a growing money supply is required. This is difficult to accomplish without fiat money and absent growth in the money supply, deflation results. Most serious economist consider species money an significant contributer to the global economic crash of the 1930s

Any time you establish rules to govern a system, winners and losers will result. Fiat and species money both have their own set of winners and losers. It's just the ratio of winners to losers if far more favorable for fiat money.

Originally posted by Number23
Fiat money is a very unintuitive and complex notion and I won't attempt to go into details here. There's been plenty written on the subject by people far smarter than I. Your post indicates a rather unsophisticated understating of the subject and would encourage you to do some research.

The premise that gold standard = good and fiat money = bad is simplistic and wrong. If one is to grow an economy, a growing money supply is required. This is difficult to accomplish without fiat money and absent growth in the money supply, deflation results. Most serious economist consider species money an significant contributer to the global economic crash of the 1930s

Any time you establish rules to govern a system, winners and losers will result. Fiat and species money both have their own set of winners and losers. It's just the ratio of winners to losers if far more favorable for fiat money.

I have looked into the system, and it just seems to me that just typing in a new number only masks the problem, and eventually makes it worse through time and repetition.

But you seem to understand the system better than some of us, I wouldn't mind a dumbed down explanation, as it would contribute to this thread.

Originally posted by Astygia
I have looked into the system, and it just seems to me that just typing in a new number only masks the problem, and eventually makes it worse through time and repetition.

But you seem to understand the system better than some of us, I wouldn't mind a dumbed down explanation, as it would contribute to this thread.

This guy does a great job explaining it

Money is lube
Our economy is not 13 trillion dollars in size; instead, its size is $13 trillion worth of goods and services. Big distinction there: it’s the goods and services that make our lives better, not the money. (In a dark alley at night, would you rather have a twenty dollar bill, or a twenty dollar flashlight?) The dollars are just a time-shifting mechanism to bridge the gap between the value of stuff you produced for others, versus the value of the stuff produced by others that you might buy someday.


Read more

Originally posted by danwild6

5-

What is your opinion to dismiss or laugh at #5?

Stop the presses! America's obit will have to wait!

Wholesale Prices Edge Up Modestly in August, Providing Evidence Inflation Pressures Are Easing


WASHINGTON (AP) -- Prices at the wholesale level edged up modestly in August, providing further evidence that inflation pressures are easing.
The Labor Department reported that wholesale prices edged up 0.1 percent last month as gasoline prices fell, helping to offset a jump in food costs.

Outside of energy and food, core inflation was even better behaved, falling by 0.4 percent after a 0.3 percent decline in July. It marked the first back-to-back declines in core inflation in more than three years


biz.yahoo.com...

Originally posted by La Balance


-Point #3 Bank Of America and Compass Bank managers (probably all other U.S. banks too) have been instructing their employees in the last few weeks on how to respond to customer demands in the event of a collapse of the U.S. economy - specifically telling the employees that only agents from the Department Of Homeland Security will have authority to decide what belongings customers may have from their safe deposit boxes - and that precious metals and other valuables will not be released to U.S. citizens. The bank employees have been strictly prohibited from revealing the banks’ new "guidelines" to anyone. (however, employees have been talking to friends and family)

The next time you visit your bank, ask them about it - then ask yourself, why is this information being kept secret from customers and the public - what’s really going on?

Source: bellaciao.org...

I want to make a couple of comments on this point.

First, I'm not saying that scenario isn't possible, but the information as presented is thus far wrong and unsubstantiated internet rumor. I did a little research into this.

One: Official PR people at the banks, and other major banks including Wachovia, have no idea about such a mandate. Now there are those among the ATS flock who would dismiss that and say, "of course they wouldn't be aware of it. It's secret."

Nah. That's not how corporate communication works. Especially with something as controversial as that. The Flacks would be beefed up on how to respond to the inevitable press inquiries, no matter how much you cajole or threaten employees. This specific info has come from a mass email of dubious origin. You can read about it here: www.snopes.com...

I also placed a call into Homeland Security on this issue. They are unaware of any directive, policy issue, commandment, etc. from on-high to inform banks of the safe deposit box confiscation plan. As one spokesperson told me, that wouldn't even be Homeland Security's purview. It would more likely be the Treasury Department or the FED/FDIC that would police such a move if ever one were to take place.

Now for my theory: I think this email is a misinformed bastardization of an item in the Patriot Act that allows U.S. officials to confiscate suspected terrorist safe deposit boxes, as well as bank accounts and other financial instruments. I would imaging during a time of crisis, our gov't could freeze and explore the boxes of suspected terrorists and their financial backers under the laws granted by the Patriot Act. But I doubt we're talking about wholesale access control of all safe deposit boxes across the country. Logistically that would be too difficult. And if true, would only benefit the community banks of the country as customers would flock away from the major banking houses to local outfits that would more than likely escape from federal scrutiny.

Fair? Who am I to debate? Legal? So far the Supreme Courts says so.

But that is what I believe the origin to that rumor has been generated.

[edit on 19-9-2006 by behindthescenes]

More good news, I guess the collapse will have to wait a bit longer.

US Treasury Sets New 1-Day Tax Receipt Record Of $85.8 Billion
Tuesday September 19th, 2006 / 0h04


WASHINGTON -(Dow Jones)- The U.S. government recorded record-high overall and corporate tax receipts on Sept. 15, which was a quarterly deadline for tax payments, the Treasury said Monday.
Total tax receipts were $85.8 billion on Friday, compared with the previous one-day record of $71 billion on Sept. 15 of last year, the Treasury said.
Within the overall figure, corporate tax receipts Friday were $71.8 billion, up from $63 billion in September of last year.
Treasury Undersecretary for Domestic Finance Randal Quarles said Friday's numbers provided a "continuing demonstration of the strength of the U.S. economy."
"In fact, Friday's gross receipts were the largest in a single day in the nation's history - 20% higher than receipts on the same quarterly tax payment date last year," Quarles said in a statement.

www.easybourse.com...

Originally posted by Number23
That article was written in January, so I guess you and I have different notions of what “imminent” means.

Predicting the future is not normally a sound idea even if know a great deal of background information that is leading you to certain conclusions...

Since that article was written, America's economy has grown more than 4%,

The economy has not grown and considering GDP growth as 'economic growth' is a strange nation indeed. Since when is moving money around a constructive enterprise that enriches the majority of the people involved?

the deficit and debt burden have shrunk (and continue to shrink)

By who's counting did it shrink and when did we start trusting a government that invades a foreign nation based on "a pack of lies" ( Galloway's words)?

and unemployment has fallen to near record lows.

If you put so many people in jail and do not mind cooking the books in general almost anything becomes possible.

In fact America's “broken” economy is the best performing industrial economy on earth.

Just complete nonsense.

For an economy that is in peril of “imminent collapse” it sure looks healthy.

Only if you know almost nothing about the subject.

Stellar

Originally posted by RetinoidReceptor
We've been in more debt before than we are now (percentage of GDP wise)

Yes the federal government were certainly in more debt ( percentage of GDP) in 1944 - 1954 but in that time they fought a world war , built forces that could win a war against the USSR and fought a war in Korea. I think those are decent excuses for spending more than you have but what is the excuse currently?

We've had higher inflation.

Inflation rates are just too complex ( imo) to compare over time but i would be surprised if what is now happening is 'normal' against historic norms.

We've had higher unemployment.

So have you taken into account the real wages per hour that can be earned in the current job market compared to those in 1960? Have you worked out the influence of the rapid expansion of the prison population? Have you looked at how many ways these numbers can be influenced one way or another?

There are prophecies of doom for the US 3 times a year since 1776.

This is true and most of them have long since come true. What have you seen that makes you believe that all is going well with the US economy as i can just not seem to run anything credible that tells me that.

Stellar

I'm not going to go to the trouble of quoting all of Stellar's nonsense and Marxist blather. So let's look at some actual data. (I know, an unusual thing around here)

The federal budget estimate for the fiscal year just completed dropped to $250 billion, congressional estimators said Friday, as the economy continues to fuel impressive tax revenues.
The Congressional Budget Office's latest estimate is $10 billion below CBO predictions issued in August and well below a July White House prediction of $296 billion.

The improving deficit picture _ Bush predicted a $423 billion deficit in his February budget _ has been driven by better-than-expected tax receipts, especially from corporate profits, CBO said.

www.breitbart.com...

There is an editorial in today's Wall St. Journal about the "tax tidal wave" due to Bush's tax cuts. Thanks to said tax cuts and pro-growth policies, the America's economy has growth more thant TWENTY PERCENT in the last four years. That's TWO TRILLION DOLLARS equal to China's GDP. That's right, in the last for years America's grown a Chinese economy.

Additionally, the deficit is running at less than 2% of GDP. Can anyone name another industrial economy who's deficit is 2% or less? AND America's debt burden is less than EU zone and just about every other industrial economy.


[edit on 6-10-2006 by Number23]

The economy will crash when Real Estate crashes.In my opinion there are not many middle class job's out there,most either work in contstruction or a store,factories are for the most part in China.Our automobile manufacturing buisness is on it's way down the toilet.

So when Real Estate/new home construction colapses there will be alot of unemployed people who have been spoiled for the last 12 year's of the construction boom.All these guy's have been doing construction since they got out of highschool and know nothing else but that trade.