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$13 Trillion Debt Poised to Overtake GDP

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posted on Jun, 8 2010 @ 03:37 AM
The welfare-warfare state is coming to an end.

June 4 (Bloomberg) -- President Barack Obama is poised to increase the U.S. debt to a level that exceeds the value of the nation’s annual economic output, a step toward what Bill Gross called a “debt super cycle.”

The CHART OF THE DAY tracks U.S. gross domestic product and the government’s total debt, which rose past $13 trillion for the first time this month. The amount owed will surpass GDP in 2012, based on forecasts by the International Monetary Fund. The lower panel shows U.S. annual GDP growth as tracked by the IMF, which projects the world’s largest economy to expand at a slower pace than the 3.2 percent average during the past five decades.

“Over the long term, interest rates on government debt will likely have to rise to attract investors,” said Hiroki Shimazu, a market economist in Tokyo at Nikko Cordial Securities Inc., a unit of Japan’s third-largest publicly traded bank. “That will be a big burden on the government and the people.”

If the interest rates go up, government will not be able to roll over its revolving debt without printing money.

Higher interest rates will force the government to either massively cut spending AND raise taxes or to print.

They will print.

They will destroy the dollar.

Kiss this country good bye.

CNBC has an analyst on that actually tells the truth for once:

“Governments need to cut spending and raise money and if they do not do so credibly will be killed by the bond market demanding higher rates,” he said…

“If the nightmare scenario plays out as I suspect it may then the debt situation gets worse. There is currently no exit strategy and the reaction to the crisis of policy makers remains a big worry.”

As a result, Fry is telling investors to play it safe and buy physical assets like land.

“I don’t want to scare anyone but I am considering investing in barbed wire and guns, things are not looking good and rates are heading higher,” he said.

On a lighter note, the housing market in CA is recovering. Not.

Brand new homes, never been lived in, boarded up and being demolished. This is what your tax dollars are going to fund. The banks are holding the houses and not putting them on the market because your tax dollars are keeping them solvent. If they were to go bankrupt, the homes would have to be liquidated and put on the market to clear the debts.

You people had better wake up.

We are screwed.

The government has spent all of us into bankruptcy and has set the stage for a totalitarian takeover.

You should all be studying Austrian economics RIGHT NOW because everything you are being told by Wall Street and the Government is one big fat gigantic lie.

This country is screwed.

You can begin educating yourself here:

If you don't like reading, the economists have put out videos of their lectures for you to watch. Its not a dry as you might think. Try watching some of the Tom Wood's videos to start with. He's an excellent and entertaining speaker.

My personal video library selection of economics lectures:

Mises Institute's video library:

The following video library also has a huge selection of Austrian economics lectures:

[edit on 8-6-2010 by mnemeth1]

posted on Jun, 8 2010 @ 03:51 AM
Great topic and thoughts.

Though, before you use that InflationUS Youtube video as an example you might want to watch some of the videos on YouTube that pull back the curtain on the scam that George4title is involved in. Type in keywords "George4title scam" and watch information about the penny stock manipulation they are doing.

Sorry to run slightly off-topic, but InflationUS is not the most reliable of examples to use. Bloomberg on the other hand is a better source, kudos on that one.

[edit on 8-6-2010 by thepixelpusher]

posted on Jun, 8 2010 @ 04:57 AM
This is going on in every country around the world.

They are plugging the debt with more debt. If you take a step back and really think about this is complete insanity.
Debts that were plugged last year are coming around again and been plugged again with more debt.

There can't be a good outcome from this.

Glen Beck is giving this good coverage. I know a lot of people on this site hate him with all their heart but he is still doing a good job on it. People need to let go of the hate. It will be the one thing that will destroy us all. If people can let go of it. We might get through this.

posted on Jun, 8 2010 @ 09:35 AM
reply to post by thepixelpusher

Jonathan Lebed is a scamming douchebag but the information put out by George and Vision is accurate and reliable.

I know, because:

1. I live in southern California and can see for myself what is going on. In fact I live in the same county as George.

2. I study Austrian economics religiously.

I was unaware that Lebed was involved with NIA at all. The video makes it sound like he's simply a sponsor of NIA and not involved in editorializing the information they put out.

So from that perspective, being mad at NIA because a sponsor is a dirt bag would be like being mad at NBC because General Electric is a war profiteer.

I'm certainly not going to defend Lebed, he's a scumbag. But I haven't seen any blatantly inaccurate or tainted reporting put out by George or Vision in their videos. Especially when one considers the MSM has never seen a stock they didn't like. Cramer is a perpetual pump and dump machine.

In fact, I've never once seen George or Vision push ANY stock. All they push is hard metals. In fact, I've seen videos of Vision telling people to get out of stocks entirely.

[edit on 8-6-2010 by mnemeth1]

posted on Jun, 8 2010 @ 10:42 AM
Check out the CNBC update.

Here's a guy that actually has the balls to tell the truth for a change.

posted on Jun, 8 2010 @ 11:09 AM
reply to post by JohnySeagull

Glenn Beck does provide coverage of some of this stuff, which is good.

The left likes to attack Beck because he's the only mainstream guy that actually goes after the central banks and points out the gravity of our debt problems.

I would also like to note that he just recently called for an end to the wars.

Needless to say I was shocked when I heard him say this.

posted on Jun, 8 2010 @ 12:27 PM
I think the next presidential election will be make or break for the US. I know the terrible handling of debt is a worldly problem, but obviously for me it starts in my country. I hope I'm not off topic when I say that I think Ron Paul might be the guy. I won't pretend to know everything about him and I'd love to hear the arguments, but I do know that I've seen him calling out the Federal Reserve, which is about as good a starting point you can get. We're in dire times right now and need real change, not Obama's mythical change. We need politicans that are not in the pockets of big business, period.

What really sucks is that the original "Tea Party" group seemed to be going this way until it got infiltrated by the two-party system and turned into a stupid social argument. "Oh they're racist!" Kudos to the MSM on that one, they did their job. Now we have Sarah Palin talking at Tea Party rallies. Sometimes you gotta tip your hat to TPTB because they definitely know how to screw up the world. There are bad forces at work in the world, and I think about every world government is involved. Everything is falling apart, but I've always thought that you have to see how bad it can get before it improves. Hopefully it won't get too bad, but how do you stop the goverment that can literally make up votes in an election. I think the financial crisis is just one thing in a long list of problems we have. They have infiltrated our food supplies, our water supplies, they can ruin a person financially and socially in days. The people that oppose them are going to have to have some willpower to withstand what they will throw out at you. You want to be called a racist, a bigot, a terrorist, a conspiracy nut, a drug addict, etc., when all you have in mind is to make the world a better place? Are you ready for every single thing you've done in your life to be presented to the people you work with, your family, the masses?

It's scary. I hope that we can correct it all in one election. I think we have to correct it all in one election. But I fear the MSM's tactics for the next election. How will they smear the truth and promote the lies and deceit? I honestly can't even see an argument against Fox News, CNN, big business, the Fed Reserve, CIA, FBI, high-ranking politicians all being in on this together. Maybe I'm paranoid, but the troubles we're facing are very real. I haven't even started thinking about the NWO at this point, I'm still worried about how we're gonna get out of debt and get corruption out of our government.

I urge anyone to give serious consideration to Ron Paul. I know we're some time away from those elections, but I think it might be the last chance we got. We can't go on getting lied to by our politicans only to have them turn around and plunge us further into debt with outrageous "bailouts" with very little money trail. Gimme a break, they are taking us for a bunch of idiots and until we all get together and make it stop, they could be right.

posted on Jun, 8 2010 @ 04:17 PM
reply to post by TheFinalTruth14

This country isn't going to make it to the next presidential election cycle.

posted on Jun, 9 2010 @ 06:17 PM
reply to post by mnemeth1

Austrian Economics FTW!

RE: InflationUS, you may know more than me about them. I don't disagree much with their videos, though George is not in the financial industry or a higher level experienced person like Mish Shedlock, who also says similar things.

One things for sure, I'm about ready to put my retirement funds in all gold. I'm hesitating to see if it'll drop a bit just before the # hits the fan. You know, people selling off to cover costs before the drop.

Starred, flagged, and favorited.

P.S. FTW = For The Win

[edit on 9-6-2010 by thepixelpusher]

posted on Jun, 9 2010 @ 06:54 PM
reply to post by thepixelpusher

I think you should split your holdings in silver and gold.

The government is going to come after the gold.

If they don't outright confiscate it, they will tax the living piss out of it.

Splitting your holdings in a variety of metals might be wise.

And buy bullion bars, don't bother with coins, the premium on the face value isn't worth it in a hyperinflation situation. If you do buy coins, buy coins that have a cheap markup and are not rare.

[edit on 9-6-2010 by mnemeth1]

posted on Jun, 9 2010 @ 09:59 PM
I totally agree on your take on coins. I'm thinking about going bullion for gold/silver with some silver coins for spending. Though I'm tempted instead to buy some ETF's on gold/silver and sell at the point when people realize they'll never get the gold, but just money payout if they call it in. Then watch the precious metals ETF's dive to the bottom of the sea (my opinion).

I tried to tell a coworker that the value of their overpriced coins were only half value of what they bought them for. Can you imagine when TSHTF and people sell their numismatic coins and find that the value is 1/2 of what they bought them for?

[edit on 9-6-2010 by thepixelpusher]

posted on Jun, 10 2010 @ 03:44 AM
just as planned - destroy the Americans through personal greed. the elite know its a bargan.. they got you to wipe out your savings to buy an asset that could not possibly go down - until everyone bought one - and they took all of their savings - and they are repo'ing the property you bought - because they killed the job. you know they have spent more money and done absolutely nothing with it to help anyone but themselves.

Sat, the round table discussed this - and verified that is there goals - but they dont want all of it all at once - they need to keep the sheeple working so they can transfer ownership, and they dont want to overload the system. you see they are behind schedule becuase they cant kill anyone yet and get away with it... they are waiting for us to attack them - and we are waiting for yet another false flag ... why...? the day they pull the plug is the day 80% of the properties are thiers. and then they will go for the other 20% including the people who did all the paperwork. and all the police that protected and evicted the people. and then its all over folks.
we lose and communist will selectively kill who ever is left. at will with no recoarse - read shindlers list - thats how they will go about it - 911 just put the fear of government into the peoples minds - and with fear they take power.

these people a bleeding us dry - the question is ...>?
how much more can we take of this life insurance collection way of making money. Goldman Sachs seems to be the center they want to take the heat for all of this - but I keep thinking GS is Government Studge.
or banker for Wdc... your pick - you lose either way.

[edit on 10-6-2010 by anti-evil2]

[edit on 10-6-2010 by anti-evil2]

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