One Economic Chart That You Should Permanently Burn Into Your Memory

One Economic Chart That You Should Permanently Burn Into Your Memory

www.blacklistednews.com

when it comes to the things that really matter, most Americans are completely clueless. For example, while most Americans would agree that we are experiencing difficult economic times right now, most of them would also argue that our economic system is in fundamentally good shape and that things will get back to "normal" at some point. Those of us who are trying to warn America of the impending economic nightmare are dismissed as "doom and gloomers" and "conspiracy theorists". But of course, as with so many things, the passage of time will tell who was right and who was wrong. Below

(visit the link for the full news article)

That's a pretty scary chart - not only if you are American, but for the world in general, because if America goes down the tubes, a lot of other countries are going to experience massive difficulties.

Total debt, is running at around 360% of GDP - that's obscene, and something needs to be done.

The question at this stage is more "what CAN be done"?

As the article said, when the big crash comes, it's going to make the great depression look like a picnic - and we already know that following periods of large depression, war usually raises it's head - world war.

I'm not saying that's going to happen this time, but it quite easily could, as instead of working together, countries follow their own national interests - resource wars could be the wars of the future, fought not only on the battle field, but in the currency and stock markets, on an even larger scale than they already are.

www.blacklistednews.com
(visit the link for the full news article)

Yea that does tell a story. Here's another one I found that puts it in a bit of context:

National Debt

reply to post by budski


Hey OP, I do not know where you get your info, but just now I was watching CNBC and they said everything is fine.

Hell, look at the financial bill coupled with the health care bill.

Those two legislative endeavors are going to solve all the problems. They will be used to track all monetary transactions, including the lemonade stand my niece is operating now, and everything will be fine.

Heck, they have given the treasury dept and the federal reserve almost limitless power to help us.

I think if they just raise taxes to 150% of income everything will be paid off in no time.

Okay, sarcasm off.

The next step for the federal reserve to attempt to help the economy is to lower interest rates some more to banks. I think that if they lower the rate to say a -10% that might just get the economy going.

I might just start a bank and get paid to borrow money from them. I do not know why they do not just legalize counterfeiting. Everyone can just print up as much money as they need.

I think I am going to fire up my printer!

Originally posted by endisnighe
Everyone can just print up as much money as they need.

This is exactly why US debts are so high: as the only country in the world, they can essentially issue Dollars at a long-term interest rate of 0%. Since everyone is addicted to oil, everyone wants dollars to buy oil (as it is the sole currency is which oil is traded), keeping its value relatively steady and allowing the US to import goods for free by printing as many dollars as necessary.

In Zimbabwe that happens on a smaller scale... but they have no demand for their currency, hence they experience hyperinflation.

This scam has been going on for many decades and countries are increasingly frustrated with this dirty sh$t. It seems that the status quo is unsustainable as nothing is infinite. The US could spend excessively at the cost of the world, but they have pushed their spending too far, causing dollar volatility, dollar rejection (by so-called ''rogue states'') - ever wondered what Venezuela, Iran and Iraq have (had) in common? Eventually, the dollar will collapse when investors loose trust that the US is ever able to pay off its interest-free debts.

That will inevitably happen, but the world will try to postpone as long as possible as we all know that the whole global thing will go down the drain if the US goes down. That's why Russia also sells its oil in Dollars and not in Rubles or Euros - its economy couldn't handle the US collapse.That's why the IMF (US government/Federal Reserve tool) seeks to replace the dollar by a brand new (US controlled) world reserve currency. Problem is, BRIC and EU are not going to let the enslavement happen again.

No new American century I'm afraid and you might want to ask yourself why we have no alternatives for fuel... you don't really think mankind is so stupid, right? Of course not! It's not in the interest of oil producing countries, oil corporations and especially not in the interest of the US. That's why OPEC, the US and the oil majors cooperate.






[edit on 24-7-2010 by Mdv2]

For people who are actually willing to search for the truth will find that we are in far-worse situation than most could imagine. But does that not raise a very large question, why haven't we completely collapsed yet?

If you look at everything that is going to happen in this decade it really does look like we are in for something much worse than the great depression and for probably a much longer time.

I stick to my Social Democratic roots but we really have to start thinking about getting this deficit down immediately. And the problem isn't just government debt it's business and people's.

There are several things that need to occur for us to come out of this:

1. Enact Fair Trade policies which would bring our jobs back from third world nations.

2. Bring home all of our troops and close all foreign military bases, stop supplying foreign aid and cut the military budget to 0.5% of GDP.

3. Stop private banks from creating money, end Fractional-Reserve Banking and Nationalize the Federal Reserve.

4. Crack down on high interest rates.

5. Make immediate investments in health, education, agriculture and manufacturing.

That is just some of what I think should be done to help alleviate the pain, other than overall cutting back on spending and increasing taxes.

reply to post by Mdv2


Right on, yes tying the oil to the dollar has always been the control.

Until the oil runs out (never, I believe abiotic) those in power will try and control alternative energy sources and our ability to create them.

Star for your informative post.

Sometimes I just have to be sarcastic, the only way I can try and contain my anger.

S&F- this is info everyone with a functional brain needs to digest. Will they? I doubt it. I've noticed over the last several years that when I go into a rant about this all eyes in the room glaze over.

I don't think that it's because they can't understand- they don't want to. It's the human reaction to terminal news the first stage of which is denial.

Eat drink and be merry for tomorrow we die.

I've harped about this since the early nineties and for a good many years I was as popular as body crabs. But, I've noticed that in the past year several of those who shunned me now want to hear what I've got to say. These days the message is short and simple "prepare, prepare, prepare".

There's not a lot of joy in being right about this and it didn't take a PhD to see where things were headed. Well, the train is running at full throttle and the end of the track is in view. God help us.

I'm really glad to see more and more people finally starting to join us in "reality land". They will have an edge if they take the next step and start stocking up now.

reply to post by endisnighe


Yep. There will be no large-scale replacement for oil as long as there is oil. It's simply not in the interest of the US, oil producing countries and the oil majors - which rather fully exploit oil until they come up with something new.

To complement my previous post, I've found an example to further elaborate the points made before, for those who don't fully understand it:

US bought a house from Japan (whom represents the oil customers of Iran) for one million dollars. US also bought another house from France (whom represents other oil customers of OPEC) for one million dollars. Japan and France use these two million dollars as fund to buy oil. The money was used in oil trading circle and never back to US. US enjoys the two houses almost free. He doesn't have to pay monthly mortgage payment. Not a penny for interest, nor for principle. All the cost was the printing of a green back paper. However, that green back paper - petro dollar, is still a debit note. How long is it? So far it's more than forty years - since dollar became the appointed oil trade currency.

source

Originally posted by endisnighe
reply to post by budski

 

Hey OP, I do not know where you get your info, but just now I was watching CNBC and they said everything is fine.

Hell, look at the financial bill coupled with the health care bill.

Those two legislative endeavors are going to solve all the problems. They will be used to track all monetary transactions, including the lemonade stand my niece is operating now, and everything will be fine.

Heck, they have given the treasury dept and the federal reserve almost limitless power to help us.

I think if they just raise taxes to 150% of income everything will be paid off in no time.

Okay, sarcasm off.

The next step for the federal reserve to attempt to help the economy is to lower interest rates some more to banks. I think that if they lower the rate to say a -10% that might just get the economy going.

I might just start a bank and get paid to borrow money from them. I do not know why they do not just legalize counterfeiting. Everyone can just print up as much money as they need.

I think I am going to fire up my printer!

my german newspaper had an article today saying how great everything is too...my very first thought was that if they have to overstate that much...we must be in a REAL big mess and i assume the people in government have put out a message to the media to try and trick us into growth as a last resort..

The chart is wrong. It adds up all our future liabilities for social security and medicaire but yet does not give any credit for the money coming in which still exceeds the annual costs. A few simple changes to those programs and we can ensure that they will always be self funding.

The wiki chart is more sensible. It shows us in debt of 89% of GDP. While still high it was much higher in the the 1940's. It is also no coincidence that this high level of goverment deficit spending succeeded in pulling us out of the country's worse recession ever. Thereafter, we managed to reduce this debt to managable levels.

There is no reason we can't do it again. As the markets rebound, taxes paid will soar, and the deficits will fall significantly just from that alone. Things are not near as bad as most think.

Originally posted by Misoir
For people who are actually willing to search for the truth will find that we are in far-worse situation than most could imagine. But does that not raise a very large question, why haven't we completely collapsed yet?

The entire house of cards has collapsed, it's just being hidden from view by the trillions in bail-outs pumped into the markets by hapless governments more concerned about their political career than the security of their people.

They have simply replaced the bubble with a "stimulus bubble", and once that goes, there's nothing left. That is when the true economic facts will come to light and those of us who have some common sense can laugh at everyone who didn't prepare, or didn't see the obvious coming.

The US government has the facts and it has the facilities to know exactly how bad the situation is. There is no chance that a few economists and one or two trends forecasters can see this coming and the think tanks paid billions cannot.
They know what's happening, and what is coming, and that is why their actions should be watched very carefully.

It's also why we need to pay particular attention while the US has military forces off the coast of China and N.Korea.

If the $ is going to collapse the way we expect it to, America would need some force in that region to deal with any threat from their financial partner China. They would be the country to loose out big time with the collapse of the $.

That's also why I am suspicious of the timing of these excercises.

The whole system is on the verge of collapse, not only in the US, but across the world.

More countries are trading for oil in Euro's, which in itself puts added pressure on the dollar.

You know, percent debt of GDP is something a very smart person explained to me about 5 years ago. I debated it in forums and was told time after time, it was a crock...didn't matter.

Then I did some more research and found out some very interesting facts about how about 5 years ago it reached record double-digit highs and what effect that would have...an effect it would take decades to back out of IF steps started being taken immediately.

I believe the percent foreign debt has even more alarming implications, but I might be misremembering...I'm definitely no economist.

Another random, totally off-the-wall interesting fact I discovered during this time was that Walmart isn't even counted in our GDP, at least not in 2005. No one has ever been able to explain that one to me.

On the subject of economics in general...it's theory, not fact. And it's manipulatable and malleable.

Originally posted by sligtlyskepticalThere is no reason we can't do it again. As the markets rebound, taxes paid will soar, and the deficits will fall significantly just from that alone. Things are not near as bad as most think.

There are three HUGE differences between our pulling ourselves out of the crapper post Great Depression and now. Back then we had massive industrial capacity that allowed us to industrialize our way through WWII, we had a huge trade surplus and we had relatively small debt service. Today, most of our manufacturing has completely disappeared, we've managed to turn that trade surplus into a $42.3B deficit and our national debt is at $13.3T and climbing. A much different playing field.

reply to post by jtma508


After seeing that chart, we could rename the GOP as Greedy Old People.

US should declare bankruptcy. After all, it would not be the first time (happened in 1933).

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