Sunday, August 7, 2011
Debt is the slavery of the twenty first century. Due to our excessive borrowing and spending beyond our means we find ourselves in very perilous economic times. There are three sure things in life now death, debt and taxes.
According to the US Debt Clock.org, the US national debt is over 14.5 trillion dollars as of the first week of August 2011. This is fast approaching 50 thousand dollars for every citizen in the United States. In addition to that, states and cities are in the red, many of them close to bankruptcy. If that isn’t startling enough, the total personal debt is over 16 trillion dollars, which equates to over $50,000 for every man, woman and child in the United States. The U.S. debt has increased 43% under President Obama in just over two years. The U.S. national debt is currently rising by over 4 billion dollars every single day! On Aug 2 the US government approved legislation to raise the U.S. debt limit by at least $2.1 trillion. What a legacy to leave to our kids and grandchildren! I am not a math wizard, nor am I an economist, but any person with a sound mind knows that this is not sustainable. Governments are not able to raise taxes enough to pay the debt, especially at a time when unemployment is high and the economy is bad. The United States credit rating was just downgraded to AA from AAA by Standard & Poor, which makes matters worse. Borrowing costs for governments and consumers will rise. This is the first time in history the US credit rating was downgraded. The time is fast approaching when this economic charade will come crashing down! Will the US declare bankruptcy? Will the US dollar collapse? These scenarios are not only possible, but also quite likely in the future. The question appears to be when instead of if.
Other countries are not immune to the debt crisis. In Canada the National Debt Clock pegs the national debt at over 500 billion dollars. The works out to over $16,000 per citizen of a country of 35 million. Canada also has an issue with total personal debt of over 1.4 trillion dollars. European countries are in a similar situation. Greece and Ireland have needed EU bailouts. There is now concern about Italy, Spain and other European countries with dire financial situations. The debt and currency crisis is contagious in a global economy.
There are many reasons for national and personal debt. In our generation, we have borrowed and spent beyond our means. Personal debt especially increased with the availably of easy credit. The western world is based on consumerism. We are told to buy to keep the economy healthy. We often buy stuff we don’t even need. We are bombarded with advertisements that entice us purchase more, even if we can’t afford it. Government debts are caused by a variety of different things. One thing that most people don’t realize is that many governments were pushed into massive debts by design. The International Money Fund (IMF) has loaned many countries money, knowing that they could not pay it back, and then when facing default austerity measures were put into place and public resources, such as the water supplies were privatized. Massive corporations including banks and the military industrial complex have great control over governments, especially the United States Federal government. In addition to that the FED, which lends money to the US government, is a private entity controlled by wealthy banks. Is there any wonder why the government bailed out the “To Big To Fails” a few years ago? Wall Street has hijacked Washington! Guess who is paying the bill? Trillions of US taxpayer dollars have been spent in wars in Iraq, Afghanistan and other foreign countries that many argue, including myself, are needless wars, only fought to control resources and to make certain corporations very rich. This needless spending is bankrupting America!
The numbers don’t lie. With this massive debt that many western countries hold, especially the US, there is coming a time soon that we will hit a roadblock. We may smash into the roadblock and it could be very painful for the average citizen. In fact many citizens are already feeling the pain of failed economic policies. The United States government can’t keep printing money to solve this issue. Currency devaluation and hyperinflation is the result to too much money being printed. The only way to fix this debt crisis is to write off a great portion of it. This probably won’t happen. There are a very small, yet powerful group that control and manipulate world affairs behind the curtains. Could an economic collapse be on the horizon? Some think that this may have been in the works for a while, so that the elite global powers can set up a New World Order and have a global currency. This is a wake up call for people. The average citizen needs to be aware of what is going on and collectively seek change in the way our country is governed. The United States and Canada are the best countries in the world, but we can’t be salves to debt and global elitists anymore. We are sliding down a treacherous slope. We need to hope for the best but prepare ourselves for the worse.