The United States of America has financed it's future away and is broke. World markets and the Dow are plummeting as every country around the globe struggles with it's finances and tries to raise cash to pay it's bills. We are now on the verge of a major financial crisis here at home.
Below is Tom Coburn’s speech to the Deficit Commission last year, which I highly recommend watching. Dr Colburn was trying to get the commission to pass a bill which would force the United States Government to cut spending...... the bill failed to pass.
"Our debt crisis is a threat not just to our way of life but to our national survival," said Sen. Mike Crapo, a Republican from Idaho. "And the threat that we face is so real and so close that we do not have further time for gridlock or inaction."
The Day The Dollar Died
The world’s most honest politician
Nigel Farage, Britain’s outspoken member of the European Parliament, has been standing up and speaking the truth for years and no one listened. They called him a fool. They called him a clown. They called him crazy. They should have been calling him prescient. (For those of you who have free government cell phones, that means he can see the future.) This video is 14 minutes long and every second of it is worth watching.
As Americans have enjoyed an incredibly wonderful standard of living over the past three decades, most of them have believed that it was because we are the wealthiest, most prosperous nation on the planet with economic and financial systems that are second to none. But that is not even close to accurate. The reason why we have had an almost unbelievably high standard of living over the past three decades is because we have piled up the biggest mountains of debt in the history of the world.
We have been robbing future generations blind for so long that it doesn't even seem to bother most people anymore. We have become accustomed to living in debt. We go into massive amounts of debt to get an education, we go into massive amounts of debt to buy a home, we go into massive amounts of debt to buy our cars, and we even pile up debt to buy holiday gifts and to purchase groceries.
30 years ago, total credit market debt owed was less than 5 trillion dollars. Today, it is over 50 trillion dollars. Total credit market debt is now at a level equivalent to about 360 percent of GDP. This is what has been fueling the great era of "economic prosperity" that we have been experiencing.
The truth is that there is not an easy answer under our current system. The only way that the U.S. economy continues to "grow" is if the debt bubble continues to "expand".
If our leaders allowed the debt bubble to "pop" and the U.S. economy went into a deleveraging cycle, it would mean that we would start living far below our means for an extended period of time and it would spawn a deflationary depression that would make the Great Depression look like a Sunday picnic.
The truth is that American families are stretched thinner financially than they ever have been in the post-World War 2 era. According to a poll taken last year, 61 percent of Americans "always or usually" live paycheck to paycheck. That was up significantly from 49 percent in 2008 and 43 percent in 2007.
According to an official U.S. government report, rapidly growing interest costs on the U.S. national debt together with spending on major entitlement programs such as Social Security and Medicare will absorb approximately 92 cents of every dollar of federal revenue by the year 2019. That is before a single penny is spent on anything else.
That is just 8 years away.
When people speak of the financial situation of the U.S. government being "unsustainable", they aren't kidding around.
The truth is that the U.S. government has been running gigantic Ponzi schemes which are about to collapse.
We have been living far, far beyond our means for decades, and it has been the greatest party in the history of the world.
But it is time to turn out the lights because the party is over.