The Legacy Of Debt That Threatens To Destroy America

Sunday, November 09, 2008 Posted by Shattered Paradigm

Two more U.S. banking chains have failed. Federal authorities have closed down Franklin Bank, a Houston bank with 5.1 billion dollars in assets, and Security Pacific Bank of California, with assets of 561 million dollars.

So now the total number of major bank failures in the U.S. this year has reached a total of 19.

Are we starting to get the hint yet?

Things are bad.

Meanwhile, the "big three" automakers are all on the verge of collapse. In particular, General Moters is warning that its cash reserves could sink below the minimum level it needs to operate by the end of this year unless it gets federal aid or can tap other resources.

Could General Motors actually go out of business?

At one time that would have been unthinkable.

But times have changed.

The reality is that the financial system of the United States is coming apart.

America has gorged itself on a mountain of debt on all levels - government, corporate and individual - and now America is starting to pay the price.

Do you think that there is any place that is safe for your money?

The chart below shows the absolutely insane amount of money that our banks have had to borrow from the Federal Reserve just to stay alive. Even with all of this borrowing, 19 banking chains have failed already this year:

The next chart shows the insane growth of our national debt over the years. Imagine if your own personal borrowing looked like this.....

The federal government of the United States is now approximately 10 TRILLION dollars in debt.

10,000,000,000,000 dollars in debt!

Will the current generation of Americans repay this ridiculous debt?

No, the reality is that the current generation of Americans seems determined to go even deeper into debt.

So, what that means is that the citizens of the United States are dumping this massive debt on to their children and their grandchildren and to generations beyond that.

That is absolutely inexcusable!

Essentially America has sold their children and grandchildren into economic slavery forever.

How would you feel if you discovered that your parents had run up over a million dollars on a credit card in your name, and now you had to make interest payments on that credit card for the rest of your life?

America's children and grandchildren will be working for the rest of their lives to pay interest on this ridiculous debt. Their labor will go into serving the owners of this debt, and there is no escape for them.

America has enjoyed the greatest party in the history of the world and it has fueled this huge party on massive amounts of debt, but now there is really bad news.....

The party is almost over.

The reserves of America's local banks are completely gone. The financial institutions of America have borrowed an insane amount of money from the Federal Reserve this year just to stay afloat. America's financial system has never experienced a crisis of this magnitude.

The biggest debt bubble in the history of the world is beginning to burst.

For decades Americans have lived like kings and queens.....enjoying the biggest party the world has ever seen.....but financed with ever increasing amounts of debt.

Once upon a time, the United States was the biggest creditor in the world. But those days are long gone. Now America is the biggest debtor nation to ever exist on the earth.

America was the wealthiest nation in the world, but that was never enough. Americans always had to have a bigger car, a bigger house and an endless supply of "stuff". So the American government piled up debt, American companies gorged on debt, and Americans made using credit cards into a national pastime.

If you include the future liabilities that the government of the United States has committed to such as future Social Security and Medicare payments, then the total debt of the federal government is over 59 TRILLION dollars.

59 TRILLION dollars!

Now that many of America's jobs have been shipped overseas, the price of gasoline has shot through the roof, and tons of people are losing their homes, do we find that Americans are learning their lesson?

Not at all.

Instead Americans are squeezing everything they possibly can out of their credit cards. Total credit card debt in America is now over 790 billion dollars, and it is increasing at a rate which is four times faster than earlier this decade.

Instead of showing restraint, Americans have jammed the accelerator to the floor.

Prices are increasing dramatically while wages are not. Jobs are being outsourced and factories are being closed. America's largest banks and financial institutions are teetering on the brink of failure. Homes are being foreclosed at record rates. Personal bankruptcies recently hit an all time high.

So what is the answer that the corrupt politicians are giving to America?

Spend even more money and getting us into even more debt.

It is time for America to face reality.

The American Dream has gone "bye bye" and it is never coming back.


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