Wednesday, December 10, 2008 Posted by Shattered Paradigm
The financial news seems to be getting worse each day now. The following are just a few items of bad financial news from today:
*10% of U.S. homeowners are now either behind in their payments or are in foreclosure.
*Sony is cutting 16,000 jobs and is planning to close some plants.
*Office Depot is planning to close 126 stores.
*The suffering is not isolated to the United States alone. Nearly a billion people around the world don't get enough food each day and are facing the prospect of starvation.
Are we starting to get the hint yet?
Things are bad.
Things are really bad.
The reality is that the financial system of the United States is coming apart like a cheap suit.
For years and years 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 for all that debt.
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 U.S. banks have had to borrow from the Federal Reserve just to stay alive. Even with all of this borrowing, 19 major banking chains have already failed 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 over 10 TRILLION dollars in debt.
10,000,000,000,000 dollars in debt!
Well, what about the "economic stimulus" packages that Congress is passing and that Obama is promising?
Do you know where those dollars will come from?
By trying to pump things up in the short term we will just make our long term problems even worse!
So, will the current generation of Americans repay this ridiculous debt?
No, the reality is that this 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!
Do you all have any idea how morally wrong that is?
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 in our lifetimes.
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 60 TRILLION dollars.
60 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 the United States 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 lost by the hundreds of thousands 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 get the United States into even more debt.
It is time for Americans to face reality.
The American Dream has gone "bye bye" and it is never coming back.
So what is a person to do?
Well, MSNBC is reporting that hard economic times have many Americans flirting with survivalism.
Is it time to move to the mountains and to stock up on beans and butter?
Will riots break out in the cities when the majority of Americans realize that their food is getting low and that the good times are gone forever?
The truth is that you have to do what is right for you and your family.
If you think that when the time comes someone is going to give you a handout, then you are living in a dream world.
If you think that the government has all the answers and has everything under control, then you are living in a complete dream world.
But each person is going to have to decide for themselves what they are going to do. Many people are now preparing by moving some place relatively safe, learning how to grow food and by getting off the grid.
Others have total faith in the government and barely have any food in their refrigerators and are very comfortable right now living paycheck to paycheck.
So what are you going to do? Feel free to leave us a comment with your perspective on these things.