Social Economic Impacts
Economic Depression: Recent figures released by the U.S. government on the state of Medicare and Social Security have been raising red flags for several years now. In 2008, the government reported that Medicare would be paying out more than it receives starting in 2008 and the same with Social Security starting in 2016. Of course, those estimates assumed that nothing else occurs to further degrade the U.S. economy, tax revenue, or inflation that could push these programs into further jeopardy.
However, if you’re paying attention you realize that the real economic issues aren’t being discussed by our “fearful” leaders. No one wants to talk about the looming failures of Medicare or Social Security. No one wants to talk about our national debt, how it continues to grow, or how it will ever be repaid. No one wants to talk about these issues because they have no solutions.
We’ve already discussed the reason why the U.S. and world economies are on the brink of self-destruction as a consequence of our addiction to self-indulgence and over consumption, and our complacency with those who run the governments and control the monetary systems. The economic bubble that stands before us is the result of ongoing and unconscionable actions that date all the way back to the rebuilding process after World War II.
Over the past few years our economic world has been turned upside down. The current economic conditions in the U.S. and world are certainly no secret to those who are able to see and hear what’s really happening. With the rhetoric from the mass media, you may need to learn how to read between the lines, but there are obvious indicators everywhere that an economic collapse is looming on the very near horizon.
Many experts in the field of economic projections are speaking out about everything from economic indicators to economic patterns that are repeating from the time just prior to the great depression of 1929. So what will it take to get people to wake up and finally figure out that the next global economic depression is right around the corner?
Let’s remember that the U.S. accounts for 30% of all consumption on the planet with only 5% of the total population. That means that 30% of everything that’s manufactured is then purchased, consumed, and yes, from previous statistics, thrown away within 6 months by the U.S. consumer. Is it so difficult to imagine what will happen when the U.S. economy collapses? Is it so far fetched to realize that once this collapse occurs, it will drag the entire world economies with it? It would be no surprise if you have a good understanding of global economics and world markets.
So, how did the U.S. and world economies end up at this point in economic history?
Somewhere along the line, government, monitory, and world leaders decided that they needed to siphon money out of the world economies and launder it in order to finance their personal lifestyles and private projects. They needed a place where people were gullible enough to believe their lies. They needed a place where people could be seduced by money and then be willing to take the blame when it all fell apart. America became their ultimate experiment in greed and corruption. Does this sound familiar? It should, because it’s the basic plot for most Hollywood movies.
The Powers That Be (PTB) realized that, by giving people the illusion of wealth, that they would in turn experience the illusion of happiness, as well as the illusion of security. They knew that the illusion of wealth would allow them to control the masses so they wouldn’t ask questions, and if they did, the issue could be easily put back to sleep with the illusion of more money. So they gave the people a taste of that dream and flaunted that dream whenever someone achieved it. They threw money at the people until they became blinded and consumed by their own greed.
For over 50 years, the U.S. economic growth has been financed by debt. We were allowed to borrow, encouraged to hire, and brainwashed to consume all with little or no risk besides a bad credit report. As a result, the population became enslaved to the PTB’s agenda. Some were allowed to convert their opportunity into fame and fortune only to further seduce the masses into believing the illusion was possible for anyone.
Even today, the masses are being lulled into the belief that the economic collapse can somehow be avoided and even reversed, but this is only because people have become accustomed to the lies and deception of the PTB. The masses have not done their own research into the extent of the problem or asked the questions about how a recovery is even possible.
In the last 50 years we’ve lived through recessions, but nothing has ever been allowed to balance out naturally. The PTB simply printed more money to stimulate the economy while creating a perpetual and insurmountable debt. The U.S. government is doing everything possible to keep people from figuring out what’s going on. As you can see, it doesn’t take much to figure out that they have bankrupted America and the World, but it’s often challenging for people to even consider this fiscal mismanagement was deliberate.
Most of us have only read or heard about the great depression of 1929, but we are about to experience an economic collapse that is so much worse and first hand. Unfortunately, most people believe the propaganda that the governments are force-feeding the global population. Why not? We have believed their lies every other time there has been a financial crisis. In the past we didn’t even consider doing the math in order to see where this was all heading. This is not a new phenomenon, but one that has been building, like a pressure cooker.
The governments are trying to convince everyone that this is an unusual economic situation, but one that’s recoverable. This is the same propaganda they are using for the weather and geophysical anomalies, and if this were any other time in history, we might just believe them. What they don’t want you to know is that "this is a unique time in history”.
Instead of repeated what the experts have already been saying about the economic projections, we’re going to take a look at some actual figures on the U.S. financial state. Before we do that, let’s consider that virtually all U.S. market and GDP growth has been achieved on borrowed money and easy credit. Everyone knows the U.S. is the largest debtor nation on the planet. In fact the only way any economy could grow as the U.S. economy over the past 50 years is to either have stockpiles of wealth to spend or borrow the money to spend.
Many people have indicated that the information you are about to read is too serious and too sobering for mortal man. The response is that all other methods of waking people up have been unsuccessful and time has run out. The only option now is to hit people over the head with the undeniable facts. So, here is a single statement for you to ponder… “Denial is not an option!”
As citizens of the United States, we are responsible and literally accountable for what actions our government has taken or will take on our behalf, but nobody has been watching the store. The U.S. government has made commitments and financial policy that serves only their three objectives; to maintain stability, ensure their legacy (retirement, pensions, and lifestyle), and finance their hidden agendas. The commitments have now ballooned to a point of absurdity.
Let’s look at some actual figures that represent what every single U.S. citizen owes in taxes today as a result of our governments’ lack of sound fiscal management and blatant deception. Before we discuss the commonly known debt, let’s first look at the lesser known figures of how much money will be required to repair or replace the U.S. infrastructure.
Our nation's physical infrastructure includes a variety of complex and interrelated systems that are critical components in providing for our quality of life and economic security. It includes: aviation, roads and bridges, dams, drinking and waste water, energy, hazardous and solid waste, navigable waterways, public parks and recreation, rail, schools, security, and transit. What people may not know is that most of the infrastructure is designed and estimated to last between 40 and 50 years. This means that the majority of the city, state, and local infrastructure is at or near the age of mandatory replacement. The bottom line is that city, state, and federal governments have huge expenditures looming on the very near horizon that they haven’t planned or budgeted for.
The government is well aware of this growing problem as represented by the recent creation of the National Infrastructure Bank Act of 2007. For our purpose, we will only discuss a few of the infrastructure replacement costs. It should be noted that these figures are estimates provided by the corresponding government agencies and do not represent the entire infrastructure replacement needs, however, they will provide an understanding of the magnitude of the problem. The below figures come directly from the National Infrastructure Bank Act of 2007 and are quite staggering. They represent the projections of the money that will be needed annually for the next 20 years in order to replace these failing systems.
Federal Transit Administration = $21.8 billion
Federal Highway Administration/Roads = $131.7 billion
Federal Highway Administration/Bridges = $9.4 billion
Environmental Protection Agency/Drinking Water = $151 billion
Environmental Protection Agency/Wastewater = $390 billion
Total Infrastructure = $704 billion per year for 20 years = $14 trillion
We’ve already discussed the big secret with Medicare is that it’s under funded by $34 trillion. According to 2007 figures from the government, Social Security has a deficit of $13.6 trillion. There is $12 trillion in outstanding U.S. government bonds and another $10 trillion owed to the Federal Reserve Bank. The current administration now estimates they will spend an additional $9 trillion in borrowed funds over the next 10 years.
Grand Total U.S. Debt. (est.) = $93 trillion
So, what does this figure represent to each and every citizen on the United States? First of all, does everyone realize that the government debt is our debt and can only be repaid by tax dollars? We can not hide from this debt and it can only be repaid by tax dollars. Depending on the source, there are approximately 304 million people in the U.S. Of course, this includes: every baby, child, teenagers, adult, immigrant, the retired, and elderly. This means that each U.S. Citizen owes:
Total tax bill per U.S. citizen = $306,000
If we consider that only those people and corporations that actually file a tax return are ultimately going to be paying back this debt, the situation looks even worse. According to the U.S. Internal Revenue Service, in 2007, only 139 million individual and 2.5 million corporate tax returns were filed. For arguments sake, we will leave in the 41% of the individual filers who owed zero taxes and those who paid some tax upfront and are later were refunded the full amount of the tax paid or more.
Total tax bill per U.S. tax filer = $657,000
The above figures are estimates and do not account for interest, inflation, future unforeseen natural disasters, additional incurred debts, a terrorist attack, or other economic impacts such as rapidly rising oil prices or major shortfalls in tax revenue. And if we consider that a majority of these funds will need to be repaid in the next 20 years, the annual tax bill for every U.S. tax filer becomes:
Annual tax bill per U.S. tax filer = $33,000/yr for 20 years
Does anyone see the problem here? Do you really think the world governments and Powers That Be (PTB) don’t know about these facts and figures? As you can see, it doesn’t take a Phd in economics, mathematics, or finance to calculate the debt burden the U.S. government has placed on its citizens. This is not long division or differential equations, but simply accumulating the public debt figures, and applying basic mathematics.
The bottom line is that there is no way the U.S. government can raise taxes slow enough or fast enough to ever bring this debt burden into manageable range. Not that they could manage anything financial, no matter how large or small. How many people know that 50% of the U.S. government $1 trillion annual budget goes to military and defense?
These figures provide a chilling realization of just how impossible it is for the U.S. economy to recover from this government induced burden and provides a glimpse into the very near future collapse of world economies. Does anyone really believe economic analysts that work for the U.S. government, Federal Reserve Bank, or World Bank, are not aware of these facts? Once again, the U.S. population has become so complacent that they’ve let the proverbial fox in the hen-house.
Do you also realize the government doesn’t owe anything? The entire $93 trillion in debt is owned and owed equally by each and every citizen of the United States. If the U.S. government ever revealed their fiscal irresponsibility to the general public, there would be a near immediate revolution by the U.S. citizens. This is exactly what the PTB are trying to avoid.
Herein lies both the problem and an indication of why nobody wants to talk about the U.S. debt crisis. The question of why the government avoids the subjects of Medicare and Social Security is answered. The question of why everyone tries to avoid speaking about the U.S. debt and ongoing deficit figures is answered. The question of why these figures are never discussed together, as the total U.S. debt position, is answered.
Why would the Powers That Be (PTB) perpetuate such a scheme unless there was a purpose? Why would the banking industry continue to support this failed system with loans while deceiving the global population, unless they knew something that most people do not? And why would the U.S. government and Federal Reserve Bank take such drastic measures to prolong an inevitable collapse unless they had a reason?
Most of the economic indicators suggest that we are on a time table to repeat the economic depression of 1929. Even the stock markets are exhibiting fluctuations that mimic those just prior to the crash of 1929. These predictions, estimates, and fluctuations don’t even take into account any of the realistic possibilities that could catapult this already unstable economic situation directly into the next global depression. We’ve already mentioned them, but let’s recap.
The above figures are estimates and do not account for interest, inflation, future unforeseen natural disasters, additional incurred debts, a terrorist attack, or other economic impacts such as rapidly rising oil prices or major shortfalls in tax revenue.
For those who are aware of the events that lead up to the great depression of 1929, interest rates where a key factor. Prior to 1929, interest rates were lowered due to worsening economic conditions, but how many people realize that interest rates must eventually be raised again in order to achieve economic stability. Low interest rates reduce the value of the currency and create an inflationary condition. The monitory policy makers know this and their job is to try and balance interest rates with economic sustainability.
In other words, as soon as the PTB perceive the opportunity, through statistical analysis of the economic trends, interest rates must be raised once again. Ideally, they would be raised slowly at first until there are signs of sustainability, and then more rapidly. Our current situation with low interest rates is nearly parallel to the period prior to the 1929 crash. At some point very soon, the PTB must start to raise interest rates in order to reduce the risk of inflation and increase the value of the currency, however, without a sustainable recovery, such an increase can spells instant catastrophe for an already anemic condition.
Besides the purely economic factors such as rising interest rates or a rapid increase in oil prices, there are several natural and man-made factors that could easily tip the economic scales towards collapse. Some of these include a terrorist attack similar to the New York City World Trade Center in 2001 or a natural disaster on the scale of Hurricane Katrina in 2005.
New Orleans was one of the largest sea ports in the U.S. and was a vital import, export, and distribution center in the central U.S. and New York is a vital worldwide financial communication center. Even under what could be considered more stable economic conditions in 2001 and 2005, it has taken years to absorb the economic consequences from the events that are commonly referred to as 9/11 and Katrina.
How many people consider the economic impact from this type of disaster? We experienced it with Hurricane Katrina, but most people have short memories and even less understanding of the economic impacts from such events. Significant natural disasters can come in many forms include: hurricane, volcanic eruption, earthquake, or tsunami. Besides the pure costs in the form of public debt from disaster emergency funds, the displacement of entire city population, jobs losses, tax revenue losses, the disruption of business and confidence could become unrecoverable.
If a similar catastrophic event were to occur in another major city with economic and global ties, the consequences on an already ailing U.S. economy would be disastrous. Take for instance if such an event were to occur in Portland, Oregon; San Francisco or Los Angeles, California; Kansas City, Missouri; Chicago, Illinois, or New York City.
Shortfalls in tax revenues are already occurring on every level of U.S. government from city and state to federal. Is there anyone that sees this condition reversing sometime soon? Virtually every major city has been cutting hours, services, and staff just to stay in operation. California is in such dire straights that their bonds are nearly considered “junk”. Since California, by itself, is still one of the largest economies in the world, their collapse alone would send the U.S. into an immediate depression.
Here is an example of what can happen when a city gets into financial trouble.
In the 1970s, NYC did not file bankruptcy although it did teeter on the edge after the famous "Ford to NYC: Drop Dead" Daily News headline in 1975 when the President refused to grant the city any relief from its mountain of debt. What happened? The city worked out an arrangement with its creditors, but at a huge cost. Services were cut in mass proportion. The city became dirtier as sanitation services were cut back. There was virtually no maintenance on city subways for nearly a decade, as the graffiti-clad trains fell into a state of disrepair - yet transportation fares were raised 40%. Crime spiraled out of control as NYPD hiring was frozen just as crime was increasing. Free tuition at public NYC universities for NYC high school graduates was eliminated. Hours at libraries and services at public hospitals were cut back. The Board of Education staff was reduced by 20%. During this period in the early 70s, corporate taxes were raised to try and narrow the huge fiscal gap which resulted in a staggering 55 Fortune 500 companies exiting the city.
Add on top of all these potentials, the reality of tax increases at every level just to keep city, state, and federal governments in business. The concept of raising taxes to pay for shortfalls in tax revenue is nothing new, however, is quickly becoming a necessity rather than an option.
And don’t forget that the U.S. government will be raising taxes anyway. Not just to keep government operating, but also to pay for its $1 trillion federal annual budget and to repay the $93 trillion in debt. With the accelerating shortfall in income taxes, sales taxes and property taxes, it’s only a matter of time before taxes are raised on every level. This is no longer a matter of contemplation, but a matter of survival.
All of these factors influence, possibly the most important gauge of economic stability in the world today, the bond market. Most people may not realize how important the bond market is to the stability of global economies. Without bonds, every U.S. city, state, and federal government would be bankrupt already. In fact, the concept of the bond market may be the single most deceptive economic concept ever created. After all, what is a bond? A bond is nothing more than a paper I.O.U. written against the stability and longevity of a government, corporate, or private institution. In other words, bonds are nothing more than another means to live on borrowed money and borrowed time.
Who buys these bonds? Individuals, corporations, and even other countries loan money to the U.S. and receive their bonds as collateral. They do this with the promise and expectation that the bonds will be paid back over time. Municipal bonds have been considered a safe investment because they are repaid through ever increasing tax revenues that result from expanding economic growth.
What happens when tax revenues continue to fall and economic growth stalls? The answer is nothing if these economic conditions are short term, but what if these conditions become long term? Ultimately, if any level of the economy can’t sustain continuous growth, then the ability to repay these bonds decreases proportionally. As soon as a corporation or municipality is seen to be entering a period of economic risk, then no one is willing to buy their bonds any more.
California is already experiencing this reality as their bonds are being written down to “junk” status. Virtually every month now, California is unable to pay their bills until they sell more bonds or some other entity gives them another loan. The California government is so bloated in size and expenses and their shortfall in tax revenues so extreme, they are literally on the edge of bankruptcy every month. Does anyone believe that a city or state, under the current economic conditions, will be able to raise sales or property taxes to ward off financial shortfalls?
What happens when the bond holders come to the realization that their bonds are junk and will never be repaid? Nobody will want to buy bonds and the bond market will collapse. The collapse of the bond market can single-handedly result in the collapse of the U.S. and global economies. It doesn’t matter if the bonds are corporate or municipal. Once the bond holders perceive they won’t be paid back ever, the bond market dries up and those entities that rely on bonds for the very existence will be forced into bankruptcy.
So why do you think the PTB continues to support the collapsing U.S. economy? The answer is that they have a plan. That plan is to keep everything looking normal for as long as possible in order to maintain stability and control. It’s no mystery to the PTB that the U.S. city, state, and federal governments can never repay their debts, but the only way they maintain stability is to keep buying that debt.
There are only three possibilities to recover from the current financial apocalypse. One is to raise taxes, however, it is not likely taxes could be raised fast enough to avoid bankruptcy or slow enough to avoid destroying the economic growth and the value of the U.S. dollar against world currencies.
Second is to have more money coming into the system than is being spent by the system. This implies reducing expenses on every level from individual to government, but also maintaining continuous economic growth. The only way to stimulate this possibility is sound fiscal management and borrowing more money, however, this only takes us further down the road of unsustainability.
Third is by divine intervention. What you say? This means forgiveness of all debt by the Federal Reserve Bank and bond holders, printing even more money, and giving it to every ailing corporation or Government, interest free? Not a plausible solution as it results in exponential inflation and an immediate collapse of the U.S. economy.
No matter how this plays out, it is a certain fact that the U.S. currency will be devalued to the point of extinction. In other words, a single U.S. dollar today may be worth only five cents tomorrow. The collapse of the U.S. dollar will go hand-in-hand with the collapse of the economy.
What does all of this mean for global economies and currencies? Has everyone been paying attention to the G20’s proposal to create three new global currencies? Does anyone see how much they know about what’s coming and how they are planning for this collapse?
Take note that the PTB has a plan and part of that plan is to let the global economies collapse. They know they can not stop the coming collapse, but what they can do is postpone it and then have a plan to further deceive the world population that they have everything under control. After all, control is the only way they can maintain their lifestyle at the expense of everyone else.
Once the rest of the world wakes up to the inevitable collapse and bankruptcy of the U.S. economy, the PTB will have no choice but to step back and let it fail. In order to maintain global control and stability, they must have a plan that is convincing to the mass population. Their solution will be to create new currencies and expand globalization of markets and economies.
By now, most people may have heard of the “Amero” and “North American Union (NAU)”. Without going into great detail, the NAU is the combination of Canada, Mexico, and the U.S. economies into one entity just as they did with the European Union. The Amero is the currency they have planned to replace the Peso, Canadian and U.S. dollars just as they did with the Euro. As much as people don’t want to believe this is coming, these are realities that are being planned while the mass population sleeps.
From this information, you can now see the U.S. and global economic collapse and next worldwide depression are imminent, but you also begin to see how the entire process is being controlled by the PTB in order to maintain stability. No different than a corporation, the PTB is planning their global bankruptcy.