Posts tagged global

G Edward Griffin – Agenda 21 – Save Long Island Forum 1/18/14 (Video)

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G Edward Griffin – Agenda 21 – Save Long Island Forum 1/18/14 (Video)

 

2-6-2014 9-48-42 PM

 

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( H/T Liz Abbott )

Published by wearechangect

The legendary author G Edward Griffin was the headline speaker at the Save Long Island Forum talking about the eugenic plans of the UN’s Agenda 21 to covertly exterminate most of the world’s population.

Learn more about Save Long Island: http://savelongisland.org/
Check out the Save Long Island Forum website to see a list of all the speakers: http://savelongislandforum.com/

While economic freedom declines in the US, it rises across the globe

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Source: http://www.againstcronycapitalism.org

By

While economic freedom declines in the US, it rises across the globe

 

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The wealth of nations has increased by astronomical amounts over the last 2 decades. Literally billions of people have been brought out of poverty thanks to economic freedom. It is as if once the Soviet Union died, once the scourge of international socialism was utterly and completely decimated both economically and intellectually, humanity couldn’t help but lurch forward.

 

The Berlin Wall “death strip.”

The Berlin Wall “death strip.”

 

Actually that is what happened.

Sadly we have gone in the opposite direction over the last 2 decades. Instead of freeing our economy we have wrapped it ever more in welfare state red tape. We have regulations on top of regulations on top of regulations. We make it harder for businesses to start. We make it harder for businesses to hire. We promise completely unrealistic pensions to government workers which are paid for by workers and businesses and crush the finances of our great cities. We nationalize car companies. We bail out banks which should be dead. Our government picks winners and losers of all kinds in the economy (and is almost always wrong – at great cost). In short, the United States which for so long was a beacon of liberty and economic freedom has dimmed dramatically. A system of crony capitalism has taken hold. The state (often the corporate state) is ubiquitous.

We must again embrace liberty and economic freedom. This is the way to an American Renaissance. We can again lead the world. We can again be a source of hope to the world.

You know, REAL hope.

(From The Wall Street Journal)
 
It’s not hard to see why the U.S. is losing ground. Even marginal tax rates exceeding 43% cannot finance runaway government spending, which has caused the national debt to skyrocket. The Obama administration continues to shackle entire sectors of the economy with regulation, including health care, finance and energy. The intervention impedes both personal freedom and national prosperity.
 
But as the U.S. economy languishes, many countries are leaping ahead, thanks to policies that enhance economic freedom—the same ones that made the U.S. economy the most powerful in the world. Governments in 114 countries have taken steps in the past year to increase the economic freedom of their citizens. Forty-three countries, from every part of the world, have now reached their highest economic freedom ranking in the index’s history.

Click here for the article.

Image credit: http://www.againstcronycapitalism.org


Nick Sorrentino
About Nick Sorrentino

Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.

 

Michael Snyder: Next Great Wave of Economic Crisis – Gold, Silver, Grow Food, Alternative Energy

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Michael Snyder: Next Great Wave of Economic Crisis – Gold, Silver, Grow Food, Alternative Energy (Video)

 

Greg Hunter - Michael Snyder video capture

Greg Hunter – Michael Snyder video capture

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Published by Greg Hunter

Published on Nov 20, 2013

http://usawatchdog.com/michael-snyder… – Michael Snyder, Publisher of TheEconomicCollapseBlog.com says the next crisis, “will be like 2008 on steroids. . . . We’re living in the greatest debt bubble in the history of the planet.” Snyder suggests people need to take steps to protect themselves against this debt bubble bursting. Snyder says, “Learn how to grow good food, get alternative sources of energy, and hold gold and silver for the long term.” Join Greg Hunter as he goes One-on-One with investigative reporter Michael Snyder.

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The Greatest Debt Crisis The World Has Ever Seen Is Coming

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Source: http://thetruthwins.com

By Michael Snyder

 

The Greatest Debt Crisis The World Has Ever Seen Is Coming

 

U.S.-National-Debt-2013-450x270

The largest mountain of debt in the history of the world just continues to grow even larger, and everyone knows that this colossal debt spiral is not going to end well.  But we all keep playing along because nobody wants the party to end.  Right now, there is an unprecedented ocean of red ink covering the planet.  Globally, governments have never been in so much debt, corporations have never been in so much debt and consumers have never been in so much debt.  But every time someone suggests that this is a problem and that we should at least try to get debt levels to settle down a bit, people start screaming that “austerity” will hurt the global economy.  And of course it will.  But we can’t continue to live way, way above our means indefinitely.  Well, we can try, but at some point this entire house of cards is going to come crashing down and we are going to be facing the greatest economic crisis the world has ever seen.

It is kind of like watching a slow-motion train wreck that you have no chance of possibly stopping that you know will end up killing lots of innocent people.  This debt crisis is going to end up destroying the global financial system, but there is not a thing that you or I can do to prevent it from happening.  The unprecedented debt binge that we are witnessing right now is going to continue until someday we hit a brick wall of financial disaster.  We can yell and we can scream, but it isn’t going to stop what is happening.

As the Telegraph recently noted, even the Bank for International Settlements is warning that debt levels are way too high.  According to the BIS, total public and private debt levels are now 30 percent higher than they were in 2008…

“This looks like to me like 2007 all over again, but even worse,” said William White, the BIS’s former chief economist, famous for flagging the wild behavior in the debt markets before the global storm hit in 2008.
 
“All the previous imbalances are still there. Total public and private debt levels are 30pc higher as a share of GDP in the advanced economies than they were then, and we have added a whole new problem with bubbles in emerging markets that are ending in a boom-bust cycle,” said Mr White, now chairman of the OECD’s Economic Development and Review Committee.

The BIS can see the disaster coming, but even they have no chance of preventing it.

For the rest of this article, I am going to focus on government debt, but please keep in mind that corporate debt and consumer debt are also totally out of control globally.  It would be very hard to overstate the nightmare that we are facing.

But of course national governments are the biggest offenders when it comes to debt…

Asia

Japan now has a debt to GDP ratio of more than 211 percent, and as Simon Black of the Sovereign Man blog recently detailed, they are rapidly heading toward a national financial meltdown…

Looking purely at the numbers, Japan’s medium-term fundamentals are among the bleakest in the world.
 
Total government debt amounts to over 200% of the country’s entire GDP– a figure so large that the Japanese government spends 51.5% of the 43 trillion yen ($430 billion) they collect in tax revenue just to pay interest!
 
Perhaps even more astounding is that ‘primary balance expenses,’ i.e. normal government expenditures, totaled 70.3 trillion yen, or 163% of tax revenue.
 
The only way they’ve managed to stay afloat is by issuing more debt, which makes the problem even worse. In fact, 46% of the 2013 budget is being financed by debt.
 
These guys are running out of rope. And fast.

China is facing a different sort of a problem.  In that nation, the growth of private domestic debt is wildly out of control.

According to a recent World Bank report, private domestic debt in China has grown from 9 trillion dollars in 2008 to 23 trillion dollars today.

There is no way that is sustainable, and at some point that massive bubble is going to burst.

Europe

Even though some European nations have supposedly implemented “austerity measures” in recent years, debt levels continue to rise rapidly.  The following are some numbers that were recently released which show that government debt to GDP ratios for some of the most financially troubled nations in Europe are absolutely soaring

  • Euroarea: 92.2%, up from 88.2% a year ago
  • Greece: 160.5%, up from 136.5% a year ago
  • Italy: 130.3%; up from 123.8% a year ago
  • Portugal: 127.2%, up from 112.3% a year ago
  • Ireland: 125.1%, up from 106.8% a year ago
  • Spain: 88.2%, up from 73.0% a year ago
  • Netherlands: 72.0%, up from 66.7% a year ago

Anyone that tells you that the crisis in Europe is “over” is lying to you.  The debt crisis is getting worse, not better.

The United States

The biggest mountain of debt of all can be found in the United States.

30 years ago, the national debt was a little bit above a trillion dollars.

Today, it is rapidly approaching 17 trillion dollars.

At this point, the U.S. already has more government debt per capita than Greece, Portugal, Italy, Ireland or Spain.  And since Barack Obama entered the White House, the debt to GDP level has soared to unprecedented heights…

National-Debt-As-A-Percentage-Of-GDP-450x270

Sadly, this is just the beginning.

One reason for this is that the U.S. is facing some tremendous demographic challenges in the years ahead.

In other words, our population is getting older.

It is being projected that the number of Americans on Social Security will rise from 57 million today to more than 100 million in 25 years.

How in the world are we possibly going to pay for that?

Already, we are very heavily dependent on foreigners to pay our bills.

According to the U.S. Treasury, foreigners hold approximately 5.6 trillion dollars of our debt at this point.

China and Russia account for about one-fourth of that total.  Right now, China owns approximately 1.275 trillion dollars of our debt, and Russia owns approximately 138 billion dollars of our debt.

So what would happen if we went to war with Syria and they decided to quit borrowing from us and they started dumping our debt instead?

That is a very good question.

And actually, according to Zero Hedge foreigners have already started to dump a little bit of our debt…

Today’s TIC data showed something disturbing: for the fourth month in a row, foreigners were net sellers of US Treasury paper in July, as total foreign holdings declined from $5.600 trillion to $5.590 trillion which represents 49% of total marketable debt (including the debt owned by the Fed of course). In other words, since peaking at $5.724 trillion in March, foreign-held debt has declined by $134 trillion, at a time when yields have surged on fears the Fed’s tapering of its own purchases of bonds will mean less Fed frontrunning opportunities.

We certainly cannot afford for that to continue, because we desperately need other nations to finance our reckless spending.

Our debt is wildly out of control, and the only way we can keep the entire system from collapsing is to go into even more debt.

As I noted recently, if the U.S. national debt was reduced to a stack of one dollar bills it would circle the earth at the equator 45 times.

That is a whole lot of money.

But most Americans do not consider it to be a problem because disaster has not struck yet.

Unfortunately, they simply don’t understand how quickly an exponential problem can overwhelm you.  I think that the following illustration from Simon Black is particularly helpful…

Let’s say you’re at a party in a small apartment that’s about 500 square feet in size. Then suddenly, at 11pm, a pipe bursts, starting a trickle into the living room.
 
Aside from the petty annoyance, would you feel like you were in danger? Probably not. This is a linear problem– the rate at which the water is leaking is more or less constant, so the guests can keep partying through the night without worry.
 
But let’s assume that it’s an exponential leak.
 
At first, there’s just one drop of water. But each minute, the rate doubles. So by 11:01pm, there’s 2 drops. By 11:02, 4 drops. And so forth.
 
By 11:27pm, there’s only six inches of standing water. Yet by 11:31pm, just four minutes later, the entire room is under nearly 8 feet of water. And the party’s over.
 
For nearly half an hour, it all seemed safe and manageable. People had all the time in the world to leave, right up until the bitter end. 11:27, 11:28, 11:29. Then it all went from benign to deadly in a matter of minutes.

By the time that our politicians and the talking heads on the mainstream media admit that we have a debt emergency on our hands, it will probably be far, far too late.

The greatest debt crisis the world has ever seen is coming, and there is nothing that anyone can do to stop it.

But you can take measures to get prepared for it.

Please get prepared while you still can.

About the author: Michael T. Snyder is a former Washington D.C. attorney who now publishes The Truth. His new thriller entitled “The Beginning Of The End” is now available on Amazon.com.

Michael T. Snyder's Shocking New Novel About The Future Of America

Image credit: http://thetruthwins.com

25 Quotes About The Coming War With Syria That Every American Should See

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Source: http://theeconomiccollapseblog.com

By Michael Snyder

 

25 Quotes About The Coming War With Syria That Every American Should See

 

Aircraft-Carrier-War-With-Syria-300x300If Barack Obama is going to attack Syria, he is going to do it without the support of the American people, without the approval of Congress, without the approval of the United Nations, and without the help of the British.  Now that the British Parliament has voted against a military strike, the Obama administration is saying that it may take “unilateral action” against Syria.  But what good would “a shot across Syria’s bow” actually do?  A “limited strike” is not going to bring down the Assad regime and it is certainly not going to end the bloody civil war that has been raging inside Syria.  Even if the U.S. eventually removed Assad, the al-Qaeda affiliated rebels that would take power would almost certainly be even worse than Assad.  Even in the midst of this bloody civil war, the rebels have taken the time and the effort to massacre entire Christian villages.  Why is Barack Obama so obsessed with helping such monsters?  There is no good outcome in Syria.  The Assad regime is absolutely horrible and the rebels are even worse.  Why would we want the U.S. military to get involved in such a mess?

It isn’t as if it is even possible for the U.S. military to resolve the conflict that is going on in that country.  At the core, the Syrian civil war is about Sunni Islam vs. Shia Islam.  It is a conflict that goes back well over a thousand years.

Assad is Shiite, but the majority of Syrians are Sunni Muslims.  Saudi Arabia and Qatar have been pouring billions of dollars into the conflict, because they would love to see the Assad regime eliminated and a Sunni government come to power in Syria.  On the other side, Iran is absolutely determined to not allow that to happen.

Saudi Arabia and Qatar have no problem with using Sunni terrorists (al-Qaeda) to achieve their political goals.  And as a very important ally of the Saudis, the U.S. has been spending a lot of money to train and equip the “rebels” in Syria.

But there was a problem.  The Syrian government has actually been defeating the rebels.  So something had to be done.

If it could be made to look like the Assad regime was using chemical weapons, that would give the U.S. government the “moral justification” that it needed to intervene militarily on the side of the rebels.  In essence, it would be a great excuse for the U.S. to be able to go in and do the dirty work of the Saudis for them.

So that is where we are today.  The justification for attacking Syria that the Obama administration is giving us goes something like this…

-Chemical weapons were used in Syria.

-The rebels do not have the ability to use chemical weapons.

-Therefore it must have been the Assad regime that was responsible for using chemical weapons.

-The U.S. military must punish the use of chemical weapons to make sure that it never happens again.

Unfortunately for the Obama administration, the world is not buying it.  In fact, people are seeing right through this charade.

The U.S. government spends $52,000,000,000 a year on “intelligence”, but apparently our intelligence community absolutely refuses to see the obvious.  WND has been able to uncover compelling evidence that the rebels in Syria have used chemical weapons repeatedly, and yet government officials continue to insist over and over that no such evidence exists and that we need to strike Syria immediately.

Shouldn’t we at least take a little bit of time to figure out who is actually in the wrong before we start letting cruise missiles fly?

Because the potential downside of an attack against Syria is absolutely massive.  As I wrote about the other day, if we attack Syria we have the potential of starting World War 3 in the Middle East.

We could find ourselves immersed in an endless war with Syria, Iran and Hezbollah which would be far more horrible than the Iraq war ever was.  It would essentially be a war with Shia Islam itself, and that would be a total nightmare.

If you are going to pick a fight with those guys, you better pack a lunch.  They fight dirty and they are absolutely relentless.  They will never forget and they will never, ever forgive.

A full-blown war with Syria, Iran and Hezbollah would be a fight to the death, and they would not hesitate to strike soft targets all over the United States.  I don’t think that most Americans have any conception of what that could possibly mean.

If the American people are going to stop this war, they need to do it now.  The following are 25 quotes about the coming war with Syria that every American should see…

1. Barack Obama, during an interview with Charlie Savage on December 20, 2007: “The President does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation.”

2. Joe Biden, during a television interview in 2007: “The president has no constitutional authority … to take this nation to war … unless we’re attacked or unless there is proof we are about to be attacked.  And if he does, if he does, I would move to impeach him.”

3. U.S. Representative Ted Poe: “Mr. President, you must call Congress back from recess immediately to take a vote on a military strike on Syria. Assad may have crossed a red line but that does not give you the authority to redline the Constitution.”

4. U.S. Representative Kurt Schrader: “I see no convincing evidence that this is an imminent threat to the United States of America.”

5. U.S. Representative Barbara Lee: “While we understand that as commander-in-chief you have a constitutional obligation to protect our national interests from direct attack, Congress has the constitutional obligation and power to approve military force, even if the United States or its direct interests (such as its embassies) have not been attacked or threatened with an attack.”

6. The New York Times: “American officials said Wednesday there was no ‘smoking gun’ that directly links President Bashar al-Assad to the attack, and they tried to lower expectations about the public intelligence presentation.”

7. U.S. Senator Rand Paul: “The war in Syria has no clear national security connection to the United States and victory by either side will not necessarily bring in to power people friendly to the United States.”

FULL STORY  

Image credit: http://theeconomiccollapseblog.com

Billionaire Issues Chilling Warning About Interest Rate Derivatives

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Source: http://theeconomiccollapseblog.com

By Michael Snyder

 

Billionaire Issues Chilling Warning About Interest Rate Derivatives

 

WarningWill rapidly rising interest rates rip through the U.S. financial system like a giant lawnmower blade?  Yes, the U.S. economy survived much higher interest rates in the past, but at that time there were not hundreds of trillions of dollars worth of interest rate derivatives hanging over our financial system like a Sword of Damocles.  This is something that I have been talking about for quite some time, and now a Mexican billionaire has come forward with a similar warning.  Hugo Salinas Price was the founder of the Elektra retail chain down in Mexico, and he is extremely concerned that rising interest rates could burst the derivatives bubble and cause “massive bankruptcies around the globe”.  Of course there are a whole lot of people out there that would be quite glad to see the “too big to fail” banks go bankrupt, but the truth is that if they go down our entire economy will go down with them.  Our situation is similar to a patient with a very advanced stage of cancer.  You can try to kill the cancer with drugs, but you will almost certainly kill the patient at the same time.  Well, that is essentially what our relationship with the big banks is like.  Our entire economic system is based on credit, and just like we saw back in 2008, if the big banks start failing credit freezes up and suddenly nobody can get any money for anything.  When the next great credit crunch comes, every important number in our economy will rapidly start getting much worse.

The big banks are going to play a starring role in the next financial crash just like they did in the last one.  Only this next crash may be quite a bit worse.  Just check out what billionaire Hugo Salinas Price told King World News recently…

I think we are going to see a series of bankruptcies. I think the rise in interest rates is the fatal sign which is going to ignite a derivatives crisis. This is going to bring down the derivatives system (and the financial system).

There are (over) one quadrillion dollars of derivatives and most of them are related to interest rates. The spiking of interest rates in the United States may set that off. What is going to happen in the world is eventually we are going to come to a moment where there is going to be massive bankruptcies around the globe.

What is going to be left after the dust settles is gold, and some people are going to have it and some people are not. Then the problem is going to be to hold on to what you’ve got because it’s not going to be a very pleasant world.

Right now, there are about 441 trillion dollars of interest rate derivatives sitting out there.  If interest rates stay about where they are right now and they don’t go much higher, we will be fine.  But if they start going much higher, all bets will be off and we could see financial carnage on a scale that we have never seen before.

And at the moment the big banks have got to behave themselves because the government is investigating allegations that they have been cheating pension funds and other investors out of millions of dollars by manipulating the trading of interest rate derivatives.  The following is from an article that the Telegraph posted on Friday…

The Commodity Futures Trading Commission (CFTC) is probing 15 banks over allegations that they instructed brokers to carry out trades that would move ISDAfix, the leading benchmark rate for interest rate swaps.

Pension funds and companies who invest in interest rate derivatives often deal with banks to insure against big movements in the ISDAfix rate or to speculate on changes to interest rate swaps

ISDAfix is published each morning after banks submit bids for swaps via Icap, the inter-dealer broker, in a number of currencies. The CFTC has been investigating suggestions that the banks deliberately moved the rate in order to profit on these deals.

Given the hundreds of trillions of dollars worth of interest rate derivatives trades that occur annually, even the slightest manipulation can have a substantial effect. The CFTC, which started to investigate ISDAfix after last summer’s Libor scandal has now been handed emails and phone call recordings that show the rate was deliberately moved, according to Bloomberg.

Essentially they got their hands caught in the cookie jar and so they have got to play it straight (at least for now).

Meanwhile, it looks like the Fed may not be able to keep long-term interest rates down for much longer.

The Federal Reserve has been using quantitative easing to try to keep long-term interest rates low, but now some officials over at the Fed are becoming extremely alarmed about how bloated the Fed balance sheet has become.  For example, the following was recently written by the head of the Dallas Fed, Richard Fisher

This later program is referred to as quantitative easing, or QE, by the public and as large-scale asset purchases, or LSAPs, internally at the Fed. As a result of LSAPs conducted over three stages of QE, the Fed’s System Open Market Account now holds $2 trillion of Treasury securities and $1.3 trillion of agency and mortgage-backed securities (MBS). Since last fall, when we initiated the third stage of QE, we have regularly been purchasing $45 billion a month of Treasuries and $40 billion a month in MBS, meanwhile reinvesting the proceeds from the paydowns of our mortgage-based investments. The result is that our balance sheet has ballooned to more than $3.5 trillion. That’s $3.5 trillion, or $11,300 for every man, woman and child residing in the United States.

Fisher has compared the current Fed balance sheet to a “Gordian Knot”, and he hopes that the Fed will be able to unwind this knot without creating “market havoc”…

FULL STORY

Image credit: http://theeconomiccollapseblog.com

It Is Happening Again: 18 Similarities Between The Last Financial Crisis And Today

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Source: http://theeconomiccollapseblog.com

By Michael Snyder

It Is Happening Again: 18 Similarities Between The Last Financial Crisis And Today

 

If our leaders could have recognized the signs ahead of time, do you think that they could have prevented the financial crisis of 2008?  That is a very timely question, because so many of the warning signs that we saw just before and during the last financial crisis are popping up again.  Many of the things that are happening right now in the stock market, the bond market, the real estate market and in the overall economic data are eerily similar to what we witnessed back in 2008 and 2009.  It is almost as if we are being forced to watch some kind of a perverse replay of previous events, only this time our economy and our financial system are much weaker than they were the last time around.

So will we be able to handle a financial crash as bad as we experienced back in 2008?  What if it is even worse this time?  Considering the fact that we have been through this kind of thing before, you would think that our leaders would be feverishly trying to keep it from happening again and the American people would be rapidly preparing to weather the coming storm.  Sadly, none of that is happening.  It is almost as if they cannot even see the disaster that is staring them right in the face.  But without a doubt, disaster is coming. The following are 18 similarities between the last financial crisis and today…

#1 According to the Bank of America Merrill Lynch equity strategy team, their big institutional clients are selling stock at a rate not seen “since 2008“.

#2 In 2008, stock prices had wildly diverged from where the economic fundamentals said that they should be.  Now it has happened again.

#3 In early 2008, the average price of a gallon of gasoline rose substantially.  It is starting to happen again.  And remember, whenever the average price of a gallon of gasoline in the U.S. has risen above $3.80 during the past three years, a stock market decline has always followed.

#4 New home prices just experienced their largest two month drop since Lehman Brothers collapsed.

#5 During the last financial crisis, the mortgage delinquency rate rose dramatically.  It is starting to happen again.

#6 Prior to the financial crisis of 2008, there was a spike in the number of adjustable rate mortgages.  It is happening again.

#7 Just before the last financial crisis, unemployment claims started skyrocketing.  Well, initial claims for unemployment benefits are rising again.  Once we hit the 400,000 level, we will officially be in the danger zone.

#8 Continuing claims for unemployment benefits just spiked to the highest level since early 2009.

#9 The yield on 10 year Treasuries is now up to 2.60 percent.  We also saw the yield on 10 year U.S. Treasuries rise significantly during the first half of 2008.

#10 According to Zero Hedge, “whenever the annual change in core capex, also known as Non-Defense Capital Goods excluding Aircraft shipments goes negative, the US has traditionally entered a recession”.  Guess what?  It is rapidly heading toward negative territory again.

#11 Average hourly compensation in the United States experienced its largest drop since 2009 during the first quarter of 2013.

#12 In the month of June, spending at restaurants fell by the most that we have seen since February 2008.

#13 Just before the last financial crisis, corporate earnings were very disappointing.  Now it is happening again.

#14 Margin debt spiked just before the dot.com bubble burst, it spiked just before the financial crash of 2008, and now it is spiking again.

#15 During 2008, the price of gold fell substantially.  Now it is happening again.

#16 Global business confidence is now the lowest that it has been since the last recession.

#17 Back in 2008, the U.S. national debt was rapidly rising to unsustainable levels.  We are in much, much worse shape today.

#18 Prior to the last financial crisis, Federal Reserve Chairman Ben Bernanke assured the American people that home prices would not decline and that there would not be a recession.  We all know what happened.  Now he is once again promising that everything is going to be just fine.

Are the American people going to fall for it again?

FULL STORY

Image credit: http://theeconomiccollapseblog.com

Debt Levels Are Skyrocketing To Extremely Dangerous Levels – How Long Can This Possibly Keep Going?

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Source: http://theeconomiccollapseblog.com

By Michael Snyder

Debt Levels Are Skyrocketing To Extremely Dangerous Levels – How Long Can This Possibly Keep Going?

 

 

Never before has the world faced such a serious debt crisis.  Yes, in the past there have certainly been nations that have gotten into trouble with debt, but we have never had a situation where virtually all of the major powers around the globe were all drowning in debt at the same time.  And what makes this crisis even more unprecedented is that everyone on the planet is using fiat currency that is backed up by nothing.  It is all just a bunch of paper and data points that people have faith in.  Right now, confidence in this system is being shaken as debt levels skyrocket to extremely dangerous levels.  Many are openly wondering how much longer this can possibly go on.

Just consider what is going on over in Europe right now.  Even the countries that have supposedly “tried austerity” continue to rack up debt at a mind blowing pace.  New numbers that have just been released show that government debt to GDP ratios for some of the most financially troubled nations in Europe are absolutely soaring

  • Euroarea: 92.2%, up from 88.2% a year ago
  • Greece: 160.5%, up from 136.5% a year ago
  • Italy: 130.3%; up from 123.8% a year ago
  • Portugal: 127.2%, up from 112.3% a year ago
  • Ireland: 125.1%, up from 106.8% a year ago
  • Spain: 88.2%, up from 73.0% a year ago
  • Netherlands: 72.0%, up from 66.7% a year ago

Meanwhile, the debt to GDP ratio in Japan is now well past the 200% mark and continues to march upward with no apparent end in sight.  The following is from a recent MSN article

In Japan, the good news is that the nation’s budget for the fiscal year, which started on April 1, will see the government raise a higher percentage of spending from tax revenue than at any other time in the past four years. The bad news is that the government will still cover 46.3% of its spending from borrowing. The Organisation for Economic Cooperation and Development estimates that Japan’s budget deficit for 2013 amounted to 10.3% of gross domestic product.

In China, the big problem is the absolutely stunning growth of private domestic debt.  According to a recent World Bank report, the total amount of credit in China has risen from 9 trillion dollars in 2008 to 23 trillion dollars today.

That increase is roughly equivalent to the entire U.S. commercial banking system.

According to financial journalist Ambrose Evans-Pritchard, the ratio of private domestic debt to GDP in China is now wildly out of control…

The 160pc debt ratio for China is based on a conservative measure of credit. Fitch says it is 200pc if you count all offshore vehicles, trusts, letters of credit etc.

This morning China Securities Journal – an arm of the regulators – said it may really be 221pc.

Well, what about the United States?

As I noted the other day, our ratio of federal government debt to GDP has shot up like a rocket since 2008…

FULL STORY

How Does America’s Middle Class Rank Globally? #27

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Source: http://libertyblitzkrieg.com

By Michael Krieger

How Does America’s Middle Class Rank Globally? #27

 

We are number 1 right? USA! USA! No one can beat our wealth creation machine, our economic dynamism, our level playing field and our bastions of higher education. We have a middle class that is the envy of the world, right?

Well, like so much of the “American dream” we have been force fed for a generation or more, this perception is not based in reality whatsoever. Sure it may have been the case for a couple of decades immediately after World War 2. Before the military-industrial-Wall Street complex fully took over the political process, but it certainly isn’t true any longer. Myths die hard and this one is particularly pernicious because it prevents people from changing things. As James Baldwin said:

Not everything that is faced can be changed, but nothing can be changed until it is faced.

From the Huffington Post:

America is the richest country on Earth. We have the most millionaires, the most billionaires and our wealthiest citizens have garnered more of the planet’s riches than any other group in the world. We even have hedge fund managers who make in one hour as much as the average family makes in 21 years!

This opulence is supposed to trickle down to the rest of us, improving the lives of everyday Americans. At least that’s what free-market cheerleaders repeatedly promise us.

Unfortunately, it’s a lie, one of the biggest ever perpetrated on the American people.

Our middle class is falling further and further behind in comparison to the rest of the world. We keep hearing that America is number one. Well, when it comes to middle-class wealth, we’re number 27.

The most telling comparative measurement is median wealth (per adult). It describes the amount of wealth accumulated by the person precisely in the middle of the wealth distribution — fifty percent of the adult population has more wealth, while fifty percent has less. You can’t get more middle than that.

* Side note: May want to cross Cyprus off the above list…

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