Thursday, January 8, 2009
GOD HELP US!! US DEBT is really 53 TRILLION! Can you say DOLLAR COLLAPSE then MASSIVE HYPERINFLATION COMING?
.. this includes contingent liabilities such as social security, government pensions and Medicare. The economy is 2-3 times more debt-dependent - with at least $29 Trillion DEBT EXCESS - - compared to the 1950-1970s! $175,154 per man, woman and child - or $700,616 per family of 4!
80% ($42 trillion) of today's debt was created since 1990.
"Foreign interests have more control over the US economy than Americans, leaving the country in a state that is financially imprudent. More and more of our debt is held by foreign countries – some of which are our allies and some are not. The huge holdings of American government debt by countries such as China and Saudi Arabia could leave a powerful financial weapon in the hands of countries that may be hostile to US corporate and diplomatic interests.” David Walker, the US comptroller general. 23 July 2007
"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. The abandonment of the gold standard made it possible for welfare statists to use the banking system as a means to an unlimited expansion of credit (debt creation)" - Alan Greenspan (#8), 1966
Rate of Personal Saving Plunges 114% - a record low in world history - $1.1 trillion missing
If families have less inflation-adjusted income, despite more mothers working, then family personal savings must suffer as a consequence - unless, of course, families reduce their consumption. But, families increased consumption spending and, to cover this, they reduced savings to historic lows and increased household debt to historic highs. Dangerous Trend !!!
Governments will often try to disguise the true rate of inflation through a variety of techniques. These can include the following:
* Outright lying in official statistics such as money supply, inflation or reserves.
* Suppression of publication of money supply statistics, or inflation indices.
* Price and wage controls.
* Forced savings schemes, designed to suck up excess liquidity. These savings schemes may be described as pensions schemes, emergency funds, war funds, or something similar.
* Adjusting the components of the Consumer price index, to remove those items whose prices are rising the fastest.
None of these actions address the root causes of inflation, and in fact, if discovered, tend to further undermine trust in the currency" ( Jim Sinclair)