Saturday, September 29, 2018

Destroying America: It's Being Projected That The US National Debt Will Hit 99 Trillion Dollars By 2048

Temporary prosperity that's created by exploding levels of debt isn't actually prosperity at all. At this moment, the US government's 21.4 trillion dollars in debt and we've been adding an average of over 1 trillion dollars a year to that debt since 2009 and if we stay on the path that we're currently on, the trajectory of our debt will soon accelerate dramatically. In fact, as you'll see below, the Congressional Budget Office(CBO) is now projecting that the US national debt will reach 99 trillion dollars by 2048 if nothing changes. CBO projections always tend to be overly optimistic and so the reality will probably be much worse than that. Of course we'll never actually see the day when our national debt reaches 99 trillion dollars. Our government (and our entire society along with it) will collapse long before we ever get to that point. In our endless greed, we're literally destroying America and emergency action must be taken immediately if we're to survive.

Debt always makes things seem better in the short-term and it's always destructive in the long-term.

When we go into debt as a nation, we're literally stealing from the bright future that our children and our grandchildren were supposed to have. Through the first 11 months of this fiscal year, the official US budget deficit was $895,000,000,000, that means that we continue to steal over 100 million dollars from future generations of Americans every single hour of every single day.

And it's important to remember that not all additions to the national debt are included in the official budget deficit. 1 year ago, our national debt was 20.1 trillion dollars and that means that we've added 1.3 trillion dollars to the debt over the past 12 months.

This is complete and utter insanity and it must stop now.

Let me try to put this into perspective. Not too long ago, Venezuela was once one of the wealthiest countries in South America. These days, many Americans like to laugh at them, but we're on the exact same path that Venezuela has gone down. Eventually, the day comes when there isn't enough of someone else’s money to spend and suffocating levels of debt make the option of printing giant mountains of money too tempting to resist. At that point it's just a matter of time before the currency's destroyed and society devolves into chaos.

If current CBO projections area anywhere close to accurate, America’s date with destiny is rapidly approaching. The following comes from CBS News…

Under the new baseline incorporating recent changes in law, the national debt reaches $99 trillion in 2048 — equivalent to 152% of GDP.

And the CBO's also projecting that our yearly budget deficit will go from 1 trillion dollars today to 6 trillion dollars by 2048…

The federal budget deficit's expected to break through a trillion dollars in 2020 and never look back, reaching $2 trillion in 2032 and $6 trillion in 2048.

But like I said, we'll never actually get there, because our society will collapse by then.

So we only have a limited amount of time to save America and the clock's ticking.

At this point, the total amount of US government debt held by the public has already surpassed all household debt…

Debt held by the public will top $127,000 per household by the end of the year, according to JPMorgan. Personal debt per household will average about $126,000.

"This is an astonishing statistic," said David Kelly, chief global strategist at JPMorgan Funds. "Americans have a lot of debt. I always feel nervous signing a mortgage or a car loan. I think, can I afford all this debt? Then you realize the government's busy borrowing even more money on your behalf."

I wish that I could get more people to understand just how serious this is.
Do you know what the inflation rate will be in Venezuela this year?

The IMF's projecting that it'll be more than a 1,000,000%.

Chaos is everywhere, crime's out of control and people are starving and yet we refuse to learn from what has happened to them. We just keep spending and spending and we think that we've found the key to prosperity. But what we've really found is an accelerated path to economic hell.

And it isn’t just the US that's in deep trouble. The entire globe's been on a massive debt binge and it's only a matter of time before this gigantic debt bubble implodes. The following comes from an excellent piece by Larry Elliott…

The BIS says in its latest annual report that there's already material risks to financial stability. "In some respects, the risks mirror the unbalanced post-crisis recovery and its excessive reliance on monetary policy. Where financial vulnerabilities exist, they've been building up, in their usual gradual and persistent way. More generally, financial markets are overstretched … and we've seen a continuous rise in the global stock of debt, private plus public, in relation to GDP. This has extended a trend that goes back to well before the crisis and that has coincided with a long-term decline in interest rates."

Behind the dry official language, the message is clear. A recovery that's based around high and rising levels of debt is really no recovery at all. The world economy is, in all material respects, the same as it was in the run-up to the 2008 crisis. The necessary reforms to a flawed model haven't taken place, which is why the BIS warning shouldn't be ignored.

On a personal level, have you ever gotten into debt trouble?

At first, it was fun enjoying all of the new things that all of that debt bought, but the pain afterwards greatly outweighed the initial temporary prosperity.

The same principle is going to also apply on a global scale. The US government's now more than 20 trillion dollars in debt and the entire globe's now more than 250 trillion dollars in debt and a day of reckoning's coming. The following comes from David Stockman…

And it’s that $20 trillion, built up over the last 2 decades, that has basically distorted everything – falsified prices, repressed interest rates, caused an explosion of debt. 20 years ago there was $40 trillion of debt in the world today there's $250 trillion worth of debt in the world. The leverage of the world has gone from 1.3 times which is stable…to 3.3 times, that basically means the world's created a huge temporary prosperity by burying itself in debt.

It would take an unprecedented effort to turn things around, but right now hardly anyone seems concerned about bringing all of this debt under control.

So we continue to roll on toward our date with financial disaster and most people are completely oblivious to what's about to happen to us.

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