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Coming Soon: The Bill for the Massive U.S. Debt

Americans could be in for a rude awakening in coming months when they discover the true scope of the massive national debt racked up by the U.S. government.

In fact, the $1.6 trillion deficit expected for 2010, which is above 10% of gross domestic product (GDP), is only the beginning.

Since the current economic crisis began in late 2007, the U.S. Federal Reserve has tripled the size of its balance sheet, creating enormous amounts of new money by lending to hundreds of ailing banks and buying up more than $1 trillion of questionable asset-backed securities.

But that's only a small part of the story. Since the beginning of the crisis, the Fed has lent, spent, or guaranteed $11.6 trillion, including underwriting the entire system of mortgage finance in the United States, a system that currently shows a nearly $1 trillion loss.

And none of these figures include any of U.S. President Barack Obama's stimulus packages, which means the actual deficit next year might grow to $2 trillion – around 15% of GDP.

"What a good country or a good squirrel should be doing is stashing away nuts for the winter," William H. Gross, managing director of the giant bond-management firm Pimco Group, told The New York Times. "The United States is not only not saving nuts, it's eating the ones left over from the last winter."

The ramifications of this debt, which is bound to grow larger, will have a profound effect on investors – not the least of which is the imminent decline of the dollar.

The Spiraling National Debt

Right now, without counting future unfunded liabilities like Social Security or Medicare, our national debt tops $12 trillion. There are roughly 100 million American households. That's a national debt of roughly $120,000 per family.

In order to keep the government functioning, Congress just increased the federal debt ceiling to $12.5 trillion. And the party isn't over yet.

In an effort to keep mortgage interest rates low, the Fed pledged this month to buy yet another $500 billion of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) guaranteed mortgage securities.

But all that spending has a price. And the bill is about to come due.

The White House estimates that the government will have to borrow about $3.5 trillion more over the next three years. On top of that, the U.S. Treasury has to refinance, or roll over, a huge amount of short-term debt that was issued during the financial crisis. Treasury officials estimate that about 36% of the government's marketable debt – about $1.6 trillion will mature in the next 12 months.

That leaves the government in the same undesirable position as a lot of people who took out adjustable rate mortgages (ARMs) – forced to refinance short-term debt at higher interest rates for the long term.

"The government is on teaser rates," Robert Bixby, executive director of The Concord Coalition, a nonpartisan group that advocates lower deficits, told The Times. "We're taking out a huge mortgage right now, but we won't feel the pain until later."

The United States will spend almost $400 billion on interest to service our existing national debt. Currently, the United States takes in roughly $2 trillion in taxes, half of which come from income taxes. So the interest on our debt is already consuming 20% of all tax receipts, or 40% of all income taxes.

The White House estimates that the government's tab for servicing the debt will exceed $700 billion a year in 2019, even if annual budget deficits shrink drastically. Other forecasters say the figure could be much higher.

To amplify that figure, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan, according to The Times.

Then, there's the cost of the health insurance legislation and the potential cost required to reform Social Security and Medicare.

As noted last week in Money Morning's Martin Hutchinson , the healthcare bill alone will significantly increase federal healthcare spending by about $185 billion in 2019, according to the Congressional Budget Office (CBO).

It will also involve about a $100 billion increase in taxes by in 2019, the CBO said. And even though the bill relies on slashing Medicare growth for funding, "it is unclear whether such a reduction in the (Medicare) growth rate could be achieved."

And who knows how much the bill could really cost.

"No one (in Congress) can explain to me what's in the bill, and for Congress to vote on a bill that they don't understand whatsoever, you got to question…what kind of government we have," New York Mayor Michael Bloomberg told The Huffington Post.

Americans have now doubled down on debt. The government's debt has almost doubled in the last two years alone, as Americans' personal wealth sank along with housing and stock prices.

So where will the money come from? Total domestic savings in the United States are only around $600 billion annually. If we all put every penny of our savings into U.S. Treasury debt, we're still going to come up nearly $3 trillion short.

All this debt might not constitute a crisis if the United States were still financing its own debt. But the United States has been a net debtor to the world since 1985. And today, foreigners own 44% of all the country's short-term debt, or about $880 billion.

Since the expansion of the Fed's balance sheet got started in earnest last fall, the value of the dollar has fallen about 15%. The faster the money supply grows, the more likely the value of the dollar will continue to fall.

It seems highly unlikely the level of deficit spending can continue without sparking a run on the dollar as foreign governments begin to sell U.S. Treasury bonds. The only real question is at what point U.S. creditors will finally decide they can't finance any more of the nation's deficit spending because it's simply not worth the risk.

China has routinely called on the United States to rein in its soaring budget deficit and spare the dollar any further losses.

"We have lent a huge amount of money to the United States," Chinese Premier Wen Jiabao said earlier this year. "Of course we are concerned about the safety of our assets. To be honest, I am definitely a little bit worried. I request the United States to maintain its good credit, to honor its promises and to guarantee the safety of China's assets."

As an alternative to U.S. debt China has already begun the process of diversifying its reserve holdings away from the dollar. And China isn't alone, other emerging markets are going the same route.

"It's time to sell U.S. Treasuries," Kim Heeseok, the head of investments for South Korea's government pension service, recently told Bloomberg News,

Similarly, to protect their nest eggs, investors will have to be very good at managing their assets. Fortunately, there are several ways for investors to protect themselves

Goldman Sachs Group Inc.'s (NYSE: GS) London economic team recommends going long the "BRIC" markets of Brazil, Russia, India and China, while going short equity indexes of the G-7 nations, including the United States.

Investors could also turn to commodities, such as gold and silver, which stand to gain in value as the dollar weakens.

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  1. Van Collmer | December 30, 2009

    When I was young(I'm overe 80) the people of America worked to build a future for themselves and their kids in America. Today is it obvious to those of us that have lived the
    past and current history, that now we are no longer working for such a goal, but rather
    we now work(yes I'm still working) to pay the interest on the federal debt which was mostly
    generated by librals acting as "do gooder". Our childrens children will be working not for their
    future, but to pay the interest on the past wasted money on liberal programs( most of which have failed) and America will still have the debt to pay off.Where are the heads of the liberals who are burying our children and their children's children under this mountain of interest?
    I won't be here to help pay this interest but they leave something to the future working
    people of America.."Indentured servitude."

    • William | December 30, 2009

      The Republicans are just as bad at spending and borrowing as the 'liberals'. See war on terror, and its true cost. We need to throw all the career politicians out of Washington…be it Republicans or Democrats and get leaders in there that will follow and stand up for the Constitution.
      People WAKE UP before you lose it all.

      • Frank | January 1, 2010

        It was already too late 30 years ago.

      • nick heller | January 1, 2010

        how right you are. i have been a libertarian on financial matters doe 30 years

      • Ron | January 3, 2010

        Repubs have been bad but you have to be out of your mind if you think anything has ever been as bad for the US as this current government and the moron Obama.

    • bonbon | December 31, 2009

      VAN , I hope you read my response are a very wise man !..YOU WROTE THE TRUTH . Why are you not in congress , replace 'byrd'..we" out here in the great 'unwashed nation , are longing for representation , we"' are not blind and stupid , WE see it ALL !….the white house is a is the FOOLS that are killiing OUR BELOVED COUNTRY !..SO MANY HAVE DIED FOR THIS NATION OVER THE YEARS , and what do WE have now ? A community organizer OMG ..I FEAR WE" NEED A REVOLUTION ..TAX PAYER REVOLT !..TO TAKE THIS COUNTRY BACK !…The criminals and terrrorists are IN THE WHITE HOUSE AND CONGRESS ..I PRAISE YOU FOR YOUR WORDS ..REGARDS TO YOU .

    • JJ | January 1, 2010

      What an ignorant knucklehead!! Clinton left office with a large surplus… Bush Junior and his evil cabal did the "terrorize the people" thing, not only going to war on a series of manufactured LIES, but running up huge debt. Oh by the way, they also savaged our Bill of rights, and paved the way for the banksters such as Goldman Sachs and JP Morgan to absolutely plunder our citizenry… As frosting on the cake, they helped the transfer of most of our manufacturing away from our shores to overseas. They have placed our country in tremendous jeopardy. There is no way out except to default on our debt or to face hyperinflation… great choices!! Yes, Obama has continued the dance, so much for change… the lies continue. The government is in the control of the financial elites, and unless we have a constitutional revolution, we will become a third world nation. Liberals? Wake up, old boy!

      • DG | January 2, 2010

        Yes, on paper, Clinton left office with the tiniest sliver of a surplus. That was the presentation. Yet, the debt grew that year. How is that possible? Every year that I spend less than I make ( a surplus) my debt either decreases or my net worth increases. Answer: It was a misrepresentation, which is a Legalease for a lie. Clinton lie? Impossible! What is the definition of surplus?

      • Ron | January 3, 2010

        Clinton capitualated to Repub congress to attempt balancing the budget. Dems will never do it with out being forced. Clinton's Treasury Sec was a former head of Goldman's Sachs. Bush put Paulson in because Schumer would let him get through. The last Repub budget had a deficit of about 200 B and declining. Bama will have a 2Tril deficit easily next year. This government and president are the single most disgraceful, incompetent group to run this country. Anyone who votes for anyone who would keep Speaker Pelosi in power is an absolute foo.

    • mason | January 3, 2010

      liberals? it´s a one party system pal. the republican and the democrats talk one way but ultimately vote in concert. the US is Corprotocracy, not a Democracy.

      don´t waste your time with partisan politics. it´s a distraction propagated by the media.

      Clinton´s NAFTA and repeal of the Glass Steagall Act did as much damage to the US as Bush´s bogus war on terror. the Republicans under Bush have wasted a generations worth of economic security to make the likes of Brown Root, Carlysle Group and Haliburton significantly richer.

      jmho of course.

  2. FRANK NEIGEL | December 30, 2009


  3. Jules | December 30, 2009

    You are possibly missing 2 very important issues.
    1. Ultimately (don't know when) the US will devalue the dollar.
    2. Ultimately (don't know when) the US will sell some of it's gold just like other countries do.
    If one or both of these predictions come true, then the only option for investors, speculators and the general public is…BUY GOLD NOW!

  4. james | December 30, 2009


  5. redman | December 30, 2009

    i live in canada in a place called kirklandlake this is a gold minning town and there is lots of gold coming out of the ground but the town isn,t gaining anything from it but less and less the downtown looks like a ghost town just bad as hell but the gold mines are doing good to bad for the rest of us when gold is good we get nothing when gold is bad we get nothing whats the point the town is dieing for gold why

  6. Bob Rushton | December 30, 2009

    Nuttin' but a nation of Debt Peons. But ask yourself who is holding most of the debt and scooping the interest. — the Banksters of the world. Print Money in the back room for nothing (electronic blips) and send it out the front door taking back mortgage and other paper at interest. Thus sucking up the surplus value, (value added) created by the Labor of the globe. What a game!!

  7. Barry Davis | December 30, 2009

    Hi there:
    I've been around for a long time, it sickens me to see the US going the route it has been on now for likely 30 years, in earnest for the last 15 years.
    It would appear that the New World Order have a much stronger hold on the US and World economies. Does Obama talk any truth? The NWO pulls his strings so what comes out of his mouth is a smattering of truth. David Rockefeller wants the US dollar down to zero, and this is after making likely most of his money in the US. What makes these economy killers tick? It certainly is not for you and I as the Bilderbergers want the World population closer to 2 billion. So it is clear, we are just "useless eaters", as the Bilderbergers call us. Right at the top of our World, we have perhaps 1500 people that want us dead. Right at the top of the US, are perhaps 150 people that want us dead. We are nothing to the people on top, we are despensible, the sooner the better! The Bilderbergers and Illuminati see the US as their main obstruction to furthering their plans. The above 1500 I mention are all part of the Bilders and Illuminati in wanting one socialist state for all under the NWO! Some would say this is Hitler all over again and you are largely right. Ask yourself, why is it that the US has dozens of Concentration Camps ready to go? Why is the debt being allowed to go the route it is? Some have already said the US population needs to be at about 100 million. All this and there is plenty more is not running a country for a prosperous future. It is a future of less people and the ultimate prize….control! If you want to control someone, or a nation, get them into lots of debt!
    The US has always treated me to the very best. With great sadness, I see them going down this route of much higher taxes in the near future. The bills must be paid by someone! There was no need of any of this except if you are a NWO member. If you think I'm nuts, just go into Google and print in Concentration Camps, Coffins, Bilderbergers, Illuminati, New World Order, Coffin Warehousing, Coffin Rail Cars, Human Rail Cars, Underground Bases and so much more. We are witnessing the loss of our World as we know it. The only way to stop this insanity is for the general public to understand what is going on and say "NO"!
    To me, one of the most troubling aspects of the NWO plan is this. Their plans cannot be implemented without 20 years of total Mayhem and Chaos possibly taking on a 3rd World War. Now, please, tell me how any of us will benefit from such action? If the population does become 2 billion by using waring and tainted vaccines, the World then, is likely destroyed! They perhaps win the battle leaving nothing left.


  8. William F. Bronner | December 30, 2009

    I do not entirely agree with the 80 year old gentlemen. Yes, funding for all mandated legislation was poorly planned and irresponsible. However, both parties, the US Congress, and all Presidents allowed the looting of our National Treasure. Social Security. Social Security funds collected over 70 odd years, which when compounded would of provided an enormous amount of money for both retirees and allowed investment in education, health, infrastructure and eradicate poverty.

    The Social Security Trust Fund was criminally diverted to the General fund through the acts of BOTH parties, and all Presidents. They had a fiduciary to the funds beneficiaries to preserve and manage the Trust Fund. They did neither! The Fund was never allowed to grow and full fill its intended purpose. Lost on the American Public is this Social Plan had the enormous possibility for doing great benefit. Just as the GI bill did at the end of WWII , Korean Conflict and other wars. It is not through the fault of liberals alone that we are in this mess, but due to bad Congressional and Presidential leadership.

    2nd – Unnecessary misguided bad wars. Take Vietnam ( has anyone actually read the history of Vietnam? They have successfully repelled foreign invaders for thousand of years.)
    Reneging on our agreement, made in WWII, based on the Vietnamese willingness to fight the Japanese, would of given Vietnamese autonomy over their Country, thus ending French control.. Do you think Ho Chi Minh was happy about this? Forcing him to throw the French out.
    Or Iraq, what the hell are we doing in Iraq. We destabilized the Iraq government. Twice destroyed its infrastructure, murdered tens of thousands of Iraqis, and lost thousands of our own Now we cannot leave because we enabled an avoidable sectarian conflict, or a Civil War.. Remember what General Powell said , who in the beginning was against the War in Iraq, said, "you break , you fix it". Even, Bush Senior was against it. Unbelievably, in its ultimate wisdom the US Congress voted for the War. Phew Wee. Give them a F-.
    Yeah, there were some bad apples in Iraq, but you don't cut your throat to spite your face. Recall, we had a Civil War , at a cost of 500,000 lives lost, but the French and British had the common sense to stay out of the war.
    The Trillions we spent and are still spending fighting bad wars have and are contributing to an enormous national debt. We don’t have the money for Social Programs. Bad Wars with unintended consequences of a Bill we have yet to pay.
    Bad leadership Now, we are in Afghanistan with 60,000 and growing pairs of boots on ground. Is that necessary?. Why spend 1 Million Dollars a year on each pair of boots on the ground and at the same time put our forces in harms way. Where is the Northern Alliance or its survivor ? Where did it go. Afghans, the CIA and our Air and arms support cleaned Alcada and the Talibans clocks. Why aren't Afghans doing the heavy lifting, along with our support? It is doable, The proof, we did it before, And, it would be far cheaper and be viewed as acceptable alternative by their citizens and the world. We will never win the hearts and minds of the people as occupiers of their Country. How would you like having your Country occupied by a foreign army? The US is spending money they do not have.
    You can blame the whole problem on the Liberals spending ourselves into poverty. But I think the decisions we made above had a great influence on the size of the debt. We had such great potential to improve the lives of Americans and the ability to export good will, aid to the 3rd world needy, and share and promote peace world wide. We squandered the opportunity.
    As a Country we basically lack leadership, largely because we empower the incompetent US Congresses and Presidents.
    Unless we as Citizens take responsibility for our own governance and welfare, we will face a future as a debtor Nation, saddled with debt payments, that will cause decades long austerity. Change in direction will only occur from the Street not the Hill.
    Former USAF

    • Jerry | January 4, 2010

      Re: Wm. F. Bronner: you are a good man to know. I agree with everything that you wrote. I think that we need more women running the country to get out of the wars that we are in and too balance our U.S. checkbook. Men have been in control too long; it is not a liberal vs conservative issue, it is a man issue. Men control almost all of government, religion and business; what a fine mess all of those are. Men want to control womens bodies; how would men like it if women were to control mens bodies? Wouldn't like it very much. Religion to control all others. I don't buy religion and never did. Big business is interested only in big business. What is good for big business is not necessarily good for people.

      We just can't give up squeaking if we want things to change. We have to be bold and vocal.

  9. lawrence | December 31, 2009

    You say that trilions have been spent on foreign wars. Who gets the trillions…

  10. Prof. Simpleton | December 31, 2009

    The following excerpts from past Presidents and Congressmen should have been a good lesson and their warnings heeded. These people had the wisdom to foresee from the very distant past, what’s happening right now, at this very moment in time!


    1.) “This [Federal Reserve Act] establishes the most Gigantic Trust on Earth. When the President [Wilson] signs this bill, the Invisible Government of the Monetary Power will be legalized… the WORST Legislative Crime of the AGE is perpetrated by this Banking and Currency Bill. From now on Depressions will be 'scientifically' created.”

    “The Financial System has been turned over to the Federal Reserve Board. That Board administers the Finance System by authority of a Purely Profiteering Group. The system is PRIVATE, conducted for the Sole Purpose of obtaining the Greatest Profits from the use of other people’s money.” – Congressman Charles A. Lindbergh Sr.

    2.) “Most Americans have NO real understanding of the operation of the International Money Lenders. The Accounts of the Federal Reserve have never been Audited, It Operates OUTSIDE the Control of Congress and MANIPULATES the Credit of the United States.” – Senator Barry Goldwater

    3.) “This EVIL Institution has impoverished the people of the United States and has practically BANKRUPTED our Government. It has done this through the Corrupt Practices of the Moneyed VULTURES who CONTROL it. Some people think the Federal Reserve Banks are the United States Government’s institutions. They are NOT Government institutions. They are PRIVATE Credit Monopolies which Prey upon the people of the United States for the Benefit of THEMSELVES and their FOREIGN SWINDLERS.” – Congressman Louis T. Mc Fadden, Chairman of the Committee on Banking & Currency (12 years) June 10, 1932.

    4.) “A great industrial nation is controlled by its system of credit. Our system of credit is CONCENTRATED in the hands of A Few Men. We have come to be one the WORST RULED, one of the most COMPLETELY CONTROLLED and DOMINATED Governments in the WORLD – No longer a government of free opinion, No longer a government by conviction and vote of the majority, but a government by the opinion and DURESS of Small Groups of Dominant Men” – President Woodrow Wilson (whom you may recall signed into Law the Federal Reserve Act 1913, BUT subsequently realized the FOLLY of his action, and he wrote the above!)

    5.) President Andrew Jackson when he vetoed the Bill in 1836, which would have renewed the Charter of the predecessor to the Feds, known then as ‘The Bank of the United States’:

    “The bold efforts the present Bank has made to control the Government, the distress it has wantonly caused, are but Premonitions of the Fate of the American people should they be deluded into a perpetuation of this institution or the establishment of ‘another’ like it”.
    The President was so infuriated by the Bankers that he called them: “You are a Den of VIPERS. I intend to rout you out and by eternal God I will rout you out. If the people only understood the rank Injustice of our Money and Banking system, THERE WOULD BE A REVOLUTION BEFORE MORNING”!

    And may I add: “There shall be real BLOOD overflowing in the streets when the American people woke up one day and found out that their toilet tissue paper is worth much than the USD when the ‘Financial Armageddon’ strikes like a Tsunami”.

  11. Monty | January 1, 2010

    It seems to me that everyone knows the answer as to the how and why of the decline of American culture, integrity and sense of good will. It has happened rapidly ever since WWII and moves quicker as time moves on.

    A small country in the Middle East, who has no extradition treaty with us even though it has received hundreds of billions in foreign aid [that is returned to the US in the form of bribes for our congress] who has an agenda that is totally at odds to that of the American people seems to have a hell of lot more influence than 300 million of us. Until this is openly talked about without fear or intimidation we are heading for total collapse….socially, financially and ultimately….physically.

    Read the 'book', written in the late 1800's that Ed U. Cate has posted at his site: "The Great Red Dragon". Also, take a look at 'American'. Many, many of our forefathers knew the dangers of not keeping our guard up regarding these matters. They discussed things openly and there is a world of information our there that has been suppressed for years. It is now coming out rapidly because of sites like this one. The TRUTH will literally set us free…providing of course…..we get enough people to throw away their programed knowledge base and begin to learn all over again. The more schooling one has the more difficult it is for you to see the truth because the first thing the truth does is….it runs over your own toes! Your short term best interest is not served by seeking the 'truth'…..only your long term 'best interest' is served….especially if you have any posterity you wish to survive and avoid an 'Orwellian' future.

    The argument from the 'left and right', liberal or conservative is controlled by the same people who drive 'their' agenda to a point away from the 'extremes'. They control both sides of the debate and, both political parties. Do your homework….it isn't hard to find this out with the internet now available….it is 'their' greatest enemy and they have plans to control it if they figure they need to. The law was just written, promoted by Senator Rockefeller and signed into law last June. Yes, they own Obama outright…he is surrounded by a bevvy them.

    Trust me….the enemy has been inside the gate for years….they now control all levers of gov't except the military…..if they get control of that you can 'kiss your ass goodbye'!

  12. Tom | January 1, 2010

    Everybody is right to some degree. The best advice I've seen here is for everyone to realize that whether you vote democrat or republican you are voting for the same power elite that is succeeding in bringing about the New World Order. Our only hope is to take back our gov't. I would not waste much time worrying about the dollar being destroyed because it is already done. The fact that you can still trade a fake paper dollar for anything of value is a miracle and speaks to how strong our economy once was. It could only have been destroyed on purpose. The collapse of the dollar and default of the debt is a mathematical certainty. I wish for it to happen swiftly because it may bring about the end of the federal reserve and put the ultimate power of printing money back in the hands of the sovereign people of this great nation; the way our constitution clearly spelled out.
    Our constitution has been hijacked by a bunch of career politicians that do not care about the people, only about their own self serving, greedy, evil goals. They must be voted out. If you vote for any incumbent, democrat, or republican, you are perpetuating their scam and you are part of the problem. WAKE UP and stop depending on the very gov't that is destroying you. What made America great was freedom from taxation, personal accountability, hard work and keeping what you work for, deciding how YOU want to spend YOUR money and not having the gov't spend it for you on a bunch of crap you don't agree with,and having love in your heart toward your neighbor. Our freedom has been slowly eroded through a system of constant crisis and turning the sovereign people into lawbreakers. Our fellow citizens are rotting in jail for evasion of an illegal and oppressive income tax and smoking weed while the real criminals run our gov't, wall st., and steal our wealth through a fake money system. Every fiat currency system in the history of the world has eventually reached its true value, NOTHING. TAKE YOUR COUNTRY BACK!
    -No country in the history of the world has ever repaid its debt
    – We have the highest percentage of the populous in jail in any nation in history
    – The money is fake and the federal reserve is neither federal nor does it have any reserve
    Don't let them destroy your dream for a better future, there is something you can do. Don't participate in their scam. Don't vote for them, trade in all your fake money for gold or silver (remember buying gold and silver is not only a way to protect your wealth but historically a hedge against political corruption), get a gun(think of what things will look like when the entitlement checks stop because the gov't is insolvent), buy seeds (heirloom seeds not hybrids), smile everyday, love your family, live your life. REFUSE TO PARTICIPATE IN THE THEFT OF THE COUNTRY YOUR GRANDFATHERS FOUGHT AND DIED FOR! If you want change you can believe in, don't keep voting for establishment politicians. Your vote does not help if it is ignorant. Voting for party is ignorant. Demand the limited federal government your constitution gave you. I think it was Jefferson that said "A government that is big enough to give you everything you want is big enough to take away everything that you have." PLEASE MY FELLOW AMERICANS WAKE UP AND TAKE YOUR COUNTRY BACK. Somebody once said whether you think you can or you think you can't, you're right. Don't give up, demand the power of this great nation be returned to the people before it truly is too late!

  13. werner ullmann | January 1, 2010

    INteressting articles!

  14. Bud Wood | January 1, 2010

    I too have been around for >80 years. And I have also seen the changes which, not incidentally, were visible to me shortly after my getting out of the army in 1945. And, no, I didn't do anything about the moves toward collectivist fascism. History shows that such movements are unstoppable, continuing on until the end. Fighting such is a loosing battle.

    Better that a person tries to do his individual best and considers governmental actions to be close to natural disasters like earthquakes and hurricanes.

  15. Dave | January 1, 2010

    The above comments are possibly the most informed comments I have read in a long time.
    The Illuminati or whatever you may call them, a secretive group of elite in positions of power,
    have userped the Constitution of the U.S., played both sides of conflicts for their own gain, and if allowed to continue, will institute a one world currency and global governance.
    What this means is that conflict resolution will be performed by one country's military against another's insurrection. Simply put, global resources to resolve (or maintain?) conflicts in their interests.

  16. Don | January 1, 2010

    The cause of this predicament we all face is simple, as are the cures, even though we are not ready to cure ourselves.
    We got into this mess by way of one word, credit. We want all the luxuries now and are willing to add on more credit as our desire for the homes and cars and toys far exceed our income.
    We have our hands out all the time, for what the government might give. I can walk down the street, sit in a coffee shop, and here people talking, not about how productive to society they are, but about what government program they can take advantage of.
    We the people, all over the globe, have become a welfare state, by demand.
    The cure is simple, could turn the world economy around overnight, but we will suffer horribly for generations before we administer any real cure. There will be civil unrest, a catastrofic decline in all aspects of life, before we will make the hard choices to bring back a once prolific and proud humanity.
    The cure, and you will see why it will take generations before we do cure ourselves, as we are all feeders at the public trough of greed and self serving ignorants, is to turn everyway of life over onto its head.

    Stop military buildup. If every nation just stopped, leave the status quo, became transparent to all other nations to avoid cheeting, trillions would be saved every year.

    Stop the insane financial industry, the non productive biggest trough feeders, the mutual funds, the money managers, the mind boggling avenues of bleeding people of their money as they hope the newest thing will earn them a greater return. Stop things like currency trading. A stoppage of investment money flowing in would put the millions of white collar non productive financiers on the bread line, where they will seek real jobs, become productive members of society.

    Stop the drug trade. Of course it can be done. There are countries where drug trade is almost completly non exsistant. Its called Extreme Punishment. These worst of criminals will destroy your family in the most unconsionable way. They will take your pre teen daughter to sell for profit, they will hook your son until he becomes a monster and turns on you, for profit. They have no conscience, drug use has taken away any normal reasoning. So why would you choose to be soft on them. It is well recognized that 95% of all crime is drug related, how many more billions would that save anually. The spinoff would be that the legal industry, the police, the lawyers and judges, all the support staff, the prisons, etc. would become a tiny fraction of the industry it is today. That would put countless more trough feeders into productive society.

    Stop handing out programs for votes. I live in Canada. Our current government adopted a policy, making it mandatory to run a surplus budget. Absolutely no deficit. This had to be abandoned when we hit this era of what is called economic stimulation. But did it. If we put all nations on equal footing, no stimulus spending, ride out the tough times, always run a surplus, it will be done in the future when we realize the error of our ways and are ready to make these tough choices.

    Stop harvesting rainforests.

    Stop polluting.

    Start mandatory recycling programs. Of course we already have this. I mean on a massive, global scale. Our landfills are brimming, and our waste is sickening.

    Set up a global currency, everyone issued a card, or an embeded chip, or an eye scan, or whatever, starting from grade school. No cash, again the impact on crime would be enormous, further cutting costs.

    Make tobacco products illegal.

    Make the purchasing of alcohol a process where your financial situation, along with your family obligations, only allows you the purchase if it is not detrimental to you or anyone else.

    Give up some rights in order to help police get tough on crime. Should you really care about being searched if you have nothing to hide. Let the legal system break down a few doors of the inocent, in their search for the criminal.

    Tax the filthy rich to the extreme. If anyone already of billionaire status, bringing in more countless millions every year, has a problem with that, consider yourself inhuman.

    Promote tourism. Give the middle class the ability to enjoy what only the rich can now. For example, build more cruise ships and drop prices drastically, make it a globally affordable reward for the life of the conservative middle class majority.

    Take away the 1 % of the world owning 90 % of its wealth. Easily done when we are ready to make this happen.

    Stop the manufacturing and selling of the multitude of crap trinkets, so the idiots of the world cannot bring home another ornament at the cost of feeding their children.

    Shrink government. It is insane the number of beaurocrats out there feeding off of us.

    Put a cap on all income. At todays prices 10 million a year is enough for anyone. That would free up more hundreds of millions. Does Tiger Woods really need 100 million a year. Just tax him at 95 % anything over 10.

    Revolutionize the auto industry. It appears there are cars now running on water. Pour money into researching and developing this. Make manufacturers produce this technology.

    Really reform health care. Have you been inside an emergency room lately. Twelve hour wait times while all the staff is standing around socializing. Make them accountable. Anyone waiting is an emergency, never mind current proceedure and administer to that person now, there will be down times when you can catch upi on that paper work and finish stories to your co-workers. Stop the drug companys monopolizing the market for ridiculous billions in profit.

    All of this and more would turn our planet into a non debt garden of eden for everyone, almost overnight. But it will not happen, not yet anyway. We are still too soon out of the uncivilized beast we were just a few millenia ago. We are, plain and simply put, just too stupid for our own good right now.
    But there is hope, for our offspring and theirs, as we are of course capable of making decisions that better our life…..when we are ready.

    • OMG | January 3, 2010

      You my friend are one sick puppie.

    • boatman | January 4, 2010

      you are either a young women or a very young man,as i once was.

      all i can say is neither of us knew anything about human nature when we thought these thoughts.

      my excuse is i was spending other people's money…..a drug in itself.

      i sure hope u and obama and the rest will grow up before its too late,tho for most things,it already is.

  17. edward walsh | January 1, 2010

    People out there don't worry about your children or children's children concerning this massive US debt. This will last for a while and in the meantime just enjoy the ride. The result is all going to end up eventually with a run on the dollar and a revaluation. Just like the banks the US government will end up bankrupt. They are insolvent right now. All they have to do now is to sign the formal documents. They will merely start over again. It's happened to other countries and they've survived. It's the foreign bankers especially China and those domestic owners of US government debt that will be stuck with the bill. The sooner it happens the sooner the slate will be washed from all of this Obama crap and the previous Republican mismanagement. LOL Looking after your money.

  18. Mihail | January 1, 2010

    Abolish the Jewish own Federal Reserve PRIVATE SYSTEM,the congress has the right to print and regulate the money,the money should be only SILVER AND GOLD.

  19. Jimmy | January 1, 2010

    Monty, why do you say the Elite One World Groups don't own the military as they do with all other US control resources. DO YOU THINK THE MILITARY WOULD Fractionalize if forced to turn on its own people when the country disintegrates with armed violence. They split into warlord contractors for the powereze or warlord independents. Similar to Rome 100ad-300ad

    As for central banking, it matters not if an independent franchise as in the US or government
    owned as in Canada. The fiat debt issuance is simply a means to secure the controlling wealth
    of the masses and subject them to totalitarian rule. Future generation bondage to debt is
    meaningless as the fiat becomes worthless, it's loss and seizure of personal property that will lead to slavery and genocide, another dark ages I fear.

  20. pnew122 | January 1, 2010

    What's the point? Kids think they can jusy go to college, land that 11k a year job, and never get dirt under their prissy little fingernails. And the parents? That's the real joke. Adults are rude, zombies, who don't even slow down enough to enjoy life. They speed everywhere.

    And then they have to be part of the "herd" in life as to not be left out. Who cares if they have to sign on the doted line for things they can't pay for. Long as they look "good" for the neighbors and fellow workers, that's all that matters.

    People have their head up their nrear end. I used to think what can I do to help ANYONE. Now I say who cares. I'm not willing to help ANY phony American that is rude and just wants to show how many material things they can own in their lifetime.

    I say what's coming for MAericans is good enough for them. Let them suffer for all their stupidity. And illegal alliens? You've got to be kidding. Go back less than 100 years, and most likely were are ALL illegal. Except for the Indians that we stole all the land from.

    At least the current illegal are willing to work. If the lazy Americans were willing to do the job, they wouldn't waste their time coming here. Look at the obesity in this country. Notihing but a bunch of fat lazy pigs with no manners and owning things they can't pay for. This ought to be a real eye opener for many.

    Good luck people

    • pnew122 | January 1, 2010

      That should have read kids looking to land that 100k a year job not 11k.

  21. Stephan Larose | January 2, 2010

    Unfortunately, the author has left an important stone unturned, the most important stone of all. Where do these trillions of dollars we borrow come from? Who actually has 10 trillion more dollars of debt to provide the U.S.A.?

    The answer is nobody.

    But the Fed will legally counterfeit these funds (just print money basically) at zero cost, money the citizenry will be expected to pay back by creating real value through work and then pay the counterfeit debt back in full, with huge amounts of interest. If this odious debt is immorally and, according to the U.S. constitution, illegally imposed on the citizenry (and it eats up at least half of all spending), then clearly the solution is to Kill the Fed.

    Since the Fed prints money out of thin air, so can the government, it's the productive potential of the citizenry that backs the value of the money after all. The gold standard is just another scheme for the rich to centralize wealth (another major problem), but a return to debt-free constitutional money, under which the young U.S.A. flourished, would take a huge amount of financial pressure off.

    Inflation could then be totally controlled by mandating caps on dollars per person, and ending fractional reserve lending, the process whereby banks lend out 10-20 times more money than they actually have (more legalized counterfeiting). Either everyone should be allowed to lend money that doesn't exist, or nobody can. Only one of those ways controls inflation.

  22. Mark | January 2, 2010

    I think deep down most americans sense something is not right. They chose to ignor the massive debt the country is taking on and hope things will work out. They have been slowly drugged into accepting socialism.

    Many proclaim to value freedom, but do not touch my entitlment. The truth is that SS and Medicare are broke. It does not matter that many have paid in over their lifetime, it still is broke. There is no way to right this wrong.

    It is difficult to change the government and the mindset of a nation. But, this has to occur for there to be real change. Many today do not know which way to go, so they will take the path of least resistence, which will lead to the same failed conclusion.

    Taking back this country will mean quickly ending entitlments. It will mean completely re-structuring the tax system. It will mean having an Constitutional Convention in order to finally define General Welfare. It will mean abolishing the Federal Reserve.

    It will mean many loosing their status quo and families boarding together. It will mean churches, individuals and charities will have to step up. It will mean alot of people will not get the healthcare they want and need. There is no way to know just how this will look in real life as it happens, but getting back to the principles and fundamentals that forged this country will not be easy at all.

    I see armageddon before this will occur.

  23. kirk | January 2, 2010

    Profligacy has its ultimate price: less freedom, welfare/warfare state, lower standard of living. We have embraced profligacy and think there will be no price to pay. So be it. The hubris will be dispelled before too very long.

    The real concern: what will the phoenix be like?

  24. Gene Colburn | January 2, 2010

    Don Miller, Great article.

    We should all forward the link to our family members. I think like the first 80 year old post (Van Collmer), probably because I am not far behind him. However I am alone in my very large family that thinks this way. They have all been proselytized by our educators and media to buy into the welfare state. Little do they understand what we have fought and died for. Our schools are not teaching it. We are slowly becoming what we have defeated, and the socialists are winning. It is an easy sell, the idea that government will take care of you.

  25. Mary VanEsselstyn | January 2, 2010

    This situation has been coming on since the Reagan administration lowerd taxes and increased spending.They also removed controls from the financial system so it is easy for their elites to become crooks. The fault lies with the American people who trust the experts instead of common sense . The two party system has failed us and now it is too late to change.The Republicans have always done the opposite of what they promise and there are powers beyond the scene who decide our future.One thing we can do is learn from history is that nothing is permanent. Our Golden Age has come to an end and can never return.The demons have returned to deceieve the masses that we are entitled to all the good thing in life with no obligation.

  26. Dave | January 3, 2010

    Even if one believes that the US has the 8,100 tons of gold that the treasury claims(I certainly do not,it is probably in the same country that Bernie Madoff's money went to),the total value of it is only around 250 billion dollars,it wouldn't put a dent in our deficit.
    To put it simply,WE ARE DOOMED to experience the most uncomfortable depression and transformation that our nation has ever seen-with the possible exception of the turmoil from the civil war.
    In fact,it may very well bring about another civil war.

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