Faust
12-13-06, 20:06
How Much Time Is Left?
by Dennis Wheeler
This is the first time I am making any rough prediction as to how much time is left before a financial calamity occurs that could bring down the U.S. government and spark severe civil unrest in the country. This is just a rough estimate and it is just a speculation. Things may change as we move forward, but I doubt it.
It took 27 months for Washington to wrack up its last $1 trillion in debt. That is an average of $37 billion in new debt per month over the past 27 months. But during the past 12 months, the debt has grown by $596 billion. And that is an average of just shy of $50 billion per month.
If debt keeps being added at that pace, then it will take 20 more months to run up another trillion in debt. But the situation keeps deteriorating and over the past three months the rate has been down to 18 months.. So I will predict that Washington will run up another one trillion dollars in debt in the next 17 months. That will take us to June 2005.
I don't know the future, of course, but let's suppose that one trillion dollars in new debt is added over 17 months, then 11 months, then six months, then three months, then chaos. That would give the present system about 38 more months. So we're looking at March 2007 for a financial calamity unless something takes place to stop it.
A Nation of Slaves
I want you to be prepared for what's coming. The dollar is dropping hard and gold is rising systematically. The government of the United States has embarked on a hyperinflation of its currency to stave off economic collapse and the financial indicators are responding accordingly.
Now there is one indicator that is not responding properly - interest rates are not rising yet to any substantial degree. Here's why: China, Japan, and other countries, to a lesser degree, are buying U.S. debt at a massive rate, consciously holding down U.S. interest rates so that our economy won't collapse and the American consumer can and will continue to buy their manufactured goods.
The implication of this is clear: the economic well-being of the United States exists at the pleasure of China, Japan, and others. In essence, we are their slaves and vassals and they are using us to enrich themselves.
This is a far different picture than Americans have of themselves, especially the neocon vision of total U.S. global domination. But this is much closer to the truth than anything the government or Fox News will tell you.
This period of exceedingly low interest rates cannot last. They must rise at some point and with so much debt now to be serviced, it will become impossible. The government in Washington will be completely bankrupt and civil strife like not seen here since the Civil War will ensue.
The United States is not using this aberrational period of lower interest rates to get its financial house in order. No, it is using the time to wrack up even more debt, in greater amounts than ever before in the history of the world. No wonder the U.S. dollar fell more than 20% against even the Canadian dollar last year.
The euro is at an all-time high above $1.25. There are no breaks on this runaway train.
I hope you'll buy some gold and silver for your own protection. You're going to need it. And I hope you'll keep this paper handy as a reference guide. I'll keep updating the story for you as we move forward.
The thing to keep your eye on is how long it takes Washington to run up its next trillion dollars of debt.
Let me end with two quotes by Republican senators, made in December 2003, that show there is beginning to be some cognizance of the problem in Washington.
Senator Chuck Hagel (R:NE): "I gave my first speech on the Senate floor in February 1997 in support of the balanced-budget amendment. Republicans used to believe in balanced budgets. Republicans used to believe in fiscal responsibility, limited international entanglements, and limited government. We have lost our way. We have come loose from our moorings. The Medicare reform bill is a good example of our lack of direction, purpose, and responsibility. If we don't get some control over this out-of-control spending and policy-for-the-moment decision-making, we will put America on a course that we may not be able to recover from."
And Senator John McCain (R:AZ): "Any economist will say that you cannot have this level of debt and increasing deficits without eventually it affecting interest rates and inflation. Those are the greatest enemies of middle-income Americans and retired Americans."
McCain went on to say: "Congress is now spending money like a drunken sailor and I've never known a sailor, drunk or sober, with the imagination that this Congress has."
http://senac.com/forums/14700/bin/29.html
by Dennis Wheeler
This is the first time I am making any rough prediction as to how much time is left before a financial calamity occurs that could bring down the U.S. government and spark severe civil unrest in the country. This is just a rough estimate and it is just a speculation. Things may change as we move forward, but I doubt it.
It took 27 months for Washington to wrack up its last $1 trillion in debt. That is an average of $37 billion in new debt per month over the past 27 months. But during the past 12 months, the debt has grown by $596 billion. And that is an average of just shy of $50 billion per month.
If debt keeps being added at that pace, then it will take 20 more months to run up another trillion in debt. But the situation keeps deteriorating and over the past three months the rate has been down to 18 months.. So I will predict that Washington will run up another one trillion dollars in debt in the next 17 months. That will take us to June 2005.
I don't know the future, of course, but let's suppose that one trillion dollars in new debt is added over 17 months, then 11 months, then six months, then three months, then chaos. That would give the present system about 38 more months. So we're looking at March 2007 for a financial calamity unless something takes place to stop it.
A Nation of Slaves
I want you to be prepared for what's coming. The dollar is dropping hard and gold is rising systematically. The government of the United States has embarked on a hyperinflation of its currency to stave off economic collapse and the financial indicators are responding accordingly.
Now there is one indicator that is not responding properly - interest rates are not rising yet to any substantial degree. Here's why: China, Japan, and other countries, to a lesser degree, are buying U.S. debt at a massive rate, consciously holding down U.S. interest rates so that our economy won't collapse and the American consumer can and will continue to buy their manufactured goods.
The implication of this is clear: the economic well-being of the United States exists at the pleasure of China, Japan, and others. In essence, we are their slaves and vassals and they are using us to enrich themselves.
This is a far different picture than Americans have of themselves, especially the neocon vision of total U.S. global domination. But this is much closer to the truth than anything the government or Fox News will tell you.
This period of exceedingly low interest rates cannot last. They must rise at some point and with so much debt now to be serviced, it will become impossible. The government in Washington will be completely bankrupt and civil strife like not seen here since the Civil War will ensue.
The United States is not using this aberrational period of lower interest rates to get its financial house in order. No, it is using the time to wrack up even more debt, in greater amounts than ever before in the history of the world. No wonder the U.S. dollar fell more than 20% against even the Canadian dollar last year.
The euro is at an all-time high above $1.25. There are no breaks on this runaway train.
I hope you'll buy some gold and silver for your own protection. You're going to need it. And I hope you'll keep this paper handy as a reference guide. I'll keep updating the story for you as we move forward.
The thing to keep your eye on is how long it takes Washington to run up its next trillion dollars of debt.
Let me end with two quotes by Republican senators, made in December 2003, that show there is beginning to be some cognizance of the problem in Washington.
Senator Chuck Hagel (R:NE): "I gave my first speech on the Senate floor in February 1997 in support of the balanced-budget amendment. Republicans used to believe in balanced budgets. Republicans used to believe in fiscal responsibility, limited international entanglements, and limited government. We have lost our way. We have come loose from our moorings. The Medicare reform bill is a good example of our lack of direction, purpose, and responsibility. If we don't get some control over this out-of-control spending and policy-for-the-moment decision-making, we will put America on a course that we may not be able to recover from."
And Senator John McCain (R:AZ): "Any economist will say that you cannot have this level of debt and increasing deficits without eventually it affecting interest rates and inflation. Those are the greatest enemies of middle-income Americans and retired Americans."
McCain went on to say: "Congress is now spending money like a drunken sailor and I've never known a sailor, drunk or sober, with the imagination that this Congress has."
http://senac.com/forums/14700/bin/29.html