Financial Collapse 2020-2035

Here is some more information to help you to better see that the "most predictable economic crisis we've had" is headed our way: it is obvious to those that care to look. Here is some more good new about our economic situation from the Congressional Budget Office, CBO. It paints a very bleak picture where America is headed towards a Greek-like crisis between 2020-2035.

As negotiators look to gimmicks and changing assumptions to reach a deal on raising the debt ceiling, a new report by congressional budgeters out Wednesday is offering a grim outlook and ugly alternatives for dealing with increasing debt. The report by the Congressional Budget Office says that the debt will eat up the government’s spending ability, and offers two scenarios -- both potential trajectories -- that they say by 2035 will push the debt either to most of the annual gross domestic product or to nearly twice the economic power of the U.S. Already, the CBO says, the debt has spiraled out of control in just three years. 'At the end of 2008, that debt equaled 40 percent of the nation's annual economic output (a little above the 40-year average of 37 percent). Since then, the figure has shot upward: By the end of this year, the Congressional Budget Office (CBO) projects, federal debt will reach roughly 70 percent of gross domestic product (GDP) -- the highest percentage since shortly after World War II,' reads the report.

This increase in debt is staggering and can't be maintained. The August 2 deadline to raise the nation's debt ceiling is fast approaching and it looks like some sort of a deal has been reached between republicans and democrats on raising the debt limit in exchange for spending cuts. But these are very unlikely to be real spending cuts. They will probably be like the phony cuts to this years budget that started out as 100 billion and turned into 60 billions that ended up being a couple of million dollars. If real cuts can't be made at the present, then how will it be any easier or possible to make them at a latter date when it will be a more difficult proposition?

The fact is that America has reached the point that other countries of past and present have reached in this stage of their economic collapse that results from deficit spending-- made possible by central banks-- to fund an over bloated welfare state. The leaders knew/know that they must cut spending but that this will lead to social unrest and lost of social cohesion--check out Greece-- and that such cuts are politically impossible to make-- look at recent attacks on the proposed cuts to medicare. So the leaders create more debt in the attempt to delay the day of reckoning to buy time to come up with a better solution to the economic problems. This "better solution" never materializes and economic collapse is always the end result. This time the collapse is not an individual nation or region of the world but the entire globe. When the nations of the world find themselves in this state of collapse, they will be forced to put aside political and cultural differences while they come together for a short time as the result of the interconnectedness of the economies of the world to form international alliances, agreements and governing bodies as a means to salvage the situation. Look at the relationship between Germany and Greece. Germany is bailing out Greece against the will of its people again because they failed to live up to its austerity measures. Germany is doing this because of the risk of the financial contagion--German banks are invested in Greek debt-- affecting Germany. It is only a matter of time before Greece and then the EU collapses to be followed by America around 2020-2035.

What can you do to prepare yourself for this economic crisis so that you can thrive? Live life but prepare yourself mentally for a very bad economy, know basic survival psychology, stay out of debt, get out of debt, increase your line of available credit, have a couple months of extra food, own some precious metals, invest in commodities and assets with intrinsic value, read the Bible, and know that agriculture is going to be the next big thing according to a prominent investor. Or do what the majority of people throughout history do in situations like these which is to be unawares which leads them falling on their face and being raped. sometimes literally. "In hyperinflation[ or economic collapse], a kilo of potatoes was worth, to some, more than the family silver; a side of pork more than the grand piano. A prostitute in the family was better than an infant corpse; theft was preferable to starvation; warmth was finer than honor, clothing more essential than democracy, food more need than freedom." Quoted form Adam Fergusson's book "When Money Dies". Inflation and economic depression is always the end result when central banks control a nations money supply. To see this clearly read "The Creature From Jekyll Island".

Defense Secretary Gates Consults RTP&GG, rips NATO Allies

Secretary of Defense Gates, who served in that position in the second half of the Bush Administration as well as the 1st half of the Obama Administration, consulted RTP&GG, and decided his farewell speech would be a good time to absolutely hammer NATO.  I've got nothing to add to it.  Just read the Washington Post article.  A couple of killer quotes:

“The blunt reality is that there will be dwindling appetite and patience in the U.S. Congress, and in the American body politic writ large, to expend increasingly precious funds on behalf of nations that are apparently unwilling to devote the necessary resources ... to be serious and capable partners in their own defense,” he said in an address to a think tank in Brussels.

and:

In Libya, Gates said, “the mightiest military alliance in history is only 11 weeks into an operation against a poorly armed regime in a sparsely populated country, yet many allies are beginning to run short of munitions, requiring the U.S., once more, to make up the difference.”

Pathetic.

To continue to rap on my theme: international organizations don't work when the populations of some countries think those of others in the organization aren't pulling their weight or are trying to rip them off. "Coaltions of the willing" will be the wave of the future in both military and economic arenas.  The international organizations themselves have zero power.  Power rests in the wills of the member countries/populations.

How About AGas Tax Hike To Force People To Drive Smaller Cars? And What Can Be Done To Save America?

According to GM's (I mean government motors) CEO a gas tax hike would be a good thing because it would nudge consumers into buying smaller cars like the wonderful Chevy Volt:

General Motors Co. CEO Dan Akerson wants the federal gas tax boosted as much as $1 a gallon to nudge consumers toward more fuel-efficient cars, and he's confident the government will soon shed its remaining 26 percent stake in the once-bankrupt automaker.

'I actually think the government will be out this year — within the next 12 months, hopefully within the next six months,' Akerson said in a two-hour interview with The Detroit News last week.

He is grateful for the government's rescue of GM — 'I have nothing but good things to say about them' — but Akerson said the time for that relationship to end is coming because it's wearing on GM.

'It's kind of like your in-laws: It was a nice long weekend. We didn't say a week,' Akerson said with a laugh.

And while he is eager to say goodbye to the government as a part owner of GM, Akerson would like to see it step up to the challenge of setting a higher gas tax, as part of a comprehensive energy policy.

A government-imposed tax hike, Akerson believes, will prompt more people to buy small cars and do more good for the environment than forcing automakers to comply with higher gas-mileage standards.

I for one would be willing to pay gas tax to solve a non existent crises. As you know the American government bailed out GM and fired their old CEO, I still remember the headlines that stated a President Fired a CEO of a private company that I thought I would never hear in America-- and replaced him with one more to President's Obama's liking. This might not be surprising, but the main point of the matter is that it shows how big business colludes with government to squash competition and uses the government to create regulations that benefits the business. It is similar to the financial sector that received a bailout by the government. The people in government that bailed out the banks were once CEO's of some of these very banks and are now in the position to regulate them. Is it surprising that they would use the government regulations to benefit their former business? This is the same situation that arose when the government first started regulating businesses--this started under Theodore Roosevelt-- like the railroads: those in charge of regulating the railroads once worked in the industry and when they worked for the government they used government regulations to give the big businesses an unfair advantage over their smaller competitors by creating regulations that smaller businesses could not comply with while at the same time staying in business. Today we have GE, GOOGLE, GM, and a host of other big business that collude with the government. Looking into this subject in more depth will make one look differently at big business and realize that America is not a capitalist system. A lot of the complaints against capitalism and big business by its opponents fail to see that it is this relationship between big business and government that is the real cause of the evils that they attribute to former.

Switching the subject to unfunded liabilities, Unfunded liabilities total about 107 trillion dollars according to this news article, I have heard between 60 to close to 200 trillion dollars. All the promises made by the government to take care of us can simply not be kept:

The latest Social Security Trustees Report tells us that the program will be insolvent by the year 2037. The combined unfunded liability of Social Security and Medicare has reached nearly $107 trillion in today's dollars. That is about seven times the size of the U.S. economy and 10 times the size of the national debt.

The question is will Americans react like the Greeks when the government teat runs dry or will they be able to endure hardship? According to recent developments in the debate to reform medicare, the answer is no. This is not any real news, but the author does pose an interesting question about what can be done to save America:

People ask what can be done to save our nation from decline. To ask that represents a misunderstanding of history and possibly a bit of arrogance. After all, how different are Americans from the Romans, Spaniards, French and English? These were once mighty nations standing at the top of civilization. At the height of these nations' prosperity, no one would have predicted that they'd become third-rate nations, especially England. If during Queen Victoria's Jubilee in 1887 had a person suggested that England would become a third-rate nation and later challenged on the high seas by a sixth-rate nation (Argentina), he would have been declared insane. One chief causal factor for the decline of these former great nations is what has been described as 'bread and circuses,' where government spends money for the shallow and immediate wants of the population, and civic virtue all but disappears. For the past half-century, our nation has been doing precisely what brought down other great nations. We may have now reached the point of no return. If so, do we deserve it?

A record number of Americans are dependent on the government for food stamps or "bread" and more Americans are concerned with "American Idol" and pop culture or "Circuses" than the important issues of the day. Reading history and comparing it to current events makes it hard to be optimistic about America's future. America is at a crossroads. Americans need to wake up and a cultural revolution needs to occur in order for our Country to be saved.

The Shaping Of The American Minds

It is no surprise nor is it a revelation that Hollywood and pop culture is populated with liberals, but what may be new is the fact that many T.V. shows and movies have subtle hidden messages. This message being a liberal one. Pop culture is how most people's world view is formed and shaped. Is it then no surprise that most people hold a liberal world view? Is it no surprise that America elected a President with an affinity for communism and social justice?

A communist message is present in the majority of movies and T.V. shows: from Star Trek's vision of a united-galaxy--one-world-- Utopia where there is no money (start at min one and ignore the retard guy) and no greed because people have an evolved sense of reason and where its main hero is a drunkard as is the case in the most recent film; from Star Wars promotion of a new-age religion; from movies like "The Hangover" where getting drunk to the point of unconsciousness is glorified; from Avatar's promotion of a new environmental religion; from T.V. shows where family values are ridiculed to the effect of eroding the nuclear family which is at the very foundation of a free society; from movies that hold up a charismatic leader that shows up and saves the world from disaster having the effect of preparing people to follow a similar leader; from Superman renouncing his America citizenship to become a "citizen of the world"; from Sesame Street's subtle liberal messages; from the Snookies and Britanny Spears. This list could go on and on.

Spreading ideals and shaping opinion through media is nothing new, but what is significant is the fact that it is so widespread and the fact that a liberal message is almost the only message. Is it no wonder that Americans hold and spout liberal and communist thought without them even being aware that it is such or being aware of where these ideals came from and what these ideals lead to? Our current President is the outcome of the ideals that pop culture spreads. To change the direction America is headed will require that pop culture spread the ideals of freedom and capitalism which will lead to a cultural revolution. The problem in the political arena is merely a symptom of this pop culture disease. Until our culture starts to reflect the ideas of freedom, prepare for the end of America and freedom as you know it. Or sit back and get the pop corn, and prop the legs up and watch a movie that will ease the pain of reality.