Cooked Goose Anyone? Some More Perspective to Consider


This week we got some more numbers from the folks at US fantasy land on the economy.  Productivity reports, labor reports, etc.  The stock market pretends all is well and as I had predicted early the Dow is edging toward 10,650 level I expect will occur before the big crash.  What really frosts my ..well er.. you know snowballs is the crap they are putting out and the fact we want to believe what in fact we all know is pure fiction.  So, to try to keep things honest and with the help of our friends over at http://theeconomiccollapseblog.com/ I thought I would put a few things out for your consider and demonstrate those thoughts graphical.  You know, a picture is worth a 1000 words…yadda yadda.

First is the real dilemma the banksters have put us in.  That is the Federal government’s deficit spending is out of control and yet if the government pulls back that deficit spending we could crash headlong into a deflationary depression as has never been seen before on the planet.  To wit, my previous reference to the car is already off the cliff and changing drivers would do just exactly what?  Take a look:

In a single year (2009) our deficit has more than tripled and for the first time ever the deficit has exceeded net operating costs.  In any financial analysis of any business and government is big business, the accountant would be saying shut it down, you are in a non recoverable position! To put it in another perspective, the world is worried because Greece’s deficits are nearly 20% of the GDP of Greece.  Folks, the US cumulative deficit is nearing 87% of our GDP.

To illustrate even further how far we have gone off the cliff, here is a chart that the blue line represents revenues taken in by the government and the red line represents the expenditures.  Of particular note here is that conventional wisdom has always been that deficit spending is not necessarily a bad thing and you know “one good year or two can wipe that slate clean”.  That statement might have held water until 2009 but, well you be the judge.

To have allowed this situation to get to this point is not just incompetence, it is by any definition criminal negligence. The banksters and the CONgress should be in court right now facing criminal charges.  That is no radical statement by the way, it is fact.  If any CEO or CFO of any other company would allow this to occur, I assure you the stockholders would be seeking criminal indictments and the FBI would be conducting RICO Act investigations.  No Joke!

The next chart shows how this will impact our future.  The shaded areas represent recessions and D1.  Also I want you to note the impact of expenditures of WW1 and WW2 as compared to today.  We truly are beyond the point of no return. the impacts of these actions is unavoidable and world-wide and yet MSM is totally silent.  It is down right scary and resembles a Twilight Zone episode.  Take a look:

We have heard congressmen railing about the future costs of health care and social security.  In fact, when President Clinton worked to balance the budget, he cited the need to generate federal SURPLUSES to finance the oncoming demands of the baby boomers entering the social security roles and the associated health care costs.  He was right in that assessment and although he can not take full credit he had set this country on a course to accomplish that goal.  The facts however, are that the interest on the debt for healthcare and social security are flat going out into the future.  The national debt and deficit defense spending however is quite another story. Take a look:

The sad reality of all of this is that there is such a negative impact on the very elements that could get us out of this mess.  That is the combined income of the country and the export of goods and services.  Thanks to the PTB, the only thing they have exported is that capability.  All in the name of near term profits.  The only thing that could save our butts is already gone.  Jobs and manufacturing capabilities.  Gone to India, China, Malaysia, and else where.  The next two charts, which are Official BTW, for your consideration.  The first in National Income projections and the second is export projections.

and finally exports:

Folks, I do not know what more I can say about this.  Never in our history have we even come close to this kind of situation.  Somehow we must wake up, all of us, and retake control of the process.  I am not even sure if we did that tomorrow, we would make it and save our country, but I want to believe it could be done.  The clock is making its last second tick to midnight and still we are asleep.  What more can I say? My special thanks once again to the folks over at The Economic Collapse Blog for all their great work.

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redhawk500

International business consultant, author, blogger, and student of life. After 35 years in business, trying to wake the world to a new reality. One of prosperity, abundance, and most importantly equal opportunity. it's time to redistribute wealth and power.

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