The End Of The World As We Know It

May 24, 2011

TEOTW Is Foolishness – TEOTWAWKI Will Happen Soon

by Russell D. Longcore

The world media was all abuzz last weekend with the prediction of an event known by evangelical Christians as “The Rapture.” Seems a radio preacher named Harold Camping, head of Family Radio International in Oakland, California (what a surprise…California) made a prediction that Jesus Christ would descend from Heaven on May 21, 2011 and call all Christians…dead or alive…up into the sky to meet him, then going from there on the speed-of-light express directly to Heaven. This prediction is based on various Scriptural references to this event, most notably I Thessalonians 4:17, although most biblical scholars agree that the date of the event is unknown. The term “Rapture” is not found in the Bible, but is a term attributed to 18th century American Puritan preacher Cotton Mather. It is based upon the Latin word “rapio,” which means “to take up.”

Can you blame the media, though? I mean, throw the dice on this one. What if the guy had been right? The video footage would have been the most remarkable footage in the history of mankind. Billions of humans disappearing into the sky in an instant? And all of those billions simply disappearing would have caused complete chaos on earth for those who remained earth-bound…”Left Behind,” like the series of Christian novels by Tim LaHaye outlined. News stories ad infinitum!

But Mr. Camping was mistaken once again. No, this is not his first time making this prediction. Still, it was very entertaining while it lasted.

Let’s drop back a little and discuss The End of the World.

In previous articles, I have written about “connotation words.” They are words with an emotional association in addition to the literal meaning of the word. In today’s world there are many words and phrases for which the literal meaning has been lost and only the emotional association remains. Examples? How about love, liberty, freedom, conservative, liberal, racist, faith, belief, Christ? All emotionally charged, yet their meaning is subject to private interpretation. Also consider the word “nigger.” There’s a word so charged with emotion that white people are deathly afraid of using it, replacing it with “n word.” Of course blacks call each other “nigger” all the time. Try watching a black comedian do a standup routine and play a drinking game while you watch. Do a shot every time the comic says “nigger.” You’ll be passed out before he finishes his routine.

But I digress…

The phrase “The End of the World” is just such a connotation phrase. No one ever seems to define it. The term “End of Days” is used interchangeably. But whatever they mean, they do not mean exactly what they say. The end of days would literally mean that time stood still, the earth stopped spinning on its axis and there were no more days. No one believes that will happen. Even if Harold Camping would have been right, the world would not have ended. Even the Mayan predictions of the “end of the world” do not include the destruction of the earth in 2012.

So what is TEOTWAWKI…the end of the world as we know it??

Here is my explanation, and no supernatural event need happen for the end of the world as we know it to occur. Hang with me, this might take awhile.

This really should be known as “The End Of The Global Super Bubble.” Issuing counterfeit money in conjunction with fractional reserve banking created a super bubble that has distorted nearly every human activity worldwide. And every time throughout history that a government has issued counterfeit money, it has created a bubble that eventually bursts. Seems human beings don’t learn from the past.

All of the nations of the earth have conspired together over the last 70-plus years to use counterfeit money and to inflate their currencies. They have chosen one particular nation’s money as the world reserve currency…the money they use to settle debts between nations. That nation chosen for reserve currency status is the United States of America. In fact, America kind of chose itself. After WWII, America was about the only economy not left in tatters. Great Britain, whose Pound Sterling was formerly the world reserve currency, had been pounded to dust. And at that time, the Dollar was backed by gold.

No nation’s currency is backed by gold now. ALL nations have printed fiat money. The world economy of late has been entirely debt-driven. Between the ever-growing worldwide public debt and the steady inflation of currencies fueled by that public debt, money is becoming more and more worthless. And in a few locations, the money actually completely failed. Remember Weimar Germany, Argentina and Zimbabwe? Their currencies became entirely worthless, and they experienced an “end of the world” in their nations.

When the Confederates States of America was founded in 1861, the Confederate money was entirely based on debt instruments, as the Confederacy sold bonds to raise capital. Most of the gold the South could lay their hands on went to Europe to buy war materiel. As the war progressed, the Confederacy issued more and more paper money. Confidence in the money waned and the dates of redemption on the bonds were extended further into the future. By the end of the war, Confederate money was already worthless. So this is the perfect example of secession that failed because the seceding states got money creation all wrong.

The USA’s dollar cannot continue much longer as world reserve currency. This simply means that of all the criminal nations of the earth that have stolen from the population of the earth, the USA’s level of theft has been the most egregious. Some nations have stolen from just their own people, but the USA has robbed everyone. Washington has borrowed trillions of dollars that it can never repay. Combined with a central bank that has printed additional trillions of dollars with no hard value behind it, the dollar’s value is rapidly eroding. So, in a world where many nations hold US Treasury bonds, those nations face the real possibility that they will either be repaid in dollars of drastically diminished purchasing power, or simply left holding Treasury bonds of no value whatever. That is what’s known as “monetizing the debt.”

There is talk worldwide of replacing the Dollar as reserve currency. China’s Yuan is the most likely candidate. China’s economy sits in the catbird seat, much like the US enjoyed after WWII. When the American Dollar collapses, China’s economy is so vibrant…and China’s government is so robust…that it will be able to absorb a complete American collapse in which Washington defaults on 100% of its debt. But most other nations will suffer greatly. Let’s turn our attention now to the suffering that WILL occur after the collapse of the US Dollar.

When Zimbabwe-like hyperinflation occurs, DC will revalue the currency. The Federal Government will have a redemption period, in which you can bring your old Federal Reserve notes to the bank to receive the new money. After that period, your old money will be entirely worthless. It may add a zero, or two zeroes, or six. Two zeroes would mean that your ten dollar bill will only be worth ten cents. To buy a $2.00 loaf of bread you would have to present $200.00 in new money notes. Hyperinflation burns through your cash like fire.

When the dollar collapses, the banks of the world will shut down their Automatic Teller Machines (ATMs). The banks and credit card companies will also shut down the point-of-purchase machines, otherwise known as credit card machines. That means that unless you have cash on hand, you will not be able to buy anything using a credit or debit card. That will also mean that those on government assistance who receive a pre-loaded debit card will not be able to buy food or anything else.

The banks will declare a “bank holiday.” Sounds fun, but nobody will be smiling. A bank holiday is the bank shutting down and not doing business with ANYONE. So, if you’re checking or savings account has money in it, you will be unable to make a withdrawal. The holiday will likely last indefinitely, or at least until the US Treasury prints up the new money to replace the old failed fiat money. Banks might allow customers access to their safe deposit boxes, but that will depend on the physical risk the bankers must assess.

Legal tender laws will be entirely ignored as people understand that the value of the money is evaporating. Merchants will see that currency values are so volatile that the dollar value at 8 am could be higher than it is at close of business. Why should a seller accept “money” that is decreasing in value? So, many sellers will demand either gold and silver, or some other form of value as payment.

The black market of goods and services will spring into life rapidly after the crash. If you have hard money, or if you can barter goods or services, you will have a chance of survival. If you do not have gold and silver coins…real money…you will not have much chance of survival. And naturally, if you have set aside survival stores, you have a chance of coming out the other side alive and in one piece.

Crime

Within hours of the collapse, looting of stores will begin. The looting will begin in inner cities, where the greatest concentration of poor, desperate people live. Then the looting will spread outward from there, eventually spreading to the suburbs and out into the countryside. But don’t think that the looters will only be from the inner cities. There are lots of your neighbors who will become looters too. And once stores have been looted, suppliers will be unwilling to re-supply since their trucks will be targets for highjacking. Envision a beer truck or a bread truck with heavily armed men “riding shotgun.” Just like the stagecoaches of the Old West.

Armed thugs will fill their gas tanks for free as an accomplice holds a gun on the gas station cashier. Gasoline companies will only roll their tanker trucks and refill the tanks with armed escorts. But that only happens if the gas station owner can pay for the gasoline. He’s going to be in the same no-cash boat as most other people.

Those people who are not armed with firearms and a mindset to use deadly force to protect themselves, their families and their property will be victims. It’s not an issue of whether, it will be an issue of when. Almost no one will avoid roaming looters. The question will be who is the greater threat to whom. Thugs only respect superior force. Be sure that your force is superior.

Communications Breakdown

The Internet may be interrupted by your government. Cell phones may stop working, because how are the cell companies going to get paid for service when the money’s no good? And don’t forget radio stations. Most radio stations operate from advertising revenue. The public broadcasting stations operate from donations and government subsidies. After the dollar collapses, and people are scrambling to survive, how many businesses will slash their advertising expenditures? How many people will stop making contributions to charities? So expect to see the majority of radio stations shut down very soon after the collapse. Television stations, cable TV and satellite TV will follow suit, as their revenue is primarily from advertising. We recommend that you become a HAM radio operator as well as CB radio operator.

Hunger and Death

The poor and aged will suffer first and most. Those without food or the means to buy it will die of starvation…a long painful death. Millions will die, and a great many of those millions of bodies will not be buried. Think about it. Who will have money to pay for a casket, burial or cremation? Rotting bodies left unburied always facilitate disease epidemics. Cholera, tuberculosis, HIV, staff infections, Hepatitis B and C, bubonic plague, typhoid and other epidemics regularly occur as the result of mass casualties. So if starvation doesn’t kill you, a plague might. Rapidly, there will be geographic areas you shouldn’t go into because of plague.

People who are weakened by lack of food are also susceptible to a disease epidemic. So it won’t just be the aged or poor that die like flies. People who are on maintenance medication who cannot pay for their medicine will die too.

Law Enforcement

Law Enforcement Officers (LEOs)will face challenges and dangers never before witnessed in the history of this nation. There are already far too few LEOs to effectively prevent crime. After the collapse, it will get worse. LEOs have families too, don’t they? Remember what happened in the wake of Hurricane Katrina? Most of the New Orleans cops didn’t show up for work because they had families to protect. If you dial 9-1-1 after the American economy collapses and the money hyperinflates, you should not expect to ever see a cop at your door. They will only respond to the most serious and grave law enforcement issues. Or, they may be busy enforcing martial law. In my opinion, the functions of the police that we take for granted will be a memory. You will be entirely on your own to protect yourself, your family and your property.

The ONLY human action that can rescue humanity from TEOTWAWKI is the re-establishment of gold and silver-backed money. Simply anointing another nation’s fiat currency as the new world reserve currency may kick the can down the road for a short time, but it won’t fix the worldwide problem. That is, unless a nation like China converted its currency to hard currency and then refused to accept any other currency than the Gold Yuan or gold itself. Remember that the international bankers and the International Monetary Fund are closely allied to Washington. If DC dies, the IMF dies. And if the Yuan becomes the new hard money world reserve currency, the international bankers are stripped of their power to steal. So expect the international bankers to fight Chinese supremacy unless they can continue to inflate and create money from thin air.

We here at DumpDC believe that the gold that is purported to be in Fort Knox is likely long gone. So the statistical chances that Washington could revert to a gold standard are zero. The ONLY logical place that hard money is likely to occur in North America is inside a US State that secedes from the Union. That state will see the hopelessness of central banking, legal tender laws, fiat money and fractional reserve banking and deduce that only hard money can save them from destruction. This must be the first and most important priority for any seceding state. Nothing else will matter if a seceding state gets this wrong. If a seceding state gains its independence from the USA, only to buy into another world currency, it will simply join all the other failing nations in a “me too” effort.

The End Of The World As We Know It is just over the horizon. And it’s true…the world will never be the same once the Dollar collapses. The carnage around the world will be horrific and historic. I sincerely hope that you, dear readers, survive. But individual liberty and property rights could be the phoenix that arises from the ashes of the global financial meltdown. That is, if JUST ONE AMERICAN STATE secedes and establishes gold standard money. If JUST ONE nation of the world makes a decision to fight for its own survival with gold money instead of being dominated by the internationalists and one-worlders. Make sure you place yourself and your family in that sanctuary.

How about a little music that talks about living when “the money’s no good?”

Secession is the Hope For Mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2011, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.


Recession Done Texas Style

March 9, 2011

by Linda Brady Traynham

(Editor’s Note: Linda has been making comments here for a while. I like her writing style and her content is outstanding. She writes about Texas liberty issues and other stuff that engages her mind…just like your un-humble Editor. I am confident you’ll enjoy this reprint from August 27, 2010.

This one shows you why you should relocate to Texas before secession happens.)

We Texans pride ourselves on everything being bigger and better, but the definition of a “better” depression is a smaller, lighter one. I wrote months ago about how Texas was last into the Depression and has been hit less hard than most areas. At that time, only Brownsville, on the Mexican border, had an unemployment rate that matched the national average, which was in the mid-seven range then. At present we’re running 8.2 per cent., here in Texas, using government figures, with the national rate holding stubbornly at “9.7%.” I put that in quotation marks because I consider it a fairy tale, over and above that using traditional accounting methods would yield results almost exactly twice the official version. That half a point drop from 10.2% not long ago came too suddenly for me to find it believable.

I’m just a simple arithmetician but I understand the sort of figures we’re talking here and it is no use for the government to tell me there is no inflation — it has been at least 3% by the most stringent definition for the last three years — and that national unemployment averages 9.7% if we just don’t count everyone without a job. Laughter…my husband was a genuine mathematical genius who had a passion for statistics and understood numbers the way I understand words. I would love to hear John’s answer on what the unemployment rate is.

One reason we’re doing better in Texas is in the diversification of interests and in the tightly closed systems in our many small towns. Those are not totally immune, and in Hamilton the little, more expensive grocery store “down town” (that being the four blocks which surround the Courthouse square) has gone out of business. David’s, a small local chain, no doubt smiled, and stopped running so many loss leaders. What else? When it is twenty-five to forty miles to the next grocery store of any sort, pretty much you have a captive audience. I imagine the newest restaurant in town will go under, but pretty much nothing much will change. It can be frustrating that kids who aren’t going to inherit a family business have to go elsewhere to find jobs in “normal” times, but it is quite comforting to know not many jobs will be shed in your town because there weren’t any superfluous jobs in the first place. Each business has a place in the local economy that isn’t going to go away, from the two drug store (neither chain) to Ace is the Place, to the feed stores. In the cities and industrial parks many areas are humming along nicely turning out machinery, computers, chemicals, and electronic devices. No, we’re not just about beef and oil. We’re making things they want in BRIC. The first quarter — first two months, actually — exports rose 24.3% over 2009, close to thirty billion dollars’ worth. Patrick Jankowski, Vice President of research for the Greater Houston Partnership, commented that there are over 700,000 jobs in Texas geared to manufacturing goods for export, probably not counting mounted steer horns and armadillo ashtrays. We account for about ten per cent. of the entire export output of the USA, a scary thought, in some ways. Bell Helicopter is gearing up for a big, new project in Amarillo, hiring now, starting at over twenty dollars an hour to assemble widgety things.

Sure unemployment is high in the barrio. When isn’t it? Teens in general are having a harder time finding summer jobs because there are those with more work experience and better motivation willing to take what they can find. Life is tough in some sectors of the oil business, thanks to the power of the Greenies and Mr. Obama outlawing the most promising drilling areas under the guise of expanding exploration. One of the articles I read posited that Texas began adding jobs again last fall, “thanks mostly to its great position in the largely recession-proof energy industry.” Well…sort of. Maybe. Out in Odessa and Midland things are stalled because there is no way to get that sweet, light Texas crude over to the refineries, and for sure it’s too far to build a pipeline. Mr. Obama has decreed that no new refineries may be built (just which section of the Constitution would that be?) and if you can’t refine oil and can’t move it, once your storage facilities are full the best you can do is hope for a better future. One landman I know has cut her price from $450 to $200 a day because there isn’t a whole lot of leasing going on. Last November Texas crude production was down to 1.08 million barrels per day, on the order of half the amount pumped in the Reagan years. Natural gas is doing well — up about a third between 2004 and 2008 — which is cheering both because I expect the coal industry to be destroyed by fake science and a great deal of money put into that campaign by the LNG folks who stand to take over coal-fired plants. Seems to me, as a long-time Texan that we’ve got a bunch of capped wells that were shut down over the years because they produced “too much” gas and not enough oil to suit demands of the time.

We Texans are proud of having our own electric grid — bearing in mind that a hamlet about thirty miles from me went without power for over three weeks after Ike. Their juice came from a different plant in Houston. I’m not a big fan of wind power, myself, between the cost of the enormous three-bladed devices (about a quarter of a million dollars, which doesn’t include shipping and handling and perhaps not even installation) and the difficulty of “storing” electricity; it is commonplace to see a lot of those pricey units turned off when there is ample wind to spin them merrily. There are those who hope to begin exporting electricity to the rest of the US, such as Paul Sadler of Wind Coalition. That might be fine for wind power operators, but it would almost certainly raise prices locally, judging from what happened a decade or so ago when Washington started selling power to Oregon and California, which was in a bind because of foolhardy insistence in flushing away water needed for irrigation and hydroelectric facilities in the name of dear little fishies. There isn’t a person reading this who can’t come up immediately with “Same amount of product sought by more people equals higher prices.” I don’t think anyone has come up with “Keep Texas for Texans,” but it sounds reasonable to me. It may be too late since we have already gotten the attention of Denmark, Spain, and Queen Beatrix. Fortunately, one reason we could construct our grid fairly easily is that we weren’t tied down with federal regulations or coordinating with other states. With luck, trying to connect to Boston, Kansas City, and San Diego (just for examples) would turn out to be as frustrating and time-consuming as attempting to build a nuclear plant. I noted that Texas can now put out 10,000 megawatts which was stated as being sufficient for three million homes, and I thought, immediately not “NIMBY” but “KIIMBY” for Keep It In My Back Yard. Sure, I can handle Vestas and Iberdrola coming over to play, but retaining control of our power strikes me as “prepping” on a national level. Mr.T. Boone Pickens considered putting what even he thought was a bundle into wind power and decided there were faster, better ways to make a good ROI.

Our housing market remains far more stable for several reasons. Turnover has always been slow in rural areas, and we had a hefty influx of dazzled Californians early in the century. They may have been buying while the bubble was bursting, but compared to prices in the Golden State our housing was considered ludicrously under-priced. Dallas has been especially fortunate over the years, and prices there are only 7% off the 2007 highs, Case-Shiller indicates. That’s okay, there’s no point in coming to Texas if you’re going to live in Houston, Austin, San Antonio, DFW, or El Paso. You seen one big city, you seen ‘em all. Sure, the River Walk is pretty (if you like tourist attractions), but other than that SAT is five million people, two freeway rings, and traffic that would scare anyone other than a Los Angeles cab driver. We’re doing better in terms of lower delinquency rates on mortgages. In particular, those three or more months behind average 5.78% here and 8.78% nationwide. (Do you suppose someone makes these figures up? With 99 other choices, yet the terminal two digits are the same?) It should also be noted that Texas law limited taking out secondary loans that amounted to more then eighty per cent. of the value of the property. People were protected somewhat from their own greed and the myth that “Real estate will always increase in value!”

I bridled somewhat when I read, ‘Once a separate nation, Texas has recently been behaving more like an independent economic republic than a regular state. While it hasn’t been immune to the problems plaguing the nation, the Texas housing market, employment rate, and overall economic growth are relatively strong. Chalk some of this up to accidents of geology and geography. But Texan prosperity also reflects the conscious efforts of a once-parochial place to embrace globalization.” and “Texas today is more suburban engineer than urban cowboy, more Michael Dell than J.R. Ewing. Austin, home to the University of Texas, the state government, and Dell Computer, has a 7 percent unemployment rate…ExxonMobil is based in Irving. But the state’s energy complex is increasingly focused more on services and technology than on intuition and wildcatting. And it is selling those services into the global oil patch. Russian, Persian Gulf, and African oil developers now come to Houston for equipment, engineering, and software. While its political leaders may occasionally flirt with secession, Texas thrives on connection… ”

I couldn’t help feeling that this was a little condescending and I was reminded of an ancient expression, “Poor boy, he must be tetched in th’ head.” We may enjoy wheelin’ and dealin’ but at heart we’re still Texans, with our own unique culture that we’ve done a lot better hanging on to than the USA has of agreeing on how to define an American. Businesses come and businesses go, like a li’l ol’ company that had a base here on my stomping grounds long ago, name of Texas Instruments, but cattle and corn fields are forever. We aren’t going to get over feeling that an Aggie ring (signifying graduation from Texas A&M, not 20 minutes from me) is worth two degrees from Harvard and Yale any day. Besides, Dell’s in Round Rock. Laughing at myself. This is like only Aggies being allowed to tell Aggie jokes (non-Aggies can tell ‘em if they make the dunce a Polack, a perfectly respectable term ’round here.)

The important part isn’t what I interpreted as a slur on my own, my native land, but that we’re doing some things right here the rest of the country isn’t.

Linda Brady Traynham is a former editor and analytical project report writer and is now a Whiskey & Gunpowder field correspondent on a ranch in the Republic of Texas. She studied Counseling at Boston University and got her Masters degree in Philosophy from the University of Hawaii.


Egypt: Preview of America in 2015

February 6, 2011

courtesy National Inflation Association

The rioting and looting currently taking place in Egypt is primarily a result of massive food inflation and shows what all major cities in the United States will likely look like come year 2015 due to the Federal Reserve’s zero percent interest rates and quantitative easing to infinity. On December 16th, 2009, NIA named Time Magazine’s 2009 ‘Person of the Year’ Ben Bernanke our ‘Villain of the Year’, saying he created “unprecedented amounts of inflation in unprecedented ways” and “When it costs $20 for a gallon of milk in a few years, Americans will have nobody to thank more than Bernanke.”

What started out a few weeks ago as protests in Algeria with citizens chanting “Bring Us Sugar!” and five citizens being killed, quickly spread to civil unrest in Tunisia which saw 14 more civilian deaths, and has now spread to riots in Egypt where 300 Egyptian citizens have been killed. Food inflation in Egypt has reached 20% and citizens in the nation already spend about 40% of their monthly expenditures on food. Americans for decades have been blessed with cheap food, spending only 13% of their expenditures on food, but this is about to change.

NIA was the first to predict the recent explosion in agricultural commodity prices in our October 30th, 2009, article entitled, “U.S. Inflation to Appear Next in Food and Agriculture”, which said we have a “perfect storm for an explosion in agriculture prices”. A couple of months later in ‘NIA’s Top 10 Predictions for 2010’ we predicted “Major Food Shortages” and said, “Inventories of agricultural products are the lowest they have been in decades yet the prices of many agricultural commodities are down 70% to 80% from their all time highs adjusted for real inflation”. Over the past year, agricultural commodities as a whole have outperformed almost every other type of asset, with silver being one of only a few other assets keeping pace with agriculture. (On December 11th, 2009, NIA declared silver the best investment for the next decade at $17.40 per ounce and it has so far risen 64% to its current price of $28.39 per ounce).

The world is at the beginning stages of an all out inflationary panic. Wheat, which NIA previously called on ‘NIAnswers’ its favorite investment besides gold and silver, is now up to a new 30-month high of $8.63 per bushel and has doubled in price since June of last year. Algeria bought 800,000 tonnes of wheat this past week, bringing their total purchases for the month of January up to 1.8 million tonnes, which was quadruple expectations. Saudi Arabia is also beginning to stockpile their inventories of wheat. Rice futures have gained 8% during the past few days with Bangladesh and Indonesia placing extraordinary large orders. Indonesia’s latest rice order was quadruple its normal allotment and Bangladesh plans to double rice purchases this year. Meanwhile, the U.S., which is the world’s third largest exporter of rice, is expected to cut production by 25% in 2011.

NIA considers rice to be one of the world’s most undervalued agricultural commodities at its current price of $15.96 per 100 pounds and forecasts a move back to its 2008 high of $24 per 100 pounds as soon as the end of 2011. NIA believes cotton, at its current price of $1.80 per pound, may have gotten a bit ahead of itself in the short-term. In NIA’s first ever article about agriculture on February 17th, 2009, we said that cotton’s “upside potential is astronomical” at its then price of $0.44 per pound. NIA pointed to increasing sales to textile companies in China and the fact that cotton was down 70% from its all time high as reasons to be very bullish on cotton at $0.44 per pound. Early NIA members could have made 309% on cotton, but today we see much bigger potential in rice. The recent spike in cotton reminds us of the 2008 spike in oil. Although we believe cotton will ultimately rise above $3 per pound later this decade, we could possibly see a dip to below $1.40 per pound first.

Many people in the mainstream media have been criticizing NIA’s recent food inflation report, claiming that agricultural commodity prices have very little to do with prices of food in the supermarket. CNBC’s Steve Liesman, in particular, claims that “rising commodity prices won’t cause inflation”. Liesman has it backwards. NIA has never claimed that rising commodity prices cause inflation. Soaring budget deficits that the U.S. government can’t possibly pay for through taxation causes inflation when the Fed is forced to monetize the debt by printing money.

Rising commodity prices are only a symptom of inflation. The reason NIA was so bullish on agricultural commodities going back two years ago when we produced our first documentary ‘Hyperinflation Nation’, is because while gold is the best gauge of inflation and is often the best tool for predicting future money printing, agriculture is where the majority of the monetary inflation ends up going after the Fed’s newly printed money trickles down to the middle-class and poor. With gold prices already surging two years ago when we produced ‘Hyperinflation Nation’, NIA said in the documentary “food prices have the potential to surge most during hyperinflation”.

One thing NIA is almost 100% sure of is that come year 2015, middle-class Americans will be spending at least 30% to 40% of their income on food, similar to Egyptians today. As NIA warned in its latest documentary ‘End of Liberty’, if you don’t have enough money to accumulate physical gold and silver, it is important to begin establishing your own food storage, and store enough food to feed you and your family for at least six months during hyperinflation. Many store shelves in Egypt are now empty after recent panic buying, with shortages of nearly all major staple items throughout the country.

The U.S. Treasury is getting ready to sell $72 billion in new long-term bonds next week, as the U.S. rapidly approaches its $14.29 trillion debt limit. The debt limit is now expected to be reached by April 5th and Treasury Secretary Geithner warned the U.S. will see “catastrophic damage” if it isn’t raised. With the Federal Reserve now surpassing China and Japan as the largest holder of U.S. treasuries, the real “catastrophic damage” ahead will be hyperinflation as a result of the U.S. government doing absolutely nothing to dramatically reduce spending. It is an absolute joke that Obama during his State of the Union address announced $400 billion in spending cuts over the next 10 years, but then the very next day, the Congressional Budget Office increased its 2011 budget deficit projection by $400 billion to $1.48 trillion.

Not raising the debt limit would be a good thing, as it would force Washington to live within its means. Sure, the stock market would collapse and the U.S. economy would enter into its next Great Depression, but at least it would save the U.S. dollar from losing all of its purchasing power. In fact, the standard of living for middle class Americans might actually improve if the government allowed the free market to put our economy into a depression, because goods and services would get cheaper.

The U.S. economy has become a drug addict that is dependent on cheap and easy money from the Federal Reserve. While Wall Street bankers took home a record $135 billion in total compensation in 2010, up 5.7% from $128 billion in 2009, this money was stolen from middle-class and poor Americans through inflation. The more monetary inflation (heroin) the Federal Reserve creates in order to satisfy the (in the words of Gerald Celente) “money junkies” on Wall Street, the more middle-class and poor Americans become dependent on unemployment checks and food stamps just to survive. Millions of American students are graduating college with hundreds of thousands of dollars in debt but no jobs. Luckily for them (but not holders of U.S. dollars), NIA is hearing reports from both unemployed and underemployed college graduates with student loans that the government is reducing their required monthly payments by sometimes 90% or more based on their current incomes.

China and Japan recently saw their credit ratings downgraded, while the U.S. credit rating remains at “AAA”. NIA believes it would make far more sense for the world’s largest debtor nation to be downgraded instead of the world’s two largest creditor nations. The Federal Reserve’s second round of quantitative easing has yet to even reach the halfway point and the Fed already holds about $1.11 trillion in U.S. treasuries. By the time QE2 is over at the end of June, the Fed will own $1.6 trillion in U.S. treasuries, about what China and Japan own combined. Shockingly, Kansas City Fed President Thomas Hoenig is already dropping hints about QE3. According to Hoenig, the Fed may consider extending treasury purchases beyond June 30th, 2010, (the scheduled completion date for QE2) if U.S. economic data looks disappointing.

With the Fed taking over as the largest holder of U.S. treasuries, China is beginning to rapidly move away from the U.S. dollar and into gold. In just the first 10 months of 2010, China imported 209 metric tons of gold compared to 45 metric tons in all of 2009, a stunning five-fold increase. While the western world is downplaying the threat of inflation as much as possible, Asian countries understand that hyperinflation is the most devastating thing that can possibly happen to any economy. The demand for gold in Asia right now is the most intense it has ever been, as they look to tackle rising inflation before it becomes hyperinflation.

The Chinese are so smart that families are now giving each other gold bullion as gifts instead of traditional red envelopes filled with cash. China is now on track to soon surpass India as the world’s largest consumer of gold. The China Securities Regulatory Commission recently gave Beijing-based Lion Fund Management Co. approval to create a fund that will invest into foreign gold ETFs.

U.S. stock mutual funds saw $6.7 billion in net inflows during the past two weeks, the most in any two week period since May of 2009. The rioting, looting, and civil unrest in Egypt is now making the U.S. look like the safe haven of the world, even though it should be considered the riskiest place to invest. From the Dow’s low in August until now, about $38 billion was actually removed from U.S. stock mutual funds, despite the stock market rising 20%. The Dow Jones has been rising from September until now solely due to the Federal Reserve printing around $350 billion out of thin air. When central banks print money, stock markets often act as a relief valve due to there being too much inflation going into the hands of financial institutions.

The U.S. M2 money supply surged by $46.6 billion during the week ending January 17th to a record $8.8623 trillion, following a rise during the previous week of $7.6 billion. The rise in the M2 money supply over the past two weeks of $54.2 billion equals an annualized increase of 16%. The M2 multiplier now stands at 4.218 compared to a long-term average of 10. When QE2 is complete, the Fed’s monetary base will likely stand at $2.59 trillion. A return to the long-term average M2 multiplier of 10 means we are due to see a 192% increase in the M2 money supply and that is not even including a possible QE3 and QE4.

The U.S. economic ponzi scheme could unravel very quickly in the years ahead, with the velocity of money increasing much faster than anybody expects. As more Americans learn about NIA and become educated to the truth about the U.S. economy and inflation, a complete loss of confidence in the U.S. dollar could occur very suddenly. It is important for all Americans to prepare as if hyperinflation will be here tomorrow. At least in Egypt, their currency still has purchasing power and their citizens are trying to implement a regime change before it is too late. By 2015 in America, it will already be too late and the civil unrest here has the potential to be many times worse.

It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: National Inflation Association


The Bankruptcy of American Colony/States

February 4, 2011

by Russell Longcore

We all know that Washington’s government is broke. But nearly every colony/state of the Union is also in desperate financial trouble. They have nearly all spent profligately. But their underfunded pension obligations are going to sink them aside from too much spending. And Federal law doesn’t permit colony/states to declare bankruptcy.

I just want to point out that if a colony/state seceded from the Union to become a nation once again, it would likely shed enough Federal debt and Federally-mandated spending that it could balance its budget once again. And now the new nation would not be subject to Federal bankruptcy laws. That doesn’t mean it should stiff its creditors, but it could facilitate restructuring and payment of its obligations.

Also remember the old saying…”The thinking that got us here will not get us where we want to go.” There will need to be an entirely new group of leaders who move away from the republic to secession and new nationhood.

The Daily Beast has an article about colony/state bankruptcy that you should read.

CLICK HERE to see how badly your state is doing.

Secession is the Hope For Mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2011, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.


Getting Everything You Can Out Of All You’ve Got

January 15, 2011

Logical, Practical Baby Steps Toward Survival and Secession

If you have been reading the articles posted here at DumpDC, you have read about the impending economic collapse. But sometimes all this gloom and doom, although accurately predicted, can be overwhelming. And when you feel overwhelmed you may just give up, thinking all is hopeless.

So today, I’m offering some common sense steps you can take to become as prepared as you possibly can become.

First, remember that none of us know when the s*** is going to hit the fan (WSHTF). We cannot accurately predict dates when events will occur. Let’s just do what we can until those days transpire. As legendary businessman A.L. Williams said, “All you can do is all you can do.” Let’s just hope that all you can do is enough.

1. Begin this week buying silver coins.

I started buying gold and silver about ten years ago when the price was $300 an ounce. Today’s gold prices are above $1,360 and will go higher. Ten years ago silver was about $15 an ounce. Today I’m buying silver at $35. It will go higher too, but it’s much more affordable for the average person. Make a commitment to yourself to buy as many silver coins as you can each month. If that’s only one coin, that’s better than doing nothing. Always try to buy coins that are 99.99% pure silver. Do not buy collector coins because the collection value melts away when you are using the coin for money. No one will care if it’s rare. Only the purity of the silver will matter.

Survivalists might disagree with me about placing this recommendation as number one. They might say that stocking in food, water and weapons are more important. But my opinion is that hard money will buy all those things, but only if you have hard money. Sure, you may be able to buy supplies cheaper now before the crash. But hard money is king and you’d better have it in your possession after the crash.

Gold and silver coins are actually money. Paper “money” is not money…it’s currency. When you buy gold and silver coins, you are exchanging your paper currency for real money. You are taking the value still found in your currency and storing that value in real money. As time goes by, it will take more and more paper currency to buy real money.

Do not sell gold and silver you already own. The carnival barkers on TV and down your street looking to buy your old jewelry will pay pennies on the dollar, and they will hand you paper currency as payment. That is backwards and foolish. Don’t fall for that scam. Tuck your old jewelry away as a stash of value.

Where to buy? Check coin dealers in your area as well as pawn brokers. You can even go online and find dealers with great prices. I recommend buying coins face to face with a dealer and only using cash. Why create a paper trail of your purchases?

2. Sell some stuff

You have personal property around your home that still has value that you are not using anymore. Electronics, furniture, tools, CDs, DVDs, even collectibles. Sell your extra stuff to raise cash. Then use that cash to buy even more silver.

Thank God for Ebay and other auction websites! It gives all of us great tools for selling our unwanted personal property. But if you’re not Internet savvy, just have a yard sale.

3. Start storing food and supplies

By selling off some old stuff, you’ll have more storage space. Make a special storage space in your home and being to buy extra food. Start with canned goods. Buy food you already like. Canned vegetables and meats are great. Then buy some paper products, like toilet paper and paper towels. If you are going to buy bulk items like rice or pasta, you’ll need sealable food containers for them. Don’t forget toiletries, like soap and other cleaning products. Buy some chorine bleach, which can be used to purify water. Buy canned juices, cake mixes, pudding, etc. My point here is to begin to put aside extra supplies toward the day that you can no longer just run to the store for stuff you need. That day will surely come whether you believe it or not.

4. Own firearms

If you do not already own a firearm, you are a victim waiting to be victimized. In the days following the collapse of the American financial system, crime will be rampant as desperate people do desperate things to survive. So, not only do you need to own firearms, but you need to become proficient in their use. Go to the gun range and learn how to use your firearm. Start now buying quantities of ammunition for your firearms. Having one box of ammo is not enough. Ammo is cheap. Buy 1,000 rounds or more for every different firearm you own. Make your ammo purchases at a gun shop and use cash, no credit or checks. No paper trail.

5. Get out of debt

Do everything you can to pay off debt of any kind, especially debt that is tied to collateral, such as your house or car. Last thing you want is to have your collateral repossessed or your home foreclosed.

How about consumer debt? In 2010, I heard financial guru Suzie Orman tell an Oprah Show audience to not worry about paying off consumer debt. She actually said that if you had to choose between credit card debt and house/car debt, choose house/car debt because it is secured debt. The credit card companies may be able to ding your credit score, or even sue you for the debt, but they cannot foreclose or repossess because it’s unsecured.

6. Increase your income

If you make more money, you can get prepared for disaster quicker. But making more money isn’t all about disaster preparedness. Have you ever heard of the concept of “having a Plan B”? Most people concentrate on just their present source of income, like their job. That’s Plan A. As most of you have noticed lately, jobs can go away unexpectedly even if you’re a great employee. Having more than one source of income lowers your risk of losing your major source of income.

The best “Plan B” you can have is a home-based business of your own. You can make great money, and having a home-based business opens up a source of tax deductions you never had before. You can write off thousands of dollars of business deductions…IF you have a business.

Most average people do not know how to properly evaluate a business opportunity. So, they make bad choices, lose a bunch of money, and come to the conclusion that being in business doesn’t work. But what if there was a simple way to evaluate ANY business opportunity before you jump in and risk your capital?

I’ve got the answer for you. I have a free video for you to watch. Click on www.ExploreFreedom.com. At the homepage, look to your left and find “Watch Brilliant Compensation.” Most of you should choose “English Live” and click “GO.”

If you want to learn more about how to make money in the energy business, contact me through the ExploreFreedom website. I’ll give you a hint…energy is one of the only truly recession-proof industries in America today. Is YOUR job recession-proof?

7. Do a security check at your home

Most folks live day to day with a false sense of security. They have no awareness of their surroundings and are surprised by robberies, car jackings and burglaries. But breaking into a residence is pretty easy. Have you made it easier for burglars inadvertently? Here’s quick checklist:

• Trim shrubs away from door and windows. Shrubs are good hiding places.
• Place a motion sensor exterior light next to every exterior door.
• Invest in a monitored security system for your residence. Make sure ALL openings have a sensor, even second floor openings.
• Reinforce your exterior doors to make them harder to bust open. I wrote an article at my insurance blog HERE.
• Install deadbolt locks with LOOOONG screws that sink into the framing behind the door frame.
• Don’t leave ladders and tools outside your home for obvious reasons.
• Get a concealed weapons permit and carry a pistol at all times.

8. Start planning where to live

When we reach The End Of The World As We Know It (TEOTWAWKI), will you want to live in a state that takes its orders from Washington DC, or will you want to live free? Spend the time NOW deciding where you want to live. Get out of the cities, which will be the most dangerous places of all. You might even consider choosing a state NOW and moving there before TEOTWAWKI. The other option is to expatriate and live outside the USA. That’s a very attractive alternative. But if you wait until TSHTF, Washington might not let you leave.

9. Spread the word

Friends don’t let friends stay ignorant. Discuss these concepts with those you love. Be prepared to take some criticism.

10. Face some tough decisions.

Remember the story of the Little Red Hen. Her friends did not want to help her prepare, but they were sure ready to help eat what she had worked for. Keep this in mind when, after you have sacrificed to be prepared, your family, neighbors and friends want to latch onto you for survival. What will you do if they discover that you have a stash of supplies and money and you don’t want to share? Will they come try to take it by force? You’re going to have to make some tough decisions then.

Jesus told a parable in Matthew 25:1-12 about ten virgins, five wise and five foolish. Read it HERE.

Conclusion

Don’t allow your mind to be overwhelmed by the prospect of economic collapse. You can begin TODAY to change your life and be prepared for the worst. But no one can make you do this. It has to be your decision.

Secession is the Hope For Mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2011, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.


The Looming Baby Boom Bust

January 4, 2011

In 2011 The Baby Boomers Start To Turn 65: 16 Statistics About The Coming Retirement Crisis That Will Drop Your Jaw

Editorial at End Of The American Dream

Do you hear that rumble in the distance? That is the Baby Boomers – they are getting ready to retire. On January 1st, 2011 the very first Baby Boomers turn 65. Millions upon millions of them are rushing towards retirement age and they have been promised that the rest of us are going to take care of them. Only there is a huge problem. We don’t have the money. It simply isn’t there. But the millions of Baby Boomers getting ready to retire are counting on that money to be there. This all comes at a really bad time for a federal government that is already flat broke and for a national economy that is already teetering on the brink of disaster.

So just who are the Baby Boomers? Well, they are the most famous generation in American history. The U.S. Census Bureau defines the Baby Boomers as those born between January 1st, 1946 and December 31st, 1964. You see, after U.S. troops returned from World War II, they quickly settled down and everyone started having lots and lots of babies. This gigantic generations has transformed America as they have passed through every stage of life. Now they are getting ready to retire.

If you add 65 years to January 1st, 1946 you get January 1st, 2011. The moment when the first Baby Boomers reach retirement age has arrived. The day of reckoning that so many have talked about for so many years is here.

Today, America’s elderly are living longer and the cost of health care is rising dramatically. Those two factors are going to make it incredibly expensive to take care of all of these retiring Baby Boomers.

Meanwhile, the sad truth is that the vast majority of Baby Boomers have not adequately saved for retirement. For many of them, their home equity was destroyed by the recent financial crisis. For others, their 401ks were devastated when the stock market tanked. Meanwhile, company pension plans across America are woefully underfunded. Many state and local government pension programs are absolute disasters. The federal government has already begun to pay out more in Social Security benefits than they are taking in, and the years ahead look downright apocalyptic for the Social Security program.

If we are not careful all of these Baby Boomers are going to push us into national bankruptcy. We simply cannot afford all of the promises that we have made to them.

The following are 16 statistics about the coming retirement crisis that will drop your jaw…..

#1 Beginning January 1st, 2011 every single day more than 10,000 Baby Boomers will reach the age of 65. That is going to keep happening every single day for the next 19 years.
#2 According to one recent survey, 36 percent of Americans say that they don’t contribute anything at all to retirement savings.
#3 Most Baby Boomers do not have a traditional pension plan because they have been going out of style over the past 30 years. Just consider the following quote from Time Magazine: The traditional pension plan is disappearing. In 1980, some 39 percent of private-sector workers had a pension that guaranteed a steady payout during retirement. Today that number stands closer to 15 percent, according to the Employee Benefit Research Institute in Washington, D.C.
#4 Over 30 percent of U.S. investors currently in their sixties have more than 80 percent of their 401k invested in equities. So what happens if the stock market crashes again?
#5 35% of Americans already over the age of 65 rely almost entirely on Social Security payments alone.
#6 According to another recent survey, 24% of U.S. workers admit that they have postponed their planned retirement age at least once during the past year.
#7 Approximately 3 out of 4 Americans start claiming Social Security benefits the moment they are eligible at age 62. Most are doing this out of necessity. However, by claiming Social Security early they get locked in at a much lower amount than if they would have waited.
#8 Pension consultant Girard Miller recently told California’s Little Hoover Commission that state and local government bodies in the state of California have $325 billion in combined unfunded pension liabilities. When you break that down, it comes to $22,000 for every single working adult in California.
#9 According to a recent report from Stanford University, California’s three biggest pension funds are as much as $500 billion short of meeting future retiree benefit obligations.
#10 It has been reported that the $33.7 billion Illinois Teachers Retirement System is 61% underfunded and is on the verge of complete collapse.
#11 Robert Novy-Marx of the University of Chicago and Joshua D. Rauh of Northwestern’s Kellogg School of Management recently calculated the combined pension liability for all 50 U.S. states. What they found was that the 50 states are collectively facing $5.17 trillion in pension obligations, but they only have $1.94 trillion set aside in state pension funds. That is a difference of 3.2 trillion dollars. So where in the world is all of that extra money going to come from? Most of the states are already completely broke and on the verge of bankruptcy.
#12 According to the Congressional Budget Office, the Social Security system will pay out more in benefits than it receives in payroll taxes in 2010. That was not supposed to happen until at least 2016. Sadly, in the years ahead these “Social Security deficits” are scheduled to become absolutely horrific as hordes of Baby Boomers start to retire.
#13 In 1950, each retiree’s Social Security benefit was paid for by 16 U.S. workers. In 2010, each retiree’s Social Security benefit is paid for by approximately 3.3 U.S. workers. By 2025, it is projected that there will be approximately two U.S. workers for each retiree. How in the world can the system possibly continue to function properly with numbers like that?
#14 According to a recent U.S. government report, soaring interest costs on the U.S. national debt plus rapidly escalating spending on entitlement programs such as Social Security and Medicare will absorb approximately 92 cents of every single dollar of federal revenue by the year 2019. That is before a single dollar is spent on anything else.
#15 After analyzing Congressional Budget Office data, Boston University economics professor Laurence J. Kotlikoff concluded that the U.S. government is facing a “fiscal gap” of $202 trillion dollars. A big chunk of that is made up of future obligations to Social Security and Medicare recipients.
#16 According to a recent AARP survey of Baby Boomers, 40 percent of them plan to work “until they drop”.

Companies all over America have been dropping their pension plans in anticipation of the time when the Baby Boomers would retire. 401k programs were supposed to be part of the answer, but if the stock market crashes again, it is absolutely going to devastate the Baby Boomers.

State and local governments are scrambling to find ways to pay out all the benefits that they have been promising. Many state and local governments will be forced into some very hard choices by the hordes of Baby Boomers that will now be retiring. Of course whenever a big financial crisis comes along these days everyone looks to the federal government to fix the problem. But the truth is that after fixing crisis after crisis the federal government is flat broke.

At our current pace, the Congressional Budget Office is projecting that U.S. government public debt will hit 716 percent of GDP by the year 2080. But our politicians just keep spending money. In order to pay the Baby Boomers what they are owed the federal government may indeed go into even more debt and have the Federal Reserve print up a bunch more money.

So it’s the end, Baby Boomers. What is your “Plan B?”


Happy New Year – You Are Screwed

January 1, 2011

17 National Debt Statistics Which Prove That We Have Sold Our Children And Grandchildren Into Perpetual Debt Slavery

At PoorRichardsBlog

(Editor’s Note: Secession ends debt slavery. The state that leaves the Union leaves behind ALL Federal tax liability for itself and its citizens. Could there be any more attractive reason to secede?)

What we have done to future generations over the past 30 years is absolutely criminal. 30 years ago the U.S. national debt was a bit under one trillion dollars, and at that time it was considered a huge national crisis. Today, the national debt is 14 times larger and the years ahead look absolutely apocalyptic at this point. We have literally sold our children and our grandchildren into perpetual debt slavery. We have accumulated the biggest mountain of debt in the history of the world, and our children and our grandchildren will be burdened with it for the rest of their lives.

All of our politicians keep talking about how it is vitally important that we do something about all of this debt “soon”, but they just can’t seem to stop wildly spending our money. They keep telling us that now is not the time for deficit reduction because it would harm “the economic recovery”, but the “right time” for deficit reduction never seems to come along.

The national debt statistics in this article are meant to shock you. Hopefully they will shock you enough to actually take action. Up to this point, the vast majority of Americans have been extremely apathetic about the horrific crime that we are committing against future generations.

How would you feel if you found out one day that your parents had run up a million dollars in debt that now you were obligated to pay off?

Would you be absolutely furious?

Of course you would be, and rightly so.

So how do you think future generations will feel about us? We were once the wealthiest nation on the planet, but we have taken that great inheritance and we have squandered it. Now we are handing our children and our grandchildren the largest debt the world has ever seen.

How in the world can we do that? How can we consign our descendants to perpetual debt slavery and still feel good about ourselves?

The America that we have all been enjoying so much today is going to be wiped out by all of this debt.

We have literally stolen the future. We just had to keep spending more and more and more and more.

The greed of this generation will be remembered for a very, very long time.

The truth is that both political parties are responsible. Both of them have voted over and over and over to keep running up these huge budget deficits. If you have voted for big spending Democrats at any point over the past 30 years then you have contributed to the problem. If you have voted for big spending Republicans at any point over the past 30 years then you have contributed to the problem.

Now we have reached a point where a horrific financial meltdown is basically inevitable. We are living in the greatest debt bubble in the history of the world, and it is only a matter of time until it bursts.

The following are 17 national debt statistics which prove that we have sold our children and our grandchildren into perpetual debt slavery….

#1 As of December 28th, the U.S. national debt was $13,877,230,355,933.00.
#2 If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.
#3 If the federal government began repaying the national debt at a rate of $10 million dollars a day it would take approximately 3,800 years to pay off the national debt.
#4 Today, the U.S. national debt is increasing by roughly 4 billion dollars every single day.
#5 The U.S. government is borrowing approximately 2.63 million more dollars every single minute.
#6 On September 30th, 1980 the U.S. national debt was 907 billion dollars. Just thirty years later, the U.S. national debt is over 14 times larger.
#7 According to a recent U.S. Treasury report to Congress, the U.S. national debt will reach 19.6 trillion dollars in 2015.
#8 It is being projected that the U.S. government will be paying 900 billion dollars just in interest on the national debt by the year 2019.
#9 A trillion $10 bills, if they were taped end to end, would wrap around the globe more than 380 times. That amount of money would still not be enough to pay off the U.S. national debt
#10 The U.S. Congress has raised the federal debt ceiling six times in just the past three years.
#11 The 111th Congress added more to the U.S. national debt than the first 100 U.S. Congresses combined.
#12 The 111th Congress got us into so much new debt that it breaks down to $10,429.64 for each of the 308,745,538 people counted by the 2010 U.S. census.
#13 The U.S. government currently has to borrow approximately 41 cents of every single dollar that it spends.
#14 When you break down the debt that the U.S. government owes to China alone it comes to over $10,000 for every single American family.
#15 If you were alive when Christ was born and you spent one million dollars every single day since that point, you still would not have spent one trillion dollars by now. Almost unbelievably, the U.S. government will accumulate well over a trillion dollars more debt in 2011.
#16 If right this moment you went out and started spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.
#17 The Congressional Budget Office is projecting that U.S. government debt held by the public will reach a staggering 716 percent of GDP by the year 2080.

But the American people don’t want to hear that we have spent decades creating a horrific debt crisis that is not going to be easy to fix. They just want someone to “tweak” a few things and get us back to being the greatest economy on earth. Unfortunately, it is simply not that easy.

But what do you tell a nation that is completely addicted to debt?

On an individual level, it can be a lot of fun to wildly run up credit card debt, but at some point you have to stop and start paying down that debt. Unfortunately, on a national level we can’t even get our politicians to slow down the rate at which our debt is increasing.

Sadly, the chart above does not tell the real story. It is based on fraudulent government accounting. If the government used GAAP accounting (like all public companies on Wall Street must), the numbers would look much worse.

John Williams of Shadowstats.com says that if the federal government would have used GAAP accounting standards to calculate the federal budget deficit for 2009, it would have been approximately 8.8 trillion dollars and that there is simply no way out of all this debt:

The government’s finances not only are out of control, but the actual deficit is not containable. Put into perspective, if the government were to raise taxes so as to seize 100% of all wages, salaries and corporate profits, it still would be showing an annual deficit using GAAP accounting on a consistent basis. In like manner, given current revenues, if it stopped spending every penny (including defense and homeland security) other than for Social Security and Medicare obligations, the government still would be showing an annual deficit. Further, the U.S. has no potential way to grow out of this shortfall.

The U.S. government is essentially bankrupt at this point. It is just a matter of playing out the hand. The rest of the world is starting to realize this, and confidence in the U.S. dollar is beginning to significantly decline.

Things did not have to turn out this way, but Americans did not listen to the warnings and so now this is where we are at as a nation.

The next time you see a small child, look into the hopeful eyes of that child and just think about what we have done to the future of all of our children. We have obliterated the financial future of this nation. Someone should be put into prison for all this. But instead the mainstream media treats prominent politicians from both political parties like rock stars.

The mainstream media continues to perpetuate the myth that the U.S. economy is on the road to a grand recovery and that eventually we can get a handle on all this debt and that somehow everything is going to be okay.

Well, everything is not going to be okay.

All that is on the horizon is great financial pain, and the sad thing is that it could have all been avoided.

But now the game is over and the day of reckoning is coming soon.

We are going to reap what we have sown.

(Editorial at theeconomiccollapseblog.com.)