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The Collapse of the American Economic Empire

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Yesterday afternoon the United States Government published its Annual Report stating plainly that America has 8 years left before a Financial Crash.

This is not Hyperbole.
This is not Conjecture.
This is not a Conspiracy Theory.

In fact, 8 years until a Crisis is the BEST CASE SCENARIO unless the US Congress takes action NOW.

The most critical "Trust Fund" in the so (called OAS, or “Old Age Survivors) and the other Entitlements will be fully depleted.

That’s precisely what it says in the 2025 Annual Report of the Board of Trustees of Social Security, signed by the US Secretary of Treasury yesterday.

Once that OAS Trust Fund runs out of Money, the Report states that Social Security Benefits will be immediately and permanently cut by 23% and worsen.

This will constitute a broken promise to 70+ Million Baby Boomers who spent decades paying Taxes into a Ponzi Scheme of epic proportions supposedly solvent by the time they retire. Social Security’s biggest Trust Fund running out of money will devastating and many Baby Boomers and the Disabled will not survive.

On top of that plain fact, the total US National Debt will be $52 TRILLION according to the Congressional Budget Office (CBO) estimates. which notoriously underestimates Deficits.

$52 Trillion is so large that the Government could easily be Spending 40% of all Taxes just to pay interest on the National Debt. There won't be any Money to do anything else.

THINK ABOUT THAT.
Not on DEFENSE.
Not on INFRASTRUCTURE.
Not even on the bloated ENTITLEMENTS PROGRAMS Washington DC refuses to reform. JUST INTEREST ON THE DEBT.

These two things together running concurrently— a massive Annual Interest Bill combined with Social Security’s insolvency— will combine to a Gargantuan Fiscal Crisis in 8 years.

The Political Indentured Servants on Capitol Hill indebted to their Corporate paymasters, aren't very concerned which is why they have very little will to cut Spending, or make necessary reforms that would solve our underlying problems.

Foreign Governments and Central Banks clearly understand this problem. They see and know how difficult it'll be for the US to pay its Debts. That’s why Foreign institutions are dumping US Dollars and US Government Bonds. Foreign Governments have lost confidence in the US Government, they’re wisely cashing out. So have I!

One of the biggest beneficiaries of this trend has been Gold; Others have talked about this — as Foreign Governments and Central Banks dump their US Dollars, they've been buying up record amounts of Gold Bullion, makes perfect sense. Who in their right mind want their Money and have any confidence in phony Monopoly Money?!

This isn’t some ideological crusade—it’s very rational for Foreign Governments and Central Banks; Gold is Liquid, Fungible (i.e. standardized), Globally recognized, and the Market can absorb massive Capital flows— Hundreds of Billions of Dollars or more.

This is how they diversify to protect themselves from what will likely happen down the road in the United States. Smart and Intelligent American Taxpayers who can read the Writing on the wall can surely do the same...
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Broache73 · 51-55, F
While Mainstream Pundits and Talking Heads spread gobblygoop about Job numbers and the Big Beautiful Boondoggle in Congress, by and large they completelyignore the fact the entire US Economy is built onnothing more than Debt. The US Economy is drowning in;
Consumer Debt...
Government Debt...
Corporate Debt...
Household Debt...


• Government Debt...
The Federal Deficit will to hit $1 Trillion, up from $950 Billion from the Fiscal Year ending last September(speaking charitably).

• Public Debt...
Amounting to $175,000+ per US Household. The US Treasury borrowed $488+ Billion in the first quarter. According to the CBO, payments on the Debt cesspool will roughly triple to $915 Billion in 10 years. The current trajectory suggeststhe Cost of the Annual Interest payments on the US Debtwill equal the Annual Costs of the Social Security Ponzi Scheme, which Costs will exceed Income this year earlier than expected. The Allen Stanford-Style Entitlement System will deplete entirely way before 2034.

• Consumer/Household Debt...
Total Consumer Debt rose by $176 Billion, a 4.8% Year-on-Year increase. Total Debt a record $3.87 Trillion. Outstanding Credit Card balances long since crossed over the $1.5 Trillion threshold. Auto Loans and Leases for Vehicles rose to a record of $1.13+ Trillion Dollars increasing by over $40 Billion Dollars. Student Loans jumped by 5.8%, increasing $84 Billion, to $1.53 Trillion. The US Education Department forecasted a $36+ Billion shortfall in Government Student Loan Programs.

• Corporate Debt...
Corporate Debt is far over 45% of GDP. According to Moody’s, the majority of US Companies have a “speculative” Credit rating, meaning they're considered high risk. The last time the Corporate Debt to GDP ratio was this high was before the 2008 Financial Crisis, and right before the 2000 Technological Bubble popped. There's $1.27 Trillion Dollars in Junk Bonds in the Marketplace. Research is,14.6% of S&P 1500 Companies are zombies, meaning their earnings before Interest and Taxes fail to cover their Interest expense. Corporate Credit downgrades have outpaced Credit upgrades since the first quarter of last year.

• Global Debt...
According to Gluskin Sheff, at the peak of the last Credit Bubble, US Debt across Household, Business, and Government totaled $27 Trillion, or 225% of GDP. Now standstills at $50 Trillion, or 250% of GDP. The Global Economy has added $25 Trillion of Debt to reach 318% of Global GDP. Global leveraged lending reached a new high of $1.6 Trillion in 2017, surpassing the previous record in 2007. Most leveraged Loans are “covenant-lite,” with fewer restrictions on Collateral, payment terms and level of Income.

There's Debt, Deficits, and Dependency as far as the eye can see. The article in Seeking Alphaexplained that exploding Debt will blow the US Bubble Economy into a Crisis. The Political Indentured Servants on Capitol Hill aren't interested in the Debt. Likewise, gullible and appallingly ignorant American Voters aren't willing to hold their State and Federal Representatives Fiscally accountable. Without any Adult Supervision, Debt is bringing the Crisis they were warned about, just as Sub-prime Mortgages did in 2008 when that Crisis forced Lenders and Borrowers to stop. The difference is that Government Debt is at the center of the current Credit Bubble.

It also begs another question;
• What in the name of good common sense would lead the American Public, Taxpayers, and Consumers to be unable to comprehend;

Debt isn't Wealth...
Paper isn't Money...
Free Stuff isn't Justice...
Warmongering isn't Peace...
Force isn't Morality...
Aggression isn't Moral...
Government coercion isn't Liberty.

The American Public, Taxpayers, and Consumers are paying for their own Enslavement, Serfdom, and throats being slit...

Boy, I'm very, very happy and relieved that I'm just about done getting out of the System and I've prepared and protected myself 😁...
samueltyler2 · 80-89, M
@Broache73 how did you get out of the system? You do know that there are 2 sides to any budget, revenue and expenses. You can only cut down expenses so much and then you make no money and go bankrupt. That is the classic store taught in business school of the men's store, Robert Hall, The other side is revenue, and in government that consists of such things as fees and taxes. If we continue to decrease taxes, the balance collapses and you have no choice but to go bankrupt.