Total economic collapse in the U.S. - Imminent danger to the U.S. # 3
By Don Koenig - 2006
Possible Cause - The United States has now mortgaged her future and any unforeseen event or events in the U.S. can bring the whole economic house of cards down. I will only make a brief statement here because I have already written a much more detailed article on this danger in the "world trends" section of this website. I wrote that article seven years ago but I update it.
After the latest bear market. I really did not think people would so soon get back into irrational jubilance because any sober look at the world situation and the U.S. debt load leaves no real hope for a good outcome. I now believe gambling and blind optimism has been bred into the U.S. population. The proof is not only found in the stock market speculators and the housing speculators. The proof is also found at the hundreds of casinos and thousands of lottery vendors that have sprung up all over the nation. Most do not see the gambling that is going on in the financial markets but it is irrational and it will bring the ruin of this nation. I believe that a future crash is now more likely than ever. Many in the U.S. are walking a high wire with blinders on even through huge storms are about to hit.
U.S. vulnerability - Six years or so ago, the U.S. government was projecting that it would be running a surplus for many years even decades. I warned that this assumption was not rational and has never occurred long term since the U.S. government started giving out IOU's. The economy of the U.S. has always had downturns; it is a natural business cycle. When the economy did go south several years ago all the surplus dried up so now no one in the U.S. is talking about spending surpluses anymore. Now, everyone is talking about how to cut government programs and curtail deficit spending. However, in the real world of government there are no cuts, there is just more spending at all levels.
The U.S. economy is growing again and it has been for several years but the national deficit last year was the largest ever in the history of the world. It will exceed 500 billion dollars. The trade imbalance was 700 billion dollars. If the United States is running these kinds of deficits in a growing economy can you imagine the deficits that would occur if the U.S. economy once again took a downturn? Pray that this will not happen because if it does the United States and the world might see times on earth worse than the great depression of the 1930's. It could also reduce the United States to less than a superpower as the recent depression in Russia reduced her superpower status.
Effects - No person or nation can keep spending huge amounts over what they receive in revenues. At some point no one will service their debt. When this occurs the person or nation either goes into poverty or they sell their soul to lone sharks that will enslave them.
Likelihood of a depression occurring before 2025 AD?It is almost certain that the U.S. economy will crash because of the debt load it carries before 2025 AD. I would have to make the likelihood of a depression occurring by 2025 as 9 on a scale of 1 to 10. We have 70 trillion dollars in unfunded liabilities coming due in the next few decades. The only hope of avoiding an economic collapse and a depression is twenty-five years of growth without a downturn along with twenty-five years of low inflation. Even moderate inflation would make the servicing of the debt much more expensive and cause higher interest rates. That in itself itself would bring in a inflationary depression. Contrary to what the government is telling the American people the United States is already in economic decline because inflation and the falling dollar is eroding the buying power of Americans faster then the earnings of the American people are rising.
What can the United States do to avoid this economic collapse?She should not have gotten into this situation in the first place. All people and nations must live within their means. The U.S. is now so far into debt that the collapse is probably unavoidable. To now drastically curtail spending or increase taxes to lower debt would only bring about the depression and economic collapse sooner than doing nothing. As I said, the only way out of this is through growth. Nevertheless, I simply do not see that kind of growth over the next twenty-five years unless the nation returns to God.
There is one other way that the coming economic collapse can be delayed and that is to do whatever the globalist banker loan sharks want. They want us to let in 100 million more young immigrants who will help pay the unfunded liabilities that are coming due to support the old. This may be the real reason why the government is doing nothing to stop the millions of immigrants from entering the U.S. legally or illegally. Next, when the U.S. becomes much like Mexico the loan sharks will push for the creation of the North American Union. Of course when that happens the American Constitution will be dead and everyone will be slaves of the loan sharks.