Three Statistics Which Spell Doom for America

truther October 15, 2013

Dave Hodges

There are three numbers that every American should be paying attention to and they are (1) the national deficit, (2) the unfunded liabilities debt, and (3) the derivatives/futures debt. When any reasonable person looks at these three sets of numbers and related statistics, there can only be one conclusion, which I will present at the end of this analysis.

To conduct this analysis, I am going to use some commonly agreed upon figures. The budget deficit is $17 trillion dollars, unfunded (partially or otherwise) mandated social programs constitutes another $220 trillion dollars and the credit swap derivatives total between $1 quadrillion dollars to $1.5 quadrillion dollars. In this analysis, I will use the very conservative $1 quadrillion dollar figure. These figures are not in dispute and therefore provide me with the basis to perform an analysis of what our collective economic futures hold.

Budget Deficit

America  takes in $2 trillion dollars per year in tax revenue. The United States has a $17 trillion dollar deficit. How long would it take to pay this debt back? If one can do third grade math, the answer is very simple. On the surface, someone reading this would say we could pay this debt off by in 8.5 years.  The correct answer is simpler, we can never pay this debt back. This is the ultimate catch-22. To begin to pay off the debt, we would have to cancel all government services. In this case, you would have no government, only anarchy.

Even if the government could donate $1 trillion dollars of its revenue source to paying down the debt, the government deficit would still be increasing at a ratio of 8.5 to 1 even if we were to reduce the governmental operating expenses by a whopping 50%.

Only pensions and bank accounts are left to confiscate.

There is no sacrifice that the government, nor the taxpayers can make. There is nothing that can be done which will result in paying off the deficit because from a mathematics standpoint, we are passed the fiscal cliff. From a budget deficit standpoint, our national fate is sealed. We have no hope of paying off the budget deficit. And amazingly, the budget deficit is the least of our financial problems.

The consequences of not paying down this debt are unmistakable and you do not need to be a Wall Street accountant to figure this out. When you take out a loan, you must first collateralize the loan with hard assets. When we default, a desperate Congress will do what third world nations do, namely, borrow the money from the World Bank/IMF. As we have seen on the plains of Africa to Bolivia, when these countries predictably default on loan sharking deals from the World Bank, a country will lose total control of its infrastructure. Our water, our electricity and much of our food supply which is federally supported through various programs will revert to our creditors and they will be able to charge consumers, for these essential services, whatever they want. Maybe now, the imposition of smart meters on all of our homes which will regulate specific power usage, makes a great deal more sense.

If America is allowed to get to the point of national default and the abrogation of all of our national resources, we will indeed be fortunate. I do not believe that this country is going to be allowed to survive intact and live under a banking dictatorship. Before we reach the point of loan default and the installation of new national management which will replace our Congress and our President, this country will have entered a genocidal chapter in its history. We will be rocked by civil war emanating from food riots. The American people could only hope for a loan default as the best possible outcome.

Unfunded Liabilities and Mandates

When we look at Social Security, Medicare, Medicaid and all the government programs that we all take for granted, the price tag is a whopping $222 trillion dollars. These numbers are going to be exacerbated and grow exponentially because the bulk of the baby boomers are entering retirement age. Even if we took every single penny that the federal government takes in and devote it to paying off these social programs, it would take 111 years to pay off this debt. This is simply not possible because the previous statistic is predicated on having no government because if you are paying all the national revenue to the debt, there is no government. With no government, how would we pay any government officials to administrate the system? This does not even include providing for necessary national defense, law enforcementand other essential services. In short, America, we cannot support these social programs for much longer. The game is up. Soon, 30 to 40 million Americans will be without their healthcare, without food and without shelter. Don’t throw bricks at the messenger, the numbers do not lie.

The Derivatives Debt Was the Death Blow to America

In the United States, credit swap derivatives created national debt totals of over one quadrillion dollars. That is one thousand trillion dollars! The entire GDP of the planet is estimated at $66 trillion dollars. And somehow, in the infinite wisdom of Congress in 2008, we falsely and naively believed that a $750 billion transfer of wealth (i.e., Bailout #1) was magically going to save the economy and the collective futures of the American middle class. In short, the debt created by futures speculation is approximately 16 times greater than the sum total of the entire wealth on the planet! And we think we are going to climb out of this? Let’s take a moment and discuss the derivatives debt.

 

When George W. Bush left office, a gallon of gas was $1.57 per gallon. The rapid increase in the price of fuel during the years since Obama took office is a good example of the destructive nature of the derivatives market. Most of the price gouging which resulted in unprecedented increases in gas prices, and record oil company profits, was due to speculation in futures market especially by Goldman Sachs which just happens to be former Treasury Secretary’s Henry Paulson’s old company. Paulson told Congress in 2008 that if they did not acquiesce and fund Wall Street, there would be blood in the streets and martial law would have to be declared. Congress had their hand on the chicken switch and allowed the US Treasury to be raped by these criminal bankers.

Today, the derivatives market is again collapsing, despite unlimited rounds of bailouts (we presently are on QE Unlimited).

 Derivatives are not anything of tangible value such as stocks, bonds, etc. They represent the ultimate illegal money game in which paper derived from other paper, such as futures and options, has served to bolster the balance sheets on Wall Street. Futures and options are exchange traded derivatives, but the largest group of derivatives is not even traded on the exchanges. These are called “counterparty derivatives” and consist of such financial entities as mortgage backed securities and credit default swaps. And as a reminder, the Federal Reserve is printing $40 billion dollars each and every month to purchase mortgage backed securities. Why? Because after the collapse they want to own hard, tangible assets, not useless cash. This action, alone, tells you that the bankers are saying that the American economy has hit an iceberg and is sinking fast. The Federal Reserve is metaphorically purchasing all the life boats and are leaving the rest of us to drown.

 

“One Quadrillion Dollars”

 As I previously stated, it is estimated that the total derivative exposure of the financial system is between one quadrillion and one and a half quadrillion. A quadrillion is 1,000 trillion dollars and it has largely collapsed. What does not get widely reported is that each one of these derivatives transactions required the underwriting of a bank with a high credit rating. This house of cards effectively collapsed the banks who are living on borrowed time along with bail-outs and cash infusion from the Federal Reserve and the outright theft in such debacles as the MERS mortgage fraud, the MF Global theft, and of course the $40 billion dollars being spent each month on mortgage backed securities.

Conclusion

Shovel dirt on America’s grave. The America we knew has died. The present thievery of the banks constitutes the last great American garage sale as the vulture bankers are picking the financial bones of America completely clean. The banks and their executives are trying to steal everything that is not nailed down. They have commenced attacking the pensions and soon it will be the bank accounts, houses, farms and businesses of America. In short, the banks are to come out the other side of a financial collapse with as many tangible assets as possible. The American middle class is being asked to bear the burden of the entire derivatives market which totals over 16 times the net value of the entire planet. If this financial debt problem had a cure, then ask yourself why so many corporate heads are building homes overseas? Why did George H.W. Bush build a 100,000 acre ranch in Paraguay? Why is NORTHCOM, a combat organization, engaging in continuing nonstop urban riot control training? Why did FEMA and DHS schedule 10 disaster drills between September 25th and November 13th? Are we to believe that all of these factors are unrelated? It is looking more and more like the bail-out money, which was no more than the private theft of public money, is actually doing what the name implies, it is bailing out corporate executives in advance of the coming crash. America is being forced to fund the getaway gifts for those that have stolen so much from the American people!

Once they have our hard assets, it will be anarchy on the streets as very soon, it will be every man for himself. And there is a lot to write on this topic, just not today, I have to go play golf with my son, while I still am able.