The sky IS FALLING (in graphs)

The NCAA tournament isn’t over yet but we know its coming to an end in exactly 16 days. If I was to tell you it’s not over yet, I would be correct. But does change the fact that is will end? Of course it doesn’t. For many people, because we haven’t seen bread lines or riots in the streets the “sky isn’t falling” yet. Does that change the reality that our economy is on the downside of the bell curve?

When the FED dropped interest rates back in ’07 the idea was that it would incur borrowing from the public & private business; therefore creating new/bigger business and in the process creating jobs or at least not hemorrhaging more than the economy was already in the process of doing. Then the rates kept dropping and dropping and wont go up until the very least 2014 and then what? Go up? The debt will explode in a hyperbolic fashion.

This graph shows we paid MORE in interest on our debt in 2008 (10,024,724,896,912.49) then we did in 2012 (16,066,241,407,385.89). How do you pay LESS interest on six trillion more in principal? There is only one solution; you pay substantial less interest. 

As we know, unemployment has dropped from its high of 10.0% back in ’09 to 7.7% as of last month but at what cost?

GDP has only seen moderate gains during the last five years and in fact, as you can see below, the last quarter actually seen our GDP in decline; despite the fact that private GDP rose in the same period. 

Some people will point to the cuts in defense spending as the main culprit and they would be correct (as defense have seen a 22% drop in spending) but if running nothing short of an empire and that is how we are keeping afloat in the first place, well… 

Mortgage rates are now at their lowest rate in recorded history and this has been a yearly trend these last few years. Only now in March of 2013, are we beginning to see signs of the real estate market coming back to life; despite a plummet in interest rates the last six years that were supposed to (as said in my opening) entice borrowers. Was it worth it?

Was it worth it and at what cost are the two questions I pose to you today. At what cost and is it worth it to live for today at the expense of tomorrow?

The CBO estimates of this nation’s debt keep getting worse, study after study. This is a quite simple process: the interest rates remain low, the debt piles up and the economy barley moves. These projections below are based on current conditions. Remember, zero is the end game; there isn’t much that can be done after that. We are basically at zero interest rates now.  

These examples I gave are just the tip of the iceberg and they are all interconnected. And that iceberg is the general public of this nation being so inundated in debt, so much so that we are getting to the point where offers of basically free money can’t move the needle any longer. These last four years of record low interest rates with barley a crawl until four, five sometimes six years later illustrates this quite luminously.

With wages not keeping up with real inflation (not the phony government statistics) and the globalization of the market, incomes for the average American (an overwhelming majority of) are stagnated; if not in decline. Is there any way that changes? Of course not, this is the new reality.

So to keep up, for most Americans, debt is the only logical solution. Afterall, we know saving via the conventional bank route is futile with rates being under 1%. And as we know debt = money, so when the economy can’t jump start and the FED’s QE programs don’t jump start growth; what else can the FED do? It’s been said by Bernanke that the quick death of deflation will not occur, so that only leaves one alternative; go to zero and close its eyes. Then hold on for limb and life as the decent to a slow death via hyperinflation begins.

The political process here has become a joke. A crooked game ran by self-serving lawyers and career politicians hell bent on seeing who can kick the can down the road the furthest. What was once a calling of statesmen has been replace by a bloodthirsty pack of statists. Republicans blame Democrats for not cutting spending despite having no solution themselves and god-damn you if you want to cut a bloated defense budget! Democrats want to actually ADD to the problem with a monstrosity addition to healthcare. While both “sides” will tell you it’s the other guys fault. Then all the puppets and zombies watching/reading the propaganda will parrot it. You think this is going to change?

At this moment, under these terms we are watching the beginning of the end finally become visible before our very eyes. Americans and their distractions have reached the crescendo. They can no longer afford them. The sky isn’t falling, but our economy is. It’s circling the drain, not as fast as Greece or Spain but its circling nonetheless. So move over American Idol, the freak show isn’t just in your living room its right outside your window. Get ya’ popcorn ready.

Lets play connect the dots...

From Barack Obama 7-16-2009:

“First of all, if you’ve got health insurance, you like your doctors, you like your plan, you can keep your doctor, you can keep your plan. Nobody is talking about taking that away from you.”

Ok, so your only really talking about the 40+ million of uninsured Americans getting on board with this plan then, right? I mean this has nothing to do with the majority of the population already happy with their healthcare, right? Something just doesnt sit right with this, lets think about this in broad terms.


According to Healthcarevoices.org:

U.S. employers have been shifting costs to workers: workers’ payments toward premiums have more than doubled since 2000. Or, the employers drop coverage altogether: the number of employers offering health insurance has dropped from 69 percent to 60 percent in the same eight-year period

Why the push the cost onto their employees?

The annual premium that a health insurer charges an employer for a health plan covering a family of four averaged $12,700 in 2008. Workers contributed nearly $3,400, or 12 percent more than they did in 2007.*Henry J. Kaiser Family Foundation

Now what can we expect in future costs? Here is the last four decades, as we can see, the industry cost wise is expanding and exploding exponentially.

According to The Congressional Budget Office:

Health care will grow from 16% of the country’s gross domestic product in 2007 to 25% in 2025, unless efforts are made to rein in cost growth.

So because the price of Healthcare is exploding exponentially and with the government now increasing the tax burden on business at a time where the economy is on the ropes, is there a better remedy then to have government come in and offer healthcare to all people, freeing business to turn those savings into capital? Of course not and if implemented, not so long after will you see American businesses stop offering healthcare thus pushing everyone on "Obamacare."

Broadly speaking, the difference between Socialism and Fascism are simply who owns the companies. Both are funded by the state, but in a fascist state we do still have private owners of businesses, so rest at ease...at least we wont be socialists.