Out Of 100% Of The USA's Economy, How Much Of It Is Borrowed?

Out Of 100% Of The USA's Economy, How Much Of It Is Borrowed?


The Country, both federal and on a personal basis had been on a credit binge since the 1980s, when both the National debt, public debt and private debt had been allowed to go on unabated for approximately 27 years, with Alan Greenspan and others being very much aware of the whole scenario, but doing nothing about it.

Then, in the 1990s borrowing went on an out of control binge, with people being encouraged to borrow, borrow and borrow, until credit became a way of life, with a whole generation knowing nothing but borrowing, and the attitude was "I see it - I want it - I 'buy it', and pay later", until the country had reached an incredibly dangerous borrowing level of about 300% of yearly income.

Then we had setbacks, when the original stock bubble bursted, then the dot com bubble bursted, but even that didn't stop the borrowing, and then the borrowing had shifted over in to real estate, where housing prices were inflated over 300% to 400%, and in some places even more, and this started the stock market on a new phony bull market run also.

Then banks had gotten in to the real estate bubble, and placed the inflated home values on to their books as assets, to where in many cases, these phony home values were a major portion of the banks so-called "Assets", and not only banks had gotten in to the highly inflated real estate bubble, but other companies, insurance companies,even state and local governments and many other types of companies of all kinds were putting working capitol into the housing bubble, and these were companies that had nothing to do with real estate, and they were getting headlong in to this phony, inflated market, and this included companies, unions and state and local governments investing pension funds in the realty markets.

Also CEOS and high ranking officers and employees were receiving, giant out of proportion salaries and pay packages, but nobody worried about it until the collapse came.

Then bad loans were rampant, where realty brokers, banks, etc. were lending to anybody and everybody, whether or not they thought that they could make the payments, and everything looked good on the outside, as long as everybody thought that they were making a good investment, meanwhile the reckless spending binge continued like there was no tommorow, people were having credit thrown in their faces continuously, with numerous banks and companies trying to give people credit cards.

Finally the borrowing binge reached such a point that things could be inflated no longer, and many borrowers could no longer make their payments on houses and many other things, and it was like a rubber band, when pulled to far, the credit binge snapped.

Then the binge went in reverse, and prices on homes and other things started declining, and the banks and insurance companies and other companies got stuck holding an empty bag, with million of mortgages that weren't worth anywhere near the prices that were on the books of the banks, etc. , and many of the banks found out that they were insolvent, and meanwhile the bank's ceos and top ranking officers were plundering the banks with giant salaries and severence packages, until the bank's stocks went to almost nothing.

Then they started going to the U.S. Government for bailouts, which is itself burdened with the most incredible debt ever incurred by mankind Almost $11 trillion and out of control and unpayable, and the government is, itself insolvent,the national debt along with state govs.,local governments, etc.

The next things to happen, are since the USA had gotten in to a 300% to income borrowing ratio, is that the whole perceived wealth of the country will contract and deflate about 2/3, and since the government and all industry was geared to the 2/3 or 200 % above real wealth economy, this means the average wealth of Americans will in a very short time be cut by 2/3, but probably much more, since the deflationary depression which is coming will probably in the next few years wipe out about 90% of the "wealth" of the country.

In the 1929 crash, in the 20 days of the market collapse, the market lost 50% of it's value, and never recovered from the initial collapse, and in the next three years, it lost another 37%, bringing the total loss to the country of 87%, but, then we didn't have an almost $11 Trillion national debt and $52 trillion of unfunded liabilities out there, along with over 700 military bases scattered across the world, we didn't have state and local governments going broke in the degree we do now, we didn't have rampant crime, and tens of millions of illegal aliens in our borders, who are not loyal to the USA, they are just here to take from the country, we had a moral country then, with most people being bible readers and having character, whereas now, we have a very immoral country, where anything goes

This can be compared to George Custer, who was a go-getter charge type of fellow, and being out numbered by indians didn't bother him, even after being warned by others of this great army of indian tribes that had banded together,Custer went charge, charge and after it was to late, he found out that he was outnumbered at least 5 to one, and couldn't even sound retreat, since he was surrounded on all sides, and we all know what happened to Custer and his men.

Our country went on a charge, charge binge for many years, without sounding retreat, but now, after being warned by many wise people about the dangers of our "Charge economy, we now find out that we're surrounded on all sides by enemies, with no where to go, it being to late to sound retreat.

There is, however a caveat here, and if this so-called bailout looks outwardly like it is working, it will be because of all the money the government is throwing at the crisis, but all this is doing is printing up more money to throw into the system, inotherwords, it means inflating the currency, more money chasing fewer goods, so that will be a gigantic inflation of the currency, and that means the dollar will be on it's way to being worth zero, like the Weimar Republic of Germany from about 1921-1924, where the Mark went from 2 marks to the dollar to four quadrillion to the dollar, and all of this on top of the national debt.

People will have their pockets full of more money, that buys less, day by day by day, until it buys nothing, or people can use it for wallpaper or to burn to stay warm in the winter.
SEE LINK WEIMAR REPUBLIC 1919-1923(SILVER & GOLD)