Want to know what a disaster looks like? Here you go…

Buy Gold Buy SilverI had a request the other day, a new subscriber to these posts stated that she was very interested in the “dots” that we have been connecting when it comes to the BRICS and the timing of everything else we’ve been discussing recently (if you haven’t been reading these posts you may want to go back and catch up on the last few, you can click here to do that).

She said she understood the last few blogs about China and Russia and the significance of the oil for gold deal, the Russian version of the SWIFT system, the Fed’s increasing interest rates, the stock market breaking records almost daily, etc…

What she asked for was break down as to why she has been reading that so many countries are looking for ways around the dollar.  I decided that was a good topic to cover this week being that the stock market closed over 22,000 today, Wednesday, August 2.

This will probably turn in to a multiple part series, we’ll see where this leads as there is no one single answer to her question. There are answers that are weighted heavier than others. Today I want to talk about one of the heaviest. Our national debt.

I have been reading for a very long time how we are in the end times of the greatest debt bubble this world has ever seen. I will go on record saying that is the truth, we are indeed in a horrible, horrible place financially as a nation when it comes to our massive, massive debt levels, both federal and private debt.

In 1970 the national debt was approximately $371 billion, *consumer debt was nearing $132 billion, 1980 the national debt hit approximately $908 billion, consumer debt $352 billion, 1990 national debt was $3.2 trillion, consumer debt was at $808 billion, 2000 the national debt was $5.67 trillion, consumer debt $1.7 trillion. Here come the Obama years, 2008 nation debt was $10 trillion, private debt $2.64 trillion, by the end of 2016 and Obama’s administration the national debt hit $19.9 trillion and non-mortgage consumer debt was approximately $3.8 trillion.

*The source I used for the consumer debt is the Federal Reserves very own website, the link is below, please note that this DOES NOT include mortgages! Add mortgages in the mix and you add trillions more!

In 1980 combined national debt and private debt was around $1.26 trillion, fast forward to December 2016 we are combined at $23.7 trillion.  From 2008 to 2016, $12.64 trillion to $23.7 trillion.  Please know that this is surface debt, this is not including mortgages, unfunded debts, and frankly many other forms of debt that are too numerous to mention. If you add the just the mortgage debt in to this number in 2016 as a nation, Federal and private debt was over $41 trillion! Let that sink in for a moment! Add in non-funded debt and the like and no one seems to know for sure, I saw numbers in the $200 trillion range. Those sources are not validated so take that as you will. The Federal reserve says on the surface we are over $41 trillion in debt as a society! That is beyond scary! It’s truly insane.

Here are the links you can see for yourself.

https://www.thebalance.com/national-debt-by-year-compared-to-gdp-and-major-events-3306287

https://www.federalreserve.gov/releases/g19/hist/cc_hist_sa_levels.html

We are quite literally committing financial suicide as a nation, I don’t think that there is another way to state it. This is why other countries want out of the dollar, it is strangling itself to death, taking your savings, your pension, your retirement, your paper assets along with it.  What makes this even more sad is that a vast majority of American have no clue what going on or what’s about to happen.

There has never, ever in the history of this world been a culture so debt-ridden as the United States is today. Those whom have come close (which when I say close I mean, literally, no where even remotely close, we are indeed number one by a very long stretch – better stated those whom were in somewhat similar financial predicaments) are no longer around to share the stories. Think about that too.

Just a few more numbers to throw at you: to pay off our debt (national and personal – also note that this is not including corporate debt) it would take approximately $330,000 per household.  Couple that news with a claim made by APNews.com that stated 2/3 of all American’s could not come up with $1000 dollars if required to for an emergency. I’d say that we are in some trouble.

Do you have $330,000 you can give the government, after taxes of course?

Someone has to pay it back or else we default, crash and burn as so many other countries have throughout history who dare play the deep in debt game with fiat (backless) currencies. We will not be an exception. Eventually it will have to stop this non-sense and I’ll guarantee you it will not be the one’s who make and approve the federal budget who will suffer! You can mark those words.

Who will suffer the most? Those who are heavily invested in paper (stocks, bonds, most IRAs and 401Ks etc…) and those who are not invested in anything (those who only have cash) will be the casualties of this disaster.  We’ll all suffer, those who have financial insurance will suffer less. That is, after all, why you have insurance!

We are in a massive stock market bubble today, the Dow has officially closed over 22,000 and may very well keep going up in the short term. I’ve covered the artificial boosting of the stock market numerous times, I’ll not get in to that now. What we know for 100% certain is that the numbers do not add up. Far too many of the companies that are cashing in on huge stock price increases do not have the bottom line figures to justify the valuations.  That’s a topic for another day (and one I’ve covered numerous times).

This is not a scare tactic, please, by all means do the research yourself, make up your own mind based on what you piece together. I’m in this all day everyday and have been for many years, these are the dots that I am connecting and the picture it is creating is not pretty. I am as nervous/scared about all this as any one.  The consensus is that there is no way that this is going to end well. The question is, how much longer can they prolong the inevitable?

Do you have financial insurance?

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