America Is Bankrupt and Sinking Fast

Where is the outrage? The Owe-bama administrations have been in a full-court press for wealth redistribution since January 2009. Some readers from the South say 'We elected him President'. In the words of the indian scouts with Custer 'What's this we stuff?'

Dr. Bernacke's term ends early next year. He has done his best to take the wealth of the poor and elderly and subsidize those “greedy” bankers. Taxpayers now own $5,000B of mostly toxic debt. I have been an investor for almost 20 years, and I would never buy foreclosed or defunct debt for 100 cents on the dollar. The banks may increase lending now that they have fewer “non-performing assets”, but the 2009 bailout resulted in a massive consolidation but not much lending.

We are forced to give the government our hard-earned resources through government taxes/fees, borrowing and printing money. There are fortunately enough in government who believe that we have been Taxed Enough Already – although they are are in the crosshairs of the American Gestapo (IRS). The world has grown cold to buying U.S. debt. The Fed now buys the majority. Debasing the currency has been used since the U.S. became a debtor nation. What cost $1 in 1913 when the Federal Reserve Act was passed now costs $23.49. I have a $100Trillion note from Zimbabwe demonstrating the extreme result of debasing a currency. I also have a $5000 coin from Mexico. Clinton had to bail out our neighbor during his first term.

We have had 2 large bubbles burst already this century – the tech bubble and the housing bubble. There are 4 others set to burst, the dollar bubble, the government debt bubble, the student loan bubble and the personal credit bubble. Many nations want to replace the dollar as the reserve currency with a “basket of currencies” - the dollar, euro, pound, yen and yuan. This would be like SDRs from the IMF. The national debt is about $17T. Interest is about $400B each year with a 2-year Treasury note at 0.3% If the interest rate goes to 3%, then the interest will be $4,000B. The default rate on student loans is often more than 20%. Interest rates will be tied to the 10-year rate + 3.4%. This is currently 5.38% As home prices recover, Americans will again use the “equity value” in their homes as an ATM machine. It would be a great time to remember that the debtor is a slave to the lender!