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Washington Faces Possible Armageddon Unlike Any Since Civil War
The U.S. debt crisis represents a unique, unparalleled, and unimaginable convergence of circumstances yet, despite the utter gravity of our plight, nothing is being done to change our course. Washington must either muster the courage — and the support of the people — to accept the pain and make the sacrifices of a lifetime … or face the downfall of America. Words: 938
Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com, provides below further reformatted and edited [..] excerpts from Martin Weiss’ (http://www.moneyandmarkets.com) original article* for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article reposting to avoid copyright infringement.) Weiss goes on to say:
The United States government and its agencies have, by far;
1. the largest pile-up of interest-bearing debts ($15.6 trillion),
2. the largest accumulation of unsecured obligations (over $60 trillion),
3. the largest yearly deficit ($1.6 trillion) and
4. the greatest indebtedness to the rest of the world ($4.8 trillion)… of any country in the world.
In proportion to the size of its economy, one important country, Japan, does have more debt than the U.S. Unlike Washington’s debts, however, nearly all of Japan’s are financed by its own citizens — loyal, long-term savers who are far less likely to pull out in a storm.
Despite the utter gravity of our plight, nothing is being done to change our course. To whit [below are 9 consequences of such inaction] …
1: Higher Interest Rates
Due to the avalanche of government borrowing to finance the deficit, there is no power on Earth that can avert sharply higher interest rates.
2: Higher Bond Yields
All long-term bonds — whether issued by other government agencies, corporations, states, or municipalities — will also collapse, driving their yields through the roof because, when Uncle Sam has to pay more to borrow, they inevitably have to pay more as well.
3: Higher Mortgage Rates
Rates on mortgages and car loans will surge. Why? For the simple reason that they’re also tied at the hip of long-term Treasury rates. If you want to take out a 30-year fixed mortgage (now close to 5 percent) on a median-priced home ($178,300), and you can afford a 10 percent down payment just …
a) a 1 percent rise in rates will drive your monthly payment from $861 to $962 [that's $1212 a year!]
b) a 2 percent increase will drive it to $1,068 [that’s $2,484 a year!!) …
c) and the kinds of rate increases possible in a bond-market collapse could drive it to levels only Midas could afford. Worse, if you go for variable-rate mortgages, balloon mortgages, or other now hard-to-get alternatives… (Go here to continue reading this article – no registration will be necessary.)
*http://www.moneyandmarkets.com/armageddon-10-37926 (Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. To view archives or subscribe, visit http://www.moneyandmarkets.com.)
Editor’s Note:
- The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
- Permission to reprint in whole or in part is gladly granted, provided full credit is given.
Short URL: http://www.veteranstoday.com/?p=47759
Posted by Lorimer Wilson on Sep 4 2010, With 0 Reads, Filed under Economy, Personal Finance. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.
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This crap was all started by our elected politicians. Washington D.C. is a complet mess. they dont listen to the citizens of this country. they do what they want. this is not democracy. its a dictatorship. the wealthy only have a true democracy, to F—–K the people of america. I say its way over due for a REBELLION HERE IN AMERICA. maybe its to late. all the SCUM BUMS IN WASHINGTON BELONG IN JAILS. they screwed up america to the max.
They do it on purpose.
To be honest the Gansta Banksters do a little better job at managing things then I gave them credit for.
The IMF and The World Bank are in reality the international arm of The Federal Reserve and that cabal of criminals and yes they are criminals and they understand the fiat money system, credit, how to rig and rip off the people.
Bend over baby
The IMF and World Bank are not, are not, are not “benevolent” organizations and they get those countries into debt slavery on purpose and the average person receives zero, zero benefit from it and spends their lives in debt slavery just to service the interest and never touch the principal and debt forgiveness is not so forgiving when you look at what it really entails and they never should have had that debt to begin with. Injustice and theft and the list of literal crimes up to cold blooded murder and assignation you can trace back to those Gansta Bankster is a mile long in reality. That sales man for slavery Bono from U2 that “good Christian” note the sarcasm and I need to clean up the vomit he just puts a kinder gentler face on these crimes against humanity and financial terrorism. He’s just the salesman. Bono – Time it’s on my side and I am 100% right. You’ve got big problems Bono.
Then let’s get to the Federal Reserve our American Arm of The Gansta Banksters.
It is a cycle and they do it on purpose. The Depressions and all that are carefully managed it is a game to them I think. Create a bubble, pop it, contract credit, deflate prices and then buy up the physical assets at fire sale prices and repeat the process. It is not an accident they do it on purpose until they own enough to pull the plug and own everything and then eliminate the middle class and you got that world of God’s and slobs they like.
It is commonly called a feudal system. It is done on purpose.
If they keep spending like drunken sailors they will create a serious devaluation of the dollar if not hyperinflation.
The IMF the en slaver of nations is in our books now.
Don’t think it could happen here.
Weimar Republic
Don’t cry for me Argentina
Zimbabwe; was the most obscene example of it I have heard of.
Tragic – They have bankrupted many nations
History Repeats
Solomon was right – There’s nothing new under the sun
The do it on purpose
They often create a war after the Depression. That, that is what WW2 in part was. It is historical if you go and look, really look and follow the money, follow the money trail all the way to the top. Then, then and only then you get your real answers. Follow the money trail all the way to the top.
Often if leads to:
The House of Rothschild
Rockefeller
The Vatican
The British and European Royalty
In reality with unfunded liabilities and Clinton spent the Social Security Trust Fund to bleed us (er-balance the budget) ect. We are about 100 Trillion in debt and we are essentially insolvent. It is just a matter of time. Something will give and we shall see how it plays out. They will probably come for the pensions next. Watch – Tragic I bet I am right.
If you think The Masters Of The Universe care about you – Silly no they don’t.
Period end of discussion
I know you get these – Don’t kid yourselves time it’s on my side this ends.
Period end of discussion.
There will literally be hell to pay
There is zero other option
Coming soon to a town near you-
and so the public fleecing game goes
and so the theft game goes
and so the human slavery game goes
and so the lying game goes
Time – Don’t kid yourselves it’s on my side
This, this crap it ends, – Period end of discussion
YOU WERE WARNED
YOUR LIFE YOUR CHOICE
JESUS IS POLITE – HE WILL HONOR YOUR CHOICE
TO REJECT HIM – HELL
THERE IS ZERO OTHER OPTION
Unless I missed it, add getting the hell out of money market mutual funds. (Cash held in a brokerage account may well be held 100% in such funds despite misleading captions on the statement like “Bank Deposits/Money Market Mutual Funds.”) They’re not FDIC insured, invest heavily in commercial paper, and, in the event of a default or insolvency of the manager or major counterparty, the investor-depositor is merely a general creditor who stands last in line and may lose what he assumed was as good as cash. There’s also a manager’s fee deducted from the absulutely minuscule returns.