The Stat Everyone Is Afraid Of.......
Everyone always says our deficit is under control by asserting that our deficit is only 10-12% of GDP.
However, few ever state WHAT PERCENTAGE OF THE GDP IS THE RESULT OF THE DEFICIT.
These are two very different stats in a system where production is driven by people's willingness to exchange their production for currency. If you have currency, you drive production giving that person currency to get even more production. There is a multiplier effect on the GDP to spending currency.
Where the convulsive part kicks in is where such currency is CREATED out of thin air through PREDATORY lending(loans that you know or should know can NEVER be paid back). When predatory lending drives currency creation, we have a whole bunch of currency floating around driving production from those willing to accept it until the lending stops...........and then production stops while the accumulating interest is impossible to pay back.
New home constuction is illustrative of such a cycle with contruction DOWN over 80% once the lending slowed......and it is down 80% despite a massive deficit by government and currency most of America is still willing to accept for their production.
Could you imagine what will happen if government stops borrowing currency it can never pay back?
PS: If America fails...we are all in trouble as we all get our FOOD, WATER and SECURITY from America. We will soon be asked what are we willing to give up to save/change America....and my guess is it will be a lot....as it should be, since everything we have is because of America....for those of you that are Americans living here.....but my guess if you are not American, your nation and system is not much different.