What Happens When Government Needs ALL Of The Citizens Money
Our colleague Rob Arnott, who always does terrific research, wrote in his recent report that "at all levels, federal, state, local and GSEs, the total public debt is now at 141% of GDP. That puts the United States in some elite company--only Japan, Lebanon and Zimbabwe are higher. That's only the start. Add household debt (highest in the world at 99% of GDP) and corporate debt (highest in the world at 317% of GDP, not even counting off-balance-sheet swaps and derivatives) and our total debt is 557%
Total Debt now 557% of GDP while government running a $2 trillion dollar deficit.........AND THE ECONOMY ISTILL CONTRACTING IN MANY INDUSTRIES suffocating under unsustainable debt burdens!!!!!!!!
New Home Sales down 80%
Auto Sales down 50%
Commercial Real Estate Construction down 80%..(Shopping Ctrs, Condos, Office Towers)
We are now at the point of no return as debt service and taxes is sucking most of the revenues of our economy and very little is left for goods and services. Even if we taxed the top 10% of income earners, those making over $100K per year, 100% of income, it would not be enough to cover the deficit.
Currently, debt service is sucking the savings from America. The wealthy are liquidating their toys and luxury homes as fewer can afford the maintenance, even if they own it free and clear. Many public corporations are running out of money and are tapping our pension funds with additonal borrowing drawing down the assets of underfunded balances even further..
All of this happening while Benny B and his banker buddies are laughing at Americans as they can't even see what is going on despite 20% unemployment and collapsing tax receipts.
Although only reported at 27% by the Fed.......Detroit's Unemployment Rate Is Nearly 50%, According to the Detroit News
Soon our pension funds will run out of money funding our insolvent companies and govenrment will not be able to borrow......at that point America will be Zombulated and the only choice for government will be to face the anger of its people or attack other nations to hyperinflate its currency to worthless paper.
It appears we are well on our way to both as the savings of our nation is sucked dry and revenues evaporate......
It may take months before the United States deploys 30,000 new troops to Afghanistan under Barack Obama's latest surge, but the U.S. military is already rushing to expand its "Drone War" in neighbouring Pakistan's troubled tribal areas.
Last year Concentric Contraction hit our shores will full force bankrupting our banks and auto companies.....instead of restructing the debt, our government bailied out the banks and left the citizens out to dry sticking them to suffer with the debt burden.
As we approach 1.01.10, Concentric Contraction will stimulate a revolution in America....we the people will need to be taxed 100% of our net worth or our government will be insolvent as our deficit is growing exponentially....if the latter occurs, we are still broke...... as citizens are jointly and severally liable for the debts of their nation, especially if government goes to war.
1.01.10 When Concentric Contraction results in Zombulation Nation.....and much of the world for that matter.................Global Warming could be a lot hotter than most currently perceive.