Credit Collapse in United States

May 10th, 2013

This is written in May 2013. The United States is in the midst of fighting a credit collapse that has been building since 1971. Over the past 42 years the growth in credit has risen from under 2 trillion USD to over 50 trillion USD within the US economy. That growth in credit brought forward tremendous development of infrastructure, business, and entertainment that would not have been possible under traditional capitalism.

credit collapse

We in the US have been living in an economic system best described as creditism since that date in 1971 when President Nixon closed the gold window and the dollar was no longer convertible to, or backed by, gold. When that happened there was no difference between credit and money. Both were just numbers on a piece of paper or digital numbers assigned to various financial accounts.  Most Americans never knew things had changed and many still believe today that somehow the dollar is backed by gold. It is not. That ended in 1971. We do not have a traditional capitalistic economy. Our economic system in the US since 1971 is best called Creditism… that is different from the processes of Capitalism. We have not lived in a traditional capitalistic society since 1971.

As the amount of credit and money grew from 1971 to today, folks in the US and then around the world experienced a world brought forward to reality that traditional capitalism could never have created in so short a time. It was wonderful in many respects but there is a concern… that concern is that the growth in credit and money eventually outstripped the ability of the borrowers to pay. The average household income in the US has been declining for many years now, but the amount of credit and money in the economy has continued to grow. We reached a point where the debts were too large to pay back and the result of that is the credit bubble that had been growing since 1971 began to deflate.

That deflating of the credit bubble would have naturally lead to a shrinking economy if it had been left to run it’s course. The US government stepped in in 2008 and 2009 with dramatic efforts both monetarily and fiscally to keep that deflation from occurring. It would have led to an economic depression if that government action had not occurred.

The bad news is that the dynamics driving the credit deflation are still alive and well in the economy. The debt is still too high relative to the financial resources available to service that debt. The credit bubble wants to shrink. That means there is an economic depression that is trying to manifest itself in our economy. All those forces and impetus still exist. Do not be fooled by the rising stock market, or other cheery news such as a better housing outlook. Only the massive money printing of the Federal Reserve is making that happen. The rollover of credit to a downward phase is still very much present. The forces behind that rollover are still powerfully present in the dynamics of our economy.

We need an awesome technology breakthrough, such as the realization of fusion energy that would cut energy expenses by 90%, to change the forces that are pressing for a credit collapse. Pray we find that sort of world changing breakthrough soon.

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US Crisis – The Coming Pain

November 10th, 2012

US Budget – White House 2013 Budget Plan

The US Federal budget shows a fiscal mess. We had to borrow the entire cost of operating the Federal Government in 2011 and 2012 and will likely need to do the same onward. The annual deficits exceed $1 trillion US dollars each year. This adds to the US debt which is over $16 trillion. That debt size is now the size of the entire US economy. The debt levels are only getting worse year after year. This is not sustainable.

There is another related matter of concern. Our US Dollar is being debased. The US dollar is backed by nothing… NOT gold nor silver. It’s just paper that we all accept for now.

Where does this lead? It leads to a sovereign debt crisis and right behind that a US dollar crisis. The pain that inflicts on a society when those crisis hit can be truly awful. Read on to better understand why.

The US is embarked upon a program of increasing our people’s dependence upon Federal government programs in the form of food stamps, loans, unemployment checks and numerous other programs. Americans are being turned from independent free individuals to folks dependent on the White House for support. It’s a back to the plantation model of society. Truly horrifying if left unchecked. It is an enslavement of Americans in spirit and fiscal fact by the Federal government.

Take a look at the White House budget and key concerns and issues: http://www.whitehouse.gov/omb/budget_factsheets_key/  Looks like everyone is covered, right? Not quite. What group is not a key issue or concern of this Federal government? Look the list over and see who is missing. That is one disempowered and neutered group of Americans.

The US cannot spend money it does not have when critical debt levels are reached. There’s a break that comes – likely fast and suddenly – when a sovereign debt problem manifests. It’s bound to be ugly in resolution. And when all the Americans who have been made dependent upon the Federal government no longer can find support, food and sustenance where will they turn? Americans will turn. Think about what this gross mismanagement of our Federal government is creating. It’s a Friday the 13th on steroids. This terrible problem is being created and is worsening, year by year. You can see it happening. The numbers don’t lie. The numbers are published. You are being forewarned.

Take some time to look at this situation. Who are you going to call? It’s going to get scary one day if we don’t face this and address the growing debt problem and US Dollar debasement.. That bit of darkness is coming. This situation is not improving and there are no plans that will meaningfully improve it in the cards. Quite the contrary. The current Federal government leadership is actually implementing programs and policies that make this fiscal problem worse. Our leadership is largely ignoring it. We are ignoring something that is stunningly awful if it is permitted to unfold. Come on now, wake up!

Declaring war on Iran is not a solution. Politicians will find war on some outsider a compelling distraction to the hard situation ahead. They won’t stand accountable. The American people will suffer this pain in blood and treasure lost. The current leadership and politicians are creating this potential, and increasingly likely, outcome by their actions, or lack of meaningful action. The adults do not seem to be in the room at the moment. It takes courage to face these issues now and address them. Where are our competent and aware leaders? Who is standing up to all this foolishness? The adjustments required to prevent a US sovereign debt crisis or a US dollar crisis are likely quite painful. Americans who are accustomed to Federal government support will find much less support available. This will test all Americans.

Don’t sit back idly and let this unfold without a word of concern expressed. Come on now, think about this. The writing is on the virtual wall. Do the math. Think about what is happening before your eyes.

Concerned? Then contact your Senator or Congressman.

Watch the video:  http://youtu.be/3piisLv24fU

 

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How Can I Get Rich

November 9th, 2012

A favorite question of many. Monetary wealth is what many people think of when they think of riches. The lower class and middle class think getting rich is the lottery or a dead rich uncle. The rich class knows it’s all about solving problems. The bigger the problem, the more riches can be realized from finding and providing the solution.

Wealth in gold

Want to get rich? Look out into the world and identify problems. Get a problem that you can solve that will help many people. The world is full of needs and problems. Use your eyes to see and your brain to solve. You can do this. Riches can be yours. Solve problems.

Riches will not come from drinking, partying, watching TV, memorizing sports stats or other self indulgences. Look into the world and find a big problem. Solve the problem and bring that solution to the world. Get rich.

Article Topic: How Can I Get Rich?

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The Rich in America: Power, Control, Wealth and the Elite Upper Class in the United States

November 9th, 2012

thefilmarchives asked:

The American upper class describes the sociological concept pertaining to the “top layer” of society in the United States.  This social class is most commonly described as consisting of those with great wealth and power and may also be referred to as the Capitalist Class or simply as The Rich.

Persons of this class commonly have immense influence in the nation’s political and economic institutions as well as public opinion.  Many politicians, heirs to fortunes, top business executives, CEOs, successful venture capitalists and celebrities are considered members of this class.  Some prominent and high-rung professionals may also be included if they attain great influence and wealth.

The main distinguishing feature of this class, which is estimated to constitute roughly 1% of the population, is the source of income. While the vast majority of persons and households derive their income from salaries, those in the upper class derive their income from investments and capital gains. Estimates for the size of this group commonly vary from 1% to 2%, while some surveys have indicated that as many as 6% of Americans identify as “upper class.”

Sociologist Leonard Beeghley sees wealth as the only significant distinguishing feature of this class and, therefore, refers to this group simply as “the rich.” ” “The members of the tiny capitalist class at the top of the hierarchy have an influence on economy and society far beyond their numbers…”

The Wealthy Americans

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Chris Rock About Wealth

October 1st, 2012
What is Wealth?

Chris Rock is a funny guy. His thoughts on wealth are entertaining and there’s more than just a grain of truth to it all.

Wealth is a measure of the value of your assets. What is everything you own worth minus the debt you owe to others? That’s a measure of your material or monetary wealth. You build wealth over time by having assets that grow in value, such as homes used to do prior to the downturn of 2006. Businesses that grow create wealth for their owners. Many small business owners in the US are wealthy from the value of their business and from the income that has given them over the years to invest in other things that grow  in value too… such as other real estate, fine art, precious metals such as gold and silver, and some financial assets such as stocks and bonds.

Wealth creates a relief from fear and discomfort caused from not having what you need to lead a healthy, secure and safe life. It’s no fun when you do not have the wealth to retire in comfort or help yourself or others when needed.  Wealth is security from bad times or bad events, and it enables you to lead a more fulfilling life if you choose to. With wealth you can help others and create a better life for others and yourself too, or you can just indulge yourself too. How you use your wealth is a measure of the quality of your character and maturity as a person. There are as many paths to wealth as people in the world… find your path and be ready and expectant of receiving all the wealth you dream of and desire. It’s there… are you ready?

 

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Creating Multigenerational Wealth

September 1st, 2012

Wealth Management:

Renowned financial expert and journalist, Alfred Edmond Jr., gives a no-nonsense lecture about how to improve your financial situation and provides insightful tips on how to ensure you have financial security as you approach retirement.

US Wealth Distribution

We would all like to retire in financial security. By a large majority, most Americans do not. Most rely upon Social Security benefits and other government aid to assist them in their retirement. That’s to be expected given the distribution of wealth and income in the United States. Income and wealth are highly skewed in the US.

The plan truth is most folks are just making it day to day. About a third of Americans rely upon government transfers to help them eat, have place called home and some access to medical care. That’s just the way income and wealth are distributed in America.  Most folks don’t realize just how concentrated wealth and income are in the US.  The chart to the left tells the story…

Most Americans just don’t know how income and wealth are really distributed in the US.  It’s as skewed as the chart above shows. This is one reason many Americans rely upon the Federal and State governments to help them in their retirement.

 

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