Three Statistics Which Spell Doom for America

Dave Hodges

October 14, 2013

The Common Sense Show

There are three numbers that every American should be paying attention to and they are (1) the national deficit, (2) the unfunded liabilities debt, and (3) the derivatives/futures debt. When any reasonable person looks at these three sets of numbers and related statistics, there can only be one conclusion, which I will present at the end of this analysis.

To conduct this analysis, I am going to use some commonly agreed upon figures. The budget deficit is $17 trillion dollars, unfunded (partially or otherwise) mandated social programs constitutes another $220 trillion dollars and the credit swap derivatives total between $1 quadrillion dollars to $1.5 quadrillion dollars. In this analysis, I will use the very conservative $1 quadrillion dollar figure. These figures are not in dispute and therefore provide me with the basis to perform an analysis of what our collective economic futures hold.

Budget Deficit

America  takes in $2 trillion dollars per year in tax revenue. The United States has a $17 trillion dollar deficit. How long would it take to pay this debt back? If one can do third grade math, the answer is simple. On the surface, someone reading this would say we could pay this debt off by in 8.5 years.  The correct answer is simpler, we can never pay this debt back. This is the ultimate catch-22. To begin to pay off the debt, we would have to cancel all government services. In this case, you would have no government, only anarchy.  

Even if the government could donate $1 trillion dollars of it revenue source to paying down the debt, the government deficit would still be increasing at a ratio of 8.5 to 1 even if we were to reduce the governmental operating expenses by a whopping 50%.

There is no sacrifice that the government, nor the taxpayers can make. There is nothing that can be done which will result in paying off the deficit because from a mathematics standpoint, we are passed the fiscal cliff. From a budget deficit standpoint, our national fate is sealed. We have no hope of paying off the budget deficit. And amazingly, the budget deficit is the least of our financial problems.

The consequences of not paying down this debt are unmistakable and you do not need to be a Wall Street accountant to figure this out. When you take out a loan, you must first collateralize the loan with hard assets. When we default, a desperate Congress will do what third world nations do, namely, borrow the money from the World Bank/IMF. As we have seen on the plains of Africa to Bolivia, when these countries predictably default on loan sharking deals from the World Bank, a country will lose total control of its infrastructure. Our water, our electricity and much of our food supply which is federally supported through various programs will revert to our creditors and they will be able to charge consumers, for these essential services, whatever they want. Maybe now, the imposition of smart meters on all of our homes which will regulate specific power usage, makes a great deal more sense.

If America is allowed to get to the point of national default and the abrogation of all of our national resources, we will indeed be fortunate. I do not believe that this country is going to be allowed to survive intact and live under a banking dictatorship. Before we reach the point of loan default and the installation of new national management which will replace our Congress and our President, this country will have entered a genocidal chapter in its history. We will be rocked by civil war emanating from food riots. The American people could only hope for a loan default as the best possible outcome.

Unfunded Liabilities and Mandates

When we look at Social Security, Medicare, Medicaid and all the government programs that we all take for granted, the price tag is a whopping $222 trillion dollars. These numbers are going to be exacerbated and grow exponentially because the bulk of the baby boomers are entering retirement age. Even if we took every single penny that the federal government takes in and devote it to paying off these social programs, it would take 111 years to pay off this debt. This is simply not possible because the previous statistic is predicated on having no government because if you are paying all the national revenue to the debt, there is no government. With no government, how would we pay any government officials to administrate the system? This does not even include providing for necessary national defense, law enforcement  and other essential services. In short, America, we cannot support these social programs for much longer. The game is up. Soon, 30 to 40 million Americans will be without their healthcare, without food and without shelter. Don’t throw bricks at the messenger, the numbers do not lie. 

Read More Here

 Dave Hodges DCH MC NCC The Common Sense Show airing on The Republic Broadcasting Network Sunday’s 9PM-Midnight Central Live streamed at http://www.republicbroadcasting.org/index.php?cmd=listenlive