I’m going to show you, in graphs, what I’ve been warning for several years was coming by decade’s end. You can see the incontrovertible evidence of the mess we’ve gotten ourselves into:
Annual GDP Growth
GDP & Federal Debt
GDP Minus Federal Debt Required To Achieve It:
Total Ownership of US Treasury Debt (every dollar in existence is created through treasury debt):
Total sales of debt per time period (notice the years required to accumulate debt previously):
Notice that BRICS STOPPED BUYING OUR DEBT (and have been dumping what they owned, as I warned):
The only remaining net-buyer of US Treasury debt is the US Public:
Now, it’s looking ugly:
Notice the decline/rise of the two demographics? That is the death cross if we can’t turn it around:
Holy crap, this illustrates the problem better and it’s ugly:
What you’re seeing in the charts above, are declining rates of working age growth at the same time the rate of non-working age is increasing, which is normal, but declining birth rates exacerbate the matter and are going to present an enormous probelm.
Our GDP is driven by monstrous debt increases and no one is buying the paper. The few countries that picked up
Brazil, Russia, India, China, South Africa’s slack are masking the fact that Russia & China quit buying and are de-leveraging what they had at an astronomical rate.
If we don’t get some sense back into those in Washington, we are going to take a hard fall. We have been able to finance our debt (previously) because people believed we were good for it. From 1913 to 1981 our debt was $5T. Since the 1980’s we’ve ballooned to almost $20T. People are losing faith in our ability or desire to repay our debts. They are making concrete moves to hedge their investments against our interest. This should make you take not.
Starting a currency and/or trade war with China is not going to help our already tenuous situation. I really hope Donald Trump walks back his irresponsible talk on trade/currency.