In debt to our eyeballs

Yesterday I did a post called “The stage is being set by debt” explaining how I believe the beast system will take over the rule over many countries. Today I want to share a post by The Economic Collapse Blog that shows how far and how bad this economic crisis has developed so far. There is no way out. Soon we will see the rise of a new system controlled by the beast. The countries of the world will not have a choice but to join in as they will be owned by the Fed, IMF and World Bank. Who will be able to resist as resistance will lead to whole countries imploding? Read the following and take notice:

In Debt Up To Our Eyeballs

The entire financial system of the western world is designed to be a debt spiral.  The total amount of money and and the total amount of debt are supposed to continually expand.  Today, we are in debt up to our eyeballs and it seems like nearly everyone is talking about “deleveraging” and reducing government debt.  But in a world where the entire financial system is based on debt, is there any way for massive deleveraging to take place without plunging us all into a horrific worldwide depression?  The governments of the western world have had a lot of fun spending money as if there was no tomorrow, but now tomorrow has arrived and all of that debt is rapidly catching up with us.  Politicians in Europe and in the United States are running around trying to come up with a “plan”, but there is no “plan” that is going to fix the current debt-based system.  Over the next few years we are going to reap what we have sown.

For fiscal year 2011, the U.S. federal government had a budget deficit of nearly 1.3 trillion dollars.  That was the third year in a row that our budget deficit has topped a trillion dollars.

Sadly, most Americans simply have no idea how much money a trillion dollars is.

Perhaps an illustration or two would help.

If on the day when Jesus was born you began spending one million dollars every single day, you still would not have spent one trillion dollars by now.

That is how large a trillion dollars is.

If you went out today and started spending one dollar every single second, it would take you over 31,000 years to spend one trillion dollars.

Some people have suggested that we could solve our problems by taxing the rich.

Well, if Bill Gates gave every single penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for about 15 days.

No, the truth is that what we have is a spending problem.

The U.S. federal government is spending way, way too much money.  Total U.S. government debt will soon cross the 15 trillion dollar mark.

Should we do something to celebrate such a monumental national achievement?

It really takes a special effort to borrow 15 trillion dollars.

We have accumulated the largest mountain of debt in the history of the world, and yet our government continues to add to our debt at a blistering pace.

If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.

Unfortunately, we are not paying it off right now.  Instead, we are adding even more to it.

Back in the early 1980s, Ronald Reagan declared the national debt to be a national crisis.

Well, today our national debt is more than 14 times larger than it was when Reagan took office.

Something has gone horribly, horribly wrong.

Right now, spending by the federal government accounts for about 24 percentof GDP.  Back in 2001, it accounted for just 18 percent.

Spending is going in the wrong direction.

And most government spending goes into the pockets of individual Americans.

59 percent of all Americans now receive money from the federal government in one form or another.

We have got tens of millions of Americans that are completely and totally addicted to getting money from the federal government.

But wasn’t the Tea Party supposed to do something about all of this crazy government spending?

Unfortunately, the Tea Party has failed in this area.  In the mainstream media there is talk of “austerity” by the federal government, but the truth is that spending by the federal government has increased by about 5 percent so far this year.

We are hurtling toward a “debt wall” and the brakes don’t seem to work.

Europe is in a massive amount of debt trouble as well.  In fact, a financial meltdown is probably going to happen in Europe before it happens in the United States.

Greece, Portugal, Ireland and Italy all have debt to GDP ratios that are well above 100%.  Spain is in a massive amount of trouble as well.

Right now, Greece, Portugal, Ireland, Italy and Spain owe the rest of the world about 3 trillion euros combined.

Greece is on the verge of a default of one form or another, and Italy and Portugal look like they will not be far behind.

As the financial world braces for a Greek default, the yields on Greek bonds are going absolutely crazy.  The yield on 2 year Greek bonds is now over 70 percent.  The yield on 1 year Greek bonds is now over 170 percent.

Sadly, it looks like Portuguese bonds are starting to go down the same path.  The yield on 2 year Portuguese bonds is now over 17 percent.  A year ago the yield on those bonds was about 4 percent.

European banks are also drowning in an ocean of debt.

According to renowned financial journalist Ambrose Evans-Pritchard, banks in Europe need to reduce the amount of lending on their books by about 7 trillion dollars in order to get down to safe levels….

Europe’s banks face a $7 trillion lending contraction to bring their balance sheets in line with the US and Japan, threatening to trap the region in a credit crunch and chronic depression for a decade.

But can that be done safely?

Can that be done without plunging Europe into a financial nightmare?

Ambrose Evans-Pritchard is skeptical….

The risk is “Japanisation” without the benefits of Japan: without a single government, or a trade super-surplus, or 1pc debt costs, or unique social cohesion.

Already the financial crisis in Europe has pushed unemployment to frightening levels.  So what will happen if you add massive deleveraging to the equation?  Ambrose Evans-Pritchard is very concerned about what might happen in some of the most troubled nations….

Even today, the jobless rate for youth is near 10pc in Japan. It is already 46pc in Spain, 43pc in Greece, 32pc in Ireland, and 27pc in Italy. We will discover over time what yet more debt deleveraging will do to these societies.

Major European banks not only have too many loans on their books – they have also borrowed way, way too much money themselves.

The truth is that most major European banks are leveraged to the hilt and are massively exposed to sovereign debt.  Before it fell in 2008, Lehman Brothers was leveraged 31 to 1.  Today, major German banks are leveraged 32 to 1, and those banks are currently holding a massive amount of European sovereign debt.

What all of this means is that we are on the verge of some really bad stuff.

The governments of the world are up to their eyeballs in debt.  According to the Economist, the governments of the world combined are more than 40 trillion dollars in debt.  But that total only counts government debt held by the public and it does not include any future obligations (such as Social Security, etc.) owed by national governments.

It would be hard to understate how much of a crisis this is.

But just like with the subprime mortgage meltdown of a few years ago, a number of very savvy investors and economists can see what is coming.

For example, Texas investor Kyle Bass made millions and millions of dollars betting against subprime mortgages, and now he is warning that we are facing a crisis much greater than that.

Bass believes that the European debt crisis is soon going to explode.  In particular, he has been putting his money into investments that will pay off big if Greek debt collapses.

But that is not all Bass has been up to.  He has been stockpiling gold, guns and nickels (20 million nickels to be exact).

Bass appears to be well prepared for the coming economic collapse.  The following is how one writer described his visit to the 40,000 square foot “fort” owned by Bass….

“We hopped into his Hummer, decorated with bumper stickers (God Bless Our Troops, Especially Our Snipers) and customized to maximize the amount of fun its owner could have in it: for instance, he could press a button and, James Bond–like, coat the road behind him in giant tacks. We roared out into the Texas hill country, where, with the fortune he’d made off the subprime crisis, Kyle Bass had purchased what amounted to a fort: a forty-thousand-square-foot ranch house on thousands of acres in the middle of nowhere, with its own water supply, and an arsenal of automatic weapons and sniper rifles and small explosives to equip a battalion.”

If only the rest of us were so well prepared, eh?

So if this is the kind of thing that the “financial experts” are doing, then what is the message for us?

A great storm is coming, and most Americans are going to be totally unprepared for it.

Not that things are not really, really bad already.

According to Shadow Government Statistics, the “real” rate of unemployment in the United States is creeping up toward 25 percent.

So what is going to happen if a worldwide depression hits?

Things could get very, very interesting over the next few years

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7 thoughts on “In debt to our eyeballs

  1. But the good news is…….this world is not our home. Hallelujah,

    Joh 14:1 Let not your heart be troubled: ye believe in God, believe also in me.
    Joh 14:2 In my Father’s house are many mansions: if it were not so, I would have told you. I go to prepare a place for you.
    Joh 14:3 And if I go and prepare a place for you, I will come again, and receive you unto myself; that where I am, there ye may be also.
    Joh 14:4 And whither I go ye know, and the way ye know.
    Joh 14:5 Thomas saith unto him, Lord, we know not whither thou goest; and how can we know the way?
    Joh 14:6 Jesus saith unto him, I am the way, the truth, and the life: no man cometh unto the Father, but by me.
    Joh 14:7 If ye had known me, ye should have known my Father also: and from henceforth ye know him, and have seen him.
    Joh 14:8 Philip saith unto him, Lord, shew us the Father, and it sufficeth us.
    Joh 14:9 Jesus saith unto him, Have I been so long time with you, and yet hast thou not known me, Philip? he that hath seen me hath seen the Father; and how sayest thou then, Shew us the Father?
    Joh 14:10 Believest thou not that I am in the Father, and the Father in me? the words that I speak unto you I speak not of myself: but the Father that dwelleth in me, he doeth the works.
    Joh 14:11 Believe me that I am in the Father, and the Father in me: or else believe me for the very works’ sake.
    Joh 14:12 Verily, verily, I say unto you, He that believeth on me, the works that I do shall he do also; and greater works than these shall he do; because I go unto my Father.
    Joh 14:13 And whatsoever ye shall ask in my name, that will I do, that the Father may be glorified in the Son.
    Joh 14:14 If ye shall ask any thing in my name, I will do it.
    Joh 14:15 If ye love me, keep my commandments.
    Joh 14:16 And I will pray the Father, and he shall give you another Comforter, that he may abide with you for ever;
    Joh 14:17 Even the Spirit of truth; whom the world cannot receive, because it seeth him not, neither knoweth him: but ye know him; for he dwelleth with you, and shall be in you.
    Joh 14:18 I will not leave you comfortless: I will come to you.
    Joh 14:19 Yet a little while, and the world seeth me no more; but ye see me: because I live, ye shall live also.
    Joh 14:20 At that day ye shall know that I am in my Father, and ye in me, and I in you.
    Joh 14:21 He that hath my commandments, and keepeth them, he it is that loveth me: and he that loveth me shall be loved of my Father, and I will love him, and will manifest myself to him.
    Joh 14:22 Judas saith unto him, not Iscariot, Lord, how is it that thou wilt manifest thyself unto us, and not unto the world?
    Joh 14:23 Jesus answered and said unto him, If a man love me, he will keep my words: and my Father will love him, and we will come unto him, and make our abode with him.
    Joh 14:24 He that loveth me not keepeth not my sayings: and the word which ye hear is not mine, but the Father’s which sent me.
    Joh 14:25 These things have I spoken unto you, being yet present with you.
    Joh 14:26 But the Comforter, which is the Holy Ghost, whom the Father will send in my name, he shall teach you all things, and bring all things to your remembrance, whatsoever I have said unto you.
    Joh 14:27 Peace I leave with you, my peace I give unto you: not as the world giveth, give I unto you. Let not your heart be troubled, neither let it be afraid.
    Joh 14:28 Ye have heard how I said unto you, I go away, and come again unto you. If ye loved me, ye would rejoice, because I said, I go unto the Father: for my Father is greater than I.
    Joh 14:29 And now I have told you before it come to pass, that, when it is come to pass, ye might believe.
    Joh 14:30 Hereafter I will not talk much with you: for the prince of this world cometh, and hath nothing in me.
    Joh 14:31 But that the world may know that I love the Father; and as the Father gave me commandment, even so I do. Arise, let us go hence.

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  2. If a depression happens it will be a constructed one. Exactly like the 1929 market crash
    (orchestrated).
    This wont be as bad as people think, Some people are getting a bit excited but in reality if there is a Army marching from the east to Israel at Armageddon on top of the rest of the world attacking Israel at the same time means 1 thing. There is plenty of people around at that point.
    It wont be a depression as bad as some say it will be a change of system to a new one.
    They made the Bretton Woods system back in the early 30’s which was a new system at the time.
    They already have plans in place for a new revived system but the current one needs to be completely “mortally wounded” which it is almost at that point.
    Remember also a depression for some is a money making machine for others. Allot of people will cash in on the cheap prices and buy them up where others will lose everything.
    New system is a shift in wealth but this coming one will be global.
    Also remember what JS said “Never waste a good Crisis”.
    Its not hard to see it coming if you really look around 🙂

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  3. LaFreak, both you and Wickus raise interesting points.

    I have often spoke of the End Time Beast being a System, run by a “single” man. I frankly believe that everything that is happening financially is all by design – and that by Satan himself, who has influence on the hearts of GREEDY men.

    Let me please explain my theory………..

    You see, God knows the hearts of men – when often times they don’t really see or know their own hearts. GREED is amazing, and perhaps the worst sin of them all. What we see going on globally is exactly what the Bible has predicted.

    Money is an “IDEA” that man has come up with, and those who have certain skills; ordained by God Himself, has bought into this idea to have some sort of “tangible” object to place in the hands of those who have such skills – and that for their services. This same idea is what is working in the minds of we who live on this planet, Now in saying that…….

    If Money is truly and “IDEA” or better yet the thought process that man has communicated to others to agree upon for services – then absolutely they can entirely erase all the debt World Wide, and just simply start over. But because man has been faced with the idea of money in tangilbe form; and now electronic; “something that they can see and/or feel” – which I beleive has been controlled by Satan, then they won’t buy into an idea of erasing the debt of ALL World Wide, because of the hearts of GREEDY men.

    This same idea of GREED, has lead me to think: how much is enough? I mean it’s crazy folks – how Satan has us all fooled. Satan has fooled most of us; in that he has us chasing the so-called “American Dream”; in that we have to have the big house, fancy cars and name brand clothes, elite status in society, white picket fence around a home that we cannot afford in so much as, I have often wonder who coined that phrase.

    The “American Deam” is truly a Lie from the pit of hell.

    In closin……I once saw a bill board that said: “If you want to make a difference, TEACH your child about God”.

    And to that I say, AMEN!

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  4. Great comments Lafreak, and Mr Baldy, good to ponder about what you are saying. But you are right about greed as this scripture tells us:

    1Ti 6:7 For we brought nothing into this world, and it is certain we can carry nothing out.
    1Ti 6:8 And having food and raiment let us be therewith content.
    1Ti 6:9 But they that will be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition.

    1Ti 6:10 For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.
    1Ti 6:11 But thou, O man of God, flee these things; and follow after righteousness, godliness, faith, love, patience, meekness.

    1Ti 6:12 Fight the good fight of faith, lay hold on eternal life, whereunto thou art also called, and hast professed a good profession before many witnesses.

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  5. Amen Mr Baldy

    Know ye not that the unrighteous shall not inherit the kingdom of God? Be not deceived: neither fornicators, nor idolaters, nor adulterers, nor effeminate, nor abusers of themselves with mankind, Nor thieves, nor COVETOUS , nor drunkards, nor revilers, nor extortioners, shall inherit the kingdom of God. 1 Cor 6

    Mar 7:22 — Thefts, covetousness, wickedness, deceit, lasciviousness, an evil eye, blasphemy, pride, foolishness:

    And he said unto them, Take heed, and beware of COVETOUSNESS: for a man’s life consisteth not in the abundance of the things which he possesseth. Luke 12:15

    Thou shalt not covet thy neighbour’s house, thou shalt not COVET thy neighbour’s wife, nor his manservant, nor his maidservant, nor his ox, nor his ass, nor any thing that is thy neighbour’s. Exodus 20:17

    Rom 13:8 Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.

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  6. there is the old hymn,
    ‘Jesus paid it all,
    all to Him I owe,
    sin had left a crimson stain,
    He washed it white as snow.’

    The world’s bumper sticker (I have seen this one) says,
    ‘I owe, I owe,
    its off to work I go’

    How mindful are we of these things in our daily life?

    Choose this day whom you will serve…

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