Wednesday, September 03, 2014

The Collapse of the Entire World’s Economic System has Begun! (Part 2)

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National Wall of Debt
Out-of-control spending and 100's of billions of dollars in additional deficits being added each year
By Mike Foil 
September 7, 2014
http://canadafreepress.com/index.php/article/65840?utm_source=CFP+Mailout&utm_campaign=c651747ab8-Call_to_Champions&utm_medium=email&utm_term=0_d8f503f036-c651747ab8-291118033
National Wall of Debt, spending, taxes, borrowing, deficits
At the end of this month (September 2014), the “wall of debt” will be 24.5 feet tall.
I have written about the ever increasing height of the wall of debt. (You can get the basis for the calculations on my blog entry in June 2011 “The 20’ Wall of Debt”.)
If you lay dollar bills end-to-end and flat on the ground, around the world at the equator; our national debt would create a wall of dollar bills 24.5 feet tall.
Think about that! 24.5 feet tall is about the height of a telephone pole in a residential neighborhood. Now picture in your mind a stack of dollar bills that tall surrounding your neighborhood. That would be a lot of money. Now stretch your imagination to picture that wall ALL THE WAY AROUND THE WORLD! Now we are talking serious money!
This amount of money is not what the Federal Government is spending, it reflects what they are spending above and beyond what they are collecting in taxes. They are currently setting records in the amount of taxes being collected.
To paint a different word picture of the amount of debt our nation owes, it would take 562,163 years to pay it off, one dollar per second with no additional borrowing and paying no interest.
This does not even consider the massive, unfunded liabilities of our government.
Even with this being such an enormous problem, no one in Washington seems to be that concerned about the out-of-control spending and 100’s of billions of dollars in additional deficits being added each year.
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Mike Foil, The Housetop Proclamations,  describes himself this way:
I am a native of Arizona and prefers the small town life and the company of family and friends to the hustle and bustle of the city. I love God, my wife, my family (four kids, all married with kids - ten grandkids). I love the USA - don’t want it changed. I have the utmost respect for members of the military, current and past. My Dad is the best example I know of “The Greatest Generation”. I was born conservative and have conservative blood running through my veins.
Mike Foil can be reached at: appraiseaz@aol.com
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Is this the Big One? Central Bankers from the World Over Warn of Impending ‘Perfect Storm’
John Horvat    
Aug. 25, 2014
There is a major financial storm brewing on the horizon.
Such dramatic statements have long been the staple of naysayers for decades. Usually these warnings are dismissed by the financial establishment as the ravings of fringe analysts. Yes, crashes do happen, but the naysayers are never seen as prophets, but just opportunists who happened to be right much the way a broken clock is right twice a day.
But maybe this storm is different.
There are still plenty of naysayers weighing in on the major problems with the traction-less, hobbling “recovery.” However, they are now joined by important players in the financial establishment who fear something big might be coming down the line. Indeed, this one might prove to be the big one.
The concerns come from the latest annual report issued by the Bank of International Settlements (BIS) that meets in Basel, Switzerland. The exclusive, invitation-only group is composed of bankers from all the world’s main central banks. If anyone knows what’s going on in the economy, it should be these bankers. And their findings are hardly guarded behind closed doors. If anyone wants to see the report, it is readily available to the public.
What these bankers now see are turbulent times ahead.
The language in the 2014 edition of the annual report is unusually direct with warnings that the world could be hurtling itself toward a new crisis. With a note of déjà vu, it claims the climate is now more fragile and volatile than the buildup to the Lehman Brothers crisis in 2007.
The same old signs are there. Not much has changed. Debt levels remain high everywhere, encouraged by low interest rates. Dangerous new asset bubbles are forming.
What makes this storm different is that it is not only the developed countries that are out of balance but emerging nations have joined the party. Debt ratios in the developed countries have now risen to as much as 275 percent of gross national product, while the emerging economies of China, Brazil, Turkey and others are gorging themselves on private credit booms of their own, increasing their debt ratio significantly.
If banks and government don’t pay attention to warnings, bank vaults might go empty and the entire world could face another economic disaster.  (AP Photo/The Grand Rapids Press, Chris Clark)
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It would be wrong to put the blame on abstract economic indicators, financial instruments or debt ratios. The real blame falls upon the actual people engaged in the markets. So many players in the game have thrown caution to the wind and participate in what might rightfully be called the “frenetic intemperance” of the times.
Investors are ignoring the risks of monetary tightening and are engaged in the voracious hunt for yields. Assuming low interest rates, the constant search for higher returns is compelling investors to snap up ever more risky junk bonds and stocks. Equity markets have been termed “euphoric,” calling to mind the “irrational exuberance” of the Greenspan era.
Not only are investors operating at full throttle, but they are not taking the right measures to avoid collisions.
Banks should be raising more capital as a cushion against risk. Large firms should be looking for ways to add productive capacity but are buying back shares or engaging in mergers and acquisitions instead.
Of particular concern is China’s unbridled and frenzied credit growth over the last five years. Many fear that the state-controlled banking system lacks the flexibility to avoid a hard landing that will lead to a financial day of reckoning for China with worldwide repercussions.
“The temptation to postpone adjustment can prove irresistible, especially when times are good and financial booms sprinkle the fairy dust of illusory riches,” the BIS report warns. “The consequence is a growth model that relies too much on debt, both private and public, and which over time sows the seeds of its own demise.”
The message from the central bankers is that the world has forgotten the lessons of recent years. Unfortunately, those who forget the lessons of history are often condemned to repeat them.
Thus, there is a major financial storm brewing on the horizon.
This is the conclusion not of fringe economists, but of world-class bankers. The result may well be not just an ordinary storm but a perfect storm with all major indicators converging.
Indeed, this might be the big one.
John Horvat II is an scholar, educator, researcher, international speaker and author of the book, “Return to Order.” He lives in Spring Grove, Pennsylvania, where he serves as vice president for The American Society for the Defense of Tradition, Family and Property.
TheBlaze contributor channel supports an open discourse on a range of views. The opinions expressed in this channel are solely those of each individual author.
Also See:
Food Shortage, Then Anarchy!
25 July 2012
http://arcticcompass.blogspot.ca/2012/07/food-shortage-then-anarchy.html
and
Disasters Happen! Be Prepared!
(Part 1)
31 March 2011
http://arcticcompass.blogspot.ca/2011/03/disasters-happen-be-prepared.html
and
(Part 2)
30 August 2012
http://arcticcompass.blogspot.ca/2012/08/disasters-happen-be-prepared-part-2.html
and
The Collapse of the Entire World’s Economic System has Begun!
(Part 1)
18 March 2013
http://arcticcompass.blogspot.ca/2013/03/the-collapse-of-entire-worlds-economic.html
and
Economic Collapse! How Did We Get Here?
(Part 2)

28 September 2013
and
Are We Facing a Global Financial Crisis?
31 May 2011
http://arcticcompass.blogspot.ca/2011/05/are-we-facing-global-financial-crisis.html
and
Financial Crunch! Economic Collapse!
(Part 1)
31 July 2008
http://arcticcompass.blogspot.ca/2008/07/financial-crunch-economic-collapse.html
and
(Part 2)
20 November 2008
http://arcticcompass.blogspot.ca/2008/11/financial-crunch-economic-collapse-part.html
and
(Part 3)
25 January 2009
http://arcticcompass.blogspot.ca/2009/01/financial-crunch-economic-collapse-part.html
and
(Part 4)
17 April 2009
http://arcticcompass.blogspot.ca/2009/04/financial-crunch-economic-collapse-part.html
and
(Part 5)
23 June 2009
http://arcticcompass.blogspot.ca/2009/06/financial-crunch-economic-collapse-part.html
and
(Part 6)
23 August 2009
http://arcticcompass.blogspot.ca/2009/08/financial-crunch-economic-collapse-part.html
and
(Part 7)
30 November 2009
http://arcticcompass.blogspot.ca/2009/11/xxxx.html
and
(Part 8)
23 February 2010
http://arcticcompass.blogspot.ca/2010/02/debt-dynamite-dominoes-coming-financial.html
and
(Part 9)
28 August 2010
http://arcticcompass.blogspot.ca/2010/08/financial-crunch-economic-collapse-part.html
and
(Part 10)
13 January 2011
http://arcticcompass.blogspot.ca/2011/01/financial-crunch-economic-collapse-part.html
and
(Part 11)
29 April 2011
http://arcticcompass.blogspot.ca/2011/04/financial-crunch-economic-collapse-part.html
and
(Part 12)
28 July 2011
http://arcticcompass.blogspot.ca/2011/07/financial-crunch-economic-collapse-part.html
and
(Part 13)
04 April 2012
(Part 15)
02 November 2012
and
Recession? ... Depression? ... What is Going On?
(Part 1)
06 October 2008
(Part 2)
02 February 2009
and
(Part 3)
19 April 2009
and
(Part 4)
02 August 2009
and
(Part 5)
17 September 2010
and
(Part 6)
17 September 2010
and
(Part 7)
23 July 2014
and
Jobs, Jobs, Where are the Jobs?
(Part 1)
20 April 2010
and
The Poor - Prosperity Creates Poverty! 
(Part 1) 
and
(Part 2)
13 November 2013
and
How Do We Eradicate Poverty?
27 November 2012
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