In 1980 the total U.S. debt was under one trillion dollars. Today it is $13.5 trillion, and rising by over $1 trillion per year. In inflation adjusted terms the current national debt is 5 times bigger than it was in 1980. That debt works out to about $117,000 per household in the United States. That is the debt you owe, courtesy of the crooks in Washington D.C., in addition to any mortgage, car loan, student loan, or credit card debt you may have. In 1980 the U.S. trade deficit was close to 0. In the past decade it has been $300 billion a year or more, whether the economy was good or bad. This isn't your father's financial crisis.
If your doctor tells you that you have pancreatic cancer and a month to live, you should not assume that there is a "solution". I would say the debt situation is past the point where there is any "solution" other than massive inflation and the economic stagnation that comes with it. The only thing we can count on from our politicians is that they will find ways to make things worse.
Well, the other "solution" is national bankruptcy and default on our debt. Who can say for sure it can't happen here? Is there any limit to the debt we can sustain? Is it practically possible to inflate our way out of this? Really? Longer term, what creditor wants a worthless currency? These are questions that cause me concern for my children.
It may be past the point of averting collapse but even if it is not these words are words to live by. Those in DC are largely clueless.
I think we are past the point of no return for the national debt as it clocks over $14T this week. Add in the Social Security retirees debt avalanche of IOUs from the treasury and we have a real problems. When you get hockey stick increase (near vertical) of indebtedness it is beyond repair. We will be looking at a massive change in living standards within 5 years as USD becomes toilet paper .....bit like the Weimer Republic. I've been sending USD out of the US to higher yielding countries, Thank god I have foreign citizenship when the ship the USS A finally sinks I will bail out. Sorry to say but the country is run by the Wall Street banksters and inept and corrupt politicians. Today has all the hallmarks of Rome in the last days. http://www.usdebtclock.org/
Free trade USA... Joe Smith started the day early having set his alarm clock (MADE IN JAPAN) for 6 a.m. While his coffeepot (MADE IN CHINA) was perking, he shaved with his electric razor (MADE IN HONG KONG). He put on a dress shirt (MADE IN SRI LANKA), designer jeans (MADE IN SINGAPORE) and tennis shoes (MADE IN KOREA). After cooking his breakfast in his new electric skillet (MADE IN INDIA) he sat down with his calculator (MADE IN MEXICO) to see how much he could spend today. After setting his watch (MADE IN TAIWAN) to the radio (MADE IN INDIA) he got in his car (MADE IN GERMANY) and continued his search for a good paying AMERICAN JOB. At the end of yet another discouraging and fruitless day, Joe decided to relax for a while. He put on his sandals (MADE IN BRAZIL) poured himself a glass of wine (MADE IN FRANCE) and turned on his TV (MADE IN INDONESIA), and then wondered why he can't find a good paying job in.....AMERICA.....
USA is the biggest exporter of military weapons and war machines and also other sophisticated technology.