This is how it is.
“$17trillion is our GDP—total of all business revenues for the whole country...revenues, not profits. Profits are maybe 10% of that number. Our total debt is just about to $60trillion. It was $4.7trillion in 1980 when financial deregulation began—according to FRB’s own data....and GDP was $2.7trillion or a GDP/debt ratio 163%....today GDP has grown, but debt has grown much faster to where the ratio is 330% debt to GDP. Gold has declined 40%, and i have no intent to sell even if it declines another 40%-—because debt has mathematical compounding certainty going for it-—GDP sales growth DOES NOT.”
“Feds have been reporting quarterly since 1945; and we have been warned, but it’s like no body cares until the straw that broke the camels back.”
“We have backed ourselves up into huge pile of liabilities, that are compounding away on a daily basis—and with no clear way out of this mess. At this point—there is no light at the end of the tunnel. This country was debt free for over 150 years, and still easily grew at over 3% per annum—with no inflation all during the latter 1700’s, 1800’s, and 1900’s, until 1970’s inflation. There were other issues along the way, but now, with $60 trillion in debt, being supported by measly little $17 trillion economy, that can’t really grow at 2%...let alone 3%....we got a really big potential problem staring at us.....as does Europe, and Japan. There is no way a Muslim Jihadist, supporting domestic terrorism....or communist sympathizer is going to lead us to the promised land.”
These are the thoughts from a friend of mine who knows this stuff inside out.