It’s noteworthy that the United States state-controled media, especially such newspapers like the New York Times and Washington Post, along with the channels like CNBC and Bloomberg, have been hard at work in a bid to persuade the general public that American banks and corporations are standing firmly on their both feet. We are being told told that the eight years of Obama’s economic genius have created a near-record low unemployment, while the US economy is healthy and still remains the leader of G7 in terms of economic growth.
However, there’s a good reason why the US often being reffered to as the “Empire of Lies“, since the actual economic situation in America is pretty frightening, and it keeps detoriating on the back of the unprecedented level of US corporate debt. Still, Washington hides any signs of the inescapable financial crisis, that will soon become international after hitting the Wall Street initially.
The US national has already hit the whooping 19.5 trillion dollars and is now exceeding 100% of America’s GDP, nearing the level of 105.1% by the end of the year. The IMF is convinced that should we witness a crisiss in the nearest future, this ratio will quickly reach 132% of America’s GDP by the end of the 10-year period.
As of March 2016, the US debt to Saudi Arabia alone amounted to 116.8 billion dollars, while China and Japan remain America’s largest creditors, since each of these players holds an equivalent of one trilion dollars in US Treasuries. Jim Rogers, the notorious American investor has already noted that the Federal Reserve’s balance sheet was 800 billion dollars in 2008, and now it has hit nearly 5 trillion dollars, therefore, Rogers pointed out that the US economy will be in recession sometime in the next year or two, while the states with highest levels of national debt are going to suffer the most.
As it has been pointed out by a number of American analysts, it is a challenging task to even comprehend the total amount of money that the United States owes, it is 25 times larger than all global oil exports in 2015. Moreover, one would need the Saudis to donate the next 146 years of revenue from their oil exports to fully pay down the debt. As a matter of fact, the US national debt is larger than all of the world’s physical currencies, gold, silver, and bitcoin combined.
In fact, if one is to calculate every single dollar, euro, yen, pound, yuan, and any other global physical currency note or coin in existence, it will only amount to 5 trillion dollars . Adding the world’s physical gold (7.7 trillion dollars), silver (20 billion dollars), and cryptocurrencies (11 billion dollars), one would get 12.73 trillion, or about 65% of the US national debt.
The former Director of the Office of Management and Budget, David Stockman has repeatedly warned the US administration that the US “mega-bubble” is going to burst.
It’s believed that a major war writes off all debts, and the more “cannon fodder” of different nationalities you can bring into it- the more debt you can write off… This formula is being put to good use by the sitting Obama administration, that is getting American troops engaged in all sorts of conflicts across the globe. This is confirmed by a recent study of the Institute of Watson that was published by The Intercept. The study shows that the costs of US wars since 2001 have already reached five trillion dollars! At the same time the local government expenses related to medical care of veterans and homeland security, the macro economic costs of war for the US economy are not being included in this count.
The American system of public debt – is, in fact a sort of a fraud, but instead of tricking others into giving them the money, American capitalists are printing them, while obtaining all sorts of goods and services in return. The obligations imply that someday all these goods and services are going to be paid for, but promises are cheap just like the paper they’re printed on. But if there is a debt that is not going to pay back, it means there’s some unfortunate soul somewhere in the world that is still going to pay. If the state spends more than it earns, then who pays the difference? Think about it.
This whole scheme can be briefely described as the “Uncle Sam’s printingpress”, and some day it’s going to go bust. Certain states have already started disposing of and US government bonds and dollar they had in reserves, in anticipation of what may soon follow.
Martin Berger is a freelance journalist and geopolitical analyst, exclusively for the online magazine “New Eastern Outlook.”