As Americans Rack Up Billions More On Their Credit Cards The U.S. Economy Is Coming Apart Like A 20 Dollar Suit

November 27, 2009

Money Down The Toilet United States National DebtAs Americans run out today like chickens with their heads cut off and run up billions more on their credit cards, the vast majority of them have no concept of how bad things really are for the U.S. economy.  The truth is that the very foundations of the United States financial system are coming apart like a 20 dollar suit.  While the U.S. government and most of the mainstream media continue to wallow in denial, the numbers that you will read in this article simply do not lie.  The United States has engaged in an orgy of debt for decades and now the day of reckoning has arrived.

But what else should we expect from a nation that is the third fattest in the world?  The truth is that America has become a nation of gluttons who think that the good times will continue to roll.  But the cold reality is that all of us are about to face the end of the financial world as we know it.

The American consumer is tapped out.  The total number of bankruptcies filed in the third quarter in the United States surged 33%.  The seemingly endless ability of the American consumer to spend and spend powered the global economic engine for years, but now the party is over.

Why doesn’t the American consumer have anything to spend?  Well, one factor is certainly that American consumers have gone so far into debt that there is just not much more room for more. 

But also, the truth is that the United States is experiencing a massive epidemic of unemployment.  In fact, CNBC is reporting that the real jobless rate in the United States is 17.5 percent.

That is nearly one out of every five workers.

They can’t find work.  The work simply is not there.  For years and years U.S. corporations shipped jobs overseas while the U.S. government encouraged it.  Those jobs are not going to come back.  Those who still do have jobs are finding their incomes increasingly stretched as their dollars buy less than they did before.

Some U.S. citizens are now so desperate for work that they are heading over to street corners and home improvement store parking lots to find day-labor work usually done by illegal immigrants.

If you do not understand just how explosive the growth in unemployment has been over the past two years, we would encourage you to view this startling animated map which shows the stunning growth of unemployment in the United States.

So will things pick up soon?

Well, the FDIC is reporting the biggest drop in business loans on record.  That is really bad news for job seekers.  You see, most companies in the U.S. are extremely dependent on debt to fund their operations.  It will be extremely difficult for the vast majority of U.S. businesses to expand their businesses and hire more workers if they can’t borrow money.

Meanwhile, mortgage lenders are also decreasing the flow of credit.  Fannie Mae has announced plans to raise minimum credit score requirements and limit the amount of overall debt that borrowers can carry relative to their incomes.

Do you understand what that means?

That means that less people will qualify for home loans.

That means less buyers for residential real estate.

If there are less buyers for homes that means that housing prices will go down.

In fact, they could go down a lot.

The Standard & Poor’s/Case-Shiller home price index has risen 5% from the April low, but the index is still predicting a massive 45% fall in home prices from today’s values.

A 45 percent decrease.

How will you feel if the value of your home goes down 45 percent?

Already, almost one out of every four U.S. homeowners owe more on their mortgages than the properties are worth.

Are you starting to get the picture?

So who is going to come to the rescue?

The U.S. government?

Well, House Speaker Nancy Pelosi is openly saying that Americans will be willing to “absorb” higher deficits in exchange for more jobs.

Indeed, as we speak Congress is reportedly scrambling to write “Economic Jobs Stimulus 3.0″.

Just what we need, eh?

Another stimulus bill?

After all, since the U.S. government has already put our children and grandchildren trillions of dollars into debt, what are a few trillion more?

How much money can the U.S. government possibly spend anyway?

Well, the U.S. federal government spent 3.5 trillion dollars during Barack Obama’s first year in the White House. That far exceeds the spending for any other first-year president.

So is this money being spent wisely?

Of course not.

For example, the Pentagon has just awarded a $5,760,000 contract for men’s undershirts.

Also, the U.S. government is reportedly spending 2.6 million U.S. tax dollars to train Chinese prostitutes to drink responsibly on the job.

This is our money that is being spent.

The truth is that the debt of the U.S. government is spiraling out of control as the following chart reveals…..

United States national debt

All of this debt and borrowing is going to destroy the value of the American dollar.  By pumping billions upon billions of new dollars into the U.S. economy, the value of all existing dollars will be devastated.

The next chart shows the growth of the U.S. money supply.  In particular, pay attention to the very end of the chart where it shows how the growth of our money supply is absolutely exploding in 2009…..

United States money supply

So what will all of this money do?  It will destroy the value of all current dollars.   Inflation is going to go absolutely wild.  In fact, gold prices hit record highs above $1,190 an ounce last week as the dollar sharply declined.

But that is just the beginning.

What we are facing is the end of the world as we know it as far as the U.S. financial system is concerned.

The good days are over.

A financial apocalypse of unprecedented magnitude is on the way, but most Americans remain blissfully ignorant of this reality.  They will be caught totally unprepared by what is coming.

Don’t let that happen to you.

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  • Dave

    Nancy Pelosi is a stooge of the New World Order; the Federal Reserve Bankers, The Council on Foreign Relations, The Bilderberg Group and a few other anti-Liberty organizations.

    Quote from this article: Well, House Speaker Nancy Pelosi is openly saying that Americans will be willing to “absorb” higher deficits in exchange for more jobs.

    This is a complete and total lie. The deficits of George W. Bush, Barack Obama and both Congresses that served alongside these men have destroyed the U.S. economy swiftly. The Federal Reserve brought us to the edge of the cliff and Congress, Bush, Obama pushed us off.

    The government can not create jobs unless there is a surplus, not a deficit. A bigger deficit to create jobs, means money has been taken from you, in the form of devaluing your hard earned life’s savings to create new jobs.

    Essentially it is the people who are spending money to get it back under the guise of creating new work, unfortunately much of it gets lost along the way, the Federal government is the most inefficient manager when it comes to business or anything else.

    Return to the Constitution, return to the Lord. This is the only answer. More government intervention, means more waste, more poverty and more tyranny. The U.S. has overstepped its bounds and needs to be put back in its place.

    Remember they are servants of the public. We are not their servants.

  • Dave

    I was referring to the US Federal Government overstepping its bounds in my previous post.

  • Chris Brown

    Are the People of the USA Stupid? The ones holding the top offices seem to think so! Pay off everybody that put them there, and get what they can, while they can! We see Our nation falling in every way before Our eyes! We need to pray, and be a separate people for Our Lord! I believe Jesus is coming soon!

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  • mike wachowski

    The fact that whats happening with our money(credit) is a good thing in a round about way. The church has been trying to figure out how to activate the people through various programs for a few decades with very limited results. Hard times are offen the best plan unfortunatly. Jesus Himself said, “if there is any other way”!

  • 45 ACP

    Oh Well…. The NWO is on the way I have been waiting for this since 1988. I could care less The Master will come soon as he said. I will prepare for rough time and be wise , But not fret

  • Yevgeny (barry smith)

    I recommend everyone to get in ipod and got to (download John MacArthur or Stephen Davey) I listen everyday and it helps me stay sober spiritually, never know when the ipod might come in handy. The best spiritual investment.

    The economy might be falling apart but God’s economy is always steady. Our heavenly bank is all that matters. Our souls are kept by the bishop of souls the Lord Jesus Christ. God’s riches in Christ are endless. God goes to prepare a place for us for where He is there we shall be also. All that matter is being born again into His glorious Kingdom. The streets of gold, the tree of life, the never ending joys far outweig these economic times. One world government must come but Jesus Christ will rule for a thousand year reign, what will the economy be then? These 200 or so years in America is but a peak into the curtain, we will be liberated with more than what we have seen in the past time.

    God bless!

  • Uncle B

    Americans: Great fatted calves before the Asian hordes! We see a great misery and starvation on the country before the rising of the Phoenix, a vegetarian meritocracy of electric power in America. The convulsive paradigm shift almost upon us! Asia demands we share the World’s resources with them and our dollar dies before our very eyes! Even Fudal, and lowly China has electric bullet trains today, and we will walk, no oil for gasoline, no domestic cars to burn it in! All given to Asians by a few greedy folk at the top! It is done! America too late to turn back the clock even the old farmstead’s tools melted and sold as scrap to the Chinese, by the Corporatists – World Trade Center skeleton and all!

  • Bill

    Great article.

    As for the commenters, it is not wise to just rely on God to fix the problem. Did those who lived in Sodom and Gomorrah not have the power to save themselves? If you just stand by and do nothing, you are no better then them, and when this ship comes crashing you will be in it.

  • doe_know

    So What can you so to save your personal situation?
    Buy Euros!

  • UK Airport Person

    I was in the US in November and February and could see that Americans had started to spend again after a couple of years of abstinence – when there were more staff in Macys than customers. There are still empty shops in the malls though – even busy malls – so spending or not, times are still tough. By the way Doe_Know, pounds are a better bet than Euros, as sterling is in the dunny, but will bounce back after the election.

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