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USA Out Of Business

No, there is nothing wrong with this graph. The debt owed by United States of America is about to spiral out of control, and there's really nothing anyone can do about it. Alan Greenspan has just warned lawmakers that the Social Security system, which currently enjoys a budget surplus that it donates to the country's general fund, will become over subscribed and begin operating in the red by the year 2008. So the influence of the Social Security surplus won't even help for much longer.
The entire
The entire "Game" is about over.
It has been quite some time since I felt the need to formally write to you regarding the state of the US economy. The first time was back at the beginning of the year 2000. I will let the events that have occurred since then speak for themselves.

Once again I charge myself with the task of issuing a warning to good people under the influence of stock-pushing analysts and office-seeking politicians. Many people think we are in a bull market in stocks again while others believe we are in a bear market rally that is going to end shortly and wreak havoc unseen since the early part of the 20th century. What I would like to throw into the mix is the idea that the entire "Game" is about over.

Those of you that are familiar with my writing style know I like to write for the common person. I am not the most intellectual person around. If the message in this writing hits home, please check in with those that can articulate these issues with cool expertise.

Let's take a look at some rounded numbers:

The US National Debt = $7 Trillion
The US Income (not including funds that go specifically to Social Security and Medicare) = $1 Trillion
The US Deficit = $0.5 Trillion
Interest Rate on Debt >= 5% (based on $128 Billion spent during the first trimester of fiscal 2004; www.publicdebt.treas.gov/opd/opdint.htm)

Assume for a moment that the statistics above are reasonably accurate and hold constant for a few years. Also assume the service on debt goes up a mere of 1 percent per year. As the graph below shows, by the year 2011, 100% of the revenue the government receives will go straight from the taxpayer's pocketbook to the holders of US debt instruments. There will be no money for any governmental function in the United States of America whatsoever.

No, there is nothing wrong with this graph. The debt owed by United States of America is about to spiral out of control, and there's really nothing anyone can do about it. Alan Greenspan has just warned lawmakers that the Social Security system, which currently enjoys a budget surplus that it donates to the country's general fund, will become over subscribed and begin operating in the red by the year 2008. So the influence of the Social Security surplus won't even help for much longer.

Now if I am smart enough to draw this graph, not holding a PhD in economics, what are the odds that the Japanese are smart enough to figure this out? How about the economists over in the European Union? The quick answer is, "Of course they know." However, through some manner by which the human psychic operates, our leaders have decided that you and I aren't supposed to know this. We're BANKRUPT for heaven's sake!

The people running Enron were saints compared to their counterparts in Washington, DC and New York!

Sometimes I wonder, do these guys really think we're that dumb? Do they really think they can inflate their way out of this? Do they really think you and I will pay $5 per gallon for gas and $5 for a gallon of milk and accept their artificially low inflation numbers, telling us that gold and silver are relics not worthy as mechanisms to preserve wealth? I mean... even they must have a limit as to what they believe they can push. As unimaginable as it is however, current indications are that they will push it right to the very limit and then go beyond the limit!

One morning we will all wake up, and the whistle will have blown. The game will be over. A cascading of electronic bits and bytes will have melted into a digital heap. News anchors will be dumbfounded. Guests appearing on stock-pushing financial programs will be dumbstruck. The gorgeous financial babes will forget to darn makeup and no one will notice. The entire world will be thrust into a state of morning. The banks will not open. There will be civil unrest.

To be terse, the USA will be "Out of business."

The question I have for you is, "How are you preparing for this eventuality?"

You say it cannot happen, our leaders are too smart to let it happen! I say our leaders are self-serving, and cannot stop it, even though they knew how! The only way out of this mess would have been to tighten our belts several years ago, letting the recession work its painful course. However, our leaders spent their time and effort committing governmental accounting fraud. They cooked the books! Have I painted a bleak enough picture?

Do you own any physical gold and silver? Is it stored in a place where you don't have to ask permission to retrieve it?

There won't be many casual survivors over these next few years. What there will be are massive winners and massive losers.

Regardless of their efforts, will those holding the house of cards together be able to stretch the deception long enough to put George Bush back into office? Asking this question should provoke two responses. If you have already seen this coming and made the preparations you feel are necessary, then the answer to this question is muted. However, if you haven't moved to protect yourself for what is coming, the answer to this question will have considerable impact on you. If it were me, I wouldn't wait to find out.

Forget about the short-term price swings of gold and silver as your purchase price will mean absolutely nothing in the long run. What will count is what you have at the moment, not how you came by it.

If this sounds like an emergency posting, then you have received my message. May God bless and keep you all in this time to come.


Don Smith

Revelation 18:19
And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.

March 2, 2004

homepage: homepage: http://www.gold-eagle.com/editorials_04/dsmith030304.html

This is not accidental 04.Mar.2004 10:16

Tom

As anyone who has been following this can attest, it is the goal of the neo-cons to bankrupt the government and "privatize" everything.

This style of organizing society has been seen before. It is called "feudalism".

The Enlightenment is dead. Welcome to the new Dark Ages

A hard rain 04.Mar.2004 10:30

Joy Luckclub

From the same Party that said 'Only Nixon could open China' only the Republicans could destroy America. Start assessing 18th Century tools and 'technology'. The adage from real estate, location, location, location is much more important in survival.

before you buy the farm 04.Mar.2004 13:12

a3m

check out the global "warming" prospects.

I disagree its the Republicans as a whole. Its as much the Dems for accepting the terms of debate and especially their "solutions" which have never addressed the fundamental problems. We was pimped for the short term gain!

The blame goes to PEOPLE. How's your debt service looking? Other countries own us via our "government" debt, financed by bonds to pay the "federal" reserve, a wholey private corp.

see www.copvcia.com

The new Feudalism 04.Mar.2004 13:49

Tom

well right, a3m. Republicrats are the duopoly-- sides 1a and 1b of the coin.

If the people don't use the rights and freedoms that were so hard won in past generations, they will be lost-- as we are losing as we speak.

Welcome to the new Dark Ages. Feudalism is the default position for human social organization

But the rich get richer! 04.Mar.2004 15:04

Bird dog

And everyone else pays the bill.
Take a look at the space program for instance.

Who pays for all projects under way?
We the people!
Taxed to death!

Who benifits from all the technology?
The corporations!

Who pays for it all?
The people!

But it still goes on day after day and they have the guts to wonder why we don't trust them.

Rich get richer 04.Mar.2004 23:19

Tom

Nah. They don't wonder anything. They know most of us don't have the guts to stop them. They just take the money and walk away with it.

Time to wake up folks.

Why don't we the people 05.Mar.2004 05:26

declare bankruptcy?

We can discharge all of our debts and start clean just like in the federal bankruptcy courts.
Oops, I forgot we already did that at the outset of WWII. Well then how about printing more fiat currency...oh, yeah we already did that. But then there is always good faith...mmmm we're plum out of that..oh hell just bomb anyone that acts like we are bankrupt. Ahh, much better. Vote Bush/Kerry!

Tax Cuts 05.Mar.2004 13:09

Me

Tax cuts were aimed at small buisness investment. Now all the small time investors have ran out and spent their money on brand-spankin' new capitol to get their buisness' going. That means lots of loans have gone out in order to do this. When the country finally goes under and the "Jig" is up, the small time investors will be shit out of luck. The Big dogs will survive and be there to gobble up the scaps off the table. The money flow pyramid will be turned completely upside down!