Breaking All Records: USA (estimated) National Debt Just Topped $9,001,000,000,000.00

Well, I'm glad I transferred 15% of my money into Gold and Silver. Once the economy crashes, which seems inevitable from this news, I will be able to preserve my wealth...

Over 9 trillion dollars eh? How in the hell could this country ever owe this much money? The answer is because we borrow, and don't save, and our government can't balance a damn budget. I hear some of you saying you want to move to another country. I don't blame you, I've been thinking of leaving myself.

But where to go? The U.S. has the best system, our government just hasn't followed it. The founding fathers believed that a country should only borrow money during times of war, but the government of today borrows for everything.

You guys have NO IDEA how much money the U.S. government wastes.......

Thats because the U.S. only SEEMS rich on the outside, but it really isn't rich at all. The reason why Americans look rich to the outsider is because of all the toys we have. People see our houses, clothes, cars, and gadgets, and they think the streets in America are paved with gold.

The thing you have to understand is that Americans, both the government and individual citizen, borrow money for just about everything we get. Yeah, we have lots of stuff, but most of us are making payments on it. The problem is, what happens when the U.S. loses its purchasing power? Then no one will loan money to us.

 

Wow ly2, you and I agree on something after all eh? Yes, social programs play a pivotal role in why we're in this mess. Instead of personal responsibility(which the founding fathers advocated) Americans have become dependent on the government for everything, and Democrats in recent years have amplified this trend.

Has anyone ever heard of the Grace Commission?

 

I hope I live through the next five years to, and I hope the U.S. economy doesn't crash. But, as Captain Lock said in the Movie The Matrix Revolutions:

Hope is an indulgence I don't have time for

In other words, sitting around hoping the U.S. economy doesn't crash is a waste of time. The smart thing to do is prepare.

The person who started this thread asked "how will it end?" and to be quite frank, it can end in a lot of ways.

The U.S. government could start printing money to pay back what THEY owe, but this would cause hyperinflation, basically destroying the American dollar once and for all. Once Americans find out their paper money has been destroyed, and is utterly worthless, it will be pointless to run to the bank and get it out, because it won't be worth anything.

Needless to say, Americans are going to be really pissed when their paper dollars won't by them any more food or pay for their housing.

Companies will also start massive lay offs. Since no company will know what to pay its employees in, a lot of them will go bankrupt.

Riots are almost guaranteed. Think Hurricane Katrina, but on a nation wide scale. During a time like this, it would suck not to have a gun to protect you and your family, because if you have something people want, they will come for it. Don't expect the cops to help you, as they're won't be any cops, since their won't be any money to pay them with.

I predict a massive financial collapse that will destroy the United States, eradicating our classification as a superpower. China, Russia, Japan, or the EU would basically replace the U.S., and the country would become third world.

I also predict that the Illuminati, the people who caused the collapse, will offer Americans the AMERO as a solution, which will also be used in Mexico and Canada. Once Americans accept, the North American Union will be formed, and the Illuminati will be one step close to establishing a world government.

Once Americans accept the Amero(which is likely due to the chaos that results from the collapse) The U.S. Constitution will have to be eradicated, and replaced with a NAU Constitution, much like the EU Constitution. All the right guaranteed to Americans under the existing Constitution probably won't exist with the new one that replaces it.

 

M3, the total broad supply of US dollars, was sitting at $6t in the late 1990s and is now approaching $9t (see http://www.zealllc.com/2003/infdef2.htm)

As of March 23rd 2006 the government will no longer be publishing the M3 money supply data

M3 = all of M2 (which includes M1) plus large-denomination ($100,000 or more) time deposits, balances in institutional money funds, repurchase liabilities issued by depository institutions, and Eurodollars held by U.S. residents at foreign branches of U.S. banks and at all banks in the United Kingdom and Canada.

M2 = all of M1, plus savings accounts, time deposits under $100,000, and balances in retail money market mutual funds.

M1 = hard currency, travelers checks, demand deposits (checking accounts), and checking deposits.

US dollar notes in circulation as of the end of October 200 was $759 billiom (http://www.ft.com/cms/s/0/18338034-95ec-11db-9976-0000779e2340.html)

Date -----------Amount of Cash in Circulation -Amount of Cash per Capita (http://www.frbatlanta.org/invoke_brochure.cfm?objectid=83FD41E6-9AF0-11D5-898400508BB89A83&method)
June 30, 1910 $ 3,148,700,000 $ 34.07
June 30, 1920 $ 5,698,214,612 $ 53.18
June 30, 1930 $ 4,521,987,962 $ 36.74
June 30, 1940 $ 7,847,501,324 $ 59.40
June 30, 1950 $ 27,156,290,042 $ 179.03
June 30, 1960 $ 32,064,619,064 $ 177.47
June 30, 1970 $ 54,350,971,661 $ 265.39
June 30, 1980 $ 127,097,192,148 $ 570.51
June 30, 1990 $ 266,902,367,798 $ 1,062.86
June 30, 2000 $ 571,121,194,344 $ 2,075.63

 

This is why the cost of everything has been increasing. When governments print too much money into circulation, inflation is the end result, and the price of goods and services increase. Americans are basically robbed of their wealth.

So on June 30, 2000, we have over $500 billion in circulation, in a country where the population was under 300 million(yes, I know the U.S. population is over 300 million today)

Damn, no wonder the cost of living is so high. There is too much money floating around!

What this graph doesn't show is how much value the American dollar has lost over the years. Since 1913, the dollar has lost over 90% of its purchasing power, and the graph Bogart posted proves it. If you had $100,000 in paper money in 1913, today you would only be able to purchase about $4,000 worth of goods. How pathetic is that?

By the way......if you had $100,000 worth of gold in 1913, instead of paper dollars, guess how much it would be worth today? Over $3 million dollars. You would also have at least $1 million or more if you had that money in Silver.

 

US dollar notes in circulation as of the end of October 2006 was $759 billion

 

This is precisely why the dollar is in decline. There is no way you can have this much money in circulation in a country with only 300 million people, and expect the cost of living to be affordable.

I should also mention, that while Bogart just noted that there is almost $1 trillion dollars in circulation, guess how much silver there is in the entire world?

There is only $4.3 billion dollars worth of silver on the entire planet. This means that silver is so much more valuable compared to the dollar, and not only that, the world supply of silver is running out.

I think Silver may very well be more valuable than gold, and I don't care what the current market prices suggest. During an economic collapse, if only a handful of millionaires and billionaires decide to take out their paper dollars, and protect their wealthy by buying silver, we would see the price of silver go from about $13 per ounce(what it is selling at today approximately) to 70 per ounce, $100 per ounce, $200 per ounce....or higher.

As the dollar continues to fall, millionaires, billionaires, and HNWIs(High Net Worth Individuals) will not continue to keep their money in dollar based investments. They will eventually begin buying precious metals. Once they do, well, the rest of history.....Gold and Silver will reach a value that hasn't been seen since the 1970s(when gold hit $800 per once) and Silver hit $50 per ounce.

 

I just wanted to add one more post to show readers just how valuable silver is.

1. The world population is over 6.6 billion. Since there is only $4.3 billion dollars worth of silver in this world, that means the world population exceeds the amount of silver by far!

2. Silver is extremely valuable for medical instruments, photography, and computers. If the supply of silver were suddenly fall to critical levels, there is no telling how much they would pay you if you just happened to have some silver laying around. You could find yourself filthy rich overnight.

3. Bill Gates has an estimated $56 billion. Warren Buffet has over $40 billion. Again, the world supply of silver is only worth $4.3 billion. Anyone who understand basic math knows what this means. Both Gates and Warren Buffet could buy up all the silver in the world tomorrow if they wanted to. If they did, how much would an ounce be worth?

4. In 1997, Warren Buffet purchased over $500 million worth of silver. What happens if he does the same today?

As you can see, there are a lot of reasons why you guys MIGHT want to consider buying silver and gold. I mean, its your money, do what you want, but Bogart and I, as well as the person who started this thread, have made it pretty clear which direction the U.S. dollar is headed: DOWN.

You can either, protect your wealth by purchasing something that truly has value, or you can watch your money turn into toilet paper. The choice is yours. I assure of this much, guys like Trump and Gates won't be caught without gold or silver if the market goes. Will you?

 

$1,000 face value bags of 90% silver coins is approximately 715 troy ounces.

 

Y2K (for example) was bogus; This time "The Sky Really IS Falling"

Thanks (to tesla & everyone) for going in-depth with the original topic.

~~~~
I prepared (with extra canned food, water, etc.) before the Y2K 'threat'.
This time, I've been slow to respond, and might regret it later.

 

Inflation is inevitable in a growing economy. No inflation implies a stagnant economy.
Anyone could have invested in any commodity in 1913, say, cocoa, and that would be worth a lot of money today. Why is that? It's because of inflation. Duh. Your silly gold wouldn't be worth nearly as much if it weren't for inflation.

 

What we are talking about is devaluation.

That is when a goverment turns on the printing press.

The dollar has been devalued by 50%. Look at the numbers:

M3 was $6 trillion dollars in the late 1990s and is now $9 trillion. At the same time the cost of 1 Euro went from 95cents to $1.40

All commodities have increased by at least 50% such as Gold, Oil and Wheat.

 

US GDP was $7 trillion in 1990 and it is now over $11 trillion.
Maybe it should've stayed in the billions, huh? We'd be watching TV in B&W. Oh wait, TVs weren't even commercially available in 1913. Hey, at least we can get candy bars for pennies, right?

No inflation = No progress

 

You're missing the math.

If the monetary supply inflates, it's logical to conclude that GDP would also inflate as more money moves through the economy.

GDP is not a measure of what a single dollar buys, which is what we are discussing.

 

Is that figure adjusted for inflation?

Exactly.

 

Real GDP is $11 trillion. In PPP, we're at about $13 trillion.

 

You still can't discount that the dollar has devalued 50%+ in relation to oil, wheat, gold and the price of housing has gone through the roof.

 

And my point is that an economy cannot grow without inflation. You guys are essentially arguing that you want to be stuck in a stagnant economy.

Ok, so if inflation is bad, is deflation good?

 

its possible with real estate values dropping, and credit suddenly becoming hard to get, we will experience deflation for a awhile. Cash will buy more

it is what happened at the beginning of the great depression

http://econ161.berkeley.edu/TCEH/Slouch_Crash14.html

if you suddenly took away everyones credit card, you would see prices drop dramatically because it would be the only way to sell stuff

right now in the housing market the ability to get loans is disappearing and it is fueling the drop in housing prices, which is essentially deflation , in housing . You get more for dollar, not less.

deflation can be good if you have cash, but if you owe it makes it that much harder to pay it off, if you owe then inflation could be good because it makes it easier to pay off debts

like if you make 30k a year and owe 30k, its a years pay, but if because of inflation you now make 35k you still owe 30k, but now its less then a years pay

a depression which is what you guys are predicting would cause deflation, drops in prices not inflation but read up on it, I could be wrong

 

Devaluation is bad. Devaluation occurs when a government turns on the printing press and its currency losses significant value relative to other curriencies and commodities.