Tuesday, December 01, 2009

America Too Big to Fail- Will the World Bail us Out?

Let’s say you have a new credit card. Now charge up $5.98 trillion dollars. But since you probably can’t begin to think of enough purchases to meet that number, I’ll give you 211 years to accumulate it.

~*~*~*~( the passing of 211 years)~*~*~*~

Great it’s the year 2002 and you have charged up the credit card to 6 trillion dollars! Now add an additional 6 trillion to that, but do it in only SEVEN and a HALF years this time.

~*~*~*(the passing of 7.5 years)~*~*~*~

Fantastic! you are now in the year 2009 and you have 12 trillion dollars in debt on your credit card!

Do you desire to pay it off? No! Of course you don’t! How uncomfortable would that be? Besides, if just so happens you can simply print money if you run out, so just do that! This way you won’t have to feel any sacrifice, or discomfort, and you can continue living how you want to! This is great!

The above illustration, if you haven’t already guessed, is depicting the scenario of The United States of America getting into national debt. This is true, it took from the year 1971 all the way up until 2002 to accumulate deficits to a total debt of 5.98 trillion dollars in the year 2002. Thanks in a big part to George W. Bush, and now Obama, in the year 2009 we are a a debt total of 12 trillion dollars.  It is expected to reach 14 trillion next year!

In only 7 and a half years, our national debt was DOUBLED! Can you believe that!? It is insane. On top of having that debt, the government keeps printing and spending money. Who wants to be the generation (Americans and/or politicians) to step up to the plate in dealing with the debt? Who wants to say, it is the time to live in sacrifice….live a life without the pleasant “extras”...live a life like the people during the great depression….so that the future generation will not be burdened with the consequences of the debt? Frankly nobody wants to face the consequences. Not today, not tomorrow, not the next day. But the truth is our financial situation in America in unsustainable.

China is basically like America’s banker. Our banker is worried about us! China is very concerned about the Health Care Bill, because it seems to them, too expensive, and they called us out on it.
If our banker drops us, refuses to lend us loans, refuses to back us up, we are in trouble because nobody else can. Is America too big to fail? Could we be bailed out by the world?

Check out this interview that aired on CNBC November 6, 2009 with Damon Vickers, chief investment officer of Nine Points Capital Partners. He has also been featured on Fox News, Bloomberg, CNBC, BNN, and the New York Times, so he is not considered a kook. In fact because he is not tied to the federal reserve or the government, he has the freedom to have a point of view broad casted which others may be restrained to say.  (the good part starts about 0:58 into the clip):

(a radio interview with the same guy is available here)

Is he correct? Who can really say for sure right? But the trends we face are disturbing. It is my belief (based on the Bible prophecy as well as current events) that eventually we will have a form of a world currency. The technology which would allow this to be possible, is already in place (ex: first do away with paper money with people mainly using plastic, then have our currency be asmart card in cell phones, finally move to the most secure option, the verichip). Nobody knows how long it will be until we reach that point, but make no mistake we will have it one day!