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Debt, Government, and Change, is it Too Late?

December 26, 2010, by Ken Jorgustin

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During situations that are doomed to failure, when does “real” change finally come?

Answer 1: When the absolute end of the road is reached, standing at the edge of the cliff with no choice but to “change”, or fall into the abyss.

Answer 2: When external forces are applied to change the outcome prior to reaching the end, or a would-be conclusion.

Newton’s first law of motion pretty much sums it up, “An object at rest will remain at rest unless acted on by an unbalanced force. An object in motion continues in motion with the same speed and in the same direction unless acted upon by an unbalanced force”.

Change is not the easy way, the easy way is to keep on going in the same direction. Makes sense, yes?


This notion can be applied across the board, to the physical, to the philosophical, to the direction of our personal finances, our goals, our economy, our government, on and on…

During 2010 there seems to have been an increasing “sense” among many, that things aren’t quite right out there. That is, out there in the world – the economy, employment, governments.

There seems to be more and more vocalization about what has been happening around us, more vocalization than in the past. Many can’t seem to quite put their finger on it, and they are unable to quickly say, “The problem here is this“. That is because there is much more than “this”, more than one problem, there are many – many problems, many of which are intertwined, related, and affecting the overall feeling of uneasiness about the current direction we are heading.

Many are maxed out, stressed out, and are beginning to speak out.


Unemployment

How did we get here where the “SGS” unemployment rate is running nearly 23 percent in the U.S.  (the measurement method used prior to 1994)? Why does the government today use a method called “U.3” to measure unemployment (currently 10%)? Why is it that the personal experiences of most folks interacting with other folks leads one to believe the SGS numbers more-so than the U.3 numbers?

Inflation

Why is it that the U.S. government numbers for inflation, today reflect a number less than 2 percent, while the method used to calculate inflation in 1990 would be more than 4 percent, and the method used to calculate inflation during 1980 would be more than 8 percent? Why is it that most Americans have a “sense” that their cost of living has been increasing more than the claimed percentage quoted by the U.S. government?

Spending

Why is it that more and more U.S. states are on the verge of bankruptcy? Why have most States and local municipalities continued to spend more while taking in less? Why are big funds and other investors, seemingly purchasing less and less bonds from these entities, which keep them afloat?

How is it that the U.S. government annual deficit is now 1.3 Trillion (and rapidly going higher) while the national debt is nearly 14 Trillion? How did we get to where every working American (using the governments own misleading numbers) owes 100 Thousand to the debt, not including any of the unfunded liability programs or other state and local debt obligations?

How is it even possible that when adding the current debt of federal government, state government, local government, business, household, and U.S. unfunded liabilities (social security, medicare, and medicare prescription drugs), that the total liability per U.S. taxpayer at this moment is a nauseating 1 Million each?! How many people know this?

Printing Press

Why is today’s 2010 dollar worth only 4 percent of the value it had during 1913 (the start of the Federal Reserve)? Why is it that every single brand new dollar that is printed by the Federal Reserve (a private bank), is then “loaned” to the U.S. federal government with a debt attached to it (interest)? Why does every new dollar put the U.S. further in debt? Why is it that we need a federal reserve system? Why can’t the U.S. federal government print its own money, without having to pay interest to a private bank and private organization of banksters?

Everyone must Work

Why is it required that both spouses have to “work” in the system to make ends meet? Why just a few decades ago would only one spouse need to work to provide a comfortable life for the family? Why have the corporations and businesses (after having cut back so drastically on employment while loading on work stress to those that are left) not hiring any workers back while their corporate profits and executive incomes are at record high levels?

Gold and Silver

Why has the price of gold and silver soared to such highs? Why are gold vending machines popping up in locations around the world, and why do we see so many ads from businesses buying gold and gold jewelery? Why is something like gold and silver being valued as real money by more and more people, and perceived to be worth what it is, in relative terms to a piece of Fiat paper printed with special ink? Why is gold worth more than paper?

Derivatives Time Bomb

What is this thing called “derivatives” which apparently has something to do with hundreds of Trillions of dollars of unregulated “bets” made on untold numbers of pre-packaged assets carrying various risks – something which if called due, would collapse the entire global economic system as we know it?

World Government Debt

Why is it that so many countries of the world are in nearly the same “boat”, the same situation, owing so much money and being so deep in debt, while the same game continues to play as though nothing is wrong?

Bailouts

Why have we been hearing about so many “bailouts”, ranging from privately held businesses, foreign banks, to entire country governments?

When a company or entire government is bailed out, what does that really mean? Since it makes sense that their debts would not be wiped clean (that wouldn’t be fair, would it?), but refinanced instead – with more cost in the end, doesn’t this just delay the inevitable?

And more important, who ends up paying for the bailouts? Are you and I, the taxpayers, the ones who have to pay? Is that why it has been so easy for government bodies to be willing to bailout seemingly every big company, bank, bankster, or country that gets in too deep over their heads, because “they” don’t really have to pay for it – you and I do? Is that why?



These are just some of the questions that “thinking” people are beginning to ask and vocalize among themselves. Something is not quite right. That is for sure.

The real question is, is it already too late to change and prevent a disaster, given the current dire facts? Can there be real change in time to prevent a collapse?

Some think not and are preparing for the worst. Others think it can be done, but only through great pain. Still others do not even realize what is happening around them – and assume that everything will be alright – because everything has always been alright.

What is your position? What are you doing to protect and prepare for the eventualities?



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