Oct 042015
Posted By William Edstrom On SEPTEMBER 23, 2015 Originally Published on Counter Punch Editor's Note: By category, the US debt has been broken dow and displayed on the "Old Monies" group. I have taken the liberty to edit the report into bite sized categories. I have not changed the content and full credit is given to the author and original publisher. How This May End With vast differences between regions and even between states within the USA, secession fever will catch fire. And the Lone Star Republic is on the short list of states most likely to secede. In a coming era of $50+ barrels of oil, Texans will secede when they somehow become focused on the economics of just how much money they will have as an oil rich independent republic vs. just how poor they will be with the economically collapsing USA draining their tax money and their oil from them. If even one region or state secedes from the USA, there is a likelihood that the USA’s vast military-intel-industrial complex will be directed inwards at trying to quell another civil war instead of directed outwards at foreign wars against other countries. Woe. A majority of California residents will soon be Latino. A 2020 California Ballot Proposition for re-unification with Mexico could pass. What we’ve seen in Detroit and Puerto Rico is what’s coming soon all over the USA, unless we the people make changes for the better, fast, to paying down debt instead of increasing debt. I wrote previously of several ways towards government budget surpluses and paying down the government’s gigantic mountain of debt like Medicaid for All, one Social Security pension for All with a $2,000 a month minimum and current cap, train more doctors, build more hospitals, cut or eliminate the patent monopoly, tax cuts for the poor and middle class (e.g. raise the standard deduction to $90,000), increase tax rates on the richest 10% in the USA, a sales tax on financial ‘sales’ and cutting military/secret police spending. In 2020, we’re going to look back and ask how was it humanly possible that these money lenders and money changers on Wall Street didn’t know that all these corporations and governments – local, state and national (e.g. USA and Japan) – couldn’t possibly pay back the mountains of debt lent to them? Or did the Wall Street money lenders and money changers just want (more…)
Sep 302015
Posted By William Edstrom On SEPTEMBER 23, 2015 Originally Published on Counter Punch Editor's Note: I have taken the liberty to edit this report into “bite sized” categories. I have not changed the content and full credit is given to the author and original publisher. Editor: This report identifies the current debt crisis very clearly, lists the major areas of the economy effected, the actors in those areas, their conditions and roles. As entrepreneurs we must know who you we doing business with and what the future for our business may be. This information is what you may want to include in your business analysis. What is our debt? It’s been so easy the past 15 years for local governments in the USA, state governments, government authorities, corporations, banks, hedge funds and the US Federal government to simply say how many millions, billions or trillions of dollars they wanted, pay some high priced call accountants to fill out some paperwork with fine print and voila, millions, billions and trillions of dollars in borrowed money simply appeared. It has been that easy! Now, the government in the USA owes $46 trillion, US corporations owe $15 trillion, US individuals owe $13 trillion plus there are $315 trillion in outstanding Wall Street derivatives. (Few Americans know what a derivative is, but we as a nation are on the hook for up to $315 trillion in additional debt because of these derivatives.) These debt figures continue to escalate with each passing month. Detroit and Puerto Rico have only just begun the debt bombs bursting in the USA, the USA’s slow motion economic collapse. Who’s next? I’m going to tell you about some US local and state governments that have too much debt and are ripe for debt collapse along with a few US government authorities and corporations that borrowed too much money and are also ripe for debt collapse. Mr. Dudley of the New York Federal Reserve Bank recently warned of a wave of US municipal debt collapses coming soon. The problem is bigger than solely US municipalities as Mr. Dudley no doubt is aware. Chicago or LA, which one is more likely to collapse first? Chicago. Kanakee County IL or Perry County KY? Kanakee County is more likely to go belly up first. Atlantic City (AC) or Yonkers? AC is more likely to bite the dust first. 1 out of 25 states are (more…)
Jun 092011
http://english.alrroya.com/content/economic-statistic-us-elites-keep-%E2%80%98hush-hush%E2%80%99 Monday, 6 June 2011  at  12:40, By Ron Robins, Founder & Analyst – Investing for the Soul It is a simple statistic that continues to warn of huge economic problems ahead for the US. Some economists call it the ‘marginal productivity of debt (MPD).’ It relates the change in the level of all debt (consumer, corporate, government etc.) in a country to the change in its gross domestic product (GDP). However, due to the message it is delivering, most US economists employed in financial institutions, governments and private industry, as well as financiers and politicians, want to ignore it. And for the US economy and government finances, the MPD (and related variants of it) is continuing to indicate extremely difficult economic times ahead. I have vague recollections of the MPD concept from my economics classes long ago. But I was re-introduced to it around 2001 by a renowned economist who, during the following few years prior to his passing, became alarmed as to the MPD path of the US. His name was Dr. Kurt Richebächer, formerly chief economist and managing director of Germany’s Dresdner Bank. Dr. Richebächer, was so respected that former US Federal Reserve Chairman, Paul Volcker once said of him that, “sometimes I think that the job of central bankers is to prove Kurt Richebächer wrong,” reported the online financial journal, The Daily Reckoning on May 15, 2004. Investigating Dr. Richebächer’s concern further, I wrote an article on my Enlightened Economics blog on January 23, 2008, titled, Is the Amazing US Debt Productivity Decline Coming to a Bad End? I found that, “for decades, each dollar of new debt has created increasingly less and less national income and economic activity. With this ‘debt productivity decline,’ new evidence suggests we could be near the end-game… ” Another way of viewing the debt productivity problem is to look at it in terms of how many dollars of debt it took to help create total national income, which is the wages, salaries, profits, rents and interest income of everyone. Again, from my above mentioned article, which quotes Michael Hodges in his Total America Debt Report, that, “in 1957 there was $1.86 in debt for each dollar of net national income, but [by] 2006 there was $4.60 of debt for each dollar of national income – up 147 per cent. It also means this extra $2.74 of debt per dollar of national income (more…)