Inflation — Fuse to the Debt Bomb

This clock displayed in the above link (click it…it is very enlightening) calculates not just America’s federal public debt which is 15 trillion, but it also shows total debt including citizen debt, business debt, state and local debt, and other forms of debt like social security and medicare/medicaid.  The total debt of our country is approaching 57 trillion. Our GDP is only 15 trillion.  Do you mind telling me how our GDP will ever catch up to pay off 57 trillion?  Even if we liquidated all our assets we still couldn’t cover our liabilities.

Now, if you extrapolate the situation in America to Europe, the picture is the same.  world-debt-clock.html This clock only shows public debt relative to the countries GDP.  Look at the European countries relative to China and India.  Do you think China and India can bail out the western civilization?  Do you think they even care?  Shit, they have almost a third of the world population to take care of and don’t have the resources to bail out our bleeding asses.  But, when we implode they will also experience hell, but to lesser extent.  The changing of the guard is here.  Time to start teaching Mandarin, Cantonese, Hindi, and perhaps Spanish in the schools.  English, German, and French can become electives.

Inflation is here folks and it is going to get much worse.  And when inflation hits hard, the cat will be out of the bag.  Inflation is the fuse that will awaken the public to the Ponzi scheme that is paper money printed at will, debt issued at the push of a button, and the electronic casino that is the stock market; and the debt bomb will explode world-wide leading to chaos.  Greece is a prelude.  I am not alone in this perspective.  There is another way my friends for human beings to create our existence without money.  Just watch some little kids play a little league baseball game.

“Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal – that there is no human relation between master and slave.”

Leo Tolstoy

“It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.”

Henry Ford

“The modern banking system manufactures money out of nothing. The process is, perhaps, the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and un-mint the modern ledger-entry currency.”

Major L L B Angus.

“The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it… The process by which banks create money is so simple the mind is repelled. With something so important, a deeper mystery seems only decent.”

John Kenneth Galbraith

“Paper money eventually returns to its intrinsic value —- zero.”


“I sincerely believe … that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large-scale.”

Thomas Jefferson

“Thus, our national circulating medium is now at the mercy of loan transactions of banks, which lend, not money, but promises to supply money they do not possess.”

Irving Fisher

“If, however, a government refrains from regulations and allows matters to take their course,  essential commodities soon attain a level of price out of the reach of all but the rich, the worthlessness of the money becomes apparent, and the fraud upon the public can be concealed no longer.”

John Maynard Keynes

“Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.”

George Washington

9 thoughts on “Inflation — Fuse to the Debt Bomb

  1. Globalization has set us on the course for ruin. If Europe goes down, the US will go down. If those 2 go down then China and other export driven economies will follow. Everybody find a helmet.

    • There are some very intelligent economists that are predicting hyper-inflation for the US between now and 2014. My intuition agrees with their extremely detailed arguments. I think a potential war with Iran may serve as a diversion, but I don’t see a way out of our hole. America may go before Europe or the other way around, but in the end, it doesn’t matter for both are connected by the hip. I fear the collapse is near. The numbers just don’t add up with reality. If you look back in history (starting with China), the concept of printing money leads to inflation and eventually a useless currency. When you add enormous debt to the equation and use debt as a means to fuel or prop up the economy, the fall from hyper-inflation will be even harder.

      Yes, China will go through hell, but without enormous debt, I imagine they will be in a better position.

      Ron Paul is probably the only presidential candidate that I like. Look what he says about inflation or hyperinflation in the United States. In fact, his concern over the US fiscal policy is the primary reason he decided to throw his name in the hat. His honest and outspoken views may be true, but that doesn’t get you elected does it?

      • Yeah, Ron Paul’s my boy. I hope he runs as a Libertarian or Independent because the repubs are screwing him big time. They’re casting dead people’s votes for Romney and blatantly not counting counties that Paul wins when the votes are tallied.

        China’s national debt is estimated to be as high as 160% but they’re able to control it better (or give the appearance of control) because most of the big banks are owned by the state. Anyway, good on ya for talking about this. It’s something most people are too afraid to confront.

  2. One word comes to mind when observing this clock: Hemorrhaging.

    By the way, aren’t you two supposed to be getting married? That will be somewhat awkward, what with me me being the Best Man and all.

    • Here are some ironic numbers to consider from that debt clock:
      Us Federal debt 15 trillion
      Personal debt 15 trillion
      GDP 15 trillion

      Bottom line: assets per citizen $245 thousand
      Liability per citizen: $1 million

      Of course we all know the elite have more assets and less liabilities.

      LOL regarding marriage…Anne????? shouldn’t we go out and take a walk together in SF… around the Golden Gate, along the California Coast…and have a few nice dinners together…before we come together to meet my best man?

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