👉America An Empire Sinking in Debt !!

👉America An Empire Sinking in Debt !!






The federal budget deficit in June totaled nearly the entire 2019 fiscal year shortfall and was bigger than the 2018 deficit. The June deficit came in at 864.1 billion dollars, according to the latest Treasury Department report. To put that into perspective, the budget shortfall for fiscal 2019 was $984 billion and in 2018, the deficit was a mere $779 billion. When the calendar year deficit for 2019 came in at just over $1 trillion, we said the federal government was spending us into oblivion. It’s hard to even come up with words to describe a monthly budget shortfall of $864 billion. For the fiscal year beginning Oct 1, the federal government has spent $2.74 trillion more than it’s taken in. The previous record deficit for an entire fiscal year was $1.4 trillion set in 2009. Spending in response to the coronavirus pandemic drove the deficit to these astronomical levels. Uncle Sam blew through $1.1 trillion in June alone. Outlays were up by a staggering 223% on the month. That pushed federal spending for the fiscal year to just over $5 trillion. The government shutdown of the economy has also squeezed government receipts. Revenue was down 28%, falling to $241 billion in June. Uncle Sam should get some relief with an influx of tax payments this month with the filing deadline set for July 15, but there is no end in sight to the spending. It seems almost certain Congress will pass another stimulus bill before the end of the year. It’s easy to blame the deficit on COVID-19, but the federal government was already spending as if there was a crisis before the pandemic. Through the first two months of fiscal 2020, the deficit was already 12% over 2019’s huge number and was on track to eclipse $1 trillion. Prior to this year, the US government had only run deficits over $1 trillion four times, all during the Great Recession. We were approaching that number prior to the pandemic, despite what Trump kept calling “the greatest economy in the history of America.” Even with the economy supposedly in the midst of a boom, US government borrowing looked more like we were in the midst of a deep recession — before the government-induced coronavirus recession. Long-term US debt sales rose to levels not seen since the height of the financial crisis before the current financial crisis, and the Federal Reserve was already monetizing US debt with quantitative easing before the pandemic. As of July 10, the national debt was approaching $26.5 trillion after having just eclipsed $26 trillion on June 9. According to the National Debt Clock, the debt to GDP ratio now stands at 132.55%. Studies have shown that a debt to GDP ratio over 90% retards economic growth by about 30%. It’s hard to even fathom this level of debt. And nobody seems concerned. Virtually everybody agrees that trillions in government spending is “necessary” to boost the economy and mitigate the effect of the COVID-19 government shutdowns – Republicans and conservatives included. Everybody is a Keynesian now. But nobody seems to be asking the most significant question: who is going to pay for all of this? After all, borrowed money has to be paid back. The answer is simple: We will all be on the hook for this massive bill. We will either pay for it in higher real taxes or a massive inflation tax — probably both. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to smash that like button. And as You know friends, I rely totally on your donations to keep this channel functional, as you know, it takes a crazy amount of research and time to bring you this content on a daily basis, so I hope you consider helping with whatever donation you can afford. Thank You. It may sound like hyperbole, but the imminent global debt crisis cannot be taken slightly. After years of incredibly low interest rates around the world, companies and governments issued debt like it was going out of style. And it just may. The untold story of the world economy ; this far at the least , is the possibly perilous connection between the scattering trade-war and the protrusion of global debt, valued at a breathtaking $247 trillion. That’s “Trillion” with a “T.” This is a multi-trillion dollar problem, one hard to just evaluate. The numbers are so immense as to be almost inexplicable. Households, businesses and governments borrow on the premise that they will service their debts either by paying the principal and interest or by turning the debts into new loans. But this works only if incomes increase fast enough to make the debts tolerable or to warrant new loans. When those ingredients go lacking, delinquencies, defaults and worst-case panics follow. These aren't just mind-boggling numbers . There are real, wholehearted consequences for average Americans. High debt drove up interest rates, which translates to higher payments on mortgages, car loans, and credit card debt. Because debt is growing, somewhat than stable, in 30 years, a family with a $300,000 mortgage can anticipate to pay around $45,000 more over the course of the mortgage. If the current economic shock has taught us anything, it is that despite all the new controls rules regulations put in by Congress after the financial crisis,Wall Street always has a way of finding new and inventive ways of creating things to sell like the hundreds of billions of dollars in subprime mortgage-backed securities that basically broke bank balance sheets more than ten years ago. A similar but simpler Wall Street product needs to be on your radar if it's not already. You've probably heard about them. They're called collateralized loan obligations , or CLOs . No not CDOs. Those are collateralized debt obligations, which of course, just you know, help destroy the banking system in 2008. CLOs are bundles of business loans generally made to smaller or mid-sized companies some of whom have maybe trouble balance sheets or maxed out their own borrowing, can't sell bonds directly to investors or do not qualify for traditional bank loans. The banks are making mistakes similar to those leading up to the 2008 financial crisis. Only this time with this new type of security that could break bank balance sheets beyond repair. The only constant here is the taxpayer always pays for the sins of the rich. But hey, no worries, the Fed will bail all out. Fed has been buying bonds. Thus, these companies will be able to issue more bonds and pay back their debt to the banks. The banks also can sell off the bonds they're holding to Fed at a profit with near 0 rates. All win-win for everyone except the federal balance, which no one cares about. Debts no longer matter, employment no longer matters. Governments printing funny money no longer matters. Corporate losses, stores closing it does not matter. Dead bodies, mass graves, it does not matter. Welcome to the Twilight Zone. The Fed now needs to print faster! Fun facts: The Fed is not, I repeat not, a government agency and not part of the federal government at all. The Fed is a private institution run by private bankers, who have taken over the US governmental finance sector. The US constitution forbids anyone but the federal government from printing money. The US government does not print money. The Federal Reserve (a privately owned company) prints our money then loans it to the US government via treasury notes, and the US government pays interest on it. The US government pays interest on money it borrows from a private company. It allows it to print our money. Let that sink in and think about it. If the US government would simply print its own money, we would not be in the debt crisis we are in now. We live in an unofficial oligarchy. The democrats and republicans fight and debate on camera, but behind closed doors, both parties are on the same team, and the mainstream media stations will keep people divided by race and class, focusing on issues to distract all of us from focusing on what corporations and their politicians are doing behind the curtains. prepare for another downturn in the stock market as investors will soon realize the shape of the recovery is an "L" rather than the overhyped "V." As long as the central banks keep interfering with market forces. They're not only protecting their own portfolios by putting us deeper in debt, but they HAVE TO keep these equity and bond markets up. If they don't, they're going to have tens of millions of retirees who are suddenly insolvent. Everything will collapse, in some places more than others. In that case, no candidate from either party would be able to speak in public with hundreds of 60 somethings on up cussing them out non-stop. If they fail, they will simply be nowhere to be found. They'll be far away protected by isolation and private security. Oh, the local politicians will (mostly) be alright, because most everyone loves their local politicians and won't blame them like those in Washington. The others, the ones largely behind the scenes, most of us don't even know of anyway. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my back up channels, I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends!

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.