by Michael Snyder, The Economic Collapse Blog:
You can call everyone for dinner, because our goose is cooked. We are so deep in debt that the only way we can keep the entire system from collapsing is to keep borrowing even more money. Perhaps you have been through a similar scenario with your own personal finances. When you simply do not have enough money to pay your bills, borrowing more money can seem like a really easy short-term solution. Unfortunately, the U.S. government has been doing this for decades, and now our national debt spiral has reached a terminal stage. Even if we gathered up all of the money that exists in every bank account in America, we could not pay off the national debt. The debt level is exploding upwards at an exponential rate, and the only way that the federal government can continue to pay the bills is to keep borrowing and spending colossal mountains of money that we must borrow from someone else.
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As I write this article, the U.S. national debt is sitting at 31.4 trillion dollars.
But the total value of all goods and services produced in the United States last year was only about 25 trillion dollars.
Our leaders in Washington could try to reverse course by balancing the budget, but that would lead to a short-term economic disaster.
Just think about it.
What do you think would happen if a couple trillion dollars of government spending was suddenly sucked out of the economy?
We would immediately plunge into a horrifying economic depression.
Sadly, the truth is that we have been borrowing from the future to make the present a lot more pleasant. We are enjoying an artificially-inflated standard of living that we do not deserve, and we have been using debt to fund that artificially-inflated standard of living.
But now a day of reckoning is here.
Of course it isn’t just the federal government that has gone completely insane.
Our state and local governments are collectively more than 3 trillion dollars in debt.
Corporate debt in the United States has now surpassed the 12 trillion dollar mark.
And total U.S. household debt is now over 18 trillion dollars.
As the U.S. economy has slowed down in recent months, an increasing number of Americans have turned to credit card debt.
So now credit card debt is rising at an exponential rate while the savings rate has dropped to a historic low.
And at this point the average rate of interest on credit card balances is the highest ever.
I don’t even have the words to describe how self-destructive we are being.
On every level of society, debt levels are absolutely skyrocketing.
We are literally committing national financial suicide, but many people don’t seem to care.
And many people don’t seem to care because they don’t even understand what is happening.
At this point, our “system of education” has produced hordes of completely clueless individuals that can barely even function in a modern society.
But instead, our leaders have been free to systematically destroy our financial future for a very long time, and very few of us have even cared enough to object.
Unfortunately, we have reached a point where there is no turning back.
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