Currently, government spending in the United States, just federal spending, is 44% of GDP, so that would put total government spending at excess of 50% of GDP, which had never happened outside of World War II. On the revenue side, federal government is 32% of GDP. So it’s not even a misnomer anymore to say that the US is now a socialist state.
Another way of seeing these numbers is to understand that right now, 44 million people are on food stamps. Twenty million people are employed either by the state governments or by the federal governments. Assuming there aren’t a lot of state employees that are on food stamps – and there aren’t, because government employees actually get paid better than private employees – more than 60 million people in the United States depend on the state for either their income or their food…….THINK about how the USA is a now another USSR like economy.
There are about 81 million households in the United States. So something on the order of two-thirds of all the families in the United States depend on the government either for their food or for their income… and that government is quite clearly broke.
The total government debt in the United States per taxpayer is now in excess of $122,000 who pay this debt to bankers each month. You have to understand that’s per taxpayer. But about half of those people actually don’t pay very much money at all in taxes. So the real burden on the productive citizen is enormous and climbing
And one final point I want to make about the sustainability of these debts: Not only are the debts impossible to repay, they’re far too large. There’s no way the people of the US can ever begin to repay them. The US bureaucracy is now very close to approaching a point in time where they can no longer be financed.
A currency crisis is under way.
It’s not a matter of if the US will have one or not as it is now in the midst of one. You don’t see the price of silver go from $2.50 an ounce to $25 an ounce in a 10-year period unless something horrible has gone wrong with your monetary system. There’s no other explanation for why you’ve seen not only gold and silver, but oil and corn and cotton and coal – everything that that’s useful that’s priced in dollars – going straight up.
That’s not because there’s been a sudden drought of silver mines. It’s because the paper that you’re denominating these assets in is collapsing.
Just this week, silver skyrocketed to a 30-year high… and gold is now closing in on $1,400 an ounce. The dollar is at its lowest low in more than a year. This is the market telling us that “crazy” is here. Despite these big price rises, it’s not too late to protect your wealth with gold and silver, if you don’t own any already.
What sounds crazy to most investors is often what works. You don’t make money by sticking your head in the sand and listening to conventional wisdom from the here today gone tomorrow bureaucrats who really know so little about the financial system they pretend to understand.They don’t.