US: The Mega-Bubble That’s Going to Go Bust
- US: The Mega-Bubble That’s Going to Go Bust
by Martin Berger, http://journal-neo.org/
It’s noteworthy that the United States state-controled media, especially such newspapers like the New York Times and Washington Post, along with the channels like CNBC and Bloomberg, have been hard at work in a bid to persuade the general public that American banks and corporations are standing firmly on their both feet. We are being told told that the eight years of Obama’s economic genius have created a near-record low unemployment, while the US economy is healthy and still remains the leader of G7 in terms of economic growth.
However, there’s a good reason why the US often being refered to as the “Empire of Lies“, since the actual economic situation in America is pretty frightening, and it keeps deteriorating on the back of the unprecedented level of US corporate debt. Still, Washington hides any signs of the inescapable financial crisis, that will soon become international after hitting the Wall Street initially.
The US national has already hit the whooping 19.5 trillion dollars and is now exceeding 100% of America’s GDP, nearing the level of 105.1% by the end of the year. The IMF is convinced that should we witness a crisiss in the nearest future, this ratio will quickly reach 132% of America’s GDP by the end of the 10-year period.
As of March 2016, the US debt to Saudi Arabia alone amounted to 116.8 billion dollars, while China and Japan remain America’s largest creditors, since each of these players holds an equivalent of one trilion dollars in US Treasuries. Jim Rogers, the notorious American investor has already noted that the Federal Reserve’s balance sheet was 800 billion dollars in 2008, and now it has hit nearly 5 trillion dollars, therefore, Rogers pointed out that the US economy will be in recession sometime in the next year or two, while the states with highest levels of national debt are going to suffer the most.
As it has been pointed out by a number of American analysts, it is a challenging task to even comprehend the total amount of money that the United States owes, it is 25 times larger than all global oil exports in 2015. Moreover, one would need the Saudis to donate the next 146 years of revenue from their oil exports to fully pay down the debt. As a matter of fact, the US national debt is larger than all of the world’s physical currencies, gold, silver, and bitcoin combined.
In fact, if one is to calculate every single dollar, euro, yen, pound, yuan, and any other global physical currency note or coin in existence, it will only amount to 5 trillion dollars . Adding the world’s physical gold (7.7 trillion dollars), silver (20 billion dollars), and cryptocurrencies (11 billion dollars), one would get 12.73 trillion, or about 65% of the US national debt.
The former Director of the Office of Management and Budget, David Stockman has repeatedly warned the US administration that the US “mega-bubble” is going to burst.
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