$20 Trillion Debt – It's Time To Start Believing In The Impossible

Tyler Durden's picture

Authored by Simon Black via SovereignMan.com,

I’ll start today with a confession: I’m an unabashed optimist.

I believe that this is one of the most exciting times in all of human history to be alive. And with good reason.

Think about it– compared to thousands of years of violent warfare that ravaged most of the world’s major cities, we live in an era of relative peace.

Pockets of conflict will always exist. But right now there’s no major world war… no persistent threat of nuclear annihilation.

We also live in a time when more than 1 billion people in developing countries are rapidly rising into the Middle Class.

Their standards of living are improving like never before seen, and this creates an abundance of compelling opportunity.

Also, we humans now have the capacity to live longer, healthier lives… and to stay productive for longer than ever before.

Just a few weeks ago, a Texas physicist named John Goodenough invented revolutionary new battery technology.

He’s 94, and he insists that he has plenty of great ideas left to invent.

Most of all we live in a time of astonishing technological transformation.

Entrepreneurs can start businesses in minutes and reach customers on the other side of the planet.

Consumers can find products from around the world and seek funding online through Peer-to-Peer websites instead of traditional banks.

It’s amazing what we’re able to do and achieve now thanks to modern technology, jus compared to even 10 or 20 years ago.

I count myself among the countless individuals who have been able to benefit from these exciting trends.

I’ve been able to travel to more than 120 countries, start (or acquire) successful businesses around the world in industries as diverse as agriculture (Chile), manufacturing (Australia), banking (Caribbean), and media (Asia).

Very little of this would have even been possible at the time of my birth 38-years ago.

And I marvel that so many of my employees are from former republics of the Soviet Union… something else what would have been impossible just 26-years ago.

Yet despite so much progress and extraordinary opportunity, it’s also important to stay realistic: the world has gotten itself into a twist.

Nearly every major western government is bankrupt with woefully unsustainable finances.

The United States leads the way with $20 trillion in debt and a total negative net worth of MINUS $76.7 trillion, according to its own annual financial report.

The US government loses money each year with no end in sight, posting a staggering loss of $1.05 trillion in 2016.

And relative to the sizes of their own economies, Japan, Greece, Italy, Spain, France, and the United Kingdom are not far off.

Moreover, pension funds across the world are in dire condition.

In the United States, Social Security and Medicare report each year that their programs are rapidly running out of money and have even calculated the date of their own insolvencies.

This isn’t some wild conspiracy theory, these are public reports signed by the Treasury Secretary of the United States.

We also see major risks with global central banks.

As I wrote to you just three days ago, the Federal Reserve is nearly insolvent.

And as they continue to increase interest rates throughout this year, they will effectively engineer their own bankruptcy.

In addition, major financial markets are extraordinarily overvalued.

Stocks in the United States trade at valuations only seen just prior to major crashes.

And as the Wall Street Journal reported just -this morning-, “insiders”, i.e. key shareholders and managers who have inside knowledge of their businesses, are actively selling their stocks.

Economic growth in most of the developed world has also fallen flat– just 1.6% in the United States in 2016, 1.4% in Canada, and 1.9% in Germany.

These are hardly inspiring numbers, especially given that inflation is rising around the world.

According to the US Labor Department, inflation reached 2.7% last month, which was higher than 2.5% in January, which was higher than 2.1% in December, which was higher than 1.7% in November.

Do you notice a trend?

On top of everything else, we also happen to be living through a period of rapidly deteriorating personal freedom.

Spy agencies are engaging in brazen surveillance on… everyone. Citizens. Allies. Everyone.

Civil Asset Forfeiture also continues to reach new heights; according to Justice Department data, total “financing sources”, i.e. money that the government stole from its citizens, more than doubled from 2015 to 2016.

And countless laws, rules, and regulations have turned the Land of the Free into a place where children can be arrested for eating French Fries on the metro.

These risks are already looming, and the potential consequences are severe.

We likely all remember what happened the last time a stock market bubble burst.

When central banks go bust, the impact can be even more substantial.

It happened in Iceland in 2008, and the country had to suffer through 8 years of capital controls as a result.

And we can see the impact of governments going bankrupt each day in the news headlines, primarily with Greece.

These risks are real. But they’re no cause for panic.

A rational, successful person merely needs to acknowledge the risks, and take some sensible steps to ensure that you’re not a victim.

If your stock market is massively overvalued, for example, consider rebalancing your investments into safer assets in markets that are deeply undervalued.

If your government is totally bankrupt, don’t keep 100% of your assets within its reach.

These are simple but effective concepts.

Join me in today’s podcast in which we outline even more of these common sense steps.

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Soul Glow's picture

No wonder silver though.

City_Of_Champyinz's picture

It'a a great time to live until the biggest piece of shit in world history hits the fan.  Then things will get very interesting very quickly.

Looney's picture

 

I’m an unabashed optimist

That’s the problem, right there!

Optimism is like sugar, Simon, too much of it will fuck you up. I think?  ;-)

Looney

Boris Alatovkrap's picture

Boris is unabashed nudist, but wife is agree, too much of good thing is mental poison.

Joe Davola's picture

...don’t keep 100% of your assets within its [govs] reach.

 

And just where is this out reach place?

Manthong's picture

Hi.. boys and girls, moms and dads…..

If you have an inquiring mind and want to know...  read this story..

First of all the story describes a real problem with current tech………..

..but if you analyze the report  language you will realize how stupid the yutes are.

http://www.azcentral.com/story/news/local/phoenix/2017/03/27/tesla-self-driving-car-hits-phoenix-police-motorcycle-second-accident-involving-automated-vehicles-days/99710786/

 

Joe Davola's picture

Sudden acceleration - always the drivers fault.

At least until the software fault/tin whisker/etc that was the real culprit is found.  But how you gonna find a software fault - DMCA protects that code from independent analysis.

Manthong's picture

gee… open source might be the solution…

but I would never own a car that vulnerable.

 

old, low and slow.. the way to go

 

Darktarra's picture

USING CAPS TO GET ATTENTION OF THE READERS **************************************

**********************************************************************************

 

WHY IS THIS SO HARD FOR THE AVERAGE AMERICAN TO UNDERSTAND ... THE UINITED STATES OF AMERICA IS BROKE!  NOT JUST BROKEN, I MEAN [BROKE] AS IN NO MONEY! 

 

$0.76 OF EVERY DOLLAR OF U.S. GDP GOES TO SERVICING THE DEBT.  THE TOTAL UNDUNDED LIABILITY OF THE UNITED STATES GOVERNMENT IS OVER $225 TRILLION DOLLARS!  NOT THE $20 TRILLION ALL NEWS MEDIA REPORTS?  WHY DOESN'T HANNITY OR O'REILY OR MADDOW OR MATTHEWS REPORT THE TRUTH?  ANSWER:  THEY DON'T WANT THEIR 7 FIGURE SALERIES TO NOT MATTER!

 

PLEASE EDUCATE YOURSELF AND PREPARE FOR WHAT IS COMING.  HERE IS A SITE THAT HAS THE ENTIRE LISTS OF ANNUAL DEFICITS SINCE 1910 AND OUR PLIGHT:  https://en.wikipedia.org/wiki/National_debt_of_the_United_States

 

SCROLL DOWN THE PAGE ABOUT HALF WAY TO THE APPENDIX ... WE ARE BROKE YET WE ARGUE OVER PHANTOM BUDGETS AND FIAT CURRENCY ... HOW SAD... 

froze25's picture

It's not as if the money supply can grow with out the National Debt growing as well. We do have a debt based money system.

fbazzrea's picture

preaching to the choir here, hon... try a MSM YouTube video comment section. fertile ground. (:

Logan 5's picture
Logan 5 (not verified) Darktarra Mar 28, 2017 1:31 PM

Whatever you do ~ Don't USE ALL CAPS, to speak about 'mathematical demographic impossibilities'...

 

else

 

It might be the last post you ever make on ZH

Socratic Dog's picture

But...but...we've got a revolutionary new battery technology!  Invented only a couple of weeks ago!

Jesus this guy's a tool.  Invented a couple of weeks ago, and it's going to save the world.

I guess, like Simon, the US is unabashedly optimistic.  20 trillion, 200 trillion, whatever, that debt is just gonna evaporate, coz we have so many 95 year old inventors.

 

ejmoosa's picture

I believe the state of Utah as well as several others are attempting to draw the line in the sand.

Watch the first video from the AG of the state of Utah.  Some people and some states do get it.

 

https://upma.org/#about_us

https://upma.org/

Arrow4Truth's picture

Within your reach, but without theirs. In a safe place.

Rabbi Chaim Cohen's picture

"Boris is unabashed nudist, but wife is agree, too much of good thing is mental poison."

Indeed. Not to mention for most it eventually becomes VISUAL poison as well.

Sanity Bear's picture

I did notice the trend... of too many low quality doom-pimping articles here.

1/2 star

lasvegaspersona's picture

Dude this is not a nekked lady site...if you want that search for 'pron'...we thrive on doom porn here.

...cuz it is more real than the fiction elsewhere....

City_Of_Champyinz's picture

Get a cold sore on your dick and BAM you have herpes for life...

Boris Alatovkrap's picture

Boris is many funny story about cold sore! …but maybe another time when thing is not so gloomy.

flaminratzazz's picture

My daughter is a micobiologist in a hospital,, she gave me a grahic description of strep cock.

Strep throat of the cock.. NOT a pretty picture!!!

northern vigor's picture

Use some buckwheat honey on strep or staph infections. Externally or swallowed slowly. Rub it in....it saved my best cow's life once.

It'll grow new skin over an ulcer in ten days. Even old amputees that will not heal. It'll kill bacteria and viruses. 

 

unsafe-space-time's picture

Wonder how he got it? Beautiful country. Thank God I will never have kids I hope. Especially daughters. No country for humans.

ejmoosa's picture

It's not the fall that's gonna hurt.  It's the sudden stop.

post turtle saver's picture

"The United States leads the way with $20 trillion in debt and a total negative net worth of MINUS $76.7 trillion, according to its own annual financial report."

 

citation needed... "its own annual financial report" isn't even close to a reference, what are you looking at which makes you assert those figures?

net worth as of 2014 for the US was around 720% of US GDP, I doubt very much it's deteriorated to the levels being cited here since then...

https://en.wikipedia.org/wiki/Financial_position_of_the_United_States

ejmoosa's picture

The debts of the US is not my debts. so do not assume my assets are available to pay their debt off.

skinwalker's picture

He was likely referring to .gov assets against .gov debts.

On that basis the Reds likely do have a negative worth. I don't know the magnitude. It's clouded by the fact that it's hard to value all that federal land out west.

fbazzrea's picture

it's hard to value all that federal land out west.

which belongs to The People. the gubmint is just the caretaker. it doesn't count as collateral either in my book.

IranContra's picture

How about we forgive the debt ourselves. Let the banksters cry.

stacking12321's picture

h0w about you think about what that actually means, instead of saying the first thing that pops into your head that sounds cool?

Grandma who owns government bonds and expects to be able to live off them, pensioners, and others who have already been screwed by zirp, are not banksters.

vq1's picture

hold up a min. IranContra may be referring to financial/economic theory of bygone eras. The idea of "jubilee" has existed for a very long time. Most notably in Rome when debt was forgiven with new Caesars. How about the seventh year in judea? Arguably Jesus was one of the last to argue for jubilee. 

 

debt is poison for a society. It must be purged from time to time!

 

Anyway, just my two cents!

lasvegaspersona's picture

Accumulating debt is only bothersome to most people when it destroys the store of value. Unfortuntely for most the store of value is also the medium of exchange. Switch your store of value to something physical and let the Fed destroy the dollar...not your problem then is it...

vq1's picture

i often hear that the dollar is soo powerful. It is utilized by the global economy! Its a essential system. It could never be tainted, replaced or manipulated, we decree! 

 

I guess people wont see it coming until its too late. 

 

Or by "destroy the dollar" you just mean erode its purchase power? In which case who cares, friend! We will all get huge "cost of living" increases! A few more years we will make it to valhalla! Trillionaires, each and everyone of us!

 

And what if there is trillion dollar toilet paper, you ask!? Then by god, the free market has decided its worth a trillion dollars! So much innovation in new aged butt wiping!

hxc's picture

Capitalism =/= central bank fuckery

vq1's picture

agreed friend. Id happily "downgrade" to the "older version" of capitalism. 

Arrow4Truth's picture

Free market? Trillion dollar tp will not be the result of free market supply and demand or by god. It'll be done by the moneychangers.

IranContra's picture

Yes, exactly, let's have a jubilee. Jesus is coming soon, anyway. His scouts should be asking for a jubilee. Maybe I'm a Jesus scout.

Sanity Bear's picture

Let's play the "what that actually means" game, sure!

Grandma holding bonds actually means that she's a shareholder in a system that enslaves her grandchildren.

They're called "bonds" for a reason - because they create a bondage relationship, as in the slavery sense not the Comet Pizza sense.

Grandma, in buying those bonds, literally sold out her own posterity into slavery.

What grandma should have been doing is telling DC that if they put a dime of debt on her grandchildren, she'd show up and personally burn the place down.

In conclusion: Fuck Grandma. Let her starve as she so rightfully deserves.

Sanity Bear's picture

I am going to presume that the down arrows are from the portion of ZH readership that doesn't understand what a government bond actually is.

For those of you who don't understand the bottom line on a government bond: they are backed SOLELY by the ability of the government to extract wealth by force.

Which means Grandma's grandkids are getting the business end of the gun that ensures Grandma gets paid.

Silver Savior's picture

I already forgave most of my debt.

agNau's picture

You do remember all the stories about re-upping the FED's charter?

Remember the vote?

?

IranContra's picture

No. Aren't they just a bunch of rabbis and witches?

land_of_the_few's picture

And then there's the real world.

Logan 5's picture
Logan 5 (not verified) SHEEPFUKKER Mar 28, 2017 11:48 AM

Simon needs to spend less time globetrotting & more time in Philly (where a Rochefocauld still only costs $50 bucks)...