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After the federal government finishes driving our economy over the cliff, after they have stood around with their hands in the pockets, shrugging their shoulders, without so much as a budget these past three years, what is the economic outlook for the future of this country?
Not pretty, according to several in the financial field. In fact, noted financial expert Peter Schiff is warning that we’re on the verge of a collapse of unprecedented proportions and that the 2008 nosedive the financial markets took will seem like a blip on the radar in comparison.
“We have a much bigger collapse coming—not just the markets, but of the economy. It’s like what you’re seeing in Europe right now, but only worse,” Schiff warned.
Right now one of the biggest concerns of those keeping tabs on our economy is what several prominent scientists, economists, and geopolitical experts have uncovered – and emerging pattern of accelerated and volatile credit market debt and exponential growth in that debt.
This increase could hit what’s left of the wealth and financial security of millions of Americans. Schiff, an American investment broker and financial commentator, says that, “if the Fed ultimately comes through with QE3…it won’t strengthen the economy, but will weaken the dollar.” This will lead to a Greek-style debt crisis with the dollar bottoming out, and interest and consumer prices spiking.
As of today, the total credit market debt of the United States is over 350% larger than the gross domestic product. This acceleration in growth is dangerous and is increasing exponentially at an unsustainable level.
The former vice-president of a Fortune 300 company, Chris Martenson, explains says, “We found an identical pattern in our debt, total credit market, and money supply that guarantees they’re going to fail. This pattern is nearly the same as in any pyramid scheme, one that escalates exponentially fast before it collapses. Governments around the globe are chiefly responsible. And what’s really disturbing about these findings is that the pattern isn’t limited to our economy. We found the same catastrophic pattern in our energy, food, and water systems as well.”
Dr. Kent Moors, an energy advisor to sixteen world governments and two U.S. State Department task forces on energy is also unnerved by the implications. “It’s a pattern that’s hard to see unless you understand the way a catastrophe like this gains traction. At first, it’s almost impossible to perceive. Everything looks fine, just like in any pyramid scheme. Yet the insidious growth of the virus keeps doubling in size, over and over again—in shorter and shorter periods of time—until it hits unsustainable levels. And it collapses the system.”
Total credit market debt was moderate for 30 years (from the 1940s to the 1970s), but from 1970 to 1977, that debt began to double. Within seven years, it had doubled again. As the growth rate of the debt expanded, the time for it to double shortened to five years, and it has doubled twice since then.
We can see the ominous signs already throughout the country—cities are beginning to lay off public sector jobs such as police and fire forces because of budget cuts. The Washington Post is sounding the alarm that in two years, Congress will not have the funds needed for the country’s transportation needs.
Chief economist at Blackhorse Asset Management, Richard Duncan, told CNBC that America’s $16 trillion federal debt is escalating to such an extent that a severe depression unlike any we’ve seen before could result.
Keith Fitz-Gerald, president of The Fitz-Gerald Group says that, if their research is right, “Americans will have to make some tough choices on how they’ll go about surviving when basic necessities become nearly unaffordable and the economy becomes dangerously unstable.”
