the debt limit

watch this short video on what the USA debt crisis is like

imagine running a household budget this way

income $21,000 a year
spending $38,000 a year
net increase of debt a year:  $17,000

total debt (credit cards, bank overdraft etc)  $167,000  (as of Oct 2013)

solution : to cut costs
budget cuts $380 a year proposed (like that's going to make a difference!)

The Coming Economic Collapse of 2014

Most people are not aware of the economic collapse that is now INEVITABLE. I will show you exactly why. Can the collapse be avoided? No. It's too late because the debt is already too large to ever be paid back.

Would you lend money to someone who you KNEW could never afford to pay you back? Of course not! Well that is where the USA is right now. It is now a FACT that USA cannot pay back it's debt. They just don't have the money.

So let's start with some charts - so you can see just how serious this is.

What do the figures tell you? The debt is going up each year. In 33 years the USA has never been able to lower the debt in a single year! What are the chances now? It's much harder now because of the interest that has to be paid on the debt. 
You may have heard terms like "The Debt Ceiling" without really understanding how important it is. Imagine you are it debt and have an overdraft (loan) with the bank and it has a limit of $10,000. You have no more money left and you ask the bank to extend the overdraft to $15,000. If they say no - you can no longer pay your bills and will go bankrupt. If they say YES - it's even worse because you are building up EVEN more debt - and all you are doing is postponing the inevitable.

The debt from 1940 till 2012

Take a close look at the chart. By 1980 we had reached a TOTAL DEBT of a TRILLION DOLLARS. That is 1000 BILLION Dollars - or $1000,000,000,000.

So it took FORTY YEARS from 1940 to 1980 to accumulate a total debt of 
$1 Trillion.

In 2012 alone - the USA added over a Trillion Dollars to the debt. 

The debt level in 1987 triggered the stock market crash and world leaders told America to get it's debt to more manageable levels.

What was the debt level? It had reached $2 Trillion and it was considered to be far too high.

By 2009 it had reached £10 Trillion. That is FIVE TIMES HIGHER!

Now in 2013 - it's $16.5 Trillion. That's a 65% increase in just 4 years.

At the same rate of increase it will be $27 Trillion by 2017. The only thing is - we won't get to 2017 because America will have defaulted by then.

This level of debt is unsustainable. It cannot go on because eventually debt has to be paid back.

While the debt is at record levels - the stock market is making new highs. That is a major stock market crash waiting to happen. This coming stock market crash will be the greatest crash is known history. The last crash of this level happened in 1929 - when the market dropped by 90%. This time it's going to be worse. The dollar will go into free fall as soon as the USA finally admits it is unable to pay it's debts. 

In order to avert a total crash of the dollar, the USA will have to raise interest rates on the treasury bills in order to attract investors. So interest rates will rise sharply. Houses will get re-possessed at a rate never before seen in history.

The UK and other countries will find themselves in the same situation. This will be a global financial collapse.

Average Joe Bloggs will wake up and realise that all his money has become worthless, his house has dropped massively in value, his stock market investment and pension has disappeared. So - he will take to the streets and you will get major riots at a level never before seen in history.

No government will be able to stop it - even if they bring in the military to restore law and order. Can you imagine riots in every major city? Any government struggles to control a small riot like the london riots a few years ago. A riot in every city is too big to control. 

I don't want this to happen - I am simply stating it is the most likely outcome of a global financial collapse.