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Saturday, May 06, 2017

The Coming Debt Reckoning

The banksters will pay in spades for destroying America and no amount of private security will save them from the enraged, pauperised mobs when they finally take to the streets  

ECONOMIC PRISM
By M.N. Gordon
05/05/2017

American workers, as a whole, are facing a disagreeable disorder. Their debt burdens are increasing. Their incomes are stagnating.


Corporate criminals, banksters and the super-rich have 
turned America into an immoral, enslaved society
There are many reasons why. In truth, it would take several large volumes to chronicle all of them. But when you get down to the ‘lick log’ of it all, the disorder stems from decades of technocratic intervention that have stripped away any semblance of a free functioning, self-correcting economy. The financial system circa 2017, and the economy that supports it, has been stretched to the breaking point. 

Shortsighted fiscal and monetary policies have propagated it. 


The result is a failing financial order that has become near intolerable for all but the gravy supping political class and their cronies.

Take consumer spending. This is the primary driver of the U.S. economy. Yet it requires vast amounts of credit. In fact, American consumers presently hold $1 trillion in revolving credit. At the same time, they have nowhere near the income needed to finance these debts, let alone pay them off.


564,708 people in the U.S. homeless in 2016


Remember, the flipside of credit is debt. Obviously, the divergence of increasing debt and stagnating incomes is a condition that cannot go on forever. But it can go on much longer than any sensible person would consider possible.

Debt Slaves

If you haven’t noticed, the financial services industry is extremely accomplished at compelling people to go whole hog into debt. Moreover, the entire fiat based financial system, which depends on ever increasing issuances of debt, hinges on it. Just a slight contraction of credit, like late 2008, and the whole debt repayment structure breaks down.




On an individual basis, there are only so many credit cards that can be maxed out before the shell game ends. Wolf Richter, of Wolf Street, recently clarified the relationship between the economy and deep consumer debt:

“The US economy is fueled by credit. Americans turning themselves into debt slaves makes it tick. Take it away, and what little growth there is – nearly zero in the first quarter – will dissipate into ambient air altogether. So it’s time to take the pulse of our American debt slaves.

“In a new study, life insurer and financial services provider Northwestern Mutual found that 45 percent of Americans that have debt spend ‘up to half of their monthly income on debt repayment.’ Those are the true debt slaves.




“Excluding mortgage debt, Americans carry an average debt of $37,000. Of them, 47 percent carry $25,000 or more, and more than 10 percent carry $100,000 or more in debt, excluding mortgage debt.

“Most of them expect to get out of debt before they die, but 14 percent expect to be in debt ‘for the rest of their lives.”’

The Coming Debt Reckoning

Consumers with elevated debt levels are playing a high risk game. They are one job loss or illness away from losing it all. Even without such difficult life events, the compounding interest of massive amounts of debt relentlessly pile up like straw upon a camel’s back. Eventually the breaking point is crossed.




The process may be subtle at first. Later it’s abrupt. Here we turn to a brief dialogue from Ernest Hemingway’s 1926 novel, The Sun Also Rises, for a succinct explanation of the process of going broke:

“How did you go bankrupt?” Bill asked.

“Two ways,” Mike said. “Gradually and then suddenly.”

By our estimation, the gradual trickle toward bankruptcy for many Americans is giving way to the sudden deluge. On an individual basis, greater amounts of debt may be a temporary solution to a debt problem. But greater amounts of debt gradually compound to a sudden bankruptcy.

First-quarter GDP, reported last Friday, came in at an annualized rate of just 0.7 percent. Of this, personal consumption increased just 0.3 percent.


U.S. Seniors eating dog food to survive

Up and down, in and out, of the economy, consumers are struggling. Some are attempting to tighten their belts. Others are at the end of their rope. Is it any surprise that retailers are shuttering stores at a record clip?

Obviously, the effects of consumer retrenchments will spread out beyond just retail. Commercial real estate, manufacturing, shipping and transportation, automotive, oil and gas – you name it. A coordinated supply glut, fueled by excess debt, is upon us.

Make of it what you will. By our estimation a debt reckoning is coming, and that doesn’t even account for government debt. What better time than now to get your financial house in order?



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ANDREW KREIG: EXPERTS REJECT FIRE AS CAUSE FOR 9/11 WTC COLLAPSES

The real truth on 9/11 slowly continues to bleed out

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Technical experts are mounting major challenges to official U.S. government accounts of how three World Trade Center skyscrapers collapsed in near-freefall after the 9/11 attacks 15 years ago.

Many researchers are focusing especially on the little-known collapse of

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The Geopolitics Of The United States, Part 1: The Inevitable Empire

The Empire and the inevitable fall of the Obama criminal regime

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STRATFOR Editor’s Note: This installment on the United States, presented in two parts, is the 16th in a series of STRATFOR monographs on the geopolitics of countries influential in world affairs.

Like nearly all of the peoples of North and South America, most Americans are not originally from the territory that became the United States.

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Geopolitics Of The United States Part 2: American Identity And The Threats of Tomorrow

A look back at 2011 predictions for the future in order to put events of today into perspective

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We have already discussed in the first part of this analysis how the American geography dooms whoever controls the territory to being a global power, but there are a number of other outcomes that shape what that power will be like. The first and most critical is the impact of that geography on the American mindset.

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By Robert S. Finnegan

This e-mail outlines and confirms the acts of espionage against Indonesia and Indonesians by Akiko Makino and the others involved both in Kobe University and in AI Lab at University of Airlangga, Surabaya; Bahasa Indonesia original follows English translation...

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UPDATED 01/07/2015 : New Analysis Challenges Tamiflu Efficacy; Hong Kong Corona Virus Outbreak

UPDATED 01/07/2015 : FOX NEWS CORPORATE PHARMA SHILL MEGAN KELLY AND FOX NEWS QUACK DOCTOR NOW PUSHING TAMIFLU FOR PREGNANT WOMEN AND CHILDREN;

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THE 5TH ESTATE UNEQUIVOCALLY WARNS THE PUBLIC NOT TO TAKE OR GIVE THIS PROVEN DANGEROUS, INEFFECTIVE DRUG TO ANYONE

Obama criminals now resulting to biowarfare in quest to destroy Chinese and ASEAN economy; "novel virus substrain" points directly to a Kawaoka / Fouchier / Ernala-Ginting Kobe lab virus weaponized and genetically altered to specifically target and infect the Asian population: Ribavirin...

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The 5th Estate has just purchased a library on H5N1 "Novel" virus pandemics, there are dozens of PDF and Exel documents we feel will assist you in saving lives following intentional releases of the H5N1 and now MERS viruses; we will begin by printing those that appear to be extremely relevant here: H5N1 Kobe-Kawaoka-Ernala series continues soon with more "Smoking Gun" e-mails from Teridah Ernala to The 5th Estate . . .

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By Robert S. Finnegan

On October 12, 2002 the Indonesian island of Bali experienced a terrorist attack that rocked the world. It was unquestionably well-coordinated and executed, the largest in the country's history.

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