Is the Global Econimc collapse inevitable? Video explains yes in laymen's terms

[poohbear]

Hey all, i saw this video that explains in laymen's terms what's happening right now, and its pretty disturbing:

http://youtu.be/3Rt_naS7iuI

now, the conclusion is that America is caught in a catch 22, and there's no way out no matter what it does (can't raise taxes, and can't cut the budget). Its too far in, and the collapse IS coming. If you look at the numbers (in laymen's terms), it does indeed seem inevitable. Another laymen's terms explanation shows us this:

US financial situation explained in household incomes

* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000

Let's now remove 8 zeros and pretend it's a household budget:

* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts so far: $385

I personally don't pay attention when people talk in "trillions" cause it doesn't mean anything without context. But when explained in household laymen's terms its shocking. We're accruing an annual debt that almost equals our annual salary!!! 16k of annual debt for someone who makes 21k is incomprehensible! On top of this the guy already owes 142k!!! And all he could cut in his budget was $385????

The video concludes the cycle is too entrenched and a global economic collapse is inevitable cause there's simply no way out. We can't raise taxes, and we can't cut the budget anywhere near to where we need to, so we're totally screwed!

is there any other alternative?

 

[IronWing]

Yes, we can raise taxes. We simply choose not to.

Also, P&N <===

 

[lxskllr]

Lots of cuts can be made, but no one will make them.

 

[Annisman*]

Why would anyone make meaningful cuts when they would immidiately be voted out their next election ? When politicians try to make miniscule cuts to anything, all we see are tv commercials about how politician xyz is trying to let the elderly and children die in the streets naked and starving.

The government started this mess by crapping on the constitution and stealing people's hard earned wages and giving them to those who choose not to contribute to this society. Nowadays everybody has their hand out it seems. People grow up believing it's their birthright to get handouts, try taking them away and you get problems.

How anybody can support leftwing fiscal policies when faced with these obvious truths is beyond me, unless you are the one getting the handouts, in which case you will vote for Santa clause every 4 years.

 

[Abwx]

Historicaly states always destroyed debts through inflation
and in the current situation endebted states are relying
in phony statistics , that is , the official inflation rates ,
the ones used as basis to set interests rates , can be
half of the real ones , hence , tax revenues increase magicaly
and there is even an apparent growth to balance the faulty number
while in fact governements are calmly siphoning money , prove
being that despite years of "growth" people feel that they
are not living as well as a decade ago....

 

[Jhhnn]

The comparison of govt budgets and household budgets is always bunk, an artifact of a profound lack of understanding of the nature of money & govt role in providing it.

Not that the OP will ever figure it out, being ideologically disinclined to do so.

 

[michal1980]

The comparison of govt budgets and household budgets is always bunk, an artifact of a profound lack of understanding of the nature of money & govt role in providing it.

Not that the OP will ever figure it out, being ideologically disinclined to do so.

Ignoring the comparison is to willfully stick your head in the sand and go lalalallalallalalaallala

 

[Pr0d1gy]

There is a million of these videos on youtube. Countries can survive debt, but we certainly need to trim the fat....

 

[Veramocor]

Ignoring the comparison is to willfully stick your head in the sand and go lalalallalallalalaallala

Horrible comparison that does nothing to inform the degree of severity of the deficit/accumulated debt.

Credit card debt: 12-28% interest rate.
Government debt ~ 1.86% (10 year). 1.86% - inflation rate = real interest rate ~=0

The numbers are wrong: Highest deficit was 1.4 T currently down to 973 B http://www.usgovernmentspending.com/federal_deficit_chart.html

Both Household and Government don't include Assets. For example Fed Gov owns 30% of the U.S. land http://nationalatlas.gov/printable/fedlands.html

Household debt is owed to others
Government debt ~40% is intragovernment holdings owed to itself. of the remaining 60% some is owned by others (foreign entities) but some of the 60% is owned by citizens and Fed reserve

Household doesn't print it's own money
Government does and its debt is denominated in said currency

A person can actively make money for 50 years
Governments much longer

 

[Matt1970]

The comparison of govt budgets and household budgets is always bunk, an artifact of a profound lack of understanding of the nature of money & govt role in providing it.

Not that the OP will ever figure it out, being ideologically disinclined to do so.

And the left will continue to use that argument based on the premise that we have an endless supply of credit and the ability to print money. The one thing that will end all that is when we are struggling to pay just the interest alone on the debt. It's at 10% of our total revenue now and climbing.

 

[Blain]

Simple solution...
1. Start at the top of the income food chain.
2. Tax at 95% down the income food chain until a balanced budget is achieved.

They are spending too much if they can't live on 5% of their income.

 

[fskimospy]

You always know the point about government debt is about to be dumb and horrible as soon as a family budget is brought up.

 

[michal1980]

Horrible comparison that does nothing to inform the degree of severity of the deficit/accumulated debt.

Credit card debt: 12-28% interest rate.
Government debt ~ 1.86% (10 year). 1.86% - inflation rate = real interest rate ~=0

The numbers are wrong: Highest deficit was 1.4 T currently down to 973 B http://www.usgovernmentspending.com/federal_deficit_chart.html

Both Household and Government don't include Assets. For example Fed Gov owns 30% of the U.S. land http://nationalatlas.gov/printable/fedlands.html

Household debt is owed to others
Government debt ~40% is intragovernment holdings owed to itself. of the remaining 60% some is owned by others (foreign entities) but some of the 60% is owned by citizens and Fed reserve

Household doesn't print it's own money
Government does and its debt is denominated in said currency

A person can actively make money for 50 years
Governments much longer

People dismiss the comparison because they want to ignore the problem.

They just say its 'different' so don't worry about it. keep spending. meanwhile the debt keeps growing.

 

[fskimospy]

People dismiss the comparison because they want to ignore the problem.

They just say its 'different' so don't worry about it. keep spending. meanwhile the debt keeps growing.

No, they say it is different because they have a basic understanding of economics. Why don't you spend ten minutes with google and learn why they aren't the same?

 

[Matt1970]

Horrible comparison that does nothing to inform the degree of severity of the deficit/accumulated debt.

Credit card debt: 12-28% interest rate.
Government debt ~ 1.86% (10 year). 1.86% - inflation rate = real interest rate ~=0

The numbers are wrong: Highest deficit was 1.4 T currently down to 973 B http://www.usgovernmentspending.com/federal_deficit_chart.html

Both Household and Government don't include Assets. For example Fed Gov owns 30% of the U.S. land http://nationalatlas.gov/printable/fedlands.html

Household debt is owed to others
Government debt ~40% is intragovernment holdings owed to itself. of the remaining 60% some is owned by others (foreign entities) but some of the 60% is owned by citizens and Fed reserve

Household doesn't print it's own money
Government does and its debt is denominated in said currency

A person can actively make money for 50 years
Governments much longer

The $973B is just a projection.

Here is who owns our debt as of summer 2012.

The intragovernment holdings owed to itself are nowhere near 40%.

 

[Juror No. 8]

Global economic collapse = Great Depression

Completely manufactured by the international bankers in pursuit of their global consolidation agenda. When the economy finally goes off the cliff in the United States, the IMF will be brought in to "come to our rescue", but not without major strings attached. Those strings will include the U.S. government officially ceding sovereignty to unelected international governing bodies.

 

[NoStateofMind]

There Will Be No Economic Recovery. Prepare Yourself Accordingly.

 

[NoStateofMind]

Global economic collapse = Great Depression

Completely manufactured by the international bankers in pursuit of their global consolidation agenda. When the economy finally goes off the cliff in the United States, the IMF will be brought in to "come to our rescue", but not without major strings attached. Those strings will include the U.S. government officially ceding sovereignty to unelected international governing bodies.

This.

 

[OBLAMA2009]

america is a financial sinking ship that cannot be saved. the only reason people arent panicking is because nothing can be done, so theres no point, just keep enjoying the party until doomsday.

its laughable that politicians feigned outrage when moodys cut their credit rating by a small amount. if a regular person had americas balance sheet theyd have such horrible credit score they wouldnt be able to get any credit. i guess the planet just assumes americas last resort ace in the hole will always be military force/international bullying/stealing

 

[Darwin333]

Yes, we can raise taxes. We simply choose not to.

Also, P&N <===

Never in the history of our country have we collected enough taxes, as a percentage of GDP, to cover our current spending. We have had 80%+ tax brackets on those evil rich bastards and still didn't collect the amount, again as a percentage of GDP, that we would need.

Cutting spending is the same, we don't have the political will to do it and if we did our economy would necessarily immediately shrink (potentially by alot depending on how much we cut).

 

[OverVolt]

There is a million of these videos on youtube. Countries can survive debt, but we certainly need to trim the fat....

Actually tax revenue spent on debt servicing is historically the *game over* card for countries.

Japan has the highest at ~40-50%. Getting there!

USA is at 9-12% and climbing (like everyone). All that matters is that we don't hit 100% before everyone else.

I like Niall Ferguson

 

[StinkyPinky]

The $973B is just a projection.

Here is who owns our debt as of summer 2012.

The intragovernment holdings owed to itself are nowhere near 40%.

Wow, 7% to the UK?! This is what I don't get. The UK also has similar issues. So why don't they call in the US debt?

Oh sorry, is that 7% to Japan?? Hard to read. Either way, why don't countries call in debt if they have no money themselves?

 

[fskimospy]

Actually tax revenue spent on debt servicing is historically the *game over* card for countries.

Japan has the highest at ~40-50%. Getting there!

USA is at 9-12% and climbing (like everyone). All that matters is that we don't hit 100% before everyone else.

I like Niall Ferguson

You like the guy who was laughably and publicly wrong about the effects of additional debt in this financial crisis? Why?

 

[shira]

All you morons predicting economic collapse: If you have even a shred of intellectual honesty, give the West a timeline - one year, five years, 10 years - during which you claim this collapse is going to occur. Then put your ego where you mouth is, and when the predicted collapse does NOT occur within your stated timeline, please look at yourselves in the mirror and repeat these words: "I am a fvcking moron. I know NOTHING. I am a blowhard ignoramus."

Then go away and keep your mouth shut forever.

 

[Pr0d1gy]

All you morons predicting economic collapse: If you have even a shred of intellectual honesty, give the West a timeline - one year, five years, 10 years - during which you claim this collapse is going to occur. Then put your ego where you mouth is, and when the predicted collapse does NOT occur within your stated timeline, please look at yourselves in the mirror and repeat these words: "I am a fvcking moron. I know NOTHING. I am a blowhard ignoramus."

Then go away and keep your mouth shut forever.

Everyone on YouTube says 2013 or 2014, mostly 13. They're saying collapse, martial law, rise of a 1984 Orwellian New World Order in 2013 and the depopulation plan for Agenda 21 begins.

Of course the Army Corps of Engineers says the Amazon River Basin is capable of sustaining twenty billion people, so you pick what you want to believe. I could see the market here collapse if we continue with business as usual, but I would be shocked if it got to that point.

The videos are pretty compelling, but I don't think there is a huge problem with the economy other than the money not "trickling down" to the proper extent.