When looking at today’s economic situation, it is amazing how the debt situation remains underexposed. It is truly the ‘elephant in the room’. In this article we will review the most recent economic data and what that data could mean for the coming years.
When asked about his view on the economic situation, Claudio Grass, managing director of Global Gold, answered with this quote from German economist Wilhelm Rpke:
‘The theories men construct, and the words in which they are framed, often influence their mind more strongly than the facts presented by reality’.
This sentence nicely describes today’s mindset amongst most people in the Western word since we are raised in amounts to a government-controlled educational system! We are not taught to question [authority]. The problem is that the actual system we live in focuses only on the effects but never discloses the underlying causes, let alone tries to connect the dots. This research needs to be taken upon by the individual. However, research requires a healthy portion of curiosity and bravery, as well as independence and self-confidence to stand up for one’s own opinion, which will be in contrast to the story we are told by governments and the mainstream media.
Linking this view to today’s economy, it goes without saying that anyone with a basic level of curiosity can find the following data:
The U. S. currently has total debts outstanding (incl. unfunded liabilites) which are close to 900% of its GDP. America hasn’t passed a budget since April of 2009. As a country, the U. S. has had a budget deficit in 42 out of the last 47 years. The U. S. has paid 14.8% of its yearly revenue to servicing its debt (interest payments).
This post was published at GoldSilverWorlds on September 2, 2014.
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