1 Through 30 – The Coming U.S. Financial Crisis By The Numbers

Thursday, November 17, 2011
By Paul Martin

BeforeItsNews.com
Thursday, November 17, 2011

The United States is drowning in a sea of red ink from coast to coast and most Americans have absolutely no idea what is about to happen. Hopefully you have started to prepare for the coming U.S. financial crisis. If not, hopefully this article will be a wake up call for you. Right now, governments all over Europe are on the verge of financial implosion. Most Americans aren’t paying much attention to that, but they should be, because what is happening to Greece and Italy right now will eventually be happening here. Just recently, the U.S. national debt passed the 15 trillion dollar mark. State and local government debt is also at record levels. Tens of millions of American families are in debt up to their eyeballs, and millions more Americans fell into poverty last year. Meanwhile, the “too big to fail” banks just keep getting larger and the Federal Reserve continues to inflate the debt bubble. At some point this debt bubble is going to burst, and when it does it is going to unleash financial hell all over America.

Below you will find a list of numbers – 1 through 30. For each number, a statistic has been chosen that demonstrates the financial nightmare that the United States is facing. It is simply not possible to rack up debt at staggering rates forever. At some point the debt spiral is going to stop.

A lot of politicians are claiming that they can stop the coming financial crisis from happening. But the truth is that unless our entire financial system is fundamentally transformed, nothing is going to be able to stop the financial nightmare that is headed our way.

Unfortunately, the vast majority of our politicians still believe that the current financial system can be fixed and the vast majority of them still fully support the Federal Reserve.

That is going to prove to be a gigantic mistake. The following are 30 facts that show that the United States is heading directly for a massive financial crisis….

1 – For fiscal year 2011, the U.S. federal government had a budget deficit of nearly 1.3 trillion dollars. That was the third year in a row that our budget deficit has topped one trillion dollars.

2 – The balance sheet of the Federal Reserve has been ballooning like crazy. At this point, the Federal Reserve has very little capital backing a balance sheet that is well over 2 trillion dollars.

The following is how Michael Pento of Euro Pacific Capital describes the situation that the Fed is in….

Today, the Fed has $52.5 billion of capital backing a $2.7 trillion balance sheet.

Prior to the bursting of the credit bubble, the public was shocked to learn that our biggest investment banks were levered 30-to-1. When asset values fell, those banks were quickly wiped out. But now the Fed is holding many of the same types of assets and is levered 51-to-1! If the value of their portfolio were to fall by just 2%, the Fed itself would be wiped out.

The Rest…HERE

Leave a Reply

Support Revolution Radio