Friday , 14 August 2020


Debt & Deficits

Fact #1: Revenue Does Not Cover Core US Programs

Face the Facts USA is delivering 100 provocative facts about big issues over the next 100 days leading up to the November elections to help Americans debunk myths, hold better conversations, get involved, and make choices as smarter citizens. Here is Fact #1 with supporting substantiation.

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The “LIE-BOR” $candal Explained

The LIBOR scandal is, in effect, "the world's biggest banks stealing money that would otherwise have gone toward textbooks and medicine and housing for ordinary Americans, and turning the cash into sports cars and bonuses for the already rich. It's the equivalent of robbing a charity or a church fund to pay for lap dances."

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The "LIE-BOR" $candal Explained

The LIBOR scandal is, in effect, "the world's biggest banks stealing money that would otherwise have gone toward textbooks and medicine and housing for ordinary Americans, and turning the cash into sports cars and bonuses for the already rich. It's the equivalent of robbing a charity or a church fund to pay for lap dances."

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Current Distortion of Interest Rates is Unsustainable & Will Have Dire Consequences (+2K Views)

Interest rates have been manipulated to keep them extremely low in an attempt to stimulate the economy but...unless deficits are dramatically reduced.... interest rates will eventually rise and government interest expense will double or triple from the amounts being paid today. That potentially triggers a debt death spiral, where government has to borrow more than otherwise expected. It also raises the credit risk and could ratchet interest rates up again. It has happened to Greece, Portugal, Spain and other European countries already this year and could well happen in the U.S. too. Words: 595

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Current Distortion of Interest Rates is Unsustainable & Will Have Dire Consequences

Interest rates have been manipulated to keep them extremely low in an attempt to stimulate the economy but...unless deficits are dramatically reduced.... interest rates will eventually rise and government interest expense will double or triple from the amounts being paid today. That potentially triggers a debt death spiral, where government has to borrow more than otherwise expected. It also raises the credit risk and could ratchet interest rates up again. It has happened to Greece, Portugal, Spain and other European countries already this year and could well happen in the U.S. too. Words: 595

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The U.S. Debt Spiral: When Will it End? More Importantly, HOW Will it End? (+3K Views)

The U.S. already has more government debt per capita than the PIIGS (Portugal, Italy, Ireland, Greece and Spain) do and it just keeps getting worse and worse thanks to both political parties. We are on the road to national financial oblivion yet most Americans don't seem to care. They don't realize that we have enjoyed the greatest prosperity we will ever see...and that when the debt bubble bursts there is going to be an immense amount of pain. That is a very painful truth, but it is better to come to grips with it now than be blindsided by it later. [Let me explain.] Words: 1140

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Decades of Deficits Dictate De-leveraging, Deflation and Decline

Cyprus has beat Italy to officially become the fifth eurozone bailout nation after Ireland, Portugal, Greece and Spain...but Spain is the one causing the most anxiety because it's economy is Europe's fourth largest - larger than the other four euro bailout sisters combined....Sadly, judging from the current debt situation (see graph below), the Euro bailout train most likely will not stop here [and, as a result, we are in for years of eventual de-leveraging, likely deflation and sovereign declines. Let me explain.] Words: 485

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