Sunday, May 5, 2013

There's a real fiscal cliff, and it's VERY steep

This graph illustrates the status of the American economy better than anything else I have seen:



(from http://www.leap2020.eu/GEAB-N-74-is-available-Global-systemic-crisis-The-war-has-been-declared-between-the-economic-political-world-and_a13900.html)


The red line is US production of globally marketable goods and services. It hasn't changed much in 30 years.


The light blue bars are US personal consumption of all goods and services. Steadily rising.


The dark blue bars are US government consumption of all goods and services. Also steadily rising.


Not included are drug trafficking and other off the books activity, all of which also represent net consumption.


Clearly, we are living off foreign investment in the US and the inflation of our currency by the Federal Reserve "Bank". When this souffle collapses, it will be a catastrophe for the American people and US client states.


How much longer are the rest of the world's people going to make our cars and TVs and feed us while we sit on our asses and play video games?

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