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Study Discovers That If The Debt Machine Was Turned Off, The U.S. Would Immediately Plunge Into A Horrifying Depression A new study has discovered that we are far more dependent on America’s great debt creation machine than most of us would have ever dared to imagine. Today, debt is involved in most of our major transactions. In order to purchase a home, most of us go into debt. The same thing is true when most of us buy a vehicle. Total credit card debt is well over a trillion dollars, and total student loan debt is now over a trillion and a half dollars. Corporate debt has more than doubled since the last financial crisis, state and local governments are absolutely drowning in debt and unfunded pension liabilities, and the federal government is more than 22 trillion dollars in debt. The Federal Reserve and the “too big to fail” banks are at the core of this insidious debt-based system, and it has been systematically destroying the bright future that our children and our grandchildren were supposed to have. But if we suddenly turned off America’s great debt creation machine at this point, our entire economic system would totally collapse because we have become so dependent on it. In fact, a study that was just conducted by Bloomberg discovered that “gross domestic product per capita would plunge into negative territory” if the ability to borrow was suddenly removed…
Our massively inflated debt-fueled standard of living is completely and utterly dependent on the continual creation of more debt. In essence, this study found that without debt we wouldn’t have much of an economy at all. In fact, Bloomberg says that U.S. per capita income would collapse from $66,900 a year to “negative $4,857”…
So the only thing keeping us from complete and total economic collapse is the fact that debt is flowing like wine. But what would happen if some sort of major national crisis erupted someday and all of a sudden everyone was afraid to lend money? That is something to think about, because such a scenario may be a whole lot closer than many people might think. As it stands, we appear to be on the precipice of the worst economic downturn since the last financial crisis, and our trade war with China just went to an entirely new level as the month of September began…
The Chinese knew that these tariffs were about to go into effect, and so they were ready and waiting to retaliate just one minute later. Of course many U.S. companies will be hit extremely hard by these tariffs that the Trump administration just implemented. The following comes from CNBC…
Basically, people are not going to be able to buy as much stuff during the holiday shopping season, and overall economic activity will be slower than it otherwise would have been. Meanwhile, President Trump continues to sound hopeful that trade talks with China will bear fruit…
These sorts of comments helped stabilize the financial markets last week, but if there was any hope that a trade agreement was imminent we would not have seen both sides impose new tariffs on Sunday. And now we are moving into the month that is traditionally the worst for Wall Street. The following comes from Fox Business…
We shall see what this September brings. Certainly things are really shaky on Wall Street right now, and any piece of really bad news is likely to set off another wave of panic. Without a doubt, the market is more primed for a crash than it has been at any point since 2008, and it definitely will not take much to make this a “September to remember”…
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