Financial situation increase and decrease all the time

To understand the troubles of the economy of USA the adage has to be recalled that whatever goes up has to come down. It is also well to remember another proverb that one cannot continue to ride a horse that is dead.

What is common between a mountain climber, a speeding driver, a fast biker and a pilot flying 30,000 feet? The common thread is that no matter how fast or high one goes one has to come back to the ground. It applies to everything.

In 2009 the country got exhausted, hit the dead end, collapsed on the brakes and fell screaming down an abyss. The result was a staggering damage – 15 million without jobs, 35 million surviving on food stamps, a national debt of $12 trillion, extra 3 million more immigrants, indebtedness to China and up to the neck in two wars that is costing the country $12 billion each month.

Mike Folkert penned an awesome piece on what America is facing today – “The Top of the Mountain: Every Way Out is Down.” Folkerth said, “I believe that America’s economy has reached zenith. What I’m saying is that should anyone care to consider inflation and per-capita share of GDP, we’ve hit the top of the mountain, when a nation reaches the tippy-top of the mountain, it’s a beautiful view right up to the point of realizing that everything from that point is downhill.”

Folkerth fortified his beliefs with some hard facts. America accounts for 4.8% of the population of the world, it consumes 25% of the energy the world produces and 30% of the products of this earth. The time has now come when the other group of inhabitants of this planet – the 95.2% of the globe is starting to demand their share. They are getting a bit nasty about the matter.

An American consumes 75% more than any European and over 1,000% more that any person living in the third world. In 1970 USA reached its peak in oil production. Today America consumes 40% more of the oil and produces 40% less than the country did in 1970.

In 1970 the National Debt was $380 billion. It was 37.6% of the GDP. In 2009 the National Debt swelled to $12.8 trillion and accounts for 90.4% of GDP. By 2011 the debt will be 100% of the GDP. What America has achieved is to replaced growth in commerce with growth in debt.

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