In 1960, social welfare benefits made up approximately 10 percent of all salaries and wages. In the year 2000, social welfare benefits made up approximately 21 percent of all salaries and wages. In 2011, social welfare benefits made up approximately 35 percent of all salaries and wages. Read more here.
While it is true that economic conditions are slightly better now than they were 5 years ago, they are by no means good, and much of the improvement purely exists on paper. The improvement is due in large part to the $5 trillion in bailout and stimulus money that has been dumped into the economy. Even so, foreclosures are beginning to climb, housing prices continue to fall, and the only reason why the dollar is stronger now than it was 3 months ago, is that the Euro is falling apart at a slightly faster rate than the dollar. However, we will soon join the Europeans, as the U.S. already has more government debt per capita than Greece, Portugal, Italy, Ireland or Spain.
When Barack Obama took office, there were 32 million Americans on food stamps. Now, there are more than 46 million Americans on food stamps.
During fiscal 2011, the U.S. government spent over 454 billion dollars just on interest on the national debt.
But just like we are seeing in Europe, if confidence in U.S.
government debt starts to disappear the U.S. government could end up
facing much higher interest rates to borrow money. If the average rate on U.S. government debt only rose to 7 percent, the U.S.
government would be spending about 1.1 trillion dollars a year just on
interest on the national debt.
During fiscal year 2011, the U.S. government spent 3.7 trillion dollars but it only brought in about 2.4 trillion dollars. So if we were spending 1.1 trillion dollars just on interest, that
would be close to half of all the revenue the federal government brings
Right now, the Federal Reserve
is manipulating the system in a desperate attempt to keep interest
rates down. During 2011, the Federal Reserve bought up approximately 61 percent of all government debt issued by the U.S. Treasury Department. Where does this go? The Fed monetizes that debt. They turn it into cash, which causes inflation.
Check out the following excerpt from a report that was just released by LEAP/E2020….
Over the next four years, the country will be subjected to
political, economic, financial and social upheaval such as it has not
known since the end of the Civil War which, by an accident of history,
started exactly 150 years ago in 1861. During this period, the US will
be simultaneously insolvent and ungovernable, turning that which was the
“flagship” of the world in recent decades into a “drunken boat”.
How do you think governments react when the country becomes ‘ungovernable’?