Richard Duncan, formerly of the World Bank and chief economist at Blackhorse Asset Mgmt., says America’s $16 trillion federal debt has escalated into a “death spiral,” as he told CNBC.
Since the recession, noted economists including Laurence Kotlikoff, a
former member of President Reagan’s Council of Economic Advisers, have
come to similar conclusions.
Kotlikoff estimates the true fiscal gap is $211 trillion when unfunded
entitlements like Social Security and Medicare are included.
A team of scientists, economists, and geopolitical analysts believes
they have proof that the threat is indeed real—and the danger imminent.
One member of this team, Chris Martenson, a pathologist and former VP of a Fortune 300 company, explains their findings:
“We found an identical pattern in our debt, total credit market, and money supply that guarantees they’re
going to fail. This pattern is nearly the same as in any pyramid
scheme, one that escalates exponentially fast before it collapses.
Governments around the globe are chiefly responsible.
Dr. Kent Moors, an adviser to 16 world governments on energy issues as
well as a member of two U.S. State Department task forces on energy
also voiced concerns over what he and his colleagues uncovered.
“It’s a pattern that’s hard to see unless you understand the way a
catastrophe like this gains traction,” Dr. Moors says. “At first, it’s
almost impossible to perceive. Everything looks fine, just like in every
pyramid scheme. Yet the insidious growth of the virus keeps doubling in
size, over and over again—in shorter and shorter periods of time—until
it hits unsustainable levels. And it collapses the system.”
Martenson points to the U.S. total credit market debt as an example of this unnerving pattern.
“For 30 years—from the 1940s through the 1970s—our total credit market
debt was moderate and entirely reasonable,” he says. “But then in seven
years, from 1970 to 1977, it quickly doubled. And then it doubled again
in seven more years. Then five years to double a third time. And then
it doubled two more times after that.
“Where we were sitting at a total credit market debt that was 158%
larger than our GDP in the early 1940s... By 2011 that figure was 357%.”
Dr. Moors warns this type of unsustainable road to collapse can be
seen today in our energy, food and water production. All are tightly
connected and contributing to the economic disaster that lies directly
-moneymorning.com, 29 August 2012
We publish excerpts from this
report, which carries some weight due to the position of recognized
economists. But, we must add, these experts presented their study for
the purpose of selling their own supposedly surefire answer.
One thing is crystal clear; the world as we know it cannot function
without going deeper into debt. Even after the crash in 2008, banks
continue to lend money that in reality doesn’t exist. Thus, many ask,
what is the end thereof? Our answer is strictly biblical; it will not
change, but lead to the ultimate catastrophe when the entire global
economic-financial system will collapse. The Bible calls this
deeper-into-debt financial system, fornication, sorcery, and deception.
The collapse is yet to come—it’s called the Great Tribulation, not
caused by war or bloodshed, but by the implosion of the global financial
economic system, “And the merchants of the earth shall weep and mourn
over her; for no man buyeth their merchandise any more” (Revelation
(For more on this subject, read Global Financial Apocalypse Prophesied, Item 1068.)