FoxNews published a WHOPPER of a story yesterday, though it somehow has not caught the attention of most people. If you have issues with Fox them at the door for a moment and simply focus on the numbers.
For the first time since the Great Depression, the US is now officially paying out more in benefits than it takes in via tax receipts.
If the US were a company, it'd be spending more in salaries than it makes in sales. Aside from being unprofitable, it's also got a MASSIVE debt load. And it's current policy of paying out more than it makes only increases this debt load… which begs the question… who's going to pay the interest payments on the debt?
Now, about those payments…
More than half of all Americans (59%) receive a Government payout in one form or another. This is not a sliver of the population… it is endemic to the system. So those who complain endlessly about Government spending need to consider they as well as half of everyone they know, likely gets some kind of assistance in the form of social security, Medicare, food stamps or what have you.
Here's another zinger: Government payouts account for 79% of household growth since 2007. In other words, the only thing that has kept the US consumer afloat in the last four years is payouts from Uncle Sam.
Put another way, the private sector has contributed roughly one out of every five dollars in household growth since the Great Depression 2.0 started in 2007.
To say that these policies are unsustainable is the understatement of the year. The only reason the US hasn't seen a complete debt implosion followed by hyperinflation is because the Federal Reserve is propping up the debt market with money printing.
Yes, we are supporting our debt load by creating more money out of thin air. It is absolute insanity and a clear signal that we're rapidly approaching GAME OVER for the US's monetary system.
Indeed, foreign nations are dumping out debt already. Earlier this week China announced that its foreign currency reserves are excessive and that they need to return to "reasonable" levels.
In politician speak, this is a clear, "we are sick of the US Dollar and will be taking steps to lower our holdings." Remember, the US Dollar is China's largest single holding. And China has already begun dumping Treasuries (US Debt).
This comes on the heels of China deciding (along with Russia) to trade in their own currencies, NOT the US Dollar. Not to mention the numerous warnings Chinese politicians have been issuing to the US over the last 24 months.
In simple terms, China is done playing nice and is now actively moving out of US Dollar denominated assets. This is the beginning of the US Dollar's end as world reserve currency.
The dimwits in Washington don't understand this because their advisors are all Wall Street stooges who don't think debt or deficits matter. After all, why would they? Their entire business model is now based on endless cheap debt from the US Fed. So it's only logically (in their minds) that the US as a sovereign state engage in the same strategies.
There is only one way out of this mess and that is default. The US cannot EVER pay back its debts. A US default is going to happen GUARANTEED (hyperinflation induced by endless money printing is just another form of default). When this happens, the US Dollar will collapse, lose reserve currency status, and inflation will rip through the system destroying the purchasing power of anything paper-related.
So if you're not preparing for mega-inflation already, you need to start doing so NOW. The Fed WILL continue to pump money into the system 24/7 and it's going to result in the death of the US Dollar.
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