In this article, I overviewed the big picture of how serious the USA debt collapse problem is, focusing on big ticket debt items like government bonds, government loans, government credit card balances, what the government in the US has to pay for escalating pension and healthcare costs and wall street's biggest debt item that will have to paid, one way or another, their derivatives. The government in the USA currently owes $49.832 trillion and the US has a GDP of $13.85 trillion which means 360% government debt to GDP in 2015.
These 3 figures go a long way to explaining why the stock market is crashing (again) and how the US stock market crash, credit crunch, commodity collapse, energy collapse and what not are all just symptoms of the larger problem: the government in the US is on the hook for too much money. The reason for the USA's economic collapse is because of the USA's debt collapse which is because the government in the USA owes too much money. With individuals in the USA owing $13 trillion and US corporations owing more than that, we can't generate new demand for Chinese goods (or any country''s goods) anymore and that's boomeranging around AND the amount the government in the USA owes is going to ratchet up to over $100 trillion before the decade's end.
The US government borrowed too much money. The US government owes too much money. Now, there are debt bombs bursting in the USA. The USA's debt collapse is the decline and fall of the USA. US style capitalism, based on money-lending and debt, is a miserable house of cards. Those cards are now tumbling down in a gentle late summer breeze. What we see in Greece, Detroit, Puerto Rico and now the USA as a whole are the end results of US style capitalism. (Muslim style capitalism, based on investment and joint ventures, in contrast, is faring better.) We need a better system in the USA.
What we have seen happen in Greece, Detroit and Puerto Rico is what is now happening all over the USA. What led to too much government debt in the USA (e.g. too much military/war/intel/secret police spending; too little wall street oversight), what will be the sequence of US debt domino's falling (e.g. will Kanakee County IL collapse first or will Perry County KY collapse first, Atlantic City NJ first or Yonkers NY first, Chicago or LA, Illinois or New Jersey?), what will be the sequence of US debt collapse events (pension cutting, lethal healthcare rationing, $60 limit at the ATM, "haircuts", banks seizing money from your bank account, bank runs, emigration, war, crime, QE4, hyper-inflation, hyper-unemployment) and what can be done about it are yet other installments past due in the USA debt collapse story. Coming soon.
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