What’s the REAL problem with the energy crisis in the US?
Our dependency on foreign oil for our energy needs is going to completely destroy this country. We are in the midst of the LARGEST transfer of wealth in history. We, the United States, are losing ourselves to other countries. We are dependent on countries like Saudi Arabia and the rest of the middle east including Iraq (you don’t still think we went there to get rid of the big ‘ol bag dictator do you?), Japan and China. The middle East is an easy part of the equation to see. But you may be asking why China? Well, who do you think is giving us all the money we need to live? They’re buy our treasuries (t-bills etc.). Here’s a quote from the Market Oracle:
These securities are either sold on the open market or directly to the Federal Reserve. The U.S. public debt, as of July 17, 2007 stood at $8.887 trillion. In addition to the national debt, the State and Local debt at the end of 2006 stood at just over $2 trillion.
Some consider that all government liabilities, including those that the government has contracted for but not yet paid, should also be included in the national debt . Corporations must report such liabilities in their annual financial statements under GAAP (Generally Accepted Accounting Principles).
These “off-balance sheet” items include future payments for federal pensions, Medicare and Social Security. Inclusion of these obligations would dramatically increase the U.S. national debt to $59.1 trillion or 403% of GDP! On a per capita basis this amounts to $516,348 for every U.S. household! By means of comparison, the average American household owes $112,043 for mortgages, car loans, credit cards and all other debt combined.
Friday, July 25th, 2008
