We have been expecting this news for about a year. Americans will not stop spending their way along, in spite of the fact that inflation is rising far faster than wage increases. When this happens, there are two choices:
1. Cut back on ALL non-essentials, and buy down your own debt as fast as possible.
2. TANK. We all will crash personally and as a nation.
The Gross National Product will crash, and there will be a run away spiral into oblivion. This has never before happened in US history. All crashes in the past were not accompanied by massive personal debt along with national terminal debt.
READ ABOUT IT HERE
In the end, the biblical law of finance will take hold, and YOU CANNOT STOP IT, AND THE FEDS WILL NOT STOP IT-- China will own America.
Proverbs 22:7 The rich ruleth over the poor, and the borrower is servant to the lender.
I wonder if Solomon would not be horrified if he saw the USA predicament? The borrower is servant to the lender (rich), and the rich are servant to China.
You need to read about STRONG DELUSION.
1 in 4 have more credit card debt than savings.
Now, the Feds are squeezing the banks to stop charging fees on debit cards, and the banks are fighting back. This has nothing to do with the above discussion except to say this-- when the war to claim your last nickel is raging between the Feds and the banks, YOU will be used as blackmail by both the Feds and the banks. WATCH THIS
So, after the debit cards are found to be a bad idea, what will the Feds do to force you to pay off your debts?
Oooops, wrong order of thinking process. First, understand what predicament the Feds and IRS are in. You have little of no cash on hand, you are maxed in credit card debt, and you have too little in income to use either your credit card of checking account anymore.
Result, you will hit the last resource-- try to put off of avoid paying your income tax. The Feds are looking at a massive shortfall in April when tax payment come due with self-employed and those who do not have enough deductions. What will the Feds do? The ONLY think left to do:
1. Call in gold.
2. A bank holiday, in which they will reopen the banks and limit withdrawals..... and
3. A cap on credit card debt. This will likely be a percentage spending limit on all future credit card debt balances on an al a carte basis. Technology can pull this off nicely.
The result will be instant poverty if you have no cash on hand. A vast percentage of home loans will soon be foreclosed. When the money stops flowing, it is all over. There is no precedent in US history to predict what will happen next.
So, if Obama plays games with banks, gold, and credit cards, he will give the next election to Ron Paul. The Republicans will be forced to beg Paul, and Cain for VP, to rescue them. Romney will look like part of the problem because of his big government and big business image.
The fat lady is singing folks.