USA, - An IMPOSSIBLE situation? How serious is the financial situation really?

The famous personal development guru TONY ROBBINS is very SERIOUS about warning his fellow USA citizens about the extremely SERIOUS financial situation in America.
At the same time, the situation in Europe is getting worse by the day!  Recent report warns of a TOTAL COLLAPSE in Europe perhaps as soon as in May or June of this year!

But first, how SERIOUS is really the US situation?

The immediate answer is:  VERY SERIOUS!  In fact, it could hardly become MORE serious!  I have to tell you this:  As a long time friend and strong defender of the USA, it is downright tragic for me to watch what right now is going on in what used to be the strongest and most FREEDOM loving country of the world.  The country where the Statue of LIBERTY used to be a symbol of defense of freedom and civil rights for people all over the world.

The number one country in the world where freedom loving people and people in search of freedom of speech as well as freedom to practice your Christian faith was protected in the best and strongest constitution of any country on the globe.  This is no longer the case!  The strong decline and loss of all these values started shortly after 9/11 and have grown ever worst during the administration of President Obama.

However, at the same time, the financial situation in USA has also brought this once strong, proud and prosperous country, to the brink of a financial disaster just waiting to happen.  The United States of America is about to fall of the cliff!  And if that happens, it will have very bad consequences for all countries and all people in the Western World.  In short, our lives as we know it, is about to change in a very dramatic way.  And if you do not know what to do with this situation, you and your family could soon be facing a very bad and even potentially dangerous future.

The for many years very respected and famous author and personal development guru, Tony Robbins, also known as Anthony Robbins, has just released a VIDEO in which he warns his fellow US citizens about the very serious situation their country is facing.  I strongly recommend for you to take the time to watch this video.  This is truly a WAKE UP CALL from him in regard to the extremely SERIOUS and in my opinion almost IMPOSSIBLE situation the US is facing.  Watch it here now:

Understanding the figures. 

For you to first even be able to understand or comprehend the SIZE of the real problem, you must get a grasp of the figures involved here.  Tony Robbins does this by first asking you:  How long time was 1 million seconds ago?  The answer is 12 days ago.  Then he asks:  For comparison, how long time was 1 billion seconds ago?  The answer this time is 32 years ago!

So far we have only talked about a million and then a billion.  However, the official US debt is more than 15 TRILLION US dollars.  So then, how long time was 1 trillion seconds ago?  The chocking answer this time is, 31.686 years ago!  Then you have to multiply this by more than 15 to be able to begin to understand the US debt situation in a correct perspective.

I am using the words "official" and then "begin to understand" here, as the real debt of the US is much, much larger than just the 15 trillion mentioned so far.  You see, in addition to the official debt, the US also have a huge amount of dollars in "unfunded liabilities".  These are as one example, promises made to the US population of what they will be paid in social security and health care benefits for instance.  Adding this to the situation, which also is debt coming due in the near future, the total amount is more than 117 TRILLION US dollars! 

Can taxing the people MORE really help to solve this problem? 

The immediate answer is absolutely not!  But this is what President Obama and his administration wants.  In particular they make a lot of speeches and does their best to argue for the need to tax the rich MORE!  My personal opinion is that this of course is only a game with words in an attempt to keep the masses happy.

Since I just mentioned President Obama, let us look at what he may have done since becoming president to improve the extremely serious situation USA is in right now.  Since the start of the George Washington administration in 1789 all the time up to the end of the Ronald Reagan administration in 1989, which is a period of 200 years, the US accumulated a total debt of "only" 2,2 trillion dollars.

You should think that 2,2 trillion alone would scare most people from getting into further debt?  However, during the 24 month period from August in 2009 up to August of 2011, the Obama administration increased the US debt with a total of 2,9 trillion additional dollars!  What it took the country to accumulate in debt during 200 years of its history, President Obama and his administration managed to do in less than 2 years!

Now, I will be the first to say that this is really not a problem with the Democratic party, as this for the last 10 - 20 years in particular, also has been just as much a problem with the Republican party.  To put it into simple terms:  The business of politics in Washington is completely out of control and is driving what used to be the only FREEDOM protecting country in the world off the cliff!  The only real question now is this one: 

Can the US debt situation be resolved? 

Many experts claim that it is mathematically impossible for the US to honor its debt and get its house back into financial order.  Although I am not an expert on economics, when listening to Tony Robbins explaining the situation on the video above, this really looks like an IMPOSSIBLE task!  Watch him explain what it takes, to ONLY be able to finance the country known as the USA for one single year.

The bottom line is that taxing the rich people to help making this possible is just a very sad joke!  In fact, as Tony Robbins points out, even if in addition to taxing the rich more, you also took 100% of ALL profits made by ALL Fortune 500 companies, it is not even close to what you need!  And of course, IF you did that, you have killed the "golden goose" in the process.  

Where in the world would the income needed for next years expenses come from?

The fact is, for even to have some HOPE of being able to turn this "impossible" situation around, you will need to take such drastic actions, that MOST of the politicians in Washington would not even dare to think in terms of that.  Perhaps except for one:  Ron Paul from Texas.  But that is another story for a later article here on my blog. 

What about the European situation? 

For starters, Europe of course consist of many different countries, each with its own individual situation.  However, due to the fact that most of the countries in the EU has adopted the Euro, problems in some countries becomes a problem for ALL countries.  And some of those countries are in fact in a worst situation than what is the case with the USA!

That alone should be enough to scare you when it comes to the European situation.  However, add to this the effect of a total collapse in the US, and the severe additional effects this will have on Europe, the situation is a very bad and extremely volatile situation.  And the future of the Euro alone is indeed a very insecure future.  If a FIAT currency ever was created, the Euro is a great and scary example.  (The word "fiat" meaning something created out of nothing!)

Many experts are predicting a total collapse of the Euro and the EU as we know it.  And one of the latest articles I have come across on this subject is written by Graham Summers, a Senior Market Strategist at Phoenix Capital Research in the US.  He is simply stating that a big collapse is coming to Europe in May or June of this year.  He is asking:  Will Europe collapse in May or June this year?  Read his article yourself here:  

I am sorry to say this, but if you take the time to read the article behind the link above, you could easily become VERY depressed about the immediate future of the situation in Europe.  You will begin to realize that this situation is even worst than the US one.  And in my opinion, anyone putting their trust in the Euro should be prepared for a real disaster.

There are however solutions to this problem for individuals and companies who are willing to open up their minds and to think differently.  There are markets and regions of the world which holds great hope and even excitement for the future.  But one thing is definitely a sad fact today, neither the USA or Europe is one of those regions!

Best regards from
Helge Normann