Global Economic meltdown 2012 Economic Forecast

What is really going on in our world today! What on earth will it take to fix it?

What is the Federal Reserve System? The answer maysurprise you. It isnot federal and there are no reserves.Furthermore, the FederalReserve Banks are not even banks. But Pakistan, Saudi Arabia and Chinaare part of participates in the systems referred to as Central Banks andfractional banking systems and these are what cause depressions andinflation and ultimately Collapse as the one in the U.S. has done threetimes in the past.

31,000,000 Americans became age 65 in 2011. That has added $310 billion dollars to the annual budget of theUnited Statesnotincluding the cost of Medicare and Medicaid benefits, which youngAmerican will have to pay for. It took 198 years for the U.S. Governmentto borrow the first trillion dollars. Then, in just another 12 years,mostly under the Reagan ministration, it borrowed another threetrillion. By the first year of the George W. Bush Administration, evenbefore the terrorist attack on September 11, the federal debt had risento over $5.8 trillion. By 2010 it had risen to $202 trillion, when allliabilities are included.

Itis difficult to comprehend such numbers. If you had a stack of $100bills 40 inches high, you would be a millionaire. $202 trillion wouldrise over 127 thousand miles into space. By the time you read this,after the expenditures of subsequent administrations that stack hasreached the moon.

By 2006, gross interest paymentson the national debt were running $406 billion per year. That consumed17% of all federal revenue. It now represents the government's largestsingle expense; greater than defense; larger than the combined cost ofthe departments of Agriculture, Education, Energy, Housing, and UrbanDevelopment, Interior, Justice, Labor, State, Transportation andVeterans affairs.

These charges are not paid bythe government; they are paid by you. You provide the money throughtaxes and inflation. The cost currently is about $5,000 for each familyof four. All families pay through inflation but not all pay taxes. Thecost of each taxpaying family therefore is higher. On average over$5,000 is extracted from your family each year, not to providegovernment services or even to pay off previous debt. Nothing isproduced by it, not even roads or government buildings. No welfare ormedical benefits come out of it. No salaries are paid by it. Thenation's standard of living is not raised by it. It does nothing but payinterest.

Furthermore the interest is compounded,which means, even if the government were to completely halt its deficitspending, the total debt would continue to grow as a result of intereston that portion which already exists. In 2006 interest on the nationaldebt was already consuming 39% of all the revenue collected by personalincome taxes.

Amazing, isn't it? Without intereston the national debt we could save enough to cut our personal incometaxes by a third and we could reduce corporate taxes as well.Unfortunately, under present policies and programs, that is not going tohappen, because Congress does not live within its income. Many expensesare paid, not from taxes, but from selling government bonds and goingdeeper into debt each year. So, even if we could save enough to slashpersonal income taxes, it would not be enough. The government wouldstill go into the red to keep its present lifestyle. However if areduction in the size and scope of the bureaucracy were accomplished atthe same time, personal and corporate income taxes could be eliminatedand the government would have an annual surplus.

By2008, outlays of the federal government were one-fourth of the nation’seconomy. More people now work for government than for all manufacturingcompanies in the private sector. There are more bank regulators thanbankers, more farm-bureau workers than farmers, more welfareadministrators than recipients. More citizens receive government checksthan those who pay income taxes.

By 2010 theaverage federal worker was earning 60% more than the average worker inthe private sector. By 1992 more than half of all federal outlays wentfor entitlements

Normally with contracts forfuture obligations like private insurance company pension plans,annuities, life insurance, the issuer is required by law to accumulatemoney into a fund to make sure that there will be enough available tomake the payments when future payments become due. The federalgovernment does not does not abide by those laws. The funds exist onpaper only. The money that comes in for future obligations isimmediately spent and replaced by government IOU. So as those futurepayments become due, all the money must come from revenue beingcollected at that time.

1/6th of 1% of theAmerican public now earns more than 50% of the total income of thenations. One in every 2000 people earns as much as the remaining 1999earn.

Only corruption can accomplish that.It hasnothing to do with capitalism or democracy, which we do not have. OurGovernment is a republic. The ones the people elect to make the lawsmake the laws. The people do not. The ones the people elected, representthe ones that paid the campaign funds for their election costs. Thosewho pay the election costs pay them for both parties.

Itis said that power corrupts and absolute power corrupts absolutely. Theabsolute corruption level has just about been reached and in thehistory of the past 2000 years an economic collapse has occurred severaltimes when an unjust central banking system, called The Federal Reservesystem inAmericaandfractional banking in the rest of the world, collapsed. This would bethe fourth one for the USA and global consciousness is arising as aresult, as evidenced by the growing number of "Occupy Wall Street"demonstrations which are occurring globally, and awareness is risingthrough activities of Michel Moore in America as well asa 2 hour 8minute film named "Thrive", which was made at a cost of three milliondollars and can be seen on your computer.

Fiatmoney has always ended this way and here is a description of what youcan Expect. Here is what has happened thus far. A decline in Americanprosperity; an increase in the size of government; a decrease inpersonal freedom; the growth of taxes; evidence that this is accordingto plan by an elite ruling group which hopes to merge the United Statesinto world government on the basis of "equality" with less developednations; the environmentalist movement shows to be an outgrowth of thatplan

A pessimistic Scenario describes that abanking crisis and massive bailouts have already come to pass. The stillunfolding scenario include hyperinflation, collapse of the economy, anew global currency, domestic violence, U.N. "Peacekeeping" forces inthe U.S. , and the arrival of high tech feudalism.

Arealistic Scenario describes what must be done if we are to avert thepessimistic scenario, a list of specific measures that must be taken tostop the monetary binge; an appraisal of how severe the economichangover will be a checklist for personal survival--and beyond.

Pakistan Saudi Arabia and Chinaare different from theU.S.in many cultural and historical ways, but they are in exactly in the same circumstance as theU.S.withrespect to money as long as they participate in the same Centralbanking system and fractional banking which needs to be abolished if aneconomic meltdown is to be averted.