USA on brink of Bankruptcy!

Morning Folks!!

The USA is in the midst of the biggest waste of 1 TRILLION dollars the world has ever seen. The latest is the $18 MILLION dollar contract to redesign that will track wasteful spending. $18 Millions for a website???? I want to be friends with the government and get a contract like that. Of course that is in ADDITION to the money they spent on the site in January. So $18+++ MILLION to do a WEBSITE!!! This is not wasteful, it is criminal. This is a PAYOFF. A BRIBE! To add salt to the wound, they will probably exceed their budget!

Numbers, Numbers, Numbers. They don’t lie, people do! Politicians do! The USA is heading into the abyss. The NUMBERS say so, not me. The numbers spell out the path we are on and it is a lesson in insanity.

Personally I think everyone in Congress who voted for any of these new programs without reading the bills should be removed from office. There are things in there destined to destroy the economy, the country and our futures. Special interests have put things in YET TO BE DISCOVERED! This is dangerous!

Folks, start paying attention. The standard of living throughout the USA is going down for the first time in my life. The government now owns the auto industry. Now owns the banking industry. Now owns and controls the mortgage industry. Has their eyes on the Insurance industry. The government has basically destroyed the corporate bond market when they told the GM bondholders they would not get their money.

Madoff’s 65 billion is a drop in the bucket to the trillions the government is taking. You won’t see an immediate impact. But I can tell you that the NUMBERS prove that everyone’s taxes will be raised significantly and in all types of different areas.

Sorry my friends, but once a government takes more than 50% of your earning as taxes, you are no longer free. You are a slave or an indentured servant at best. If you had the NERVE to sit down and do the NUMBERS, you would already see we are just a hair under 50%. That will change in the coming years and the standard of living likely won’t recover for many decades.

The evidence is mounting. This is my FIRST doom and gloom post. The seeds that are being planted are poisonous. The fall will be a disaster. The question becomes what is their answer in January 2010 when things have deteriorated and are much worse than they were in January 2009?

btw, the North Koreans have been hacking into the State Departments computers for the past 5 days. This is where we keep many of our most closely held secrets. The government said yesterday that the department with the job of protecting our national security only has the budget for 100 people. Are they kidding??!! Maybe some of that $18 million could have hired another 100.

Fine, you can think I am nuts! But California is INSOLVENT as I write this. California represents one of the top economies in the world. Much bigger than Iceland. lol. Larger than most countries. Insolvent!!!! Think about that. Think it can't spread??? Prepare for the worst, hope for the best and stay one step ahead of the masses.

Have a GREAT Day!

Rick Schwartz

27 thoughts on “USA on brink of Bankruptcy!

  1. andy kelly

    I’m not American I’m in the UK (and God knows we have plenty of our own problems right now) but it seems to me very clear that the issues in the Usa aren’t a recent development but very much the culmination of problems going back over the previous two administrations.
    The facts you pointed out are insane but the mismanagement began way before Obama it seems.
    Deregulated Financial markets left to themselves to run havoc.
    Massive (ever increasing) yearly trade deficits.
    An incredibly expensive foreign policy (Iraq, Afghanistan etc.)
    US Government spending has outstripped tax revenues for many years.This caused the US government to borrow capital from the ‘world market’, increasing debt further.
    The list goes on of course.

  2. Jeff

    If everything you are saying is true – and I believe that it is – wouldn’t gold make a better investment than domains at this point in time?

  3. jorge

    >> Have a GREAT Day!
    Ha ha. That closing is especially ironic on a”doom and gloom post”. Maybe you should have a special footer for these. :)

  4. Lau Ren

    This means CHINA will be the worlds next SUPERPOWER! Everyone, its time to move to CHINA!!!

  5. Mark

    Regarding the website-
    Go here and view the interview with Vivek Kundra, to get an idea of the scope and complexity of these new government sites-
    Agreed about the special interests, its an insidious virus. The politicians that put this stuff in there are fully acting against the interests of the people and in knowingly advancing selfish interests should be prosecuted.
    Regarding the overall debt levels. The USA is not only an economic disaster zone due primarily to many previous administrations, but additionally our infrastructures and policies, shaped by those special interests, are heading us further in the wrong direction. Not to mention that the clock is ticking on the environment. I do not believe we could organically evolve our way out of this. We have to buy our way out of it. Stop the rot. For example if the power grid and power generation systems are an environmental disaster, you just have to build a new capability from scratch, and if its not economically viable for private business to foot the bill, then the government has to step in.
    I applaud many of the initiatives to retool so many aspects of our economic activity and underpinnings of this country, I expect many of these temporary semi-nationalizations to be reversed as soon as is possible. However, with regard to ever paying off the debt, I think default is more likely. I believe current interest payments on all this debt is around $425 billion per year. A terrible waste of money.
    Our disgust of the situation we find ourselves in should be targeted at those same special interests and individual politicians that lobby government, not the whole government. Those special interests lobbied to keep fuel efficiency ratings low so that the gas guzzling SUVs would keep selling. Meanwhile the market/the people were moving in a different direction. they wanted smaller and more fuel efficient cars. So GM is responsible for its own downfall. In a just world GM would be wiped away and we would start afresh with new more sustainable vehicle production. Alas there are jobs and communities involved so we need to be compassionate.

  6. jp

    Don’t worry Rick, the standard of living won’t go down for everyone, we are just going to shed the middle class, and look more like Brazil. The trick is to stay on the right side of the line.
    I hate to plug my own sites here, but there are alot of tie-ins to what you said on some of my blogs I’m running. You might like them. For more ranting and raving on this topic (we’ve got lots of comments on some posts) check out:

  7. Foo

    Correct me if I’m wrong, but I’m pretty sure the $18m is not simply to redesign, but to gather data from other governmental departments for it.
    And another thing, why would China pull the plug on its biggest debtor and destroy much of its own wealth in the process? To borrow a phrase, the USA is”too big to fail” – at least in the short/medium term.
    Long term I’m sure the dollar will lose its prestigious reserve status.

  8. Bruce Tedeschi

    Our standard of living has changed, not going to change. I now know several people who have lost their homes, their job, and now living with their family members. We dedicated several hundred million dollars each year to create jobs in Afganistan. Why? This type of decision making has to stop. We need jobs here, not there.
    At any rate, business is being pounded and so goes all commodities including domain names.

  9. Mike

    Doom and gloom from the King? I’m shocked! ;o)
    Think everyone needs to chill – this is NOTHING like the Great Depression where unemployment hit 25%.
    Gov’t has done what it should be doing – buying, loaning, saving.
    When everyone else is selling, that is the time to buy, spend.
    We’ll be fine but a massive correction is underway and they are always painful. Give it time, stay positive – in the end it’s partly about our attitude and perceptions, our confidence. JMHO

  10. Mike

    And really, enough with the petty figures.
    If you REALLY want to bitch about wasteful spending – that affects us all, think ‘defense’ spending.
    Nearly $0.60 of every dollar goes into defense and the waste there is unimaginable. Halliburton anyone?
    Cut budget in half, streamline the military, bring troops home from Japan and Germany and NK.
    Savings would equal roughly $400 billion annually.
    We currently spend more than the other top 10 COMBINED.
    So again, save the petty – take a hard look at where MOST of your money is going. And going to WASTE.
    Look at it this way: with all that money and etechnology, we still can’t win modern wars.
    So what on earth are we spending so much on?

  11. Jeff Schneider

    Hello Rick,
    We find it refreshing to see your trutful posts, on what really is going on in our economy. Not at all what you see on the nightly news.
    The Capitalist media machine has been lying to all of us for quite some time now. The stock market has been artificially manipulated by the powers that be for some time now.
    The unemployment rate that is being reported is total fiction and we know it to be well north of 15% and climbing. Whats more the current manipulation of the equity markets is running its course.
    We expect the Equity markets to retest the old lows and end with a climactic high volume sell off period, followed by a consolidating base period of months. You may all be asking whats my record as far as calling the markets. You may want to check out my comments on Ricks June 17th post.
    Thats the bad news, The good news is for all of you that have good commercial quality .com names the window for opportunity to develop them in preparation for better times is immeasurable.

  12. crinux

    America failed the world [into bankruptcy] ultra-patriotism leads to fascism and wars as many of us experienced in Europe and americans are not immune to this virus. Calls from prominent people like Michel Moore or Neil Young, for example, who’s song”Impeach the President [Bush]” was banned on US airways shows the times we all live in. More and more comes out to light about the Bush’s time [ the Congress too] and how they screwed up the world (guess he’s now playing russian roulette with Dick Cheney … that would make a great scene in Borat, or Michael Moore’s). After all, free speech gets you jailed in the freest country in the world, oooh Borat ! It’s a shame to all, and every american should re-think and beg forgiveness for electing morons as their leader. Americans should have the courage to impeach. All hopes are now with Obama, but the hope is sinking under debt, his plate is full of leftover crap and he puts the brave face, there is no magic here, he’s not Harry Potter.

  13. Drewbert

    “Personally I think everyone in Congress who voted for any of these new programs without reading the bills should be removed from office.”
    And what about the people in Congress that voted without reading the bills 2000-2008 that got you INTO this mess, Rick?

  14. kfink

    Rick, I’ve been reading your posts off & on for only a few months…I feel that somewhere or another we may disagree politically; but I have certainly been feeling extraordinarily uneasy about the current economic situation and what the current”government” is doing to stimulate…err, KILL it.
    I have to agree with Andy from the UK, and Mark, and I guess everyone that has posted thus far…to varying degrees.
    I, too, believe this mess was started decades ago; and was left to fester and multiply behind everyone’s backs until it was too late.
    A die-hard Obama supporter, I graciously believe that he & his administration have been doing the best they can under the circumstances. In other words, YES – they are spending shitloads, and YES things seem to be getting worse…but the alternative is not better in any way.
    Variations of thought, in regards to letting GM or banks fail outright sans bailout, are debatable. The golden parachutes for Wall Street criminals is beyond appalling; the missing TARP $$ ludicrous; the unaccountability of the last administration startling, etc.
    But I do believe we’re headed in a better direction. Might be digging the hole a tad deeper on the outset, but it will get us out longer term. Yeah, I’m worried; feeling a bit jaded and mistrusting; wondering if all of government is only in it for themselves and their own special interests (this is pretty rhetorical, actually).
    I know many – and from the sound of it, you, too, Rick! – would disagree with me. All-good. But in that case one of the things I keep wondering is: who THEN would be able to fix this mess? It was started way too long ago, exacerbated by many followers, and now is too big for ONE administration to clean up. Again, though: who in the world could outright tackle this – AND HOW??
    I personally believe that pouring our industry into renewable energy, with the same fervor we arranged during WWII, would be a step in the right direction. I see this sort of legislation as more of an investment than a waste of spending, and am disappointed Congress has watered it down. At the current rate, we’ll be producing enough of our own energy by the time I’m enjoying hospice care (I’m 27, now).
    This may be a completely & totally incomprehensible rant – my apologies. I suppose what I am getting at is…What in the world SHOULD government / Congress / THE PEOPLE be doing?? Everyone is to blame – there is not enough accountability, leadership or BALLS to tell the masses exactly what need be done or how to handle this.
    If not Government, then who? And how?
    (jeez, that sounded anarchistic!)

  15. Kevin

    What’s happening is really the middle class is getting squeezed like never before.
    The poor know how to survive with meager incomes and they’ll always do fine because they live frugally.
    Plus they know how to get all the government freebies enough to survive.
    Here in South Florida you’d never know there is anything wrong in the economy in the truly wealthy areas. You still see new Bentleys, Mercedes, Yachts, Private Jets, million dollars estate homes, lines at the finest restaurants, golfers at the country clubs, people traveling, women shopping buying Prada, expensive shoes, purses, etc. The really rich are doing fine as always.
    But the middle class. Well this is where the economy is taking it’s toll. Executives getting laid off, people making $100K a year and living an unrealistic lifestyle off the bogus equity in the $500K homes for the past decade. It’s these folks that are being shell shocked and for the first time in their lives many are unable to find high income jobs, unable to use their credit cards, unable to sell their homes, unable to buy a new car, unable to get equity loans, unable to pay bills on time, and on and on. The party has come to an abrupt end and so as their cash flow.
    So what I see happening is the rich still getting richer, the poor poor as always, and the middle class disappearing, with a handful figuring out how to get rich despite the economy and the majority sinking into the realms of the lower class lifestyles.
    I don’t see anything on the horizon that is going to change this trend. Real estate is not coming back anytime soon. Credit is impossible to get for even high income people with good FICO scores. Executive jobs are getting pruned further. The stock market is not going up. So unless you have your own business or really know how to hustle to put it bluntly you’re fucked and shit out of luck and on your way to the poor house.
    I see America becoming like most all the other countries of the world in the years ahead. You’re either wealthy or you are not. The middle class as we knew it will be gone.

  16. jblack

    Bush was a debt spender. Obama is a worse debt spender. More of the same, but worse.
    If huge government programs and high taxes are the answer, why are California and New York bankrupt? Clearly, they did not tax and spend enough. Not!

  17. Kevin

    If you factor the unfunded forward obligations of Social Security, Medicare, etc of the Fed and State governments the debt is really over $100 Trillion so technically the US has been bankrupt for quite a long time, yet still operates regardless as if the debt isn’t really there.
    It’s quite remarkable that we get away with this, but we do and will continue to do so as long as there is no alternative to the US in the world financial markets. And there is none.
    Ultimately to the rest of the world, the US is as they say toooooo big to fail. All the players globally know the world economy would collapse if we were taken out of the picture because so much of the world’s economic system is controlled by infrastructure inside the US.
    So however rocky it is now, and looks going forward, it will all work itself out like it always has.
    Don’t lose too much sleep. The US isn’t going out of business anytime soon.

  18. jblack

    So you agree with”debt does not matter” Cheney?!
    Rome was toooo big to fail toooo….but they worked it out. Well, maybe not.

  19. Kevin

    @ jblack, No not a fan of Cheney or debt, but unfortunately we got stuck with both so we have to deal with what they did and Obama has spent more in 6 months than all the Presidents combined. So nothing has changed and it’s gotten worse.
    Bush was the biggest spending Republican in history. But Obama is making even Bush’s reckless ways look like pocket change.
    The scary part is the enormity of it. Most people can’t even comprehend a Billion let alone a hundred trillion. LOL
    But my comment was basically saying it is what it is. The rest of the world knows that too. And like in Monopoly if all the other players go belly up you can’t play by yourself, so as long as the bankers keep handing more monopoly money out to all the players the game can go on even though all the players no it’s BS. That’s why I said does it really matter? Not really because the game must go on or the entire game and all the players go down too.

  20. Improved SEO

    Can you blame the company building the website for squeezing as many nickels and dimes as possible out of the government? Think about your own domain sales and the T.R.A.F.F.I.C. conference. Aren’t you trying to reap the largest profit possible? This reminds me of the old saying”Don’t hate the player, hate the game.”

  21. Alex

    Enjoyed your post. As expected, the”everything is the last administrations fault…” crowd is always out in droves. My question to them? When is the current administration going to stop blaming the”last guy” and start taking some freaking responsibility? Oh right… never.
    How’s that hope and change working out for everyone? Yeah, that’s what I thought.
    We’re all screwed – I’m moving to Asia.


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