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Obama on pace to double the size of the national debt to more than $20 trillion. Michael Snyder breaks down US economy

Greg Hunter from USA Watchdog goes one-on-one with Michael Snyder, founder of TheEconomicCollapseblog.com.

What do you look out for as a warning sign of the next calamity? Snyder says,

“When there is a financial crisis, all of a sudden, banks don’t want to lend. They don’t want to lend to each other, and they don’t want to lend to anyone else. Credit freezes up, and our financial system is based on debt and the flow of money from the banks lending it to the rest of us. I believe we will have a brief period of deflation before the response by the Federal Reserve and the federal government, where we are going to then have tremendous inflation through the roof.”

How can this be fixed?

As Snyder explains it can’t be fixed without killing the economy. On the nearly $18 trillion Federal debt Snyder explains in the video,

“This is a massive problem, but the mainstream media says the deficit is going down, and they have it under control. That is actually not true. It’s all accounting tricks and smoke and mirrors…

Actually, if you look at fiscal year 2014, which just ended, the national debt increased by more than a trillion dollars. What they tell you is the deficit was a little more than $400 billion, but that’s because they take all these things and say that doesn’t count as part of the deficit.

By the time President Obama’s eight years are over, we are on pace to approximately double the size of the national debt from $10.6 trillion to more than $20 trillion. What we are doing is absolute insanity!

We are going to suffer the consequences for so much of this. As far as the time window, I believe the next 12 to 15 months are going to be the most interesting time economically and as a nation as I have ever seen.”

I believe we will have a brief period of deflation before the response by the Federal Reserve and the federal government, where we are going to then have tremendous inflation through the roof.

How can this be fixed? It can’t be fixed without killing the economy.”

What answers are left? From Deep Resource blog:

China will to a large extent determine the moment this is going to happen. The (rational) strategy of China (and Russia) is to get rid of as many dollars as possible, by buying up everything of value, first and foremost gold. As we speak the gold owned by the West is moving eastwards. Some sources say that the US has hardly any gold left, including the gold the US kept in store on behalf of several European nations, like Germany.

Now what can the US do to escape the humiliation of a default, or mask the coming default? Answer: war.

References:

http://usawatchdog.com/permanent-damage-to-us-economy-michael-snyder/

http://deepresource.wordpress.com/2014/10/26/countdown-to-us-financial-collapse/

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