Bankruptcy Certain?

We all know by now that the U.S. government can't finance its operations simply by collecting taxes from it's citizens...they should but they don't. So for years now, we have been borrowing money from foreign investors.

How long can that continue? The simple answer is; only as long as those foreign investors continue to refinance the existing debt AND continue loaning us more. Honestly folks...even a 5th grader can do the math on that one.

So what happens if they refuse to loan us more AND refuse to refinance the existing debt?

According to the U.S. Treasury, $2 trillion worth of debt will mature in the next 12 months. So looking only at short-term debt, we know the Treasury will have to finance at least $2 trillion worth of maturing debt in the next 12 months. That might not cause a crisis if we were still funding our national debt internally. But since 1985, we've been a net debtor to the world. Today, foreigners own 44 percent of all our debts, which means we owe foreign creditors at least $880 billion in the next 12 months – an amount far larger than our reserves.

Keep in mind, this only covers our existing debts. The Office of Management and Budget is predicting a $1.5 trillion budget deficit over the next year. That puts our total funding requirements on the order of $3.5 trillion over the next 12 months.

So, where will the money come from? Total domestic savings in the U.S. are only around $600 billion annually. Even if we all put every penny of our savings into U.S. Treasury debt, we're still going to come up nearly $3 trillion short. That's an annual funding requirement equal to roughly 40 percent of GDP.

You can read this article titled BANKRUPTCY OF U.S. NOW CERTAIN here; http://www.wnd.com/index.php?fa=PAGE.view&pageId=118727

When we see a storm coming, where did Jesus tell us to seek refuge?

"A man who has riches without understanding is like the beasts that perish." Psalm 49:20

Hat tip to Adam G.