- This will be one of the topics of Jeff's radio program
on Tuesday, July 16 with EIR editor Lonnie Wolfe.
- Many people who had believed that there could be an upturn
in the U.S. economy lost their delusions after reading a study which appeared
in the July 5 EIR, especially after seeing its dramatic graphics. They
realized that the U.S.A. is hopelessly bankrupt. Nobody before put together
such a comprehensive study of the size of the debt, how it came about,
and the impossibility of paying it. EIR economists Richard Freeman and
John Hoefle gently walk the reader through how they added up statistics
on household debt, corporate debt, and government debt. Freeman spoke
with a dozen statisticians inside the Federal Reserve and other public
and private entities, who provided data on separate pieces of this bubble,
and who sometimes thought EIR's calculations were "too conservative."
- A free copy of the whole July 5 EIR will be sent to anyone
who calls 1-888-347-3258 and says "I saw it on Rense.com."
- The study begins:
- The spiralling growth in U.S. debt, and thus the requirement
to service or roll over the debt, is creating the conditions, in the United
States and globally, for the eruption of a hyperinflation of the type that
ravaged Weimar Germany from March through November 1923. By the end of
2001, total U.S. debt had reached $31.12 trillion. On average, over the
last four years, U.S. debt has surged at the rate of $2.2 trillion per
year, or almost $200 billion per month.
- The debt pyramid has grown so large, that it is unsustainable,
and all attempts to service it will not work. Moreover, every such attempt
further destroys both the underlying U.S. physical economy, and its bankrupt
financial system. EIR's economics staff has determined, preliminarily,
that by the end of 2001, on this outstanding debt, America's annual debt
service--the interest payment, plus re-payment of a portion of the principal--had
reached an unprecedented $7.36 trillion. This is equivalent to a staggering
72.1% of Gross Domestic Product....