JAMES PICKETT WESBERRY Jr >>>> PERSONAL WEBSITE

THE CONTINUING FINANCIAL CRISIS

Introduction to Jim Wesberry
GIVING THANKS
DOCTORADO HONORIS CAUSA - UNIVERSIDAD INCA GARCILASO DE LA VEGA, LIMA, PERU
CONFERENCIA EN HUANUCO, PERU - El Auditor enfrenta la Erupcion de Corrup$ion del Siglo XXI
CONFERENCIAS EN CHILE - 3 Mayores Desafios al Auditor Interno - VIDEO y TEXTO
DOLLARCRACY ->>>>>>>>>>>>>>>>>>>>>>>>>>> $$$ COUNT.........PEOPLE DON'T
THE CONTINUING FINANCIAL CRISIS
GEORGIA CORRUPTION ON MY MIND
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The Top Quartile of Life
AMERICA IN DECLINE? The Life Cycle of a Great Power
ACCOUNTANCY & AUDITING: MY CHOSEN PROFESSION
SERVICE AS PAGE IN US HOUSE OF REPRESENTATIVES 1949-51
SPECIAL INVESTIGATOR OF CORRUPTION IN STATE GOVERNMENT 1959-60
LEGENDS: Georgians Who Lived Impossible Dreams
Wesberry v. Sanders, 376 US 1 Landmark US House Reapportionment Case
POLITICS - MY FIRST CAMPAIGN 1961
POLITICS - ELECTION TO GEORGIA STATE SENATE 1962
Why I Quit the Georgia Senate
Contador Benemerito de las Americas (Most Meritorious Accountant of the Americas)
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THE EVER GROWING, EVER STIFLING BUREACRACY
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GRAPHIC DISPLAY OF US DEBT
CALCULATE YOUR DEBT LIABILITY
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COLOMBIA VS KLEPTOKAKISTOCRACIA: Presentación para el Día Internacional Anti-Corrupción 2011
LECTURE AT MANILA'S UNIVERSITY OF THE EAST: Integrity & Honor, Corruption & Dishonor VIDEO
MANILA LECTURES AT FAR EASTERN & SANTO TOMAS UNIVERSITIES: Good Governance and Social Responsibility
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SEGUNDA GRAN DEPRESION 2010 (JW presentaciónes en español)
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Click above to read full article by David A. Stockman

Sundown in America - NYTimes.com State-Wrecked: The Corruption of Capitalism in America

"Let's not pretend that things will change if we keep doing the same things. A crisis can be a real blessing to any person, to any nation. For all crises bring progress. Creativity is born from anguish, just like the day is born from the dark night. It's in crisis that inventive is born, as well as discoveries, and big strategies. Who overcomes crisis, overcomes himself, without getting overcome. Who blames his failure to a crisis neglects his own talent, and is more respectful to problems than to solutions. Incompetence is the true crisis. The greatest inconvenience of people and nations is the laziness with which they attempt to find the solutions to their problems. There's no challenge without a crisis. Without challenges, life becomes a routine, a slow agony. There’s no merit without crisis. It's in the crisis where we can show the very best in us. Without a crisis, any wind becomes a tender touch. To speak about a crisis is to promote it. Not to speak about it is to exalt conformism. Let us work hard instead. Let us stop, once and for all. the menacing crisis that represents the tragedy of not being willing to overcome it."
                                                       --- Albert Einstein

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Ending the Era of Ponzi Finance: Ten Steps Developed Economies Must Take

Betting with Trillions: Prison of Debt Paralyzes West - DER SPIEGEL, Nov. 2012

Click here to read the financial obituary of the United States of America

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Devaluation since 1913
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The fragment left of the dollar will soon become infinitesimal

Decline in Purchasing Power of the Dollar
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You will soon pay $10.00 for a cup of coffee

A poorer America
A Poorer America

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A poorer America
A Poorer America

Unemployment rises as government spending goes up
Unemployment and Government Spending

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www.debtwall.org

Why the Debt Crisis Is Even Worse Than You Think

(Extracts from Business Week article, click headline above to read it)

"A June analysis by the Congressional Budget Office concluded that keeping the U.S.’s ratio of debt to gross domestic product at current levels until the year 2085 (to avoid scaring off investors) would require spending cuts, tax hikes, or a combination of both equal to 8.3 percent of GDP each year for the next 75 years, vs. the most likely (i.e. “alternative”) scenario. That translates to $15 trillion over the next decade..."

"A more revealing calculation is the CBO’s measurement of what’s called the fiscal gap. That figure is conceptually cleaner than the national debt—and consequently more alarming. Boston University’s Kotlikoff (who) has extended the agency’s analysis from 2085 out to the infinite horizon, which he says is the only method that’s invulnerable to the frame-of-reference problem...concluded that the fiscal gap—i.e., the net present value of all future expenses minus all future revenue—amounts to $211 trillion...

"The U.S. is in danger of reaching a generational tipping point at which older Americans have the clout to vote themselves benefits that sap the strength of the younger generation—benefits that can never be repeated. Kotlikoff argues that we may have reached that point already. He worries that the U.S. could become Argentina, which went from one of the world’s richest to lower-middle income in a century of chronic mismanagement..."

US PRODUCTIVITY FALLS

Food stamp use surges

Food stamp benefits, (in billions):

Source: U.S. Department of Agriculture

Why the Debt Crisis Is Even Worse Than You Think

Ten Signs The Double-Dip Recession Has Begun

 

Global Bankruptcy Months Away?

By John Ransom

6/24/2011

A former Reagan administration official who worked on trade policy is warning that unless Congress can agree to a significant reduction in spending that the world may run out of money in 6-18 months. When that happens the economy could enter “a death spiral.”

“Based upon world liquidity, the amount of money available to fund sovereign debt in 2011 is between $6-9 trillion,” Marc Nuttle told Townhall Finance. Nuttle runs the site DebtWall.org. “The world’s government projections for deficit financing in 2011 is $8-10 trillion. We are bumping into the ceiling of the world’s ability to fund ongoing sovereign deficits and debt on an annual basis.”

The $2-6 trillion shortfall will have to come from other parts of the economy like small business loans, the stock market, commercial bonds and consumer spending.   

Unless something is done to reign in spending, Nuttle,...predicts that the financing of government debt will eat into the world’s ability to invest in public and private projects.

Money that would normally be available to capital markets would have to be switched just to finance interest rate increases. 

“Interest rates may well hit double digits,” he said, “forcing businesses to operate without adequate float for inventory, materials, facilities and production. Businesses will fail, jobs will be lost, salaries and wages will be reduced.” ...Nuttle says that in order to avert a short-term crisis the U.S. has to take the lead by cutting $500 billion in spending immediately.

“This will not completely solve the problem but it is an adequate step in the right direction,” Nuttle said. “This is the necessary amount that will alleviate pressure on the funding of 2012 world sovereign debt projections. It is still possible to develop a four-year plan to avert hitting the debt wall, but the plan requires immediate cuts in the deficit.”...

Nuttle points out that under current artificially low rates, the interest on the U.S. debt is $187 billion. If interest rates were to go back to the historic norm of 4 percent, interest on the debt would come in at $600 billion... 

Nuttle predicts that when that happens, “The economy will enter a death spiral of increasing business failures, fewer jobs, higher prices, higher taxes and stagnant growth. Liberals in government will use the ensuing economic crisis as a pretext for increasing the size and scope of government.”...

The effects of fiscal consolidation—tax hikes and government spending cuts—on economic activity.

Abstract of an IMF Study

Based on a historical analysis of fiscal consolidation in advanced economies, and on simulations of the IMF’s Global Integrated Monetary and Fiscal Model (GIMF), it finds that fiscal consolidation typically reduces output and raises unemployment in the short term. At the same time, interest rate cuts, a fall in the value of the currency, and a rise in net exports usually soften the contractionary impact. Consolidation is more painful when it relies primarily on tax hikes; this occurs largely because central banks typically provide less monetary stimulus during such episodes, particularly when they involve indirect tax hikes that raise inflation. Also, fiscal consolidation is more costly when the perceived risk of sovereign default is low. These findings suggest that budget deficit cuts are likely to be more painful if they occur simultaneously across many countries, and if monetary policy is not in a position to offset them. Over the long term, reducing government debt is likely to raise output, as real interest rates decline and the lighter burden of interest payments permits cuts to distortionary taxes.

From World Economic outlook: Recovery, Risk, and Rebalancing, International Monetary Fund | October 2010 at:   http://www.imf.org/external/pubs/ft/weo/2010/02/pdf/c3.pdf

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According to a new report just released at www.truthinaccounting.org/, the states have used accounting trickery to conceal a total of $1 trillion of outstanding bills.  The report identifies five 'Sinkhole' states and five 'Sunshine' states. 

 
Life is really simple, but we insist on making it complicated.
                                              - Confucius

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This financial crisis is forcing state and local agencies to make some tough decisions.  If things continue for much longer, there's a real risk that we may have to lay off Jose.

PETER SCHIFF: "WE ARE IN A DEPRESSION"

GOLD UP =  DEVALUED $

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USA TODAY: U.S. funding for future promises lags by trillions (click here to read)

Two Financial Crises Compared: The Savings and Loan Debacle and the Mortgage Mess >>> A comparison of prosecutions related to the savings and loan crisis and the current financial crisis. CLICK HERE

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"The world had better start paying attention to the US government’s inability to govern."
Clive Crook Financial Times, April 10, 2011
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US FINANCES RANK NEAR WORST IN THE WORLD: STUDY

The US ranks near the bottom of developed global economies in terms of financial stability and will stay there unless it addresses its burgeoning debt problems, a new study has found.

US Capitol Building with cash

In the Sovereign Fiscal Responsibility Index, the Comeback America Initiative ranked 34 countries according to their ability to meet their financial challenges, and the US finished 28th, said David Walker, head of the organization and former US comptroller general.

CLICK TO READ ARTICLE ON US FINANCES NEAR WORST IN WORLD

CLICK HERE TO GO TO DAVID WALKER'S "COME BACK AMERICA INITIATIVE"

US Government's mountain of debt


Get Your News Widget

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When we get piled upon one another in large cities, as in Europe, we shall become as corrupt as Europe.

                                                      - Thomas Jefferson


 

YUAN

If you do not have heart or stomach problems, are sitting down comfortably and have your blood pressure under control, CLICK HERE TO SEE THE LATEST FINANCIAL STATEMENTS OF THE US GOVERNMENT

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A Hidden Fiscal Crisis (extract)

Lawrence J Kotlikoff in the IMF Journal Finance & Development, September 2010, Vol. 47, No. 3

A noted U.S. economist says debt figures seriously understate long-term budget problems in the United States

"EVEN as the United States experiences continuing fallout from a terrible financial crisis, a more alarming fiscal problem looms. The world’s largest economy faces a daunting combination of high and rising costs for health care and pension benefits and constrained sources of revenue that will put enormous pressure on its fiscal soundness...

The size of the U.S. fiscal gap, as recently measured by the IMF... indicates that the United States is in terrible fiscal shape...America’s fiscal gap is massive. It is so massive that closing it appears impossible without immediate and radical reforms to its health care, tax, and Social Security systems as well as mili...tary and other discretionary spending cuts...The potential for the U.S. fiscal crisis to kick off a global financial meltdown is significant...Once the world catches on to the true extent of U.S. fiscal insolvency, the ability of the United States to continue to finance its government borrowing could come to a halt...How did the United States reach its current state of what could effectively be considered bankruptcy? It spent six decades transferring ever more resources from the young to the elderly, under a variety of different programs described with a variety of labels. Many policies across many administrations from Eisenhower’s to Obama..."

Click here to read this important article

Click here to compare the national debt of the nations of the world

Click here to go to U.S.National Debt Clock

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Whenever you find you are on the side of the majority, it is time to pause and reflect --- Mark Twain

We have never observed a great civilization with a population as old as the United States will have in the twenty-first century; we have never observed a great civilization that is as secular as we are apparently going to become; and we have had only half a century of experience with advanced welfare states...Charles Murray

Kella
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This is a personal website containing personal information and some news and  personal opinions on certain issues affecting democratic governance of interest to me and my friends, associates and seminar participants. The financial information, charts, etc., consist of items I find interesting. Draw your own conclusions from it.
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