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So, you think your financial education is complete?

THINK AGAIN. The U.S. is currently, 108 to 140 trillion dollars "upside
down," Including debt and unfunded liabilities. The numbers vary
depending upon growth assumptions, interest rates and unrealized
liabilities (derivatives, HUD, FHA, Fannie Mae, Freddie Mac., etc).Few
Americans discuss the fact that the US government has not funded any of
the major entitlement programs. These numbers are larger than most
Americans can comprehend. Imagine you have personal debts totaling
approximately 40 to 50 times your total annual income. In addition,
you're spending every dime of your current income on current expense,
and borrowing money every second of every day. These are not long term
fixed rate debts; they are staggered maturities at floating rates. How
long could you survive?How long would your lenders continue to keep
funding you? If your family is making approximately $50,000 dollar a
year, that would mean that your total debts are in the range of $2 to
$2,500,000 at FLOATING RATES.

Every Americans share of the total government liability is
approximately $350,000 dollars.

Do you know that China is no longer our largest foreign creditor? China
has been quietly selling our debts for several months. Russia has
recently purchased large quantities of Canadian dollars over concerns
about our currency. Have you heard the term PIIGS? It stands for
Portugal, Ireland, Italy, Greece and Spain. All of these countries are
running huge debts with no end on the horizon. England, Sweden and
Japan are all experiencing debt problems. Eventually, we will run out
of Countries to buy our debts. How long will our economy survive if we
don't have someone willing to buy our debt? What interest rate will we
have to pay to attract buyers? To be prepared in these markets,
particularly if you're self-employed, a small business or business
advisor this information is vital.

Learn more about us debt.





Some of the most frightening events possible

These are not even being discussed. Currently the world is consuming
approximately 85 million barrels of oil a day. Every single major
existing oil field in the world is in decline. Yes, there have been
some new discoveries, but these discoveries will not keep pace with
usage or overcome the continued decline. There is also widespread
speculation concerning Iran and its nuclear capabilities. The entire
Middle East is in turmoil. In 1972, when the US was still one of the
world's leading producers of oil, then President Nixon took us off the
gold standard, and forced all countries to purchase oil with US
paper.In a matter of a few decades the US went from being one of the
largest exporters of oil in the world to the largest importers of oil.
In other words...we ran out. If it happened here, it will happen
everywhere. The only question is when.



Billions in Private Bad Debt

Many experts believe that residential real estate lending is the
"straw"responsible for a great deal of our current problem. We believe
the problems are much more wide spread. One of the other items not
being discussed is commercial real estate. PriceWaterhouseCoopers (NY
based professional services company) estimate approximately four
hundred billion ($400,000,000,000.00) in commercial real estate loans
will be coming due every year for the next five years. That's
approximately two trillion dollars ($2,000,000,000,000.00) over the
next five years. And the banks aren't lending money on commercial real
estatethe way they did before the crash. That's office building,
hotels, shopping centers and warehouses. So, what happens to the
businesses located in these facilities if the owners can't service debt
or maintain properties? Small business is finding credit very hard to
find. We have huge deficits in global trade. The current US population
is approximately 310 million (excluding undocumented workers) and the
current US workforce is approximately 139 million. So try and guess the
current unemployment rate. We suspect it's much higher than anyone is
suggesting.


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