Your Questions About Debt Busting

Laura asks…

Is the US Debt Investment Bubble Bound to Collapse? At 14+trillion?

Every week, auctions are held to sell treasury securities– investment in the United States’ ever-growing debt, which, through interest payments, contributes to our larger and larger deficit spending every year. At what point has it grown large enough to be unsustainable?

Many countries including our biggest investor, China, have been buying up our debt by the boatload over the years. Add Russia to this list, as well as huge banks and private investors.

Over-investment in a certain area typically lends itself to a boom and bust cycle… Is this artificially inflated debt-bubble bound to collapse in on itself? Is the United States “economy” on its way to an all out collapse?

What will this mean?

John answers:

Actually it is bound to collapse. Likely over the next 2-6 years. You probably learned in economics class the concept of diminishing returns. Debt is subject to diminishing returns as well (see chart URL below). Debt has accumulated to the point where it strangles growth, and that has to stop. Not for political reasons, but economic ones. I wouldn’t say that this will “collapse” the US or other major economies, but it will precipitate a multi-year period of very slow-negative growth and declining asset value.

Nancy asks…

US National Debt is $8,697,871,627,363 Trillion Dollars + rising $1m each minute. Will USA go bust ?

Seems to me the USA borrows more and more to now impossible levels. All debt is owed to someone… either foreign investors or mostly in form of USA citizens for pensions ect.

Isn’t approaching $9 trillion a massively burdensome debt which is now impossible to repay all owed ? Won’t the USA financial system implode at some point ?

John answers:

Brace yourself, this answer will jolt some of you….The u.s. National debt is the amount of money the U.S. Government owes a private bank also known as “The U.S. Federal Reserve Bank”…note on all money, that this is printed “payable for all debts private or public”…this all came about back in 1918, when the vice-president at the time put the power of printing all U.S. Currency in the hands of this private bank…whenever the gov´t needed money, it took out another loan from the Federal Reserve and this is the reason the national debt keeps growing…not to mention the interest rates…..If the U.S. Gov´t took back the controls of printing its own money (set by the gold standard), there would be no “national debt”…for more info, watch the film in my sources…

Lisa asks…

Is everybody beginning to understand we have another Great Depression?

I knew it was coming and it is here. Some people think bailing out this or that company will help. They are just printing money and are deep in debt. Pray for us, it could mark the end of the nation. We are completely busted and companies like GM are finished. Workers best accept reality and brace for years of hard times. We need soup kitchens, bread lines and some real cheap housing. Old folks like me will never live through this.

John answers:

Yes, you bet I understand. And I am petrified about how to cope. I expect food shortages, riots and ongoing violence. People will be forced to fight to stay alive here. It will begin with protests, then violence, rampant crime and robberies. After January, things will go from bad to worse and, then, the real trouble begins.

Sandy asks…

Banks collapsing and debt?

There’s been a lot of publicity about banks going bust recently and how bad it is for people with mortgages and savings with them etc… but what happens if you have debts (e.g. loans, credit cards) with a bank that goes under… Is your debt written off as part of the bank’s debt being written off?

John answers:

The bank might go under but who holds your mortgage note is still going. Most likely your note is with Fannie Mae and now the government took over so it didn’t go under which was the reason the government took over so that it wouldn’t fold.

Mandy asks…

debt & court in Scotland?

we have debts from our business that went bust. They are considered as personal debts the company was not limited. Would we be just as well to have the credit card companies take us to court and have the court set a monthly payment? The biggest problem at the moment is that even though we have given them all our financial statement, they are all still phoning us all the time asking for more. They keep threatening us with the bailifs and say they don’t have to go to court to seize goods from us. Will we be ok as long as we can prove that we have made an offer of payment?
Hope this makes some sense to you guys and that you can help.
They have even asked us to borrow money from family members to pay them!
have been through citizens advice but the companies are still not taking much notice
cannot declare yourself bankrupt in Scotland. Only the companies you owe money to can make you bankrupt and as we have no assets they will not do that.

John answers:

Know of a similar situation with a friend a few years back.

His was a limited company so the debts were all business related, but as you were not limited the debts will certainly be classed as personal, however as difficult as it may seem do not be threatened by phone calls and please be aware that the calls you are receiving are from people whose job is to recover bad debts.

As you are in Scotland I am sure it is Sheriff Officers who would be commissioned to sieze your goods but this can only happen when the credit company concerned applies to the Courts, and you would have to be made aware of this action prior to it being raised by the credit company. With this in mind you are probably being contacted by some debt collector in England and therefore they are talking about Baillifs. Whilst I can appreciate you are worried sick about this situation I suggest that within reason, try to disregard these threats as they are simply trying to frighten you into making payments. They should certainly not be asking you to borrow money from family members, but they will try all sorts to get their money.

The fact you have offered to make some form of payment should be accepted by them, but certain companies will still continue to harass you for more.

I would strongly suggest you contact a Solicitor to handle this for you, as if nothing else, it will take the pressure of you, knowing that some-one else is handling the matter. You may also find that once a Solicitor contacts the companies concerned, the threatening phone calls will stop.

Another source of great help may be your local Citizens Advise Office.

I hope this has helped you during this very stressful time.

Best of luck and I sincerely hope you manage to resolve this problem shortly.

Ps. Do not allow this to affect your health or family.

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