US Federal ReserveIt is no mystery that the United States economy is struggling right now. We hear the consistent cries across virtually every medium of communication, online and offline, stating the same thing. While the causes and culprits are tirelessly up for debate by those with opposing viewpoints and beliefs, one thing we can hopefully all agree upon is that something is terribly wrong. Rest assured that you will not hear about Charlie Sheen giving his ‘winning’ approval on the US economic decisions over the past several decades. Make no mistake, if you think the US federal government is the only bad seed in this party, you’re as blind as they are. This growing fiasco has involved everybody that has ever made a financial decision; from federal and local governments to large and small businesses to the most powerful decision makers of all…everyday consumers.

The America Family Association has organized ten powerful economic graphs that put financial facts and figures into visual form. Sometimes you can quote economic statistics to people until you are blue in the face and it won’t do any good, but when those same people see charts and pictures suddenly it all sinks in. As you examine the economic charts below, pay special attention to what has been happening to the U.S. economy over the last 30 or 40 years. All of the economic problems that we are experiencing now have taken decades to develop. The sad fact of the matter is that we have been living in the biggest debt bubble in the history of the world over the last 40 years. All of this debt has purchased a wonderful standard of living for the vast majority of us, but all of this debt has also destroyed the economic future of our children and our grandchildren. Someday future generations will look back on what we have done in absolute horror.

With absolute sincerity to our great nation, my professional recommendation is to be prepared for the worst. Let’s of course go out kicking and screaming and not give up without a fight, but the writing is on the wall. Short of a miraculous recovery that takes, at the minimum, decades to complete (anything is possible), I would start thinking about how to best take care of you and your family for the remainder of your living years and beyond. It involves NOT relying on anybody else but yourself to make sound short and long-term financial decisions. It involves having a backup plan and a backup plan for your backup plan. And heck, if we as a nation get smart and make a true recovery (even if it takes 40 years), you’ll be one step ahead of the competition and able to pass down your financial wisdom and advice to younger generations.

Take a good look at these graphs and allow the information to sink in. Use common sense to determine how this has and will continue to impact your life and build a strategy on how you plan to get active in protecting yourself against the seemingly inevitable economic brink wall.

Federal Net Outlays

Federal spending is almost 18 times higher than it was back in 1970. Now Barack Obama has proposed a budget that would increase U.S. government spending to 5.6 trillion dollars in 2021. Just imagine what the following chart would look like if that happens....

US National Debt 2010

he U.S. national debt is currently $14,081,561,324,681.83. It is more than 14 times larger than it was back in 1980. Unfortunately, the national debt continues to grow at breathtaking speed. In fact, the Obama administration is projecting that the federal budget deficit for this year will be an all-time record 1.6 trillion dollars.

Interest on the National Debt

The chart is from an official U.S. government report to Congress. As you can see, it is projected that interest on our exploding national debt is absolutely going to spiral out of control if we continue on the path that we are currently on....

Household Debt

The sad truth is that it is not just the U.S. government that has a massive debt problem. U.S. households have also been accumulating debt at a staggering rate. Total U.S. household debt did not pass the 2 trillion dollar mark until the mid-1980s, but now total U.S. household debt is well over 13 trillion dollars.

Total Credit Market Debt Owed

The total of all debt (government, business and consumer) in the United States is now well over 50 trillion dollars. For the past couple of years this figure has been hovering around a level that is equivalent to approximately 360 percent of GDP. This is a debt bubble that is absolutely unprecedented in U.S. history.


There are about 3 and a half times as many unemployed workers in the United States today as there were when 1970 began. These jobs losses are going to continue as long as we allow our corporations to pay slave labor wages to workers on the other side of the globe. All of the major trends in global trade are very bad for the U.S. middle class. For example, the U.S. trade deficit with China for 2010 was 27 times larger than it was back in 1990.

Duration of Unemployment

For most of the post-World War 2 era, when the median duration of unemployment in America reached 10 weeks that was considered a national crisis. Well, today competition for jobs is so intense that the median duration of unemployment is now well over 20 weeks


Since the Federal Reserve was created in 1913, the value of the U.S. dollar has declined by over 95 percent. One of the reasons given for the existence of the Federal Reserve is that the Fed helps control inflation. But that is a huge lie. The truth is that the United States never had consistently rampant inflation until the Federal Reserve took control. In particular, once the U.S. totally went off the gold standard in the 1970s inflation really started escalating out of control.

Monetary Base

Now the Federal Reserve says that the solution to our current economic problems is to print even more money out of thin air. The games that the Federal Reserve is playing with our money supply are simply inexcusable. Just look at what the Federal Reserve has done to the monetary base since the beginning of the recession.

Price of Oil

The price of oil is now ridiculously high. A high price for oil is very, very bad for the U.S. economy. Our entire economic system is based on being able to use massive quantities of very cheap oil. Unfortunately, that paradigm is starting to break down and the consequences will be very bitter. Back in mid-2008, the price of oil hit an all-time record of $147 a barrel and subsequently the world financial system imploded a few months later. Well, the price of oil is on the march again and that is very bad news for the U.S. economy.


  • Gloria Mundi

    A picture is worth 1,000 words. Still true. Thanks.

  • Leo

    Theeeerrr is your HOPE and CHANGE!!

  • j

    How fast can 2012, the month of November get here!

  • Lieuread

    When digesting graphs created by someone else always remember to “follow the money.”  The  America Family Association, who generated these “powerful” graphs, is a non-profit organization which promotes conservative christian values. There is no problem with that per se, however, with such an overt agenda one cannot simply take their conclusions concerning the economic well-being of America today as truth.  

    They openly support Conservative and/or Republican candidates and it would be in their best interest to present data in a way that would condemn the efforts of their opposition, which is what this article does.  

    The American Family Association is a known hate group which obsesses over sex. I do not trust them to interpret economic data correctly in order to make factual assertions. If you read this and simply took it to be true, shame on you. If you refuse separate fact from fiction after reading this then you are willfully practicing cognitive dissonance. 

  • Khc3

    What of  “interpretation” are you talking about? All I saw was data.

    Are you saying progressives don’t “present data in a way that would condemn the efforts of their opposition?”

    You’re full of crap.

  • Dtayccc

    The only thing left is the upcoming news flash… crashes!!!  

  • Doug

    This is scary.

  • Tentalentss

    Please note that most of the graphs are from the Federal Gov’t or the Federal reserve. Your assertions about the presenter may or may not be true but the information presented is based in truth. So whether your are liberal, conservative, gay or straight does not change the fact of our national problem. We as Americans, all walks of life, are about to suffer and your politics will not save you. So do not dismiss the information based on your political slant, instead digest it and prepare yourself for the worst.

  • Ken Cauley

     What you say is correct about AFA, but this is pure data. There is no room to skew numbers or present it in a way that pushes their agenda.

  • Hcealp

    Get rid of the banks as we have come to know them

  • Berschauer

    To Lieuread below;

    I look at the charts presented here in the light of my 50 years experience as an employee, technician, manager and senior executive. I am 71 years old. I remember the long gas lines in 1973, the hyperinflation in price of housing and cars. These chart’s tell it like it was. Printing money never solved any economic problems in the past. This kind of policy has only diluted the value of our children’s future.

    I am happy that I am 71 years old. I will not live long enough to see the United States become destitute like Greece. I have purchased a new home borrowing the maximum I could. “considered foolish when I was young” The value of the dollar will fall rapidly and those dollars will be paid off with cheep money. I still have my “paid for” house. So if my plan fails I will default and walk away from this beautiful house. 

    You, Leiuread, have some painful growing up to do. Good luck!

    Bob Too old to understand

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Ken is an entrepreneur to the core with over 15 years of experience in online business and self development.


Ken is an active mentor and professional speaker to students, aspiring entrepreneurs and established professionals.


For Ken, the glass is always half full and full of potential. Life is about learning and growing both personally and professionally.

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