The American Survival Bible Inagural Issue Sept. 5, 2011 | AmericanSurvivalBible.com | $9.95 U.S. |14.50 Canada|
The Glass Debt CeilingAn In-depth Look at America’s Policies, Decisions,and Relationship to Debt in the Modern Economy.
Sept 5 - Oct 5, 2011 Sept 5 - Oct 5, 2011American Survival Magazine American Survival Magazine The raising of the debt quired to approve each issuance of debt individu- ally, therefore the ceiling was established to un- can handle triggers the collapse, will be referred to as “The Glass Debt Ceiling”. We use this as it does the sentiment of the global community. So even ceiling, the legal limit on the complicate this process, and give more borrowing if we could haved “juggle[d]” gross level of federal debt the term in reference to this unseen, yet un-breach- flexibility. The debt ceiling is something that is able, amount of debt at which the international our accounts “prioritize pay- U.S. government can amass, almost unique to the U.S., most countries just ments” and somehow survived has been the topic of most community will refuse to buy anymore treasuries, let their debt increase when government spend- lose ALL faith in our already faltering currency, past this date, this would, at political conversation lately. As ing outpaces tax revenue. The U.S. government the very least, have created a we are sure you have probably borrows debt two ways; It borrows money from and discredit its legitimacy completely. This of course is already happening to some degree, all major disruption in our coun- noticed many Americans do investors by issuing Treasury bonds, and it bor- try and economy; if only for not seem to grasp the enormity rows from itself, mainly from the Social Security around the world; however, reaching this ceiling and having others vocalize it by way of declining a short time. However with of the actions that have recent- trust fund, which comes from payroll taxes. Once the international community ly taken place. In this article to buy any more treasuries, massively unloading the debt ceiling is reached the government is no them, and refusing to trade in dollars will further watching and a nation that al- we will explore just how far longer allowed to accumulate debt. In this case it ready borrows more than forty reaching the implications of steep its decline. would have no longer been able to pay with bur- that debt struggle are to the rowed funds. “We cannot continue to raise the cents on each dollar it spends this momentary chaos and situation political commenta- tors have called a dangerous “Dangerous game of Roulette” debt ceiling” perceived weakness could have game of “Russian Roulette.” While failing to raise the debt ceiling would T still spelled disaster. Geithner he fanfare and political power plays on this on Sunday July 10th’s edition issue have shown some awareness that “The of Meet the Press said that Re- *The debt ceiling currently have expedited the debt crisis, failing to con- stands at $14.694 trillion, up trol the debt could have done the same. That Glass Debt Ceiling” does indeed exist, and publicans and Democrats know from the $14.3 trillion, effec- put us between a rock and a hard place. If we that we cannot continue to raise the debt ceiling that “failure… [was] not an tive August 2nd 2011. The did not raise the debt ceiling the we could pos- for much longer. Treasury Secretary , Timothy option” and that a debt agree- limit applies to almost all sibly default for the first time in modern history Geithner had earlier said that he can move money ment had to be reached. Re- federal debt. This is including and hasten the total economic meltdown. If we around to keep U.S. out of default until August publicans nor Democrats were the debt held by the public, keep taking on debt and investors believed that 2, at which point he believed some form of U.S. willing to deal with the conse- creditors like China, and what the United States may be unable to repay this default would have been inevitable. Going on to quences of possibly defaulting the government owes itself debt – or may attempt to further inflate its way say that a default would mean “A broad range of on our debt. through accounts like the So- out of it – we could see a refusal to invest in government payments would have to be stopped, limited or delayed, including military salaries, There are several ways in cial Security Trust Fund. Since Treasury securities. The government could try it was established in 1917 the to entice new buyers by raising interest rates, Social Securities and Medicare payments, interest which we might have tem- on debt, unemployment benefits, and tax re- porarily staved off a default debt ceiling has been raised however these higher interest rates would mean nearly 100 times; and more both greater costs to the government and slower funds.” Some Republicans dismissed Geithners without congressional action. August 2nd deadline as arbitrary or simply as These might include redeem- frequently in the past years ; growth in the overall economy. Ultimately, even ing treasury bonds in federal congress has increased the debt though we temporarily averted this crises if our a political stunt. Whether or not that is true, ceiling 10 times since 2001, mounting debt is not brought under control we however,could have proved to be irrelevant. We employees retirement accounts making this the 11th time in 11 could face severe symptoms of this economic must not forget, that because so much U.S. debt early, putting a moratorium on years. Before the debt ceiling crisis soon anyway. For our purposes this latter is in foreign hands, the stability of our financial contributions to government was instituted congress was re- debt crises, where taking on more debt than we situation depends just as much on market forces pension funds, and the afore-
Sept 5 - Oct 5, 2011American Survival Magazine mentioned “prioritized pay- ments” . This last option has As stated the debt ceiling has been rou- tinely raised, and with more frequency in recent been getting the most publicity years. So why was this last raising such a and criticism. Essentially this big deal? There are several reasons, the sheer will be a situation where, no amount of debt we owe, the sad state of our one knows for sure who would, economy, and also the fact that we seem to be and would not get paid. Let’s establishing an alarming pattern of excessive take for example the estimated borrowing that in recent years has compounded monthly commitments for rapidly. Those are all valid reasons why this last September they include $50 raising could have been so important, but the b. in Medicare and Medicaid reason why this last raising was so pivotal was payments, $49.2 b. in Social because instead of coming to a timely consensus Security benefits, $34.6 b in in a crucial time our politicians used this as an defense spending (including military pay), $29 b in inter- opportunity to extort each other for better politi- cal positioning and power. When they made this 1. Kit(s) est on Treasury securities, and Expect the unexpected. Your fam- decision they put my bank account and yours in $12.8 b. in unemployment ben- ily needs an emergency survival kit danger. With our economy in the shape it is and efits. If a default would have to prepare for life’s unanticipated the amount of debt we have in foreign hands our happened any one of these disasters. Kits like the one’s pictured economic health is as much dependent on eco- obligations could theoretically can make the difference when disas- 72 Hour Kit $68.00 72 Hour Kit $68.00 nomic factors as it is on the worlds perception of have got shorted. Shortfalls ter strikes. 2 people 3 people our ability and intent to pay back our loans. As would have forced the Trea- President Obama has stated “If investors around sury to choose who would and the world thought that the full faith and credit 2. Plan would not get funding. This, of A survival kit is an important investment in of the United States was not being backed up, if course, potentially could have your family’s safety, but it’s of limited use if they thought that we might renege on our IOU’s, been a huge mess. Imagine us you’ve failed to preplan for an emergency. it could unravel the entire financial system.” paying our creditors as they The American Survival Bible will guide you are “priority,” but partially or The beginning of this saga began in January step by step, through the steps it takes to completely leaving troops and 2009, when President Obama took office in the plan for disaster. senior citizens payments delin- midst of the biggest economic crises since the quent . While all of these op- tions are technically within the Great Depression. The US public debt stood at 3. Be Informed 10.6 t. dollars. This last May, nearly two and a authority of the federal reserve, Knowledge is power. Your survival depends on know- half years later, the previous debt limit of 14.3 the problem is that none of ing how to cope with specific disasters and maintain- t. dollars was reached. And as previously stated these solutions are sustainable after months of debate and struggle the new ing an awareness of the current crises. The American and that they do not make for ceiling of 14.694 t. dollars was instated. The Survival Magazine and resources on our site will give very good policy. ceiling was raised seven times during the term you the tools you need to be prepared of George W., but when the Obama administra- Disclaimer: American Family Safety Inc is in no way affiliated with Mbawa Dinnen Marketing or any of it’s products. Neither M&D Marketing or American Family Saftey give financial or legal advice, please consult with a professional for your particular sutuation.
Sept 5- Oct 5, 2011 BullionVault.com American Survival Magazine tion sought to raise the ceiling ica back on the path of fiscal prudence, this type in this critical time it was meet of raw extortion does not belong in American with opposition. Republicans politics. The fact that this made up political crises who took control of the House tarnished our image further, as a solvent country of Representatives in the 2010 that intends to pay back it’s debts, and holds no elections, wanted to reduce consequences for the offenders is an insult to the• Investment Grade Gold and Silver the national debt by cutting American people. We are too close to the preci- government spending. So they pice of financial ruin to have such a gross mis- used the debt ceiling as a polit- handling. What should have been an expedient • The Safest Vaults ical tool to meet these ends. As investment guru Warren Buffet put it they decided to take the process considering the precarious state of our economy was drug out in to one of the saddest political theaters we have ever seen. • And a FREE GRAM national debt for “ransom”. With that said, we acknowledge that some agreement was reached, and possibly in time that To Get You Started! A t the time most (though the consequences won’t be too severe. However while this issue was resolved we at The American not all) legislators agreed that some deal needed to be Survival Magazine believe that this last episode reached to avert catastrophe. was indicative of deeper rooted issues. Namely a Most Democrats were calling growing detachment and obliviousness to the se- for a mix of tax increases as riousness of the current fiscal crises, and a shirk- well as spending cuts, most ing of public responsibility in favor of political Click Here To Start Republicans contended that power games. For a dollar already on the brink the proposed plans did not of collapse these careless attitudes can be costly. cut spending enough. It soon It is in our best interest to understand completely became a very clear that there just how precarious a position we are in, and could be some conflict. Con- how soon our global hegemony can dissipate. If gress held special meetings for we do not heed this advice and keep our current weeks as they tried to decide course of wanton, shortsighted burrowing, even which way to structure the debt though we may increase the debt ceiling, it will deal. In the end there were the- still leave us asking, “Where is the Glass Debt atrics like we have never seen. Ceiling?” §asm§ Stories range from personal attacks, to the President storm- *This is not to be confused with the deficit, which ing out of debates in anger, to is how much government spending exceeds tax outright name calling. While revenue during a given year. Last years deficit we certainly need to make a was $1.29 trillion. The debt is the sum of deficits new commitment to put Amer- past and present.
Sept 5- Oct 5, 2011 Sept 5 - Oct 5, 2011American Survival Magazine American Survival Magazine did they resolve the shutdown? They simply tion as, “a borrow-and-spend borrowed more time. They negotiated their debt proposal that does nothing to obligations and pushed them back a few months. solve the long-term financial This is the exact method that Washington has ad- challenges.” It doesn’t fix any- opted in order to address our nation’s federal debt thing, and it doesn’t change the obligations. fact that many citizens are still suffering. “Do not let the media fool you Charlie Kyte, for in- in to believing that Washing- stance, is the leader of a local school administration in Min- ton’s or Minnesota’s makeshift nesota. The schools which he crisis resolution is effective or represents have had their aid payments delayed for several sustainable..” years. get deficit. The two week shutdown was the lon- The solution caused a fury amongst lo- gest state shutdown in nearly a decade, according M cal Tea Party members who held rallies against He, along with many to The National Conference of State Legislatures. other citizens of Minnesota, any of our readers are the deal. Senate politician Tom Bakk, in his own And the state’s tax payers were not the only ones knows that nothing is going to already well informed as to words, described Minnesota’s so called resolu- to suffer. Roughly 22,000 state workers entered the economic struggles of our an employment limbo, in addition to 66 parks federal government. But in closing down and 100 road projects coming to a recent weeks we have seen screeching halt. Without a doubt, the citizens of these financial woes leak into Minnesota have tasted a sample of the desolation state government level as well, and uncertainty which will soon spread across the causing Minnesota’s state gov- entire nation. ernment to shut down for over two weeks. The shutdown was On July 15th, 2011, Minnesota Gov. Mark a result of indecision and fi- Dayton and other legislative leaders reached a nancial mismanagement to the deal to resume state government operations. The tune of a $5 billion state bud- American Survival Magazine investigated this “Solution eerily similar resolution, and we found it to be eerily similar to to the debt ceiling to the debt ceiling comprimise recently accepted by Washington. Of course Minnesota didn’t just comprimise.” come up with 5 billion dollars overnight; so how
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Sept 5 - Oct 5, 2011American Survival Magazine be resolved by this agreement. We can’t keep pushing debt down the In fact, many citizens are now road. In recent events the Standards and Poors beginning to wonder if this has downgraded U.S. credit from AAA to AA- could be the start of something with a negative outlook. This was in response far, far worse. Imagine tens of to the debt ceiling deal which they felt made no thousands of people being laid substantial effort to address our spiraling debts off overnight. Imagine parks, and deficits. This is just one in a string of warn- libraries, public schools and ing signs the American people have recieved. other state services disappear- We really cannot stress enough this is not some- RARE CALIFORNIA WINES ing into smoke. thing that can happen or might happen; this is all happening right now. The crisis in Minnesota is We Must... simply a microcosm of what will happen all over •Hold our leaders accountable our nation indefinitely unless we change our cur- more info > •Address the real problems rent couirse. You are already educating yourself •Participate in our government by reading The American Survival Bible and The American Survival Magazine. •And if not, share in the blame more info > more info > Sooner or later, state and Now it is time to challenge your- the federal government will be self even further, for the sake of our held accountable for the debts more info > which they have incurred. We nation, by spreading the word about will have to come up with real this coming disaster. Do not let the solutions that don’t just raise media fool you and your loved ones debt but balance budgets and into believing that Washington’s and more info > right deficits as well. We will have to concede that we can- Minnesota’s makeshift crisis resolu- not have a nation deviod of a tion is effective or sustainable. Spread manufacturing sector, and then the truth to those you care about, so take steps toward righting this. The question is, when will this that we as a citizenry can hold our time arrive, and how long have leaders accountable, and be prepared state and federal leaders al- for what lie ahead. §asm§ ready known about this crises?
Special Reportby: The AmericanSurvival Magazine
Sept 5 - Oct 5, 2011 Sept 5 - Oct 5, 2011American Survival Magazine American Survival Magazine W ith over 80,000 branches and over 290,000 au- Once the sole province of high net worth individuals, offshore banking has come of offer. For example earned interest on offshore accounts and investments are paid without the deduction of tax. You U.S. tax law is concerned, U.S. citizens and permanent residents are required to report any in- age and is accessible to most may also be able to sheild a significant come from foreign bank ac- tomated teller machines the US anyone. percentage of your wealth from this crisis counts. In certain circumstances banking system is still the larg- by relocating savings and invest- even the income of an entity est in the world. As we have which you control could also seen in The American Survival ments to an offshore account. Added benefits include high be taxable. For this reason, the Bible, and in recent events, U.S. is one of the countries that size is not always tantamount levels of confidentiality, security, conve- has few restrictions on where to financial security. In light of your businesses, investments, or America’s recent financial crises nience, and global bank accounts may be located. many have been wisely turning access too. However it is still your respon- to offshore banking. sibility to report your income Offshore banking, or banking in a jurisdiction other than the one in which you have I f you aren’t concerned with to the IRS. If income is not reported to the IRS on an infor- mation return it does not alter the tax benefits, your legal duty to report it. The citizenship or residency in, has existence of a foreign bank ac- you may very something of a mystique sur- count is required to be disclosed well be with rounding it. For some an off- on Form 1040, Schedule B, Part liability. Off- shore bank account may sound shore banking III and a Form TD F 90-22.1 like something out of a spy While can limit a credi- must be filed by June 30th of movie, or a way in which rich offshore bank- tor’s access to your each year to disclose the loca- people try to evade taxes. But ing isn’t just for the funds as they are subject tion and other information about the truth is that many people super wealthy anymore, to different laws from differ- any foreign bank accounts with use offshore bank accounts for it’s not necessarily for poor ent countries. Because so many a collective value of more than many reasons. Offshore banking persons either. Depending on countries encourage international $10,000 at any time during the is absolutely legal, it has been which bank you choose minimum trade and enterprise, most have only prior calendar year. There are regularly used by companies, deposits can vary anywhere from limited restrictions on residents doing substantial penalties for failing organizations, business or having bank accounts in other to report income from foreign $1500 to over $10,000. While investing and indi- countries. However, reporting requirements accounts or for failing to file the a fortune is not necessary, investing a sig- viduals on these accounts differ from country to coun- proper forms. nificant amount to make it worth your while is, alike for otherwise the travel costs you might incur may try. OFFSHORE many If you do fail to report income, far exceed the savings. In the U.S. residents are required to declare BANKING IS years. there income on a worldwide basis and tax is it is important to know that The main reason people usually choose an there is no U.S. statute of limi- PERFECTELY payable on all your income. This means as far as tations on your tax returns. If offshore account is for the tax benefits that they LEGAL
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Sept 5 - Oct 5, 2011 Sept 5 - Oct 5, 2011American Survival Magazine American Survival Magazine the IRS finds out about a for- jurisdictions offer extraordinary levels of con- eign bank account many years fidentiality they cannot offer complete secrecy. from now, everything will be All financial institutions have a legal obligation subject to penalties, and inter- to report suspicions of serious criminal conduct. est, plus the taxes that should Foreign authorities seek information through the have been paid. It only takes legal system where there are well-founded suspi- one audit for this to happen. On cions of serious crime. The IRS has taken legal this note those who might have recourse against a myriad of big offenders which some unreported foreign is evidenced on their wall of shame. In fact accounts or assets because of their limited man power and could benefit resources the IRS tends to go for big from the IRS’ ...TAX offenders. 2011 Offshore PLANNING, AND Voluntary A serious offense is defined as Disclosure PROTECTION OF anything that would warrant a Initiative. FINANCIAL prison sentence of at least twelve months in that jurisdiction. The This is the ASSESTS closest that can be achieved is the IRS’ attempt to collect on de- near absolute anonymity and confi- linquent accounts dentiality that is seen using a combi- by giving a uniform and nation of various offshore vehicles, in- predictable penalty and mini- cluding International Business Companies (IBCs) mizing the likelihood of litiga- and Offshore Trusts. Otherwise, all personal data tion; for those who fear their is subject to modern data protection legislation, infraction may warrant criminal and there are severe civil and criminal penalties prosecution. They saw the for breach of confidentiality and unauthorized value of this when taxpayers disclosure of client information. came forward voluntarily and So while we tend to think of offshore banking reported their previously un- unlawfully, it really is quite legitimate, and well disclosed foreign accounts and within your rights. American banks are obligated The lesson to be learned is assets during the 2009 Disclo- to report your income, offshore banks leave this sure program. play by the rules, reap the duty up to you. So upholding this legitimacy while Many have gotten in to this excercising your rights is your part. Legally you benefits of offshore bank- predicament thinking their can save on taxes, have a higher return on your investment and keep your affairs private. IZf you ing, and you too can have it money and assets were above reproach. Even though offshore don’t, the penalties could be very severe. made in the shade; literally. §asm§
Sept 5 - Oct 5, 2011 Sept 5 - Oct 5, 2011American Survival Magazine American Survival MagazineASM. Factiod 1.3 Surprising It’s always been easier to get a job if Longterm 2. you have a job, but now employers are actually starting to discriminate Unemploy- against the unemployed and refuse facts about to hire them. According to The New ment York Times, “A recent review of job Grads and vacancy postings on popular sites like Monster.com, CareerBuilder and the Young the Jobless Craigslist revealed hundreds that said employers would consider (or at least “strongly prefer”) only people cur- rently employed or just recently laid Recovery... off.” To be very clear about this, peo- ple laid off through no fault of their own, who are perfectly employable, now cannot get jobs because of the jobless recovery. No job, no job. It’s easy to look at younger workersSo, the economy is supposedly recovering, but and think they’re just delayed in get-the refrain remains the same: “Where are the ting a start because there aren’t good In a country where marriage is viewed as an “institution” and an jobs available, but the fact is, this de-jobs?” entire political party espouses “family values,” the family is taking a lay will affect their whole lives. TheAnd the answer remains the same: “They’re not huge beating from this jobless recovery. Quite simply, lower class and later they are able to start workinghere.” even middle class individuals don’t feel they can afford to marry, or in well-paying jobs in their field, the don’t want to marry without a job to support the family. “We could later they are able to start saving forIn fact, the truth is, they’re not coming back. be headed in a direction where, among elites, marriage and family are retirement, not to mention gettingAccording to Heidi Sheirholz, an economist at conventional, but for substantial portions of society, life is more matri- married and having families. archal,” according to The Atlantic article by Don Peck. And once these young people do getthe Eonomic Policy Institute, “To get back to And those who are married? As unemployment continues, marriage into the workforce, they’re alwaysthe pre-recession unemployment rate by the crumbles. Men who lose their jobs often find it difficult to maintainmiddle of 2014, we would need to add roughly behind. They cannot simply catch their marriages with their new self-image. As unemployment rates up by climbing the corporate ladder400,000 jobs every single month between now rise or remain stagnant, divorce becomes an option for an increasing because that ladder is crowded withand then. “ (That’s a level of growth more than number of the unemployed. the people who got their first. 3.three times the growth in July, 2011). As Don Peck of The Atlantic says, “a whole generation of young adults isObviously this is a bad situation, but it’s good to likely to see its life chances perma-look at why it’s bad. It’s not enough to say, “Thisstinks;” we need to talk about why it stinks and Marriage nently diminished by this recession.”who it’s hurting. Here are 3 surprising factsabout the jobless recovery and who it’s hurting. and Families
Sept 5 - Oct 5, 2011American Survival Magazine Are youASM. The Union Stated proteced?The Obama Question Most“We’ve always known that lasting change Amerianswouldn’t come quickly or easily.” dont have a WWith his bid for reelection With re-election loomingObama expresses hopes of there are several key factors that make President Obama’s re-election campaign a dis- clue.another grassroot uprising. mal prospect. The recent debt ceiling legislation is unpopular with virtually every section of voter and may end up being the major contributing factor. On the left voters feel betrayed that Obama and other democrats caved Own the Book that to a largely republican deal. On the right voters feel let down because the deal doesn’t even begin to solve is Becoming a our debt problem (Social Security and Medicare future obligation 77.9 trillion, 2011 debt 14.3 trillion, cuts by Nationwide 2021 2.1 trillion.) And in the center voters are disap- pointed with Washington’s partisanship, crude tactics, Sensation at a... and inability to focus on job creation. Even though there is a congratulatory mood in Washington over reaching a deal, there is now even less Discounted Price! of the type of bipartisanship needed to pass key items on his agenda. Many Republican have lauded the deal as a success, and their tactics as necessary promising to Extremely use them in to “perpetuity”. With attitudes like this im- migration, energy, unemployment and other priorities that require cooperation will prove to be difficult tasks. Limited Offer The debt agreement also limits the amount of money there is to pursue the infrastructure and education goals, previously envisioned by the Obama administra- tion . This coupled with the rising popularity of GOP hopefuls and the recent dissent in Mr. Obama’s camp will make for a very challenging reelection campaign.