U.S. economy in trouble and why

By Frosty Wooldridge, OpEd News

Ever climb a mountain? Ever speed your car up to 100? Ever run the one-hundred yard dash? Ever ride a bike so fast your thighs screamed in pain? Ever fly in a plane that hit 30,000 feet?

What do they all have in common? Answer: no matter how fast or high you go, you will always come back down.

In 2009, the United States maxed out, hit the wall, smashed on the brakes, screamed into the abyss. Results: 15 million unemployed Americans; 35 million subsisting on food stamps; $12 trillion debt; added three million more people via immigration; up to its ears in debt to China; extended two wars at $12 billion cost every thirty days.

Colorado economist, Mike Folkerth, www.kingofsimple.com wrote a brilliant piece on what we face--"The Top of the Mountain: Every Way Out is Down." With permission, I bring you this interview:

"I believe that America's economy has reached zenith," said Folkerth. "What I'm saying is that should anyone care to consider inflation and per-capita share of GDP, we've hit the top of the mountain, when a nation reaches the tippy-top of the mountain, it's a beautiful view right up to the point of realizing that everything from that point is downhill."

What we face in 2010 and beyond

"I want to fortify my beliefs with a few pesky facts," said Folkerth. "The U.S. represents 4.8% of world population. We use 25% of the energy produced on earth and 30% of the materials produced on the planet. Some of those people who represent the other 95.2% of the global population are beginning to want their share and are getting a little testy about the whole thing.

"Over our lifetimes we consume 75% more than our European counterparts and more than 1000% of that of the folks in 3rd world nations. The U.S. hit peak oil in 1970 and today we use 40% more oil and produce 40% less than we did in that pivotal year.

"Want more? Okay, the National Debt in 1970 was $380 Billion with a "B" and represented 37.6% of GDP. In contrast, the National Debt in 2009 grew to $12.8 TRILLION with a "T" and represents 90.4% of GDP. The debt is expected to eclipse 100% of GDP in 2011"I say 2010. Another way to view our debt is to realize that we have replaced growth of real commerce with growth of real debt.

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