The 10 economic charts that you are about to see are completely and totally shocking.  If you know anyone that still does not believe that the United States is in the midst of a long-term economic decline, just show them these charts.  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.  What is great about charts is that you can very easily demonstrate what has been happening to the economy over an extended period of time.  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.  The truth is that what is wrong with the U.S. economy is not a great mystery.  All of the economic problems that we are experiencing now have taken decades to develop.  Hopefully the charts in this article will help people realize just how nightmarish our economic problems have become, because until people start realizing how incredibly bad things have gotten they will never be willing to accept the dramatic solutions that are necessary to fix our financial system.

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.

The 10 economic charts posted below are meant to shock you.  Most Americans today need to be shocked before they will be motivated to take action.  Please share these charts with as many people as you can.  Hopefully we can wake enough people up that something will be done about all of these problems while there is still time.

1 – Government spending is expanding at an exponential rate.  As you can see from the chart below, 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….


2 – U.S. government debt is absolutely exploding.  The 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.  Can we afford to continue to accumulate debt at this rate?….

3 – Unless something changes right now, the outlook for U.S. government finances in future years is downright apocalyptic.  The chart posted below 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….


4 – Household debt has soared to almost unbelievable levels over the last 30 years.  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….



We are Wall Street. It’s our job to make money. Whether it’s a commodity, stock, bond, or some hypothetical piece of fake paper, it doesn’t matter. We would trade baseball cards if it were profitable. I didn’t hear America complaining when the market was roaring to 14,000 and everyone’s 401k doubled every 3 years. Just like gambling, its not a problem until you lose. I’ve never heard of anyone going to Gamblers Anonymous because they won too much in Vegas.

Well now the market crapped out, & even though it has come back somewhat, the government and the average Joes are still looking for a scapegoat. God knows there has to be one for everything. Well, here we are.

Go ahead and continue to take us down, but you’re only going to hurt yourselves.



6-7 pm EST
Best of Investor’s Edge
Saturdays 1-2 am EST


If I wrote a weekend report, I would have told you major indices broke out of a trading range on heavy volume. I would have told you pullbacks would be controlled and rotational. I would have told you to look at any pullbacks to buy into as a lot of areas turned the corner and were coming up the right sides of their bases. Of course, I would have also told you the Kardashian wedding would last forever.

As someone who appears on TV, does a radio show, writes reports and manages money, I am looked to for opinions on the market. For two months, starting with the lows in August, I took pains to tell everyone the market was unplayable as we saw ridiculous moves both up and down in a matter of days. Markets were experiencing gaps every day to the upside or downside. Good news, bad news…you name it. It was tough. It was tough because when markets moved up quick, people wanted to be in. When markets moved down quick, they wanted to be short. All the markets provided during that time was nausea.

October 4th provided a high volume washout day where I stated that typically, you are going to rally off of. The rally was stunning in time and price. Instead of the market slowly working through resistance, within 5 days and a couple of gaps, the markets were back at resistance. They then sat around for a few days…a wild few days with gaps and reversals. We saw things like housing and financials actually put in what looked like good bottoms and then we had E day…on October 27th in which Europe supposedly solved their problems. Technically, it was a strong volume gap above resistance. Fast forward to yesterday. What happens? A rogue Corzine makes leveraged bets…just like the numbskulls did in 08 and kills the company he took over just over a year ago…leading others to ponder whether others are in the same position. We hear again that all may not be well in the big E. Markets give back a ton on Monday and we now walk back into a huge gap to the downside today.

I would love to tell you there is a template or a manual for all this…but there isn’t. The fast money bails on the first sign of a problem…and jumps back on the first sign of relief. If you put a crayon in the hand of your 2 year old and told him to draw a picture, that scribble would look like a lot of charts I am looking at as I watch the action today. European markets are moving up and down in one day enough for a normal year’s gains or losses.

Bottom line: I have been saying for months that this market is going to remain tough to play…but even I am stunned. The emotion of fear and greed usually last a while but right now, it lasts days, sometimes only hours. I wish I could use my favorite line and tell you I will know more when a few more cards come out of the deck. I am just not sure what cards are in the deck. Personally, I have played this on the light side…and as of this second, thrilled to have not played this too heavily. More to come. Don’t blink!


Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.


6-7 pm EST
Best of Investor’s Edge
Saturdays 1-2 am EST