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Guest Post: Is The Debt Problem As Bad As They Say

Tyler Durden's picture




 

From Simon Black of Sovereign Man

Is The Debt Problem As Bad As They Say

 

On the rare occasion that I’m bored, I like to watch 24-hour news
television for entertainment. It’s hilarious watching the talking heads
spin out of control in apoplectic fits when they’re essentially arguing
the same point; they might be from different parties, but they’re merely
battling over small details of the same government-sponsored solution.

Recently I caught one of these talking head financial experts on TV
arguing about debt levels in the United States.  He was saying that the
US debt doesn’t matter all that much because the US government has so
many assets to offset its debt.

For example, he suggested that things like the highway system,
national parks, and strategic petroleum reserve would more than offset
America’s liabilities, so the looming national debt isn’t such a big
deal after all.

He couldn’t have been more wrong.

The Government Accounting Office (GAO) puts out an annual financial
report that looks and feels like corporate financial statements… of
course, the US government doesn’t have to abide by the same accounting
principles as the private sector, so they get to cheat quite a bit in
overstating their position.

The most recent report
is signed off by Tim Geithner and includes oodles of newspeak from the
Ministry of Plenty about how dazzling their economic recovery measures
have been. Needless to say, the numbers paint a different picture.

Even when you add up -all- of the assets, right down to every desk,
chair, and lifeguard stand, and even if you throw in a healthy boost to
the asset column to account for premiums in the market value for land
and “gold” in Fort Knox, the government is still in the hole to the tune
of over $10 trillion.  It would take more than 300,000 years to count
that high.

And yet, the fake recovery is vanishing, the dollar keeps falling
against anything of real value, and the average guy on the street is
realizing limited benefit for his share of the debt and inflation
burdens. How is this possible?

I’ve often said that bureaucrats and politicians have an extremely
limited playbook consisting of taxation, regulation, and inflation.
These three ugly sisters of bureaucracy effectively serve to steal from
people, make things more difficult for them, and rob them of their
purchasing power… and yet they’re dressed up as solutions instead of
problems.

Consider the case of Illinois– the state is completely insolvent and
running out of cash quickly. It doesn’t have the luxury of printing its
own currency, and is thus being forced to deal with its fiscal reality…
much like Greece.

Rather than trying to make their state more competitive in order to
attract talent and capital, they’ve opted for the old playbook… starting
with taxes. Specifically, Illinois lawmakers have targeted companies
like Amazon, arguing that online transactions through the company’s
Illinois-based affiliates are within the state’s sales tax jurisdiction.

For Amazon, the calculus involved is totally objective– once the
Illinois legislature passed this legislation, the cost of doing business
in the state exceeded the benefit, and Amazon cut all ties to its
Illinois affiliates.

Thousands of people across the state who used to earn a portion of
their living as an Amazon affiliate were stripped of their income thanks
to do good lawmakers trying to squeeze a little more dough out of a
productive company.

Peoria, Illinois based Caterpillar Inc. is in a similar position, now
threatening to leave Illinois because the politicians keep raising
income taxes. Now the financial powerhouse CME Group is echoing this
sentiment. The impact this would have to the state economy is
devastating.

These steps that Illinois lawmakers are taking, along with their
destructive consequences, are reflective of what will happen when the
federal government is finally forced to deal with its own fiscal
reality.

$10 trillion in the hole and facing a steep downward trend, the US
government is either looking at substantially higher borrowing costs,
substantially higher inflation, or both. Investors are getting jittery
about loaning money to the United States, so they will either demand a
higher return, or the Federal Reserve will hyperinflate the currency to
mop it all up.

Regardless of the scenario, Congress will reach deep into this
playbook until they chase away every productive citizen and company they
can… In fact, it’s already happening.

The number of people renouncing US citizenship has been more than
doubling year-over-year for the last several years. Meanwhile, many
businesses are moving overseas, or at least focusing on international
operations and shifting profits offshore.

It’s easy for companies to move… much more difficult for people who
have emotional ties, fear, anxiety, etc. that maintains their
geographical inertia. As such, it will ultimately be the individual
citizens remaining behind who will be exploited like malnourished milk
cows to pay for the destruction.

In the coming days, I’d like to tell you a lot more about how I see this playing out. Stay tuned.

 

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Thu, 06/09/2011 - 12:11 | 1354706 MonsterZero
MonsterZero's picture

We'll do it better next time, I promise!

Thu, 06/09/2011 - 13:06 | 1354896 jus_lite_reading
jus_lite_reading's picture

Answer to the question is its much worse.

A little off topic but 200,000 Citi bank accounts were hacked.... while 48% of Amerikans think a great depression is coming....  and Tepco stock is being obliterated today which means that thousands of american retirement accounts havee been cleaned out...

http://fiatsfire.blogspot.com/2011/06/thinking-thursday-cnn-poll-shows-4...

Tin foil hats please!!!!

 

Thu, 06/09/2011 - 14:40 | 1355240 Republi-Ken
Republi-Ken's picture

Is that SAME 48% who do not know Republicans won the 2010 Election

and now control Congress and are now responsible for JOBS JOBS JOBS?

48% of Americans are either:  

A) REALLY FUCKING STUPID

B) TOO BUSY WITH AMERICAN IDOL to pay attention to debt

Thu, 06/09/2011 - 16:07 | 1355508 Reese Bobby
Reese Bobby's picture

How you been, "A)"?

Thu, 06/09/2011 - 17:06 | 1355749 samslaught
samslaught's picture

Not a big fan of Republicans but I am a fan of facts.  Republicans control the house, Democrats control the executive branch, and although nobody has a super majority in the senate I think there are currently 51 Democrats, 47 Republicans and 2 Independents.

Thu, 06/09/2011 - 15:09 | 1355335 CPL
CPL's picture

the US government is either looking at substantially higher borrowing costs, substantially higher inflation, or both.

When in doubt with money...go with worst case in terms of money.  I terms of government you take worst case then amplify it by 4.  Mainly because they are lying sacs of shit.

Fri, 06/10/2011 - 00:59 | 1357007 Richardk888
Richardk888's picture

Time for the govenment to take over and monitor the internet in the name of safety : (

Thu, 06/09/2011 - 12:14 | 1354716 rcintc
rcintc's picture

Spot on Simon Black

Thu, 06/09/2011 - 12:17 | 1354727 Shocker
Shocker's picture

+1

Thu, 06/09/2011 - 12:42 | 1354813 falak pema
falak pema's picture

Black is the dark face of reality...but he'll be back with more dark side logic...black is black...and alas its not beautiful!

Thu, 06/09/2011 - 13:00 | 1354865 Milestones
Milestones's picture

Clever sentence!!       Milestones

Thu, 06/09/2011 - 13:30 | 1354972 TruthInSunshine
Thu, 06/09/2011 - 13:03 | 1354871 Blotsky
Blotsky's picture

Hahaha! Watch this video, and then think of what Uncle Sam is doing to the economy!

 King George III, eat your heart out! Uncle Sam got ya beat!

http://www.youtube.com/watch?v=h44LIiaZhHE

Thu, 06/09/2011 - 12:58 | 1354849 dwdollar
dwdollar's picture

His analysis is always spot on, but his 'solution' is laughable.  Move out of the US, renounce citizenship, and go where exactly?  Give me a break.  There is no better place than the US.  This is the last stand.  The place where your back is against the wall.

Thu, 06/09/2011 - 13:25 | 1354952 dark pools of soros
dark pools of soros's picture

...with quicksand under your feet..   your move 

 

 

Thu, 06/09/2011 - 14:16 | 1355133 dwdollar
dwdollar's picture

Let me know of someplace better.  Please...

Thu, 06/09/2011 - 15:32 | 1355398 HoofHearted
HoofHearted's picture

Chile, Switzerland, Australia if you can get the work permits, Colombia (surprisingly). Read Simon Black for more suggestions.

Thu, 06/09/2011 - 13:37 | 1354985 ibjamming
ibjamming's picture

I agree...if it get's bad here...it will be worse somewhere else.

 

I'm not talking about in the inner city...THAT will be bad!  I'm talking a place in the country, a few acres, a place you can be pretty self sufficient on.  I think a place in the country...in the US...is better than being a FOREIGNER somewhere else when TSHTF.  Just my opinion...and my situation.  There will be LOTS of dead in the first 6 months...then it will level out at a sustainable level.

Unless...we go to war for ME oil and kick the can down the road another 20 years or until we start running low on CHEAP oil.

Thu, 06/09/2011 - 13:57 | 1355066 TapperIsTicked
TapperIsTicked's picture

Can anyone tell me how to skin a corn and plant a chicken?

Thu, 06/09/2011 - 14:29 | 1355185 Slipmeanother
Slipmeanother's picture

Thats easy just pluck the corn and bury the chicken

Thu, 06/09/2011 - 15:43 | 1355438 trav7777
trav7777's picture

are you not characterized as a foreigner in the US even now?

our history is systematically denigrated by whoever dictates the mass media message

Thu, 06/09/2011 - 13:43 | 1355001 Silver Dreamer
Silver Dreamer's picture

I'm not going anywhere.  The banksters are the ones that need to be packing.

Thu, 06/09/2011 - 13:44 | 1355012 chumbawamba
chumbawamba's picture

Right.  I'd stay and fight but, quite frankly, odds are clearly against me and stacking up ever more so.  I can't do this alone, and neither can the thousands of others like me who are trapped in this nightmare from which we can't wake.

Who am I supposed to rely upon for back-up?  My fucking neighbors to the left of me, the wife having a nice cushy corporate executive job in the health "care" industry and the husband having a cushy job teaching useless culinary skills to a generation of hopeful chefs who will only graduate to disappointment and destitution?  My fucking neighbors to the right of me, who are Chinese and know nothing but obedience to the State?  I talked to just about every neighbor up and down my block and warned them of what's to come, but most either want to just pretend that they didn't hear me or perhap they think I'm a pleasant but deranged individual.

I'm not a stupid man.  There's a time to fight and there's a time to run.  I know when to run.

The men (frauds all of them) who founded this nation were of wealth and means.  They were the elites of society in their day.  The elites of our society are content to thrive at the expense of the rest of us, as long as they get to be near the top of the pyramid.  I'm supposed to mount resistance in this kind of environment?  Give me a fucking break.

So where to go?  Anywhere but here.  At least I know what I'll be signing up for in advance, rather than being given the bait and switch from birth.  I'll take the (alleged) violence of Mexico, the socialism of Canada, or the despotism of Syria before I commit to staying in this continental cesspool of iniquity.

Goodbye, America, you decrepit piece of shit.  And good riddance to those who will be left behind.  Whatever happens to you will be your own damn fault.

I am Chumbawamba.

Thu, 06/09/2011 - 14:01 | 1355070 Imminent Crucible
Imminent Crucible's picture

"Anywhere but here"? Not too sure about that, but otherwise I'm with you, Chumba.  I spent the winter in Mexico. Not Ciudad Juarez, not the D.F., not even Oaxaca. I spent it in Baja California--everywhere from Ensenada all the way down to Puerto San Carlos and back. There was no crime, no narcothugs in sight, no nothing except the blue Pacific and all the ceviche and huachinanga and Pollo al Carbon I could eat, and 10 pesos (80 cents) for a Negra Modelo.  The one little quirk you have to get used to is the armored hummers that roll by now and then with machine gun at the ready.

One quiet little fishing town I stayed in was so tranquil the landlady (a disaffected Canadianette from BC) left all her cabanas unlocked, with the keys on the table by the door. "There's zero crime here, and everyone knows everyone."  It felt just like my childhood in the 1950s.

It would be gratuitous to describe the fishing. And the total population of the state of Baja Cali Sur is barely equal to Fresno, CA.

Thu, 06/09/2011 - 14:25 | 1355170 Transformer
Transformer's picture

And what will it be like in baja when the world financial system has collapsed, and hatred for all things American runs rampant?  Will Americans on foreign soil who have fled there with whatever wealth they have be looked at as good neighbors, or the scumbags who did in the world trying to escape with their wealth and live like kings in another country?  What will you do when the Hummer with the machine gun on top comes looking for you?

I can fully agree that one might be able to integrate in with the locals, it's the armored Hummer that bothers me.  And they are everywhere, the military industrial complex has seen to that.

Thu, 06/09/2011 - 18:28 | 1356028 jmcadg
jmcadg's picture

Dude, if you came to my country, I'd welcome you with open arms. It's not American people I despise, you are (mostly - as there are bad apples everywhere) good, decent people. It's scumbags like Dimon, Blankfein, Geitner et al that need to watch their backs.

Thu, 06/09/2011 - 23:02 | 1356841 Imminent Crucible
Imminent Crucible's picture

"when the Hummer with the machine gun on top comes looking for you?"

The voice of ignorance compounded with the Dark Side. I can see you haven't spent much time in Mexico, particularly B.C.   What you need to know is that there are already hundreds of thousands of Americans living comfortably in Mexico--Guadalajara alone has between 30,000 and 40,000 US expats living there.

The Mexican govt and the local people welcome them because a) they spend money and b) they don't take jobs from Mexicans. The US State Dept has been after the Mexican govt for years to keep tabs on these people, to make them return every 180 days to renew their FMT's, etc, but the Mexican govt does nothing. They say, "Why should we interfere with these people? Most of them are retired, they make no trouble, they spend their SS checks here and hire poor Mexicans to cook and clean and keep the house up. It's not our problem--do your own damn policing."

The hummer is there to put the narcos on notice that the town still belongs to the legal thieves, not the illegal ones.

Thu, 06/09/2011 - 14:15 | 1355122 dwdollar
dwdollar's picture

Is that the same Canada and Mexico I'm thinking about?  The two places where it's ALREADY illegal to own a handgun?  Good choice...   /sarcasm

Thu, 06/09/2011 - 14:22 | 1355146 equity_momo
equity_momo's picture

So you dont advise me to move back home? Im in the UK currently and finding the cost of living unbearable. At least things are relatively cheap in the US.    Everythings about finding a balance. Liberty is the biggest deal of course  but where is true Liberty to be found? I dont see it in Europe and i dont really see it in South or Central America.  I hear you loud and clear and your frustrations are shared by the majority here , but what to do? Id love to run but it has to be somewhere that offers the right balance between liberty and cost of living.  We are all searching for the best standard of living but i happen to think that peaked globally a few years ago. Like fiat , its a relative game. Its spread might be closing from the wides but the US is still the best looking ugly sister for many with a choice.

Fri, 06/10/2011 - 02:46 | 1357087 FreedomGuy
FreedomGuy's picture

You make a good point. The other problem is even if you think there is some libertarian nirvana somewhere, the presence of the U.S. keeps many of these places free. Taiwan would be the newest Chinese province without the USA.

In my theoretical world the USA divides into red and blue. The red goes not Republican but libertarian very similar to its foundation. One has to take some sort of oath of liberty including not denying it to his fellow man. Blue states are free to go full bore collectivist with the much smarter collectivists we have raised here in the USA. They are never allowed to immigrate to red states without taking the oath. For safety they are never allowed to vote.

It's kind of like Californians who vote insane crap for their state. Wreck it, then move on to other states when its intolerable to wreck them (AZ, CO, NM, etc.) You cannot allow idiotic blue state types to become a political virus.

Many of us in the libertarian camps would be happy to let all the statists go somewhere and try to achieve their social justice collectivist dream voluntarily. However, they always insist on inflicting it on everyone else. It is a necessity because they know in the end their state fails without tax mules to fund and empower it. That's why under all their "caring" they are very intolerant and have claws and teeth.

I think the answer is to run internally into different parts of the U.S. that will resist the final socialist impulses. Looks for states with guts that resist the Feds consistently.

Thu, 06/09/2011 - 15:41 | 1355442 Hooter Shaker
Hooter Shaker's picture

Don't let the door hit you in the ass.  I'm standing my ground even if I have to do it alone.

Thu, 06/09/2011 - 15:39 | 1355421 Abitdodgie
Abitdodgie's picture

I am in total agreement with you there is no place left to run too, so make a stand here when they come through the door for you open fire and do not stop until they are all dead.

Thu, 06/09/2011 - 17:01 | 1355716 boiltherich
boiltherich's picture

Renouncing citizenship is really only an option for those with dual citizenship anyway, and even then it is one of the most foolish things a person can do, because you will never ever get it back, and even getting a visitors visa after that is virtually unheard of.  If you do it you should know with no doubt it cannot ever be reversed.  Also, you can only renounce US citizenship from a foreign country.  You can't be in the US or on it's soil anywhere, it would not be valid.  If you take up residency in another nation and renounce citizenship you better know that you have citizenship somewhere else because going off to live in Belize or Costa Rica is not the same thing as being a citizen there. 

Thu, 06/09/2011 - 17:40 | 1355883 Rational Psycho
Rational Psycho's picture

I'm making my stand at sea. Buyin a sailboat, water purifier, fishing equipment and dehydrated food. I plan on island hopping the Bahamas and Caribbean while the US falls apart.

Thu, 06/09/2011 - 12:18 | 1354717 SheepDog-One
SheepDog-One's picture

Most of those 'national assets' have already been pledged as collateral over decades for Chinese loans.

Thu, 06/09/2011 - 12:30 | 1354747 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Predictive Programming BITCHEZ!!! 

Hoover Dam in a yard sale -- Yosemite in the pawn shop.

<sarc> Awesome. </sarc>

Thu, 06/09/2011 - 12:44 | 1354800 RockyRacoon
RockyRacoon's picture

Yeah, like Treasuries?

From Bill Buckler at The Privateer:

A “Balancing Act” At The Fed:
Mr Bernanke and his colleagues at the Fed are reluctantly being forced to talk more and more about what their plans are when the official end of their “$US 600 Billion” QE2 hits on June 30. In the first place, QE2 is not $US 600 Billion or double the official level of QE1. It is $US 900 Billion or triple QE1. The Fed could not have bought the $US 112-115 Billion a month in Treasury debt that they have bought without the re-investment of “income” from its balance sheet. That is what it has done.
During his first post FOMC press conference ever on April 27, Mr Bernanke made it clear that the Fed would continue with this re-investment after June 30. Happily for Mr Bernanke, the Fed has only scheduled four press conferences a year (one every second FOMC meeting). That means that Mr Bernanke will not have to front the press after the next meeting which takes place on June 21-22. The next Bernanke press conference will take place at the FOMC meeting after that, on August 9. That’s six weeks after the end of QE2 and a week after Mr Geithner’s deadline for the Treasury’s debt limit.
If Mr Bernanke can actually delay his next press conference until August 9, he will have done very well.  But as June 30 approaches, the questions about what will happen on July 1 and after are becoming ever more urgent. One Fed response which is frequently quoted is their professed desire to shrink their balance sheet back down to the $US 750-850 Billion region - its level before the GFC hit. As recently as December 2007, the balance sheet stood at “only” $US 870 Billion. The Fed has also stated that they want to get the balance sheet back to being almost exclusively Treasuries.
Today, the Fed’s balance sheet is more than three-and-a-half times the size that it was in late 2007. Treasury holdings alone are twice as big as the entire balance sheet was back then. As The Privateer has pointed out many times, the $US 925 Billion in mortgage-backed securities in the Fed’s balance sheet would be worthless if they were not there. What about the $US 1.6 TRILLION in Treasuries?

Thu, 06/09/2011 - 12:46 | 1354815 gookempucky
gookempucky's picture

To the tune of just about everything as the chicago parking meter system-most if not all toll roads-water systems-most commercial property and by the look of things most residential housing--oops almost forgat the national forest's. Have to include the rest of the world as present and future landlords and not just china. As I had said to my city council in regards to sewage bonds---when we default=no flushy the crapper.

Thu, 06/09/2011 - 12:48 | 1354834 Mad Cow
Mad Cow's picture

The fraud is immense and the brainwashing is nearly complete. I know it's been said a thousand times but lets just keep on doing it. The Fed is a private entity and the USGov does not need to borrow money from foreign countries, or the Fed. It's just theater! It's all bullshit!

Spoon boy: Do not try and bend the debt. That's impossible. Instead... only try to realize the truth.
Neo: What truth?
Spoon boy: There is no debt.
Neo: There is no debt?
Spoon boy: Then you'll see, that it is not the debt that bends, it is only yourself.

Thu, 06/09/2011 - 16:30 | 1354931 Bob
Bob's picture

Exactly.  It's interesting to see the Adult Thinkers roll in with their deep analyses--you'd think there were actually a viable future left for us under this crazy-like-a-fox bankster system! 

What charming idiocy.  We're looking at the same bullshit the Greeks are . . . it's a global phenomenon.  Now the useful idiots rush in to sweep up the scraps they can personally get their hands on as the bankster parade rolls on untaxed or otherwise restrained.

We must be responsible adults!  We must be responsible adults! 

Sounds like the twisted reality of chronically abused children still desperate for their abuser's love . . . at best.  I'll bend over better and longer this time, I promise! 

No "new" taxes.  Cut them taxes--keep all the productive capital flowing where it'll do the most "good."

Gotta keep that evil tool--the only one we have short of jails--outta the house.  

http://www.zerohedge.com/article/how-financial-oligarchy-replaces-democracy

Thu, 06/09/2011 - 14:59 | 1355299 James T. Kirk
James T. Kirk's picture

if therre is no debt, then the currency instantly becomes

worthless, because the frn value is based on debt.  anarchy,

anyone?

Thu, 06/09/2011 - 15:04 | 1355325 Mad Cow
Mad Cow's picture

Sorry James, the Federation is not going to work out. The Replicators are rebelling.

Thu, 06/09/2011 - 15:17 | 1355354 akak
akak's picture

"The Federation", "The Replicators"?

When Sci-fi worlds collide!

Thu, 06/09/2011 - 15:17 | 1355358 Mad Cow
Thu, 06/09/2011 - 15:26 | 1355388 akak
akak's picture

Of course, MadCow --- I forgot about the Star Trek replicators!

Your inference of sentient replicators immediately suggested to me a reference to those of the "Stargate: Atlantis" series.

Thu, 06/09/2011 - 15:37 | 1355400 Mad Cow
Mad Cow's picture

Stargate is a great series, even though they blatantly borrowed from other sci-fi, like many other sci-fi, I think that was part of the charm.

Thu, 06/09/2011 - 13:21 | 1354943 cougar_w
cougar_w's picture

Most sovereign "assets" are more like boat anchors than assets.

For example: Freeways are a sunk cost, not an asset. The asphalt and cement have zero market value once in place, and those materials are nearly impossible to use for anything else once deployed. The roadway thus created does have value as passage, but the value can only be extracted via regressive rents and tolls on users. A freeway's intrinsic value is to broader society as it facilitates commerce and movement, but these are hard to measure and the costs of annual maintenance fall to the state while profits go to individuals including corporations.

And miss a single year in maintenance and the whole thing goes to Hell. Fail to support the domestic auto industry and the whole thing goes to Hell. Fail to secure sources of affordable fuel for the fleet and the whole thing goes to Hell. You get the idea. The costs to keep the "asset" working are mind boggling and politically complex.

And that's just freeways. You can make the same case for airports, navigable waters, pipelines and flood control systems. And why stop with infrastructure? Cities are going bankrupt trying to keep themselves from falling into riots and ruin.

We have a lot of stuff, but it's not free and the value is difficult to extract. We cannot get rid of it, we can only struggle to maintain it. And if we ever let it go we'll never again have the funds, labor force and natural resources to get it back.

This is called being owned by your possessions.

Thu, 06/09/2011 - 14:04 | 1355086 Crabshack
Crabshack's picture

Exactly correct as usual big cat, but when you own an asset you can charge a "toll" for its use.

Thu, 06/09/2011 - 12:15 | 1354719 nercnumber
nercnumber's picture

The other night one of the other dad's at a dinner said this exact thing, that the US has much more assets than debt.  I couldn't argue otherwise.  This is perfect.

Thu, 06/09/2011 - 13:03 | 1354876 bigdawg
bigdawg's picture

Yeah, I heard a guy on the radio the other day stating the same thing...except he also included coal, oil, real estate, etc...not just US govt. owned assets.  So yeah, there are some assholes thinking that private assets should be pledged private assets against the debt...now that's perfect.

Thu, 06/09/2011 - 13:46 | 1355023 Silver Dreamer
Silver Dreamer's picture

Fascism: it's what's for dinner!

Thu, 06/09/2011 - 14:02 | 1355088 America- Some A...
America- Some Assembly Required's picture

There are no private assets in the US. Everything you "own" is not yours: your deed for your home calls you a tenant, everything between the Atlantic and the Pacific was already pledged as collateral on the loans the US defaulted on in 1933. You do not even own your body- your SSN is part of the system to track you because you too were pledged as collateral. Check it out

Thu, 06/09/2011 - 14:30 | 1355190 Transformer
Transformer's picture

 

Aww. come on.  It's not like that, you're just trying to make us feel bad.

Thu, 06/09/2011 - 14:04 | 1355100 cougar_w
cougar_w's picture

They say things like that just to make themselves feel better about everything.

 

You know you have a problem when people seriously support stupid ideas just to feel better about their situation. When it comes down to it, the idea that their house is collateral against Chinese bond purchases would drive them insane.

Cognitive dissonance, literally "inharmonious thoughts" is the new sensation sweeping the nation.

Thu, 06/09/2011 - 14:06 | 1355109 Imminent Crucible
Imminent Crucible's picture

This false consolation that U.S. assets counterbalance the debt is transparently stupid. In the same way, your mortgage is offset by the house as collateral. If you default on the mortgage, hey, no big deal. You just lose your house and end up living under a bridge, spending sleepless nights trying to keep the other homeless bums from stealing the remnants of your furniture.

People are stupid.

Thu, 06/09/2011 - 12:15 | 1354721 Rainman
Rainman's picture

Surely the assets of the USA must carry some premium for goodwill....like GM and AIG for instance.

Thu, 06/09/2011 - 12:42 | 1354794 WALLST8MY8BALL
WALLST8MY8BALL's picture

more like the people will be forced to shop at Goodwill...

Thu, 06/09/2011 - 12:17 | 1354726 economessed
economessed's picture

The debt is only problematic if one intends to service it.  We're not going to pay it back, so why does it matter?

Thu, 06/09/2011 - 12:25 | 1354751 MonsterZero
MonsterZero's picture

We'll likely play this game for awhile longer but I'm 100% sure before we get to a point where we're able to actually REPAY this debt (not just reduce deficit) this government will have long been wiped out through the mass of unemployed and hungry looters roving the countryside.

Thu, 06/09/2011 - 13:33 | 1354968 Anaxagoras
Anaxagoras's picture

Well said, and true, economessed. There never is any intention of "paying it back." The servicing of our debt becomes problematic, however, if/when the cost of servicing - interest rates - escalates to the point at which interest paid on the national debt, and much of it to foreign governments, begins to consume a substantial and inordinate amount of tax revenues/government budget. Then it will matter.

Fri, 06/10/2011 - 02:50 | 1357088 FreedomGuy
FreedomGuy's picture

I think it comes when there is no more slack in the system including Fed induced slack and the choice is between servicing debt and paying grandma her SS check...as well as her oxygen and new knees.

That's when the SHTF and we probably default. Let's watch Greece and see.

Thu, 06/09/2011 - 13:35 | 1354979 Bob
Bob's picture

It's vitally important to the useful midgets desperate to lick the floors clean before the Mastah's house collapses. 

Thu, 06/09/2011 - 12:22 | 1354728 baby_BLYTHE
baby_BLYTHE's picture

With out additional debt the usurers cannot extract sufficient tax revenue of the money they create and loan to the government at interest.

Ever wonder why the Printer won't allow (or attempt to allow) deflation at any cost and insist the debt ceiling must absolutely be raised?

Thu, 06/09/2011 - 16:03 | 1355502 Troublehoff
Troublehoff's picture

agreed - thats what these deflationists refuse to see

Thu, 06/09/2011 - 17:57 | 1355947 Matto
Matto's picture

Yeah that, and that collapsing credit doesn't affect existing money only future possible credit and hence the size of the eCONomy and asset valuations..

Thu, 06/09/2011 - 12:18 | 1354729 hampsterwheel
hampsterwheel's picture

I'm already working on the exit strategy- obtaining my Italian citizenship (married an Italian) - yes Italy is corrupt - but unlike the average American - the Italian politician knows the people know they are corrupt - the people all know the goverment is corrupt so there is no BS on the nightly news as there is here - Mussolini is the perfect example of how one winds up when they push the Italians too hard....

 

Besides - when last in Rome on the Birthday I wanted to pop a bottle of Champagne and smoke a cigar over looking the Forum at sunset - I bought the booze and cigar and asked the clerk am I allowed to smoke a cigar and drink Champagne outside here at the Forum...he just stared at me like I was an idiot - and said "What? - what do you mean" I said can one drink alcohol outside on a public street? ..he laughed and said "oh your from America- land of the free....yes unlike in America you can be an adult and have a glass of wine on a public street and enjoy your cigar without the police taz'ing you" (paraphrase)...

 

Not too mention no FDA, No genetically modified foods, no TSA no body scanners... get out while the getting is good - they are going to go into a serious lock down when the next big one hits - if they are not planning it already.... remember the Patriot act was written years before 9/11 - control is their game - if I am to be controlled at least let me have a damn glass of wine and cigar....

Thu, 06/09/2011 - 12:20 | 1354740 Motorhead
Motorhead's picture

@ hampsterwheel (re:  Rome)

I hear ya...ridiculous when you compare the US with a normal country, eh?! 

Thu, 06/09/2011 - 12:27 | 1354762 Dr. Richard Head
Dr. Richard Head's picture

but, but, but...........we live in the GREATEST country in the world  We have more freedom here and...........USA! USA! USA! USA!

I will still try to change this country in all peaceful forms that I can, but I am eyeing the exits more and more these days.

I look back at my great-great grandmother/father and them leaving Austria during the world wars - the Baum family.  They happen to leave when the going was getting rough, early 30's.  Some of their friends were not so lucky.  Either they did not really think the police state was coming for them or they thought they could change things.  Perhaps I should learn from their friend's folley? 

Thu, 06/09/2011 - 12:44 | 1354802 SheepDog-One
SheepDog-One's picture

But where are we going to flee to, Germany?

Thu, 06/09/2011 - 12:49 | 1354827 falak pema
falak pema's picture

Not if you go without Euros! and then some as they should not smell of cucumbers or souvlaki or Guinness or Bacalao...

Thu, 06/09/2011 - 12:53 | 1354844 WALLST8MY8BALL
WALLST8MY8BALL's picture

Costa Rica!

Thu, 06/09/2011 - 14:37 | 1355203 Transformer
Transformer's picture

..

Thu, 06/09/2011 - 14:39 | 1355212 Transformer
Transformer's picture

latin America's most popular destination.  Now with a permant US occupation force, to control, tax and otherwise dominate the growing American population there.

Thu, 06/09/2011 - 13:32 | 1354982 Anaxagoras
Anaxagoras's picture

Chile. Ole.

Thu, 06/09/2011 - 13:54 | 1355037 Silver Dreamer
Silver Dreamer's picture

I pity all of the fleeing folks.  Are they really that naive?  Since when has fleeing worked to defend liberty?  At some point, people need to make a stand or simply give up and enjoy their shackles.  May your chains rest lightly upon you, but I will choose a different path.

Thu, 06/09/2011 - 20:42 | 1356509 Vlad Tepid
Vlad Tepid's picture

Liberty is an individual concept at it's most basic.  When the state (which in the US was conceived to protect liberty) is bent on subsuming it, it becomes a cost-benefit analysis for those individuals trapped in the system.  Like many others above me in this thread, I've made the decision that I can exercise my liberty with my family better in tranquility somewhere else than I can fighting for, but never being able to show my children, the liberty in the USA that I once took for granted.

We all had ancestors who came to the US to find liberty that they couldn't find elsewhere.  They left their home country rather than to fight for economic, political or social liberty and more likely than not had a better life here than they would have back in Russia, Germany, Africa, Vietnam, etc.  This is the rational choice, not the emotional one.  Emotion says I love my counrty.  Reason says I need to prosper my family.

SD, you give us two choices: to take a stand or sit in chains.  But the third option is simply not to play the game.  I've already made my choice of where my family can best enjoy their liberty and I ask you not to begrudge or belittle those of us who simply look the bully in the eye and walk out of the room.

Thu, 06/09/2011 - 23:14 | 1356861 BigJim
BigJim's picture

++

Thu, 06/09/2011 - 12:54 | 1354829 Taint Boil
Taint Boil's picture

I hear you. I’ve already got my house in Mexico – paid for and ready to live in (surrounded by my wife's family). Paid for by the way working 12 hours a day 7 days a week in Mexico working for one of the Big Three LOL No job shortage here!

Yeah, they’re corrupt – paid a cop $50 for “making a wrong turn” once or twice but … I just paid they city of Warren here in Michigan $155 for going “too fast”. It is nothing but a revenue generating machine here in our war zone of a city, what a joke.

See here: http://detroitiscrap.com/detroit-picture-gallery/

Thu, 06/09/2011 - 12:59 | 1354860 Texas Ginslinger
Texas Ginslinger's picture

The beauty of Italy is their 2nd (undergroud) economy.  Many folks will work a few hours each week at a cash-paying job.

Italy will survive just fine. 

Thu, 06/09/2011 - 13:46 | 1355018 goldfreak
goldfreak's picture

sei un cornuto!

Thu, 06/09/2011 - 15:00 | 1355020 akak
akak's picture

But but but, what is the price of dog food in Il Wal-Marto?

I am guessing you are happy that they at least are "good Christians" there, even if they are all stinking Papists.  Or am I addressing erudite Keynesian Texas Gunslinger here, and not religiously bigoted, semi-literate Texas Gunslinger?  It's so hard to tell all of you apart sometimes.

EDIT: OK, I will admit to having been taken in by yet another puerile and flippant HarryWanger/HamyWanger lookalike imposter using the exact same avatar and all-but-identical name.  You obviously think you are cute in doing so, but you would be wrong.

Thu, 06/09/2011 - 15:20 | 1355369 Jonas Parker
Jonas Parker's picture

Time for the Republic of Texas to lock, load, and leave the US...

Thu, 06/09/2011 - 17:20 | 1355810 boiltherich
boiltherich's picture

Amen to that.

Thu, 06/09/2011 - 13:40 | 1355007 Strider52
Strider52's picture

Same thing happened when I went to Jamaica. You can bink a dreer anywhere you want, mahn. But no public joints. Back alley or park for that.

  Ireland, same thing, especially on the Aran islands. Do the fuck whatever you want, there are no police. Get drunk, naked, screw, smoke, snort, whatever curls your toes.

  But don't litter, Das ist Verboten anywhere.

Thu, 06/09/2011 - 17:28 | 1355833 boiltherich
boiltherich's picture

I was in Jamaica in March 1986, was robbed by someone that broke into the villa, came through the bedroom where I was sleeping, took Tom's cash but left my travelers checks sitting on the dresser.  The cops tried to haul off my mother because there was no sign of forced entry and under their laws that means it was an inside job, so they just picked one of us at random.  The US constitution does not cover you there, they can lead you out and you might spend your life picking coffee beans in the Blue Mountains and they do not even bother to answer inquiries as to your existence.  We had to pay a thousand dollars US to the fuckers just to pretend we were not robbed for 5.  Enjoy whatever little shithole you run to, be ready for a bad case of the shits and the possibility you will never see home again.  Rum punch was smokin' though!

Thu, 06/09/2011 - 14:55 | 1355289 LawsofPhysics
LawsofPhysics's picture

"let me have a damn glass of wine and cigar...."

Got you covered, now let's talk about that tax-free transaction.

Thu, 06/09/2011 - 12:22 | 1354731 Motorhead
Motorhead's picture

With Goldman Sachs doing "god's work", there's no reason to worry.  I mean, 'cuz we believe Lloyd Blankfein.

Thu, 06/09/2011 - 12:24 | 1354738 kito
kito's picture

yes, the number of people renouncing their u.s. citizenship has doubled year over year...from 3 people to 6.

Thu, 06/09/2011 - 12:44 | 1354818 kito
kito's picture

just to put into perspective the rush to safety away from this country, the real number of americans renouncing their citizenship went from 700 and change to 1500 and change. wow, and zh accuses mainstream media of sensationalism and half truths? why do we post these amateur fear mongerers? below is the chart of the "great exodus"

http://taxprof.typepad.com/taxprof_blog/2011/03/number-of-us-.html

 

Thu, 06/09/2011 - 12:52 | 1354838 falak pema
falak pema's picture

more appropriately many corporates are moving outside of USA.

Thu, 06/09/2011 - 12:54 | 1354847 Rainman
Rainman's picture

....musta been the only ones not getting an ObamaCheck.

Thu, 06/09/2011 - 12:57 | 1354854 Spastica Rex
Spastica Rex's picture

I think that's fear mongers. 

Thu, 06/09/2011 - 13:47 | 1355025 Spastica Rex
Spastica Rex's picture

Right, and profiteerer is listed there too; don't think that's real word either(er).

Produce an OED reference and I'll be concederer.

Thu, 06/09/2011 - 14:39 | 1355229 kito
kito's picture

i begrudgingly concede.  

Thu, 06/09/2011 - 15:04 | 1355313 magis00
magis00's picture

I applaud you both for your insistent picking of nits.  Bravo!

Thu, 06/09/2011 - 15:04 | 1355324 akak
akak's picture

You know the old saying, nits make (ungrammatical) lice.

Thu, 06/09/2011 - 23:16 | 1356869 BigJim
BigJim's picture

I think what's happening is, citizens of the US are leaving on holidays, and getting visas/jobs/wives/husbands/families... they're not renouncing their citizenship, 'just in case', but they're sure as hell not planning on coming back.

Thu, 06/09/2011 - 13:05 | 1354879 SheepDog-One
SheepDog-One's picture

Zerohedge doesnt really need a new butt-stick....back down there buddy nothings wrong with the article. The number of americans turning in their citizenship HAS been doubling year over year, and more important business is fleeing. You want to act as if the article says MILLIONS of americans are turning in their citizenship, fine, but it didnt.

Thu, 06/09/2011 - 13:30 | 1354957 cougar_w
cougar_w's picture

heheh --- butt-stick -- heheh

Thu, 06/09/2011 - 12:24 | 1354741 trav7777
trav7777's picture

to those who say we should pledge real things in exchange for bullshit paper conjured out of asses (plus interest), I say fuck you.

You will simply lead us to the aftermath of Weimar.  The paper worshippers should review their own history to see what comes next.  This isn't paper rock scissors, it's paper rock GUN.  And gun wins.  Over both.

Why the hell are we letting a group wantonly practice ethnic discrimination like this?

Thu, 06/09/2011 - 12:30 | 1354758 ArgentDawn
ArgentDawn's picture

Agreed, when did a firesale become an acceptable solution?

Thu, 06/09/2011 - 13:00 | 1354864 trav7777
trav7777's picture

it's not just that, it's the nature of MONEY.  It has no backing, is nothing.

We pay INTEREST on money conjured from nothing.  How fucking stupid is that?

The banks "let" us use our money and enforce its use at the point of a gun.  This is the BOE scam that Rothschild happened upon. 

Renounce their confetti

Thu, 06/09/2011 - 14:13 | 1355120 America- Some A...
America- Some Assembly Required's picture

That scam is in place in every country in the world being run by the same select group. Interest on massive loans had to be paid back to central banks in GOLD. Principle was nonexistent in reality, but that interest...

Thu, 06/09/2011 - 15:59 | 1355481 trav7777
trav7777's picture

"select group"?  That's subversive talk there.  You'd have me believe there is a group so in love with money that they frequently name themselves after it?

Mon, 06/13/2011 - 16:32 | 1365710 America- Some A...
America- Some Assembly Required's picture

+1 Absolutely brilliant

I can barely type from the tears in me eyes. Too damn funny!

Thu, 06/09/2011 - 14:41 | 1355245 equity_momo
equity_momo's picture

Fucking A.  Over 300 years in the making.

Thu, 06/09/2011 - 14:52 | 1355278 Transformer
Transformer's picture

Trav,

  And when will you use your guns to fight back?  For example if there are 8 cops at your door in Swat gear, and your neighbors are no where to be found, are you gonna shoot them?  Or will you give them your guns?  When there are food shortages in your town, and the cops show up to get your food for redistribution, in line with the recent hoarding laws, are you gonna shoot them?

  I really mean you no animosity, it's a real dilemma.  I'm pretty much a pacifist, the guns are out there, but how will anyone fight back? 

  The only way that I could see America's guns providing any deterrant to tyranny would be if people organized their neighborhoods and communities with strong agreements to band together and protect themselves from these situations.  And, Nothing like that is happening any where that I'm aware of.

Thu, 06/09/2011 - 14:59 | 1355308 LawsofPhysics
LawsofPhysics's picture

Our neighborhood and county is already organized and many of us already serve on the S.W.A.T. team.  You really must be stupid if you think a war-mongering country like the U.S.A. is not full of retired, active and disabled (but still capable of firing a gun) military personnel who are not intelligent enough to see what is going on.

Thu, 06/09/2011 - 15:13 | 1355342 DaveyJones
DaveyJones's picture

that is their conundrum isn't it. Those founders were really thinking when they wrote the Bill of Suggestions. There's a reason #2 comes right after #1. Unfortunately, all its worth now is the other #2  

Thu, 06/09/2011 - 15:58 | 1355489 trav7777
trav7777's picture

If you wait until the team is doing a dynamic entry to get out, you're too late.

The only way to fight back is to follow the Iraqi/Afghan way.  To attempt to confront the powers head to head is to die vainly.

Thu, 06/09/2011 - 16:02 | 1355491 rufus13
rufus13's picture

You are the Militia. 

Equip yourself. Equip your squad. 

Train. PT 3x a week. Army standards RFN. 

Store some food. Cheap, bulk, long-term food like rice/wheat/beans in sturdy 20-50# sealed containers like 5 gallon plastic buckets. 

Comm. Learn hand signals, radio, telephone tree, etc. 

Get the support of the people. Without your neighbors, you will be dead fast. 

Clean up. Paint graffitti out, scout the area, make maps, cache supplies. 

When they come for you to your door, you don't have guns or food or anything. Mass politics by your neighbors who owe you for all the work you've done and will do will get you free again.  One rifleman asleep against a SWAT/SERT team? Naaaa. 

Guns are not the weapon. You are The Weapon. 

They are already coming for us. Time is tight! 

Cheers.

 

Thu, 06/09/2011 - 18:19 | 1355996 Bob
Bob's picture

Hand signals very important.  Do you have a link?

Thu, 06/09/2011 - 15:06 | 1355329 DaveyJones
DaveyJones's picture

good post. Let's see, the banker makes it out of nothing, charges a fee, and enforces that from a gun that is not its own. Pretty slick. Does this mean the guys with the guns work for the bankers?

Thu, 06/09/2011 - 13:03 | 1354880 karzai_luver
karzai_luver's picture

U.S. fascists have practiced it (most times at gunpoint) for decades.

file under........ bringing the DIMocracy.

gander?

 

HA HA HAH

 

Thu, 06/09/2011 - 12:25 | 1354743 lilmac929
lilmac929's picture

Does anyone know if the Summer of Recovery 2 is coming out?  I usually don't like sequels, but watching the previews, this one will be WAY funnier than the last one!

Thu, 06/09/2011 - 12:55 | 1354765 Monedas
Monedas's picture

Monedas' final solution ! Caterpillar should assemble a "Convoy"  of all their heavy equipment and level Springfield like it was the last patch of Amazon rainforest....then head  up to the CME and load up all the PMs in those big dump trucks....then make a run for the Canadian border ! Monedas 2011 Welcome to "Resource Friendly" Canada ! From Gary, Indiana to Chicago they could "Roll up the sidewalks !" with 1500 D8s abreast ! "The party's over...!" It can't get any more "Peoria", Amigos !

Thu, 06/09/2011 - 13:28 | 1354963 cougar_w
cougar_w's picture

Okay I'd like to see that, if only for the scale of the thing.

Thu, 06/09/2011 - 14:42 | 1355236 Monedas
Monedas's picture

It would be fun ! In South Chicago all you would see would be "assholes 'n' elbows !" ! Monedas 2011 A friend of mine was on the deck of a carrier in the early sixties when a plane hard landed and one of the wing rockets was jarred loose and was skittering down the deck ! " All I saw was assholes and elbows !"....R. Derringer.

Thu, 06/09/2011 - 12:32 | 1354768 jal
jal's picture

"Consider the case of Illinois– the state is completely insolvent and running out of cash quickly. It doesn’t have the luxury of printing its own currency, and is thus being forced to deal with its fiscal reality… much like Greece."

Illinois is too cold for greek togas.
Thu, 06/09/2011 - 14:46 | 1355264 Monedas
Monedas's picture

Case, Allis-Chalmers, Massey "Turd" Ferguson, John Deere, Ford, Terex.....everyone's invited to the Great Escape ! Monedas 2011 http://trololololololololololo.com/

Thu, 06/09/2011 - 12:34 | 1354786 Kayman
Kayman's picture

Debt demands interest. Unless the "assets" have earning power they are irrelevant.

Another bullshit diversion.

Thu, 06/09/2011 - 13:13 | 1354900 GottaBKiddn
GottaBKiddn's picture

 

Assets do have earning power, to wit, parking meters in Chicago and elsewhere. Just imagine things like our parks, beaches, mountains, forests, lakes, bridges, highways.....being rented to us by foreign interests that we are indebted to. How else are we going to pay them? They sure aren't going to accept hyperinflated dollars.

 

 

Thu, 06/09/2011 - 13:33 | 1354970 cougar_w
cougar_w's picture

I'm putting a parking meter in my living room and when my kids have friends over I'm charging everyone a nickle an hour.

And real nickle is worth more than a nickle, I hear.

Thu, 06/09/2011 - 19:01 | 1356112 Kayman
Kayman's picture

I think if you looked at most government "assets" you would find the cost to maintain, thru government employees and politicians, far exceed any direct or imputed revenue stream.

Thu, 06/09/2011 - 12:36 | 1354791 casey13
casey13's picture

They are already implementing their plan to get out from under the debt.

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/4_Ji...

Thu, 06/09/2011 - 12:46 | 1354828 Rastadamus
Rastadamus's picture

JAMAICA  here I come!

Thu, 06/09/2011 - 12:50 | 1354830 Greeny
Greeny's picture

Debt matter? Yes and no, we all know why Yes but why no?

Simply because every other major Country also in debt.

Japan after all disasters in even worse situation and

I don't hear much talk about Debt. Nobody going to pay it back

I think maybe there is a way to cancel it somehow.. I owe

you, you owe your friend and your friend owes me, so?

we can illuminate that sum all together. Not so easy in the

real world of course, but probably something like that possible.

Otherwise I don't see how Euro Zone or Japan or US ever pay it's

debt.

Thu, 06/09/2011 - 12:57 | 1354852 falak pema
falak pema's picture

they won't. They will just wait until they go belly up. Then renounce on payment.

Re-nationalize all those bankrupt and re-begin their economy. Big haircuts coming up.

Thu, 06/09/2011 - 13:01 | 1354883 trav7777
trav7777's picture

yes but where does money come from?  Who issues it?  How does it come into existence?

Money is a necessary thing for any economic activity, kind of like air.  And we have a set of institutions who won't let you breathe without working for them.

And yes, they will suffocate the entire lot of people to DEATH while they take care of their own and their cousins

Thu, 06/09/2011 - 12:56 | 1354861 Quinvarius
Quinvarius's picture

They only have one real financial asset to balance the debt and that is gold.  Eventually, even the moronocracy in Washington will realize bidding gold up to the correct price in the high 5 digit range solves a lot of their problems.  If not, the market will just do it for them.

Thu, 06/09/2011 - 13:02 | 1354872 Franken_Stein
Franken_Stein's picture

 

Wishful thinking.

Before that happens, we will see pigs fly first.

 

Thu, 06/09/2011 - 13:13 | 1354912 Quinvarius
Quinvarius's picture

In that case I will buy a shotgun and some pig tags for the Fall pig migration hunting season. 

Thu, 06/09/2011 - 14:57 | 1355300 Transformer
Transformer's picture

And the other solutions are?  .....we're waiting. 

When the dollar collapses, worldwide, the entire world population will turn to metals, gold and silver.  The gold and silver extant in the world will have all the purchasing power.  Take all the purchasing power extant in the world right now in the form of paper, and divide it by the number of ounces of silver an gold in the world and you have a price.  This is where it will end up, as there is no other place to end up.

And if you really want to understand this, go to FOFOA and read the piece on hyperinflation.

Thu, 06/09/2011 - 13:23 | 1354945 sitenine
sitenine's picture

'They' have gold? Really?

Thu, 06/09/2011 - 14:18 | 1355140 America- Some A...
America- Some Assembly Required's picture

Except for that minor problem of not having any gold.

Thu, 06/09/2011 - 12:58 | 1354863 cougar_w
cougar_w's picture

We could sell Alaska back to the Russians. Well maybe after we pump out a little more of the oil.

Actually they can have it for free, but they have to take Palin with it in the deal.

We could have sold Hawaii to the Japanese a while back, now I hear they're broke. Timing in this real estate market is tough.

Thank you thank you you've been a great audience. I'll be here all week. And don't forget the tip the waitress.

Thu, 06/09/2011 - 13:08 | 1354899 RichardENixon
RichardENixon's picture

Don't quit your day job.

Thu, 06/09/2011 - 13:02 | 1354873 MrBoompi
MrBoompi's picture

You just added up what the government owns. If you added in the entire wealth of the United States, there's plenty of wealth to "offset" the debt. The problem is most of the wealth is owned by the sector of the population that also controls the United States government, so don't look for them to be helping out anytime soon.

Thu, 06/09/2011 - 13:12 | 1354906 dwdollar
dwdollar's picture

Very true.

Thu, 06/09/2011 - 19:09 | 1356149 Kayman
Kayman's picture

If you add up all the "wealth" then you have to add up all the debt, public and private, and off balance sheet debt.  Then you have to use the crap deflator for all paper assets.

Ask the crooked casino what their assets were worth in the fall of 08.  Asset values live or die by liquidity at the margins.

That has been Bernanke's sole purpose for the past 3 years. 

Thu, 06/09/2011 - 13:02 | 1354885 takinthehighway
takinthehighway's picture

On behalf of the people of South Carolina, I hereby invite Caterpillar to relocate here.

 

Oh, wait...

Thu, 06/09/2011 - 13:06 | 1354895 Bastiat
Bastiat's picture

I wonder if someday we'll see the Fed surrounded by tanks?

Thu, 06/09/2011 - 13:14 | 1354903 SheepDog-One
SheepDog-One's picture

Should have happened years ago, on the first mention of TARP and QE. If we havent seen it by now, we wont see it I dont believe.

Thu, 06/09/2011 - 13:32 | 1354981 cougar_w
cougar_w's picture

truth

Thu, 06/09/2011 - 13:34 | 1354988 TruthInSunshine
TruthInSunshine's picture

I wonder if someday we'll see The Federal Reserve surrounded by III

Thu, 06/09/2011 - 14:00 | 1355081 Silver Dreamer
Silver Dreamer's picture

I can't remember where I read it, maybe the Swiss "Total Resistance" book, but there was a good tidbit of advice in there:  "If you grab your rifle and go outside and everyone else is standing there with their rifle as well, you know it is time."  In my not so humble opinion that time is very close, for a move against firearms will surely happen soon.

Thu, 06/09/2011 - 15:10 | 1355330 Transformer
Transformer's picture

This is the dilemma the elites face... the almost 500 million guns owned by Americans.  When will American stand?  How will they do it?  When the military goes to take the arms will neighbors snipe at them as in 1776? The Bilderbergers/CFR want to know.  It is the big question. 

Hence the elites are doing everything to destroy the middle class.  The only thing standing between them and total world domination is those 500 million guns and the Americans that own them.  If those Americans are broke and starving, the military has a much better chance.

So far, Americans are milk toast and will take anything without fighting back.  TSA, for example.  Men will not even stand up and fight when filthy strangers feel up their women and children.  When will they fight back?  Probably never.

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