Sprott September Commentary: Total US Government Obligations At $118.6 Trillion

Tyler Durden's picture

Fitting commentary as the dollar keeps crashing and having an -1 correlation with stocks day after day.



h/t Rod

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Cheeky Bastard's picture

this is nothing, 118 trillion pfffff. Let me know when they reach a quadrillion or two, and then,MAYBE, i'll get excited about it. Till then; this is still sustainable and not only that; it's even productive. Carry on, carry on; its all good; and may I recommend you to bu some GE and C ?

ZerOhead's picture

Screw GE & C... Goldman just put Textron on it's conviction buy list. Where have you been?

Cheeky Bastard's picture

or that; and i have been ..... around .... :D

Anonymous's picture

I know the comment its tongue in cheek, but realistically what difference does it make if it's $10tr, $100tr or $1qr? By now, nobody seriously expects to pay it off, anyway.

CD's picture

Amusing, if confusing/inaccurate, global debt clock on the Economist website:


SWRichmond's picture

Even more "amusing" is the map showing who's in debt relative to each other.  Clearly shown is the West's full-body embrace of Keynes.

Anonymous's picture

That graph is not right - Canada has a much better debt/gdp ratio than the US, but the picture shows it as worse.

2009 figures in the graph are 950 billion for Canada and 6708 billion for the us. The real numbers are 460 billion (489 billion $CDN) for Canada and 11819 billion for the US.


So Canada has debt/gdp of 30%, and the US has 84%, not counting unfunded social security or medicare, and not counting state or provincial debt.

ZerOhead's picture

U.S. debt is only $6.7 Trillion? Are they serious? Normally these guys are ahead of the curve. Must be in pounds or something...

lookma's picture

That is publicly held debt, or what the US G owes to external owners of US G debt securities.

The are trillions in other debt that is not "publcily held," like intragovernmental holdings and the social security trust fund.

LoneStarHog's picture

Breaking News:  Kevin Skinner wins 2009 America's Got Talent.

Time to invest in Pilgrim's Pride, Tyson, et.al.


Crab Cake's picture

Numbers shmumbers. 

War is peace, Freedom is slavery, Ignorance is strength.


"The last duty of a central banker is to tell the public the truth."

- Alan Blinder, Vice Chairman of the Federal Reserve

"Fed audit would be problematic for the country.  Auditing the Fed is a line that we don't want to cross..."

- Tim Geithner, Sec US Treasury

Bernanke: "Those are swaps that were done with foreign central banks..."
Grayson: "So who got the money?"
Bernanke: "Financial institutions in Europe and other countries..."
Grayson: "Which ones?"
Bernanke: "I don't know."
Grayson: "Half a trillion dollars and you don't know who got the money?"
Bernanke: "Um, um, the loans go to the central banks and they then put them out to their institutions..."

- Ben Bernanke, a lying thieving criminal in charge of handling matters for the banking consortium here in the US

Careless Whisper's picture

Show some respect. He is the capo di tutti capi.

TraderMark's picture

Speaking of debt crisis

some of the US peasantry looks unhappy with unilateral increases in interest rates - the Youtube revolt debtor revolt begins? hah



SWRichmond's picture

IMO it is only a question of timing.  We have already passed the event horizon, and our entry into the singularity is assured. 

Crab Cake's picture

I guess that would explain the time dilation. 

SWRichmond's picture

It's sad; we'd already sent in a probe (Argentina) to send back the data, but inexplicably we've all been sucked in anyway.

Herne the Hunter's picture

Quantum entanglement is a bitch.

Jim_Rockford's picture

we'd already sent in a probe (Argentina)

That Governor of South Carolina is a patriotic sumbitch.

ratava's picture

You mean the transhumanist definition when the HFT algos surpass human intelligence? Yup, seems we made it.

Crab Cake's picture

No, Moore's law hasn't caught up with us just yet.  I believe he's referring to the fictional variety of black hole phenomena, which is really just an accounting place holder for a lot of bad astronomical ideas.  They also fit nicely into the self seeking result models generated in a computer not a lab or by observation.  The current system doesn't work mathematically so they have to invent "voodoo" space.  One has never been seen or documented, Hubble's redshift has proven faulty, and further they/nor their forces have been replicated in a lab.  It's not empirical. Black holes and dark matter are essentially modelling to fiction.  Plasma cosmology (electric universe) is a much cleaner view IMO, and is testable and repeatable in the lab, but what do I know?  I just read alot, and do some tinkering.  Science is in much the same place our economic and financial worlds are sadly...

Stuart's picture

Debt??? Who cares, maybe my kids, but doesn't affect me... I've gotta go and buy some more shit to max out the credit card, again. Besides new 'survivor' season is about to start. C'mon, lets focus on what really matters.

Anonymous's picture

what the FFFFFFFF is going on with this mkt!?!? S&P drops ~.8% off the highs & the VIX simultaneously hits lows of the day! how are stocks positive again!?!? the bond os up over a point already, there is a strong bid for 4.20% yield over 30 yrs!!! wtf!!!!

Anonymous's picture

GE's jack Welch has been praised for biz acumen. Yet he ran GE into the ground beyond bankruptcy; only in biz courtesy of 300 billion credit line from Geitner. This is also a failre of the American University system. Educating and producing idiots. The first signs were with the bankrupt pro sport teams in the US; they cant sell tickets, tv ratings way down,etc; yet, they receive FREE billion$ stadia from the taxpayor!! The NFL, MLB is bust without communism.

keehotee's picture

The American university program has not failed- it is working fine turning out lemings.

tradertim's picture

"Fitting commentary as the dollar keeps crashing"

since the top in early march, the dollar has been dropping an average of 2.4% per month till now. if we keep dropping at that same rate, it will take 178 months or almost 15 years to reach 1$.

so relax...we have lots of time. :)) enjoy the bubble while it lasts. lol

orca's picture

This thing is getting so ridiculous that I just want to kick the monitors of my desk. I know, don't fight the tape, well, I am fighting it. Posted before, within callspreads shorting the futs (EU & US) and waiting for the mother-unload. Been waiting a mighty long time by the way, preparing to wait until eternity if need be, but I w.i.l.l. fight the tape. Thank you for listening.

djchill2's picture

I' m with you man....and I know how you feel.  At this point though it would be fucking retarded to switch sides now.

orca's picture

Churchill has the answer:
We shall go on to the end, we shall fight in France, we shall fight on the seas and oceans, we shall fight with growing confidence and growing strength in the air, we shall defend our Island, whatever the cost may be, we shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills; we shall never surrender
Man this is frustrating.

Miles Kendig's picture

Follow that up with his classic; "This is not the end, or the beginning of the end. This is the end of the beginning".  I am with you on calling this action frustrating.

jm's picture

I hear you.  On the one hand you have clear credit and M2 contraction.  On the other hand, you have clear Treasury insolvency.

Either way you're fighting something massive.


Ouroboros's picture

"Man must rise above the earth -to the top of the atmosphere and beyond- for only thus will he fully understand the the world in which he lives."





Crab Cake's picture

Plato imagines a group of people who have lived chained in a cave all of their lives, facing a blank wall. The people watch shadows projected on the wall by things passing in front of a fire behind them, and begin to ascribe forms to these shadows. According to Plato, the shadows are as close as the prisoners get to seeing reality. He then explains how the philosopher is like a prisoner who is freed from the cave and comes to understand that the shadows on the wall are not constitutive of reality at all, as he can perceive the true form of reality rather than the mere shadows seen by the prisoners.

TD the philosopher...

Bearish Spirits's picture

Watch out.  76 DXY hurtling toward us.

Herne the Hunter's picture

This just in (http://finance.yahoo.com/tech-ticker/article/334648/Too-Much-Debt--Pleas...):

"The U.S. has too little debt, not too much, Fisher says.  The U.S.'s return on assets is high and interest rates are low, so our borrowing capacity is much higher than our current debt levels.

Also, Fisher says, you have to look at the U.S. in the context of the world, because the U.S. is only 25% of world GDP.  The world is way under-leveraged, so one country's particular debt-to-GDP ratio doesn't matter."

Yeah... until the Chinaman comes into your house and pees on your rug.

And then takes it.

George the baby crusher's picture

Specially when the rug really ties the room together.

orca's picture

Well, the Chinese are fucked either way and they know it. Moreover, they know that we know, which makes them even more pissed off, since face-saving is their fetish, and now they're getting face-raped. I have no idea what their eventual response will be but it will not be pretty. I would suggest invading Taiwan just for the fun of it, or point blank refusing to buy any more Treasuries, or dumping $1TR any price any bid, but the responsible capitalists that they are they will probably find some creative response.

earnyermoney's picture

Use dollar reserves to purchase hard assets. Following article from Commodity Online sheds some light on potential remedies for the Chinese: http://www.commodityonline.com/news/China-may-ban-export-of-gold-silver-...

Icarus's picture

No, I think this Fisher video is better


F*ck freedom of speech, Yahoo should be prosecuted for putting this guy on the air.

bonddude's picture

You wanna talk about a guy who was wrong? It was this pompous, over gesticulating fraud who feeds on dot commers and family office wealth out of Woodside. The Cramer of big planners.

He didn't show his face for a GOOD LONG TIME.

Anonymous's picture

here is "wrong". i gave FI $530k near the market top based upon his past timing calls and assuming if things went in the shitter they would sorta know. At the bottom my $530k was worth $330k. I recently pulled the plug at $375k to avoid more losses in a sudden tern.

On the way down they ept telling me not yto worry, they 'expected' this (huh?), and on the way up they kep telling me to stay invested because they 'expected this' aswell. WTF, if they 'expected' both, they should never
have lost any of my money to begin with... just cashed me
and made money on the upswing.

Ken is a cocky mofo...

Careless Whisper's picture

Not to worry folks. SS and Medicare are off balance sheet items.

Anonymous's picture

Why do people continue to talk about debt, when Americans (even those tea party folks) are unwilling to do what it takes to pull this debt back?

Here's the reality of the situation: in order to balance the budget and start paying off debt, we need to make cuts in two areas - health and defense. We could cut military spending by probably 3/4 and healthcare by at least 1/2, maybe as much as 3/4. That would save us about $1 trillion a year.

But guess what, NO ONE, not even those wacky tea party folks, are willing to take on major cuts in healthcare or defense. Townhall-grandma wants her hover-round and she wants to see her grandson sent off to some pointless war. She may shout down her congressperson and bitch up a storm about big government, but the second that congressperson talks about cuts in defense or her Medicare... oh boy, that lady is going to go ape shit. Ain't no way she's going to support someone making cuts in those area. And that's the way it's always been. People, even conservatives, vote FOR healthcare and defense, not against it.

Cistercian's picture

 I told my son 2 years ago, The good news is that you are going to be a millionaire!The bad news is that bread will be 50,000 dollars a loaf!

Icarus's picture

So the premise for inflation is that to escape unfunded future liabilities the US will print money.

But future liabilities occur a real cost in the currency value when incured - you cannot make something less expensive in the future by inflating the money supply today.  Inflation will not work.

Gabriel Gray's picture

So what happens when our Masters decide they want all your gold?

keehotee's picture

Everyone needs to see that we can have any future we can imagine.  Start imagining you loving yourself.  Try empathy for a change- even for the "drones" and evil ones.  Really, the only solutions to this mess starts with the metaphysical awakening.  They can have my gold if they really want it- it does not define me.

Gabriel Gray's picture

That's very deep... sssssssssssssp!

Anonymous's picture

ocra said

"Well, the Chinese are fucked either way and they know it. Moreover, they know that we know, which makes them even more pissed off, since face-saving is their fetish, and now they're getting face-raped. I have no idea what their eventual response will be but it will not be pretty. I would suggest invading Taiwan just for the fun of it, or point blank refusing to buy any more Treasuries, or dumping $1TR any price any bid, but the responsible capitalists that they are they will probably find some creative response."

How about cornering world markets in gold, silver, copper, rare earth metals, etc. THEN dumping $1T of UST? What happens to the value of their commodities holdings?