Another One Trillion Dollars ($1,000,000,000,000) In Debt

Tyler Durden's picture

Submitted by Michael Snyder of The Economic Collapse blog,

Did you know that the U.S. national debt has increased by more than a trillion dollars in just over 12 months?  On September 30th, 2012 the U.S. national debt was sitting at $16,066,241,407,385.89.  Today, it is up to $17,075,590,107,963.57.  These numbers come directly from official U.S. government websites and can easily be verified.  For a long time the national debt was stuck at just less than 16.7 trillion dollars because of the debt ceiling fight, but now that the debt ceiling crisis has been delayed for a few months the national debt is soaring once again.  In fact, just one day after the deal in Congress was reached, the U.S. national debt rose by an astounding 328 billion dollars.  In the blink of an eye we shattered the 17 trillion dollar mark with no end in sight.  We are stealing about $100,000,000 from our children and our grandchildren every single hour of every single day.  This goes on 24 hours a day, month after month, year after year without any interruption.

Over the past five years, the U.S. government has been on the greatest debt binge in history.  Unfortunately, most Americans don't realize just how bad things have gotten because the true budget deficit numbers are not reported on the news.  The following is where the U.S. national debt has been on September 30th during the five years previous to this one...

09/30/2012: $16,066,241,407,385.89

09/30/2011: $14,790,340,328,557.15

09/30/2010: $13,561,623,030,891.79

09/30/2009: $ 11,909,829,003,511.75

09/30/2008: $10,024,724,896,912.49

The U.S. national debt is now 37 times larger than it was 40 years ago, and we are on pace to accumulate more new debt under the 8 years of the Obama administration than we did under all of the other presidents in U.S. history combined.

Of course all of the blame can't be placed at the feet of Obama.  During the last two elections the American people have given the Republicans a solid majority in the U.S. House of Representatives, and the government cannot spent a single penny without their approval.

Unfortunately, House Speaker John Boehner and the Republicans that are allied with him have repeatedly turned their backs on the people that gave the Republicans the majority and they have authorized trillions of dollars of new debt which will be passed on to future generations of Americans...

Since John Boehner became speaker of the U.S. House of Representatives on Jan. 5, 2011, the debt of the federal government has increased by $3,064,063,380,067.72. That is more than the total federal debt accumulated in the first 200 years of the U.S. Congress--during the terms of the first 48 speakers of the House.

In fact, if all of that debt had been given directly to the American people, every household in America would have been able to buy a new truck...

The $26,722 in new debt per household accumulated under Speaker Boehner would have been more than enough to buy every household in the United States a minivan or pickup truck--or to pay three years of in-state tuition (not counting room and board) at the typical state college.

Sometimes we forget just how much money a trillion dollars is.  In a previous article, I included some illustrations that I believe are helpful...

-If you were alive when Jesus Christ was born and you spent one million dollars every single day since that point, you still would not have spent one trillion dollars by now.

-If right this moment you went out and started spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.

We are doing the exact same thing that Greece did, only on a much larger scale.  What we are doing is not even close to sustainable, and it will inevitably end very, very badly.  The following is what Michael Pento, the president of Pento Portfolio Strategies, told RT the other day...

"That $17 trillion everybody says its 107 percent of GDP, that’s true. But who really cares about the percentage of GDP? It’s the percentage of the debt as a percentage of the revenue – its 700 percent of our revenue. Deficits are growing at 30 percent of our revenue every year added to the deficits we have already. So it’s unsustainable. What is going to happen eventually – a currency and bond market collapse! And it’s not going out 20 years, as I also heard someone mention. In 2016 we’ll probably be spending 40 percent of all of our revenue just to service our debt. That is what the interest payments will equal."

The U.S. debt situation is so bad that even the Prime Minister of Cyprus is scolding us...

"The U.S. has been fortunate in the sense that it’s like a bank, it prints the money that other people accept. So you can live beyond your means over an extended period of time without being punished by the market."

Unfortunately, we will not be able to live way beyond our means forever.  Reality is going to catch up with us at some point.

Right now, the rest of the world is lending us giant mountains of money at interest rates that are far below the real rate of inflation.  This is extremely irrational behavior, and this state of affairs will probably not last too much longer.

But if interest rates go up, it will absolutely cripple the U.S. economy.  For much more on this, please see this article.

And what would make things much, much worse is if the rest of the globe starts moving away from using the U.S. dollar.  At the moment, the U.S. dollar is the de facto reserve currency of the planet and this creates a tremendous demand for U.S. dollars and U.S. debt.

If that changes, it will be absolutely catastrophic for the United States, and unfortunately there are already lots of signs that this is already starting to happen.  I wrote about this in my recent article entitled "9 Signs That China Is Making A Move Against The U.S. Dollar".

But don't just take my word for it.  Just a couple of days ago a major U.K. newspaper came to the same conclusions...

China has overtaken the US as the world’s largest oil importer and goods trading nation. Over the next five years, it will surpass the rest of the world combined in its consumption of base metals.


Given the scale of the country’s consumption of fossil fuels and raw materials, it is only a matter of time before the renminbi replaces the dollar as the primary currency for trading commodities and resources such as crude oil and iron ore.


The debt ceiling farce in Washington and China’s growing reluctance to continue underwriting the US economy by buying up its bonds and adding to America’s near $17 trillion (£10.5 trillion) debt mountain suggests that this tectonic shift in the global trade system could be just around the corner.

So what will happen when the rest of the world decides that they don't need to use our dollars or buy our debt any longer?

At that point the consequences of decades of incredibly foolish decisions will result in an avalanche of economic pain that the American people are not prepared for.

Earlier today, I came across a photograph that perfectly captures what America is heading for.  The following photo of Mt. Rushmore crying has not been photoshopped.  It was taken by Megan Ahrens and it was posted on the Tea Party Command Center.  If George Washington was alive today, this is probably exactly how he would feel about the nation that he helped establish...

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HedgeAccordingly's picture

We should call Buffett's sons they will fix it - 

Big Corked Boots's picture

I don't have any kids. Can I take an Obama-sized mulligan on that debt thing?

Zer0head's picture

zero here, zero there

pretty soon it's all just zeros

welcome to the reality

where the survival rate for everyone drops to zero


$devaluation is underway, the smart money is grasping on to any piece of shit that floats

the train is leaving the station. clown car is full but plenty of room in the cattle cars


Poor Grogman's picture

A good solid tax on every bit of QE that the fed profits from would bring the federal budget back into surplus quite quickly. As well as stimulate the economy.

The shareholders of the fed must be forced to put their hand in their pockets for a change. Rather than simply accumulating ill gotton paper wealth at the public expense.

Now that would be change you could believe in.

Cognitive dissonance may follow....

FEDbuster's picture

Nothing that a pocket full of trillion dollar platinum coins couldn't solve.....

Waiting for the US version:


merizobeach's picture

You borrow 16 tril, and what do you get?  Another year older, and another tril in debt.

merizobeach's picture

With regard to what I was reading here earlier today, I would use the term, "odious".

iinthesky's picture

Economic Pain? It will result in all out war when there are no options left.

Zigs's picture

St. Peter don't ya call me cause I can not go. I soul to the company store!

Peter Pan's picture

One day we will wake up from our drunken orgy and view the empty bottles strewn across our front yards. Our kids would probably be justified in breaking some bottles and slashing our throats for allowing us to do this and for participating in it.

Eliminate our generation for the damage we have caused and for the way a great deal of our youth has been brought up both by parents and by government interference.

Most of us don't deserve to consume anything more particularly if its with an outstretched hand.

TheFourthStooge-ing's picture

Hey, you know what? Fuck that debt. Just fuck it.

It's not my debt, and it's not the debt of everyone's children and grandchildren. Congress borrowed the money, that's who the lenders can shakedown for repayment. If it's still not enough, they can shakedown the children and grandchildren and great-grandchildren of those who "served" in congress.

Additionally, the lenders bear some responsibility. If you knowingly loan money to a crackhead and never get paid back, that's just the cost of your own poor judgement. A loan to congress hardly seems less risky.

logicalman's picture

I've posted this a few times - likely will a few more, when relevant.

It's important.


In international law, odious debt, also known as illegitimate debt, is a legal theory that holds that the national debt incurred by a regime for purposes that do not serve the best interests of the nation, should not be enforceable. Such debts are, thus, considered by this doctrine to be personal debts of the regime that incurred them and not debts of the state. In some respects, the concept is analogous to the invalidity of contracts signed under coercion.

Nothing but the truth.'s picture

 Impeach all those responsible for this reckless behaviour ,from the president down to anyone , like Bernanke, complicit in all this.

Notarocketscientist's picture

Greece tried that - you see what happened there - they take you by the balls and say pay mutherfucker - or starve

insanelysane's picture

We are told to worry now about global warming because the planet may become hostile in 1,000 years

and at the same time are told not to worry about the debt now because the cliff is 10 years away.

knukles's picture

Another precious insight by a truly aware observer.

I must use this one on my uber-liberal mates.
they're so easy to fry


Edit:  Come to think of it that might not be such a good idea... They'll simply advance the day of doom from global warming to be one  overnight repo short of the debt implosion.

ZerOhead's picture

Global warming is now apparently causing record sea ice in the antarctic...

"Antarctic sea ice has grown to a record large extent for a second straight year, baffling scientists seeking to understand why this ice is expanding rather than shrinking in a warming world."

knukles's picture

Yes, indeed.
Like one of my liberal buds said, "See I been tellin' ya, it's a good thing we spent what we did on climate change, but we still need to spend more."

squeezing eyes seeing colored spots, holding breath, getting dizzy

ZerOhead's picture


If Obama (with the help of GS and JPM) can implement a punitive and effective Carbon Tax on the citizenry my climate models predict we should be able to skate to Europe by 2018

And as a bonus the new perennial shore ice in New York harbor should be able to protect the city from hurricane surges...

wisehiney's picture

Your liberal bud has been liberally smokin buds. Anybody could think like that some nights.

Black Swan 9's picture

What if the supposed effects of global warming or climate change, or sudden, extreme but brief changes in Mother Nature in general, are being caused significantly by HAARP (weather exerimentation, MIC motivation to "own" the weather but with profit motive always bottom line..), and less significantly by fossil fuels, but is being manipulated to once again turn another issue into a liberal vs conservative one, divide and conquer strategy to keep us fighting while TPTB get on with their economic rape of this planet?

Red herrings work.

Hohum's picture

Just do some reading instead of cherry picking.  K?

viahj's picture

we build fragile houses of wood and sheetrock on the beach and then blame the destruction on global warming.

we build neighborhoods, schools and communities on river flood plains and then blame the destruction on global warming.

we build entire cities in the fucking desert and steal water from hundreds of miles away and then blame the water levels on global warming.

we expand agriculture into the midwest during a short and unusual wet period from the mid 1900's to a couple years ago and when the historic mean dry conditions return, we blame the drought on global warming.

Bro of the Sorrowful Figure's picture

uh well global warming is man made. our debt is a natural result of our fractional reserve/central bank driven financial system.


ive always wondered why everyone and their grandma suddenly becomes a scientist when you talk about global warming or abortion etc, but as soon as you talk about something like the national debt or the fed people cower in fear of wall street and central banker's superior intellect.

RafterManFMJ's picture

I agree. Grasping the debt problem is easy - it's not rocket surgery.

knukles's picture

5 *'s
Comment of the week's not rocket surgery...

PS.  Watched FMJ last night.  R Lee Ermey gives a wonderful performance.  One of my best buds ever was a Marine gunny...

RafterManFMJ's picture

He should have received an Oscar, frankly. Read the book FMJ was based on sometime, if you can track down a copy. The Short Timers by Gustav Hasford.

Bro of the Sorrowful Figure's picture

my point is that the average american knows the same amount about the science of global warming as they do about the debt problem (nothing), but they insist on playing expert on the former and dumb on the latter.


it's probably because it's not an issue with clearly defined red and blue lines.

RaceToTheBottom's picture

"people cower in fear of wall street and central banker's superior intellect."

Because Asshats like Dimon say things like "cause I am richer than you" and he has a nicer suit than Einstein ever did.

We are suckers for an ego in a nice suit

Disenchanted's picture

quote from hedgeaccordingly's link in the first post of this thread:


"This country is a lot better off because Jamie Dimon has been running JPMorgan." ~ Warren Buffett


Thanks for that Oracle. /s

Notarocketscientist's picture

What I find incredibly amusing is the high degree of stupidity of people on this site.


On one hand you believe corporations are evil villains - that the US is run by an oligarchy


And on the other hand the biggest cocksuckers in the country - the Koch Brothers - are funding climate denial


And you STOOPID FUCKING FOOLS swallow their shit hook line and sinker.


S -T - O - O - P - I - D

AGAU's picture

Wait..What?  I thought when wikileaks published those 'Scientist' emails - the ones about 'What kind of data would you like so we can get our funding' , people would sort of drop the whole global warming bullshit scam.

kralizec's picture

AGW is junk science, cannot even use the word "science" to describe what they do, it is more akin to art, as in fanciful make-believe fantasyland...the entire AGW industry has been hatched by progressives as just another tool to use to force people to think and act as the elites command, period.

Anybody thinking otherwise is either a progressive agitator or outright fool.

Mike in GA's picture


Dad taught me 'tis better to keep one's mouth closed and be thought a fool rather than open it and remove all doubt.

NoDebt's picture

Call Japan.  They'll give us a few pointers.

Dr Benway's picture

The insanity is globalized. First step of the "fiscally responsible" new Australian government, that had mercilessly harangued the previous gov for its irresponsible debt?

Why, increase the debt ceiling of course.

disabledvet's picture

making your nut doesn't seem to hard in here


Time for the 17 trillion dollar platinum coin

Charles Nelson Reilly's picture

Fuck it, make two.... Obama likes to make it rain fiat for his crew.

NoDebt's picture

Sad truth is, we've already been minting those coins as we go.

syntaxterror's picture

Why not a 17 trillion chocolate chip cookie coin? Why platinum? Like that fucking means anything.

Pat Hand's picture

Actually it does.  The specific law invoked was designed to allow numismatic collectibles, and authorizes the minting of platinum coins.  Does not authorize cookies, gold, ceramics or anything else.

The platinum coin is probably legal but skirts the intent of the authorization.

are we there yet's picture

On a long enough timeline everyone becomes a trillionaire.

TulsaTime's picture

Time for a new financial system, this one is quite broken.  2008 should have started us down that road, but TPTB were able to steer out of the ditch before the grand explosion.  This time we will not be so lucky.  The economy has been on overt stimulus for a long time now, and even if QE goes to 10x what it is (purportedly) now, there is only so much you can do with external measures.  The internal support mechanisms wore out in the 70's when the A-rabs jumped the price of oil.  Since then it has been a power glide, and we may see that CFIT in synch with a few other nasty trends that most commenters here do not want to hear about (peak water/oil/electricity/population/revenue/intelligence)

much obliged's picture

Government debt is an illusion if the Treasury would print, and the debt ceiling is there to enforce fiscal discipline, which it hasn't been doing much of. That's just another reason for the Treasury to print. Eliminate income taxes for consumption taxes while Treasury prints when anything more needs to be done, since inflation is really a consumption tax albeit spread out a bit more evenly. And when you stop and think about it, that's more fair and more free enterprising than a specific consumption tax. In the fractional reserve banking system the Treasury could pay the debt off immediately and since principle of a loan is retired there is no inflation that wasn't already there. The principle is retired because the principle was created out of nothing when the loan was created.

Poor Grogman's picture

Once they start printing, suddenly everyone gets in line and wants their home loans paid off.

At least the "Tax on QE" that I am so excited about has some confusing elements that might keep the sheep confused and bewildered for a bit longer.

Just openly saying stuff about paying off the debt immediately is a dangerous thought experiment, that defiantly makes you an extremist.

Sheesh !

much obliged's picture
Paying off debt immediately sounds sensational because debt has been in the main stream media news so much. If you hadn't heard about the debt you wouldn't have thought anything of it disappearing. But have your way. Pay it off in a few years, let the banks collect interest over and above what banks get for corporate, home and car loans etceteras. I'm not an extremist, I'm just not directly involved the business and for me watching all the goings on about it get a bit tedious.