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The U.S. National Debt Has Grown By More Than A Trillion Dollars In The Last 12 Months
Submitted by Michael Snyder via The Economic Collapse blog,
The idea that the Obama administration has the budget deficit under control is a complete and total lie. According to the U.S. Treasury, the federal government has officially run a deficit of 589 billion dollars for the first 11 months of fiscal year 2014. But this number is just for public consumption and it relies on accounting tricks which massively understate how much debt is actually being accumulated. If you want to know what the real budget deficit is, all you have to do is go to a U.S. Treasury website which calculates the U.S. national debt to the penny. On September 30th, 2013 the U.S. national debt was sitting at $16,738,183,526,697.32. As I write this, the U.S. national debt is sitting at $17,742,108,970,073.37. That means that the U.S. national debt has actually grown by more than a trillion dollars in less than 12 months. We continue to wildly run up debt as if there is no tomorrow, and by doing so we are destroying the future of this nation.
The chart that I have posted below shows the exponential growth of the U.S. national debt over the past several decades. Anyone that would characterize this as "under control" is lying to you...
This is the greatest government debt bubble in the history of the world, but very few people seem to have any desire to do anything about this anymore. We are literally gorging on debt, and most Americans seem to think that it is just fine and dandy.
Perhaps that it is because we have never really experienced any serious consequences for going into so much debt yet.
But when it comes to running up debt, a day of reckoning always comes eventually.
Just ask Greece.
And the absolutely insane spending policies of this administration and this Congress are hastening the day when our day of reckoning will arrive.
Consider the following facts...
-The U.S. national debt has increased by more than 7 trillion dollars since Barack Obama has been in the White House. By the time Obama's second term is over, we will have accumulated about as much new debt under his leadership than we did under all of the other U.S. presidents in all of U.S. history combined.
-The U.S. national debt is now more than 5000 times larger than it was when the Federal Reserve was first established in 1913.
-If the U.S. national debt was reduced to a stack of one dollar bills it would circle the earth at the equator 45 times.
-Right now, the United States already has more government debt per capita than Greece, Portugal, Italy, Ireland or Spain.
-In August, the average rate of interest on the government’s marketable debt was 2.028 percent. In January 2000, the average rate of interest on the government’s marketable debt was 6.620 percent. If we got back to that level today, we would be paying well over a trillion dollars a year just in interest on the national debt.
-At this point the U.S. government has accumulated more than 200 trillion dollars of unfunded liabilities that will need to be paid in future years. In other words, we have made more than 200 trillion dollars worth of promises that we do not have money for yet.
Thomas Jefferson once said that "the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale."
What we are doing to future generations is absolutely unconscionable. We are stealing trillions upon trillions of dollars from our children and our grandchildren, and we are willingly consigning them to a lifetime of debt slavery.
I have said this before, but it bears repeating. If future generations get the chance, they will look back and curse us for what we have done to them.
And shame on anyone that would dare to suggest that we should continue to run up more debt that future generations will be expected to repay.
But government debt is far from the only massive debt bubble that we are dealing with as a country.
40 years ago, the total amount of debt in our nation (all government debt plus all business debt plus all individual debt) was sitting at a grand total of about 2.3 trillion dollars.
Today, that total has grown to 59.4 trillion dollars.
As the chart posted below shows, our total debt bubble is now more than 25 times larger than it was just 40 years ago...
If you were to take all forms of debt in our country and divide it up equally to each person, the average family of four would owe approximately $735,000.
This is not anywhere close to being sustainable, but most Americans don't seem to care. They just continue to recklessly run up even more debt.
However, there are signs that we are starting to hit a wall with all of this debt.
For example, an astounding 35 percent of all Americans have debts that are so overdue that they have been referred to collection agencies.
Our nation has become an ocean of red ink from sea to shining sea, and the only way to keep the bubble from bursting is for the total amount of debt to continue to grow much faster than the overall economy is growing.
Obviously this cannot happen indefinitely, and when this house of cards comes crashing down it is going to be absolutely horrific. For much more on all of this please see my previous article entitled "The United States Of Debt: Total Debt In America Hits A New Record High Of Nearly 60 Trillion Dollars".
The big question is how long our "bubble economy" can keep going before it finally collapses.
It has gotten to the point where even some of the biggest banks in the world are admitting that what we have been doing is completely and totally unsustainable. Just consider the following excerpt from a recent article by Joshua Krause...
*****
Recently, strategists for Deutsche Bank released a startling study in regards to government debt. They decided to investigate whether or not the bond market is currently in a bubble. What they found was, unlike previous eras, the past 20 years has seen no lag between economic booms and busts:
It has long been our view that over the last couple of decades the global economy has rolled from bubble to bubble with excesses never fully being allowed to unravel. Instead aggressive policy responses have encouraged them to roll into new bubbles.
This has arguably kept the modern financial system as we know it a going concern. Clearly there have always been bubbles formed through history but has there been a period like the last 20 years where the bursting of one bubble has consistently led directly to the formation of the next?
Essentially, our current system has been dying a very slow death. It’s running out of steam.
*****
Sadly, most Americans have no idea that we are living in a giant debt-fueled bubble that has a limited lifespan.
Most Americans just assume that since the politicians tell them that everything is going to be okay that they don't need to be concerned about any of this.
But every single day our debts get even larger and our long-term financial problems get even worse.
Someday this bubble is going to burst and then all hell will break loose.
It is just a matter of time.
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Unpayable & unsustainable.
[chuckle] There's not that much money in the whole f'king world!
so why is he deficit only 500 b
Watch the shiny object, you are becoming very sleepy...
That chart reminds me of the Ebola chart. Good thing the guys who are creating the first chart wouldn't think about using the other chart to solve the first chart.
if short rates are raised, ow will the fed roll over maturing debt to acheve their current 1.4% net interest expenditure rate?
raies the short rates until you crash the long end and then go back to zirp or negative zirp?
im afraid the fed thinks they can raise the revenue to pay higher rates.
either way, negative real rates will get more negative in the future.
Peak charts
At least it wasn't an itemized list.
I'm scratching my head trying to figure out how an entity can have a budget deficit when there's no budget in the first place.
Nor have we had one in close to 6 years... Ain't it grand having a transparent administration...
Having a budget would change nothing.
funny how neither party is talking about the debt ceiling anymore
it just doesnt matter or
they had ameeting behind closed doors and were told to shut the fuck up by thier banking masters
It just doesn't matter. https://www.youtube.com/watch?v=MSRk_Q7geII
Contrary to the thesis of the post we are not destroying our future, that was destroyed years ago. We are now hastening the reset so I say Hurray for the Kenyan Guy!!
More like: https://www.youtube.com/watch?v=zOXtWxhlsUg
Perhaps behind closed doors the Bankruptcy & restructuring has already occurred & everything else is just smoked mirrors.
Word is we were sold for $.03 each. That's less than our value as chemicals or BTUs. Very sad.
I see the Tea Party Congressmen have gotten kicked to the curb.
.
This guy doesn't know it, but he just enrolled online for the remedial math course in Guantanamo.
That deficit in the 500s of billions is only this year's deficit - the difference between receipts and expenditures this year only.
With record tax receipts, the spending binge is kicked into high gear, because they're spending all of that, as well as selling mountains of new debt, and just going deeper in the hole. So the smaller current deficit masks the fact that new debt is being accumulated faster than ever before - more than a trillion $ in less than a year.
The debt ceiling wars are coming again after March. By loading up on cheap debt now they will have the cash reserves to roll it out for months. Or, being Congress Critters, they could just spend it.
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. "
TPTB are going for total catastrophe of the currency system involved so they can get most to accept the new system of world currency. Never let a crisis go to waste. I learned that somewhere.....
589, but it has to do with the govt shutdown aqnd how they account for it--in fy 13 they had low debt growth due to no funding and deferral od spending--. in FY 14 they claim a lower spending rate.
Its all smoke and mirrors and like all govt reporting esp cpi and gdp and jobs they use the best numbers available even if not consisten ly applied.
ask john williams.
Call Yellen. He/she/it will fire up the nookular powered printing presses!
Did somebody say, "nookie-hookers"? I'm in!
Of course it is sustainable.
http://www.dailymail.co.uk/news/article-2758055/Outraged-Swiss-village-1...
Gravity is sustainable. Why not dollar policy?
this is obama's fault? i thought the house of representives was in charge of all bills pertaining to spending. i thought that the house of representives was controlled by the republicans? isn't this their fault?
Are you awake at all?
The Democratic Party won a majority of the House of Representative seats in the 2006 election and expanded its control with the 2008 elections by gaining 21 seats. With a super-majority of Democrats in the House and Senate, Democrats passed Obamacare in 2009 without a single vote from Republicans.
Republicans regained a majority in the the House of Representatives after the 2010 elections.
The U.S. House of Representatives has passed hundreds of bills that languish in the Senate because Senate Majority Leader Harry Reid simply ignores the legislation--even though much of it passed the House with key support from Democrats.
Yea, it is. My Republican Congress Critter voted against BHO's budget in 2011. Then, turned around and voted for the debt ceiling increase! That was the one where he was gonna cut off grandma's SS check if he didn't get his way. This mess is only going to end one way, dollar crash.
All that borrowed money has made billionaires of thousands of crony Wall Streeters. When the bubble eventually bursts, those robber barons will have no worries, having socked away much of their fortune in overseas real estate, in shell corporations two generations removed from themselves and in gold bars, jewelry and artwork stored in vaults from Hong Kong to Switzerland. You, dear reader, on the other hand, will be fucked.
Listen Junction. Let me make myself clear here. I come into your labor and investment markets, poach and pilfer, return to my native India and buy "GOLD".
(I already mined about 16000 Bitcoins in 2009.)
So who's fucked?
So, according to your story you have about/at least 8 million in Bitcoin. Nice of you to evail yourself of your presence in between your gay hooker and blow sessions.
Listen. I don't "EVER" account for my crypto in terms of fiat. What's the sense of that?
I have a few coins for the future. Time will tell what they are worth. Maybe my ancestors will tell me when I return.
Ok, Lama.
Hey new junction that sounds like exactly what happened just before WW2. A certain group was socking away tons of gold and artwork etc. I guess this time around they have gotten better at it.
No money, but on my deathbed I will receive total consciousness. You know, which is nice.
And if interest rates return to normal, what happens?
They won't until we End the FED.
ebworthen;
I've been saying this for quiet a while. Michael Snyder and I seem to think a like. A trillion was expected. But I'm not fully satisfied with the Tax Revenue from US Individuals. I'll look into that and I have to say I expected more like $1.5 Trillion Deficit.
As you point out there is no discipline in the G.W. Bush or Barak Obama Administration. These were Liberal Spending Admins.
Here is a story that fits. It is an original Satire.
Did you hear the story of what happened when John D. Rockafeller heard about "Communism"?
Well see there was a banker that set up a meeting to discuss this very important trend from Europe. It was about 1890 just when the Robberbarons had become the richest men in America (or the World). In attendance was none other than John Pierpont Morgan, himself.
Banker: Sir this is a populist movement an offshoot from Socialism called Communism who ideas were put forth by Karl Marx and Friedrich Engles. We believe this is a strong and dangerous trend in view of the Union movement of workers. Mainly the idea is that all men are equal, capitalism is bad, and all men should earn the same amount of money and work for the state and for the future of the state. This equality extend to luxuries which they claim are unfair to those that don't have them.
John D: Well then under communism all men are poor.
JP Morgan: Yes, quiet true. And we may want to fight this with the full power of the government & military. Or alternatively we might want to make it a political issue and try to turn it to advantage.
John D: You mean we could convince people to accept low wages if they think they are serving the state?
JP Morgan: It would be a great victory. The trend now for strikes and workers unions is to ask for more money. And it seems that under this "Communism" they plan to educate the people to prepare for a Revolution.
John D: Well... it seems like the Strikers are plenty educated already. We have to get out in front of this. Perhaps we can start educational foundations to influence what is taught and to keep education limited to "Capitalist Ideas.
JP Morgan: We have to address several sides all at once, political, educational, military as we have in Latin America and the Islands, and our supervisors and managers will stress the principals of success that we need for our factories.
John D: So, we declare war on Communism, suppress communism, suppress the workers unions & strikes, and set up educational foundations and go to work on universities. Plus we will always need more workers coming to our factories and America to keep wages competitive (low). However we will continue to import produce or whatever we need from outside. But how can we really make Communism work for us in the USA?
JP Morgan: We will know more as we work through the "Set Up" of your foundations. Firstly we will use Psychology from Europe, I know a few good men. Secondly we rely on principals of not upsetting the people, letting people have their sports and families, letting them be distracted by the things we want to teach them. We will repeat the messages we want successful workers to learn to be successful. A man will be judged by his success and how he works. The value here is work. Be on time for work. Follow a Schedule. Don't waste time eating or taking breaks. The hard workers are successful and loved by other men.
John D: Very good. I think we can set some strong goals for our new Foundations. What about this "Economics" study? Do you think you can use their work?
JP Morgan: No. That may actually be traced to Socialist Ideas. We can incorporate it into the Foundations Educational work, but only to claim it as our own. Yes, it is good to be in front of trends. We will look to claim History, US History, Government Studies, Cultural Studies, Literature, communism & economics. If we are smart we can have our people teaching all of these subjects to not only workers, university students, teachers, but also to our Politicians and Government Leaders.
John D: Look, we need debt to bring people to us. Communism won't be accepted without a huge debt scare or bank scare. Is that what you are thinking?
JP Morgan: Yes, either debt or expenses, control over the product they need or the service they want. War brings people to their knees. War depletes the treasury of all countries, but their money flows to the sellers and the bankers. Then they have to ask for more money. people will accept this idea of working for less to help the state, just as they accept going to war to help the state. The only block is the US Constitution and the workings of each independent state of the union. War & Debt is the key. It is the cycle of all countries. Lawyers will also have to be part of our educational process within the foundation work and that means universities too. Probably we will train the people who will later become the justices in all of the courts and the legislators in all of the governing bodies. People come quickly around when explained to them why they work. The Law and the Government takes long range planning and conditioning. But they have to come to us in the end for financing. It will be a great victory.
John D: Someone is going to win & someone is going to lose. We are going to win. We are going to build the biggest companies along with cities & states. Pierpont, you are coming with me. You have to set up the banking system so that we can get the financing. Now, tell me about that Central Bank.
JP Morgan: Don't worry about that Sir. It will take some time. Whether we have royalty or politicians then need us and will do what we tell them. In the US we have it much easier. Just give us time and we will have all of the politicians pulling for us.
And so "Communist Ideas" were adopted officially in the USA in 1997... just before bankruptcy laws were strengthened, Sub-prime mortgages took off, Citibank Merged with AIG, and Glass Steagall Act was repealed.
Final Phase of Banker Installed Revolution can only occur after total economic collapse and collapse of the US Government.
"Unpayable & unsustainable."
Oh how soon we forget. They already found the solution - the trillion dollar coin. All they have to do is mint out 18 of those puppies, and BANG! - debt problem resolved.
Of course, I'm not sure how they make change from a trillion dollar coin, but we'll solve that problem when we get to it.
Where's the 40 reasons why?
@eb: "Unpayable & unsustainable."
In that case... Better keep the OPM Ponzi going - by ANY means necessary. The Anglo-American Alliance and their unkosher Banksters have lots of experience with that. >200 years of experience. No one else can match that pedigree /sarc
You got that right! In the face of that crime, the traitor criminal republicans are planning to give the criminally insane democrat marxprogs everthing they want to crush the nation all the way. I got this following bullshit in an e-mail.
Republicans in Washington will consider a "continuing resolution" (CR) this week to fund government operations after October 1st when the current fiscal year ends. It's a very bad deal for taxpayers.
First, the bill reauthorizes the Export-Import Bank, which is a corporate welfare program that picks winners and losers in the marketplace and provides loan guarantees to foreign companies.
Kevin McCarthy (R-CA) promised to allow the bank to expire when he became House Majority Leader earlier this year. Instead, he's extending it, which is essentially a massive earmark for the U.S. Chamber of Commerce.
Second, it fails to place any restrictions on usurper criminal progressive Obama's plan to grant executive amnesty to millions of illegal immigrants or to stop Obamacrime, which has been a total disaster for Americans this year.
In August, Senate Republican Criminal Leader Mitch McConnell (R-KY) pledged to fight for "restrictions" in spending bills "on the activities of the bureaucracy." Will he follow through and do that now? Don't bet on it.
The stated purpose for this capitulation is to avoid needless confrontation before the November elections. That way, Republican felons can come back and control the budget process with a new Senate majority mafia. But that's not true.
The Republican CR expires in December, creating a "lame duck" session that allows supercriminal marxist Harry Reid (D-NV) to write a massive omnibus bill and destrouy the country for good.
If Republicans were serious about stopping the president's agenda, they would not be punting these issues into a lame duck session.
But that's not all. It gets worse.
The CR also paves the way for a new Internet sales tax to be adopted during the lame duck session by allowing the ban on Internet taxes to expire in December rather than making it permanent. This will allow the progressive criminal Democrats to tack on a provision allowing states to steal more and "tax" Internet purchases across state lines. Yeah but progressives LOVE it.
The GOP leadership vowed to pass a "clean" CR, but this bill is anything but clean. It includes corporate welfare earmarks for their cronies and sets the stage for a massive, end-of-the-year omnibus bill that will become a liberal Christmas tree crime spree robbing American citizens.
The worst part is that Republicans will pretend to be outraged by all of this after the election as if they had nothing to do with it.
The truth is every Republican who votes for this CR is responsible for what's in the bill and for what it helps pass in the lame duck.
Congressional criminals are going to destroy our nation if they are not stopped now.
I don't think a few consitutional conservatives are gonna be able to do anything about it. I think it is gonna take law abiding American citizens arresting all of congress and the executive and judiciary. They have all broken the law and are criminals. They have willfully and intentionlaly destroyed this country.
Rot in jail motherf**kers.
Grimaldus
Destroying the future of the FED and the TBTF is what I hope this means.
Not before every Amerikan takes it in the keister...
...oder im mund...
And unfunded liabilities are rising at $7 trillion a year. Now they are at $1,260,000 per taxpayer at least and rising at $70,000 per taxpayer per year.
Kotlikoff has unfunded liabilities at $2,440,000 per taxpayer today.
As of February this year all unfunded liabilities total were $205 Trillion.
Don't tell me all those 'zeros' add up to anything.
we are through the looking glass, where the mathematics of gold based money has
been fully replaced by fiat script, worthless.
the most terrible thing that can happen to a man is for the total reevaluation of his
values when all that was of value is now shit and the terrible realization thereof.
so indeed all those zeros equaling zero this is reality.
"Why don't you knock it off with them negative waves? Why don't you dig how beautiful it is out here? Why don't you say something righteous and hopeful for a change?"
- Obama's next spokesperson, Oddball
Great movie, better ending...
That's PAINT!
This is the strategy-Obama
These numbers are all gold negative. Silver even more so.
Long printer ink! Long Scientific notation!
Yeah, just wait until you can get a FRN that has 1015 as its denomination.
Our kids are gonna be so fucked in the future.
Might be prudent to apply for passports...just in case...
And go where exactly?
New Zealand? Tasmania? Panama? Chile? Estonia? Central Canada?
Seams to me there are lots of viable emigration destinations.
Spend a winter in Saskatchewan and death will become a welcome friend.
Don't come to BC either. It's colder and flatter than Saskatchewan and all the chicks are fat.
What? Do you think this is Teen Jeopardy? BC has the best climate in Canukistan and the chicks are hot...as long as you are deaf.
Listen. Don't fucking come to "INDIA". We hate Americans.
.
Would you like us better if we shit on the roadside?
I hear American IT & engineers & doctors feel the same way about Indians.
So, there's always that ;-)
Why bother? I could visit the county landfill and have a nearly identical experience.
When we take our Call Center jobs back, you cow worshippers will be
back washing your madras man-skirts in the fetid cesspools you call rivers.
So you don't need refridgeration, beer doesn't roll away, girls are warm in the winter-shady in the summer. What's not to like about it?
So you don't need refridgeration, beer doesn't roll away, girls are warm in the winter-shady in the summer. What's not to like about it?
Antartica sounds like a great place and you dont need a Passport there. Lots of fish and birds to eat and sock away some meat for the winter time.
but but but real money is now based on debt! so so so we just print more money!
I mean they can't kill you because it's their hair they'd be cutting... Debt is our friend, it keeps the people we owe at bay. Just rack up more, and watch them buy the bonds.
ok i'm kidding
This is the hope, right? Collapse USA via debt?
No, this is the Pure Evil Ciminal Megalomanics plan. All done by Design, all done by Agenda.
...so we agree.
Listen. What's all this panic about debt? I've seen simple American homeowners take on multi-million do-lar loans.
Now do some fancy math and "SCALE" it up for The Most Awesome War-ing Country, Ever. You Americans can easily handle low-quadrillion numbers in debt. Easy!
This ones on me. I got my platinum plated 1 trillion$ coin on ebay couple yrs ago.one call from krugman is all it takes
What could go wrong?
There are no more debt ceiling theatrics because someone explained to the Republican idiots how it all works.
And, of course, the Democrat idiots have known all along how it all works.
Choice you can believe in...
I call Bullshit on that one William. Both Criminals have known all along how it works.
"That's why today I am pledging to cut the deficit we inherited by half by the end of my first term in office. This will not be easy - it will require us to make difficult decisions and face challenges we have long neglected but i refuse to leave our children with a debt they can not repay. And that means taking responsibility right now in this administration, for getting our spending under control." - Barack Insane Obama, February 2009
http://www.zerohedge.com/news/friday-humor-i-am-pledging-cut-deficit-we-inherited-half-end-my-first-term-office
Bonus: "Eat your peas!"
Let me be clear, some folks are gonna be fucked up the ass. OK, a lot o folks are gonna be fucked up the ass. By the way, I got me a new 9 iron that allows me to hit the green every time from 50 yards out...sweeeeeeeet. Oh yeah, I feel your pain.
Yeah, as long as nothing interferes with his golf game...and vacations to the Veeenyaaahd...and fundraising...and his little bureaucratic gnomes who are being busted right & left while the state run media screams...SQUIRRELS!!!
‘Basement Operation’
Maxwell says the weekend document session was held in the basement of the State Department’s Foggy Bottom headquarters in a room underneath the “jogger’s entrance.” He describes it as a large space, outfitted with computers and big screen monitors, intended for emergency planning, and with small offices on the periphery.
When he arrived, Maxwell says he observed boxes and stacks of documents. He says a State Department office director, whom Maxwell described as close to Clinton’s top advisers, was there. Though the office director technically worked for him, Maxwell says he wasn’t consulted about her weekend assignment.
“She told me, ‘Ray, we are to go through these stacks and pull out anything that might put anybody in the [Near Eastern Affairs] front office or the seventh floor in a bad light,’” says Maxwell. He says “seventh floor” was State Department shorthand for then-Secretary of State Clinton and her principal advisers.
“I asked her, ‘But isn’t that unethical?’ She responded, ‘Ray, those are our orders.’ ”
A few minutes after he arrived, Maxwell says, in walked two high-ranking State Department officials.
In an interview Monday morning on Fox News, Rep. Jason Chaffetz, R-Utah, named the two Hillary Clinton confidants who allegedly were present: One was Cheryl Mills, Clinton’s chief of staff and a former White House counsel who defended President Bill Clinton during his impeachment trial. The other, Chaffetz said, was Deputy Chief of Staff Jake Sullivan, who previously worked on Hillary Clinton’s and then Barack Obama’s presidential campaigns."
http://dailysignal.com/2014/09/15/benghazi-bombshell-clinton-state-department-official-reveals-alleged-details-document-review/
They're all as crooked as a dogs hind leg.
He's actually been pretty good on spending. The record of growing the economy however is the worst since the Great Depression.
"With the low poll numbers comes the caving in on largess" I imagine.
Was google searching the New York City subway system and the amount of money that has disappeared post 9/11...as a consequence of 9/11 actually...is truly criminal.
"Charging an entrance fee" to boot.
"9/11...tm."
Where is there peace in our lands? Where is there inner peace? So much ambition...somewhere all the rest of us got left behind I guess.
Did like the Jefferson quote. "There was never a more brilliant White House than when Jefferson dined alone."
So many lies.. So little time left.
There's also obfuscation and dissembling. Plus exaggerating, forgetfulness, "the misplacing of things." You can lose your "train of thought." Hmm. You can have an alibi or be pretending!
I mean when it comes to lying "never set a time/date certain." We do have actors and actresses after all...and yes they expect to be well compensated too.
It has gone up by an extra 2 billion dollars by the time i read this article
I've been waiting for.this.collapse since.2008.
Was freaked out for a while with all the doom and gloom so I spent a.wad.on PMs when they were way high and has since corrected. Oh well.
Now if its comes tomorrow I plan to hop in tbe tru k and meet tbe wife at lakehouse and hunker down. Let'r rip!
Hang on to them. The PMs you bought are still PMs. You're timing may not have been perfect, but your instincts are good. The worst thing you could possibly do now, is confirm a loss by selling them.
Ya. When that first chart goes vertical, that's when those nuggets pay.
What difference does it make now. I have not heard anyone talk about debt in over a year. Tax revenue at all time highs, stock market too, housing killin it, New York realestate on fire, Federal Govt workers gettin rich, Luxury items and collectables highest price ever, Bloomberg says hotels booked up All summer, Automobile sales setting records, Alibaba IPO richest ever, UST demand huge, gas cheaper, Everybody eating out except at McDonalds. No wonder no body talking about the deficit shoot I am surprised LEW has not suddenly mentioned the fiscal budget is balanced.
Somehow I have missed out on all the euphoria because i was loaded up with PM stocks.
but hey..it buys votes...and that is all that matters
You don't need to buy votes when you are the one counting the votes.
"And castels made of sand will slip into sea, eventually" Jimi Hendrix
Anyone can show a phoney economic recovery if they're allowed to write a trillion dollars worth of rubber checks each year.
Even a war maniac like Obama.
The backlash in the next election is ripe. As with Perot coming from nowhere to be a danger. Even the most stupid democrat(except cronies) is starting to realize...the danger is real. The time is ripe for a third party candiatee. The current system has so completley fcked up it is vomit inducing. Even some of the mega rich see the writing on the wall. If the status quo wins...I predict armed rebellion within 10 years.
Preacher... Meet choir.
Well, I for one sure as shit ain't gonna pay one damned penny of it back. FOAD. None of it went to me...so go pound sand.
I didn't ask for it, I didn't sign for it, don't want it...go screw.
Progressive welfare states all live on debt. Look around.
Growth = Stolen 1:1
"Someday this bubble is going to burst and then all hell will break loose."
Nope, wrong again.
This govt debt bubble can go on and on, Fed can print all the currency needed to buy $50 trillion more treasury bonds, $100 trillion more, $500 trillion more.
The only thing that will burst is the US dollar.
"We're just gonna kill the dollar."
Yep. They cannot print purchasing power, and their policies lead to malinvestment that leads to less quality supply out there, so even less supply to be bid up with ever diluting fiat.
Just explained to my 16 year old daughter that our family of 4 owns $735000 of debt. No SARC!
There is going to be massive poverty in America because of inflation and it will wipe nearly everyone out when this unfolds. Prepare as best you can. So sad as this could have been avoided.
<”…This is the greatest government debt bubble in the history of the world, but very few people seem to have any desire to do anything about this anymore. We are literally gorging on debt, and most Americans seem to think that it is just fine and dandy.
Perhaps that it is because we have never really experienced any serious consequences for going into so much debt yet.
But when it comes to running up debt, a day of reckoning always comes eventually….”>
Oh please, 100% right and 100% wrong. Yes, “eventually” it will all collapse, but why the f *** should anyone care if that eventually is 50 years from now? Most people don’t give a f *** what will happen five days from now. A year is now like a century to them. Stocks move 10%-20% in milliseconds. Janet’s words are as powerful to the masses as God’s were to Moses. She is like a god to Wall Street, she has the power to hold the markets up for decades, so who would sell?
So the national debt goes to $25 TRILLION, then $30T, then $40T..no matter at all, Janet will create as much as needed. Don’t believe the b.s. that a loaf of bread will be 50 bucks, etc. Deflation is here to stay.
Perma-bears refuse to see the New Normal as being just as correct as the old normal was. Fed intervention in the markets and limitless money creation are as right as needed. Massive government deficits keep people working and they buy stuff, creating jobs, rinse, repeat. Need a distraction, ready-to-go-wars. Fear-mongers already talking boots on the ground…watch what happens when the Iraqi army folds up like a lawn chair a few more times. Embrace it all…or be broke.
Read some of Temerity Trader's posts and complete the loop on your own.
When poverty does strike and hyperinflation occurs the creditors will now take assets in USSA. What constitutes assets aside from real estate includes human resources. The bidding for nubile young skinny blondes will also inflate in price in a nation where 36% obese those will become hard assets. Last time I check the demand will not only come from OPEC nations but also from women deprived Asian nations like China and Korea
Instead of a gold standard, are you proposing a breast standard for the dollar? I volunteer as a standards inspector.
Both people and governments have lived beyond their means by taking on debt they cannot repay. Over the last several decades we have created entitlement societies built on the back of the industrial revolution, technological advantages, capital accumulated from the colonial era, and the domination of global finances. Promises were made on the assumption that the advantages we enjoyed would continue.
Ever greater prosperity and entitlements were to be sustained through debt financed consumption growth. In that eerie fantasy world, debt fueled consumption was to be the catalyst to bring about evermore growth. Now reality has begun to come into focus and it is becoming apparent that this is unsustainable. The entitlements and promises that have piled up have become overwhelming. More on why this system will fail in the article below.
http://brucewilds.blogspot.com/2014/08/modern-monetary-theory-is-wrong-d...
Repay? Who the hell is repaying? Be lucky if a penny on each debt dollar is repaid...its default baby... no way around it.
You cannot have a default as long as you can print more money. But you can devalue that currency (which we will have to do). Of course, that will wipe out the value of any savings or any pension. High wage jobs will not keep up with the pace of inflation either.
In his book "A Time For Action" written in 1980 William Simon, a former Secretary of the Treasury tells how he was "frightened and angry". In short he sounded the trumpet about how he saw the country was heading down the wrong path. William Simon (1927 – 2000) was a businessman, and a philanthropist. He became the Secretary of the Treasury on May 8, 1974, during the Nixon administration and was reappointed by President Ford and served until 1977. He would never bevieve what is happening today. More on his thoughts in the article below.
http://brucewilds.blogspot.com/2012/09/a-time-for-action-1980.html
Just stiff the FED as they are not part of government and everyone's debt drops about 25%. The FED will fold - problem partially solved!
Yes, I think there is a plan to stiff the Fed. In fact, many of the toxic assets the Fed traded for are already worthless.
Toxic ass ets - they will have to put janet on the street to work off some worthless trades.
Fear not, the 2024 US Dollar will only buy 20 cents worth of 2014 products. That means 80% of our debt will disappear by then. You will need a good bartering skill or hard assets if you want to prosper.
Just wait until the computer algorithms no long work in the market and hyperinflation kicks in. I give our society 2 or 3 years not 10.
Only if your income grows.
who can afford central banks anymore??? the true costs far outway any monetary price. arrrgh......... a pirates life for me "L)
its called exponential growth it wont stop until its trillions a day.
The national debt by 2030 (assuming we are still running this system), has to be somewhere around 45 ~ 55 Trillion Dollars at a minimum, but I estimate it somewhere closer to 250Trillion by then since I don't think the system can sustain such debt increases without failing, I think we will jump from say 7% compounding growth year over year to something closer to 10~14% compounding relatively soon( 5 years).
The question is not if the system will fail (that's just a given at this point).
The question is , how much debt can the system sustain before failing . . . ? 20 Trillion? 40 Trillion? 100 Trillion?
The answer is not hidden in some mathematical equation as a variable to be extrapolated analyzed and diagnosed, it is a psychological limitation in the minds of men, at what point at what debt levels do the people CHOOSE to stop having faith? that "all is well" and that "things are getting better" ?
That is the moment where panic sets in, and things begin to correct.
The answer to when the system will fail, is simply, it will fail when a sufficient amount of people stop believing in it due to the absurdity and the acceleration of exponential growth finally striking a psychological nerve with the general populous.
Listen. So you say "IT WILL LAST" as long as Americans are "KEPT" willfully ignorant? How many years will that be?
Can we agree that infinity is a nice round number that fits nicely as an answer. Because in America there is one thing that is more abundant than "DEBT", stupid Americans.
Americans think that their kids will somehow repay the debt.
But the US government will just default, kids will pay nothing.
The major part of the debt has been bought by US pension funds, private and public, and Social Security. The current and future pensioners have been living high life. How will they live after the default have destroyed their savings?
So what?
Barry is just doing what he set out to do.
The budget of the federal government is like that of a family suffering from a home invasion, going ever deeper in debt to the banksters, who are using financial terrorism against them.
It grossly understates the nature of the problem
to compare the national finances to a household.
What is a more accurate metaphor is to imagine
a family that was a victim of a home invasion!
A gang of criminals moved into the home,
and took over what the family had to do!
A gang of criminals hijacked the family's finances.
That gang of criminals made paying them
the first priority of the whole family,
and it took precedence over everything,
like education for the children, etc..
Any of the metaphors about family finances
make NO sense, unless one includes crucial
points about the de facto home invasion
that took real control of their finances.
Any genuine solutions have to address
the genuine problems which are due to
the powers of robbery having been the
source of the crazy cult of all "money"
becoming based on nothing but faith.
It was the governments' powers to rob
that enabled fiat money to be realized.
Some family might be earning $50,000 per year,
BUT, since a lot of their income was being stolen,
they have a harder time paying their bills, and so
they borrow $10,000 ... and for a while they find
that their situation undergoes a better recovery!
However, they actually went backwards ...
They ended up worse off, and deeper in debt.
The real problem is that they are victims
of a criminal home invasion, which has
taken control of that family's finances.
Any talk of a "recovery" is slight-of-hand bullshit ...
It is magical tricks & illusions, preformed for morons.
As always, analogies between governmental finances
and families' finances only make sense after one adds
the social facts of the overwhelming home invasion!
Banksters control the money supply for both.
AN EXPONENTIAL GROWTH OF DEBT SLAVERY
WAS BUILT INTO THESE SYSTEMS' STRUCTURE.
“The greatest shortcoming of the human race is our inability to understand the exponential function.”
-- Albert A. Bartlett
The "debt cancer" in the USA, which is the heart of the globalized beast, has been on a 99% perfect match to an exponential function since the 1970s. That has become a totally metastasized cancer, because the monetary system spread everywhere, controlling everything, whereby every social institution became infected by the same fundamentally fraudulent financial accounting system.
The achievements of organized crime taking control of the government, through wide-spread, integrated systems of legalized lies, backed by legalized violence, encompassing almost everything, were like a home invasion of the American Family, which was able to be consolidated for generation, after generation, after generation, relentlessly rewarding those who agreed to go along with the criminals' systems, while punishing those who did not, spiraling around and around, so that, more and more people agreed with lies, to the extent that they can not face the truth. The deeper truths are that money is measurement backed by murder, and that the best organized gangs of criminals, through the methods of organized crime, have been able to almost completely take over control of the government of the USA. Furthermore, there are no genuine solutions outside of that deeper truth ...
The banksters' "solutions" are world war,
martial law, & mass murder of the people.
http://www.conspiracyarchive.com/NWO/silent_weapons_quiet_wars.htm
Silent Weapons for Quiet Wars
"Energy is recognized as the key to all activity on earth. Natural science is the study of the sources and control of natural energy, and social science, theoretically expressed as economics, is the study of the sources and control of social energy. Both are bookkeeping systems: mathematics. Therefore, mathematics is the primary energy science. And the bookkeeper can be king if the public can be kept ignorant of the methodology of the bookkeeping. ... In this structure, credit, presented as a pure element called "currency," has the appearance of capital, but is in effect negative capital. Hence, it has the appearance of service, but is in fact, indebtedness or debt. ... if balanced in no other way, will be balanced by the negation of population (war, genocide)... They must eventually resort to war to balance the account, because war ultimately is merely the act of destroying the creditor ... War is therefore the balancing of the system by killing the true creditors (the public ...)"
Why doesn't the u.s just start printing its own version of the pound?
You can print more money once gold declines in value.
Like using more dope because others also like it and ignore healthy lifestyle? It's indeed a certain type of reasoning. Perhaps nice for the very short term when already living a lala land.
budget, o'bama said 5 yrs. ago, budget we don't need no stinking budget.
Exactly! After they got the "stimulus" passed, the Democrats decided to eschew budgets, which permitted them to continue to spend at the inflated "stimulus" number every year. This is the slight of hand they use to say Obama is a fiscal conservative for not raising the spending levels, because the year the "stimulus" was passed was the final Bush budget year. Effing skunks!
Thank you for saying what I've been saying for three years. But you forgot one thing - because all revenue bills originate in the House, this is all on the Weeper of the House. If he didn't want it, it would be gone. It's really not fair to blame it on Jugears (but I don't care if he's the designated village idiot).
The engineering of the dark political $ currency, the WW reserve currency, will cause monetary hell. Before the collapse there is hardly or no problem whatsoever according to many. That's of course just one of the preconditions for a collapse. In that precondition people ignore gold and silver, the original and independent monies. Very bad luck for them.
I don't see a problem with this. They're just charts with lines and some numbers. I make 'em everyday and they don't mean much. I mean, if you don't pay attention to them, then nothing needs fixing. So we're good.
One of the most amusing subterfuges currently on offer is the sudden emphasis upon the heretofore invisible concept of "publicly-held" debt as opposed to the old standby total national debt.
By harping upon the fact that only about 75% of the national debt is in the hands of non-governmental entities, the federal government makes it appear that the problem is much less severe in America than elsewhere. But a dollar owed to Social Security or the "Fed" still exerts the same drag on economic performance and offers the same level of threat to the future.
So we can all see that the US economy is about 17 T in size and we can all see that the headline national debt number is also on the order of 17 T. In the hands of mob accountants and Orwellian newspeakers, this becomes 75% of GDP.
Of course we aren't even talking about the truly Godzilla-like number that is known as the unfunded liabilities. What is even more sad is the fact that the situation continues to deteriorate decisively even using the new math oozing out of DC. Of course this is still better than the new math out of Europe, where a large fraction of Greece's debts were defaulted upon and the drop in the remaining undefaulted portion of the national debt as a percentage of GDP is then heralded as "progress".
Back in 2008 Bush earned the title of "the ten trillion dollar man." He had taken the national debt from 5 to 10 trillion in eight years.
It was pointed out by someone (perhaps K. Denninger) that the national debt was doubling every nine years.
So I have been watching with keen interest to see if it would do the same under Obama.
Lo! He took office with 10 trillion in debt, and at this rate he will be leaving office with 20 trillion in debt!
He is doubling the debt in only eight years, not nine.
Which mean, of course, that whoever the next POTUS is, he/she will leave office in 2024 with the national debt at 40 trillion, at least.
It's lucky for us that these are only numbers.
Well done for the balance, its not entirely Barrys fault, its a problem thats been ignored and left to grow for generations. Neither is it unique to the US, the UK, Japan, and many EZ nations are equally fucked. Italy is rapidly heading into a zone of insolvency, with debt/gdp heading towards 145% while yields are miraculously below those of the US at 2.45%.
Whether through arrogance coupled with desperation to hold on to power, or misguided benevolance, politicians across the globe don't see many alternatives. Cutting budgets would create a depression, that could destabilise current nation states, lead to a rise of nationalism and all out war. What they're doing is buying themselves a bit more time, and a bit more time on the throne hoping somebody finds a way of sorting it out for them.
To me, theres only two ways out of this default or asset confiscation.
"What we are doing to future generations is absolutely unconscionable. We are stealing trillions upon trillions of dollars from our children and our grandchildren, and we are willingly consigning them to a lifetime of debt slavery."
Fuck the children. Let them fight ISIS for crumbs or death. Besides, it's someone else's child anyway!
Mission accomplished by incorporation, where no one sees a thing because the Constitution is meaningless -
people are meaningless.
It was unsustainable debt which put paid to the British Empire. It happened quickly too. When it happens to the US, as it will, there will be no gradual decline but a big pop like a sun contracting to a black hole.
'War has gone corporate' John Le Carre.
Just let's make sure this time that when it pops, we all get to wipe our credit card balances and car loan balances CLEAN like the banks. Think I will ping my Senator to start writing that bill now...
So we went from 10.6 trill under Bush and have doubled it under Obama. Do you really think that Obama has singlehandedly spent all the money we don't have? Truth is that every spending bill originates where? In the House of Representatives which is has at its leadership John Boehner, a Republicrat. When the voting public figures out there is no difference between Republicans and Democrats maybe then they will demand a third party. Right now there is no alternative. The TEA Party is still part of the Republican Party headed by the likes of McCain, Graham, McConnel, Boehner. Entrenched incumbants who have made a career out of spending your money and enriching themselves.
"Right now there is no alternative."
Sure there is: DON'T VOTE.
you cannot steal from someone who hasnt been born yet. You can't leave the hospital without a SS number for your newborn baby. Indentured servitude to the tax monster. "We the People" have not run this country since the 60's and maybe even before that. It isn't fixable. I am in sales and meet people every day looking at my product that couldn't make a sound minded decision if thier lives depended on it. I often wondered it it was me getting dumber. These sheeple would die in front of an oncoming train neither jumping left or right to get off the tracks. I have paid over a million dollars in taxes in my working lifetime. I am not a millionaire. I am sickened when I look at what my country has become. I don't believe we are fixable. I don't however see Americans jumping on boats to smuggle themselves into Cuba. i don't see Americans packing themselves in overseas containers to smuggle themselves into China. We might be broken but still the prettiest pimple on the pig. Will it all go kaboom? I don't know. I didn't for a second think they could sustain this money printing this long. Will we see the dollar used as kindling or fuel to keep our homes warm some day? We just might,,,,, we are just rearranging the deck chairs on the Titanic. My hope it we teach our children and grandchildren to not do the things we have done. It is after all their future at some point,,, until then,, good day.
0000000000000000000000000000000000000
All snark aside, what does "All hell breaking loose" actually look like? I mean he says "nobody seems to care" but hell, the lights are on, my phone works gas is still affordable, the highways are rolling along....what exactly happens? I've never been able to get mind around that.
think "walking dead"
I have never completely understood the relationship between the deficit and the debt: how (in detail) can it be possible that the debt generally expands by significantly more than you would expect by adding the deficit to last year's debt?
Would be much obliged if someone can answer the question (using numbers).