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US Debt Soars By $100 Billion On Last Day Of 2014, Hits Record $18.14 Trillion
It seems like it was only yesterday when we reported that, in yet another sleight of hand for the US Treasury and Social Security Administration, US debt rose by $32 billion on the last day of November sending total US debt above $18 trillion for the first time ever. As we further noted, it also meant "that total US debt has increased by 70% under Obama, from $10.625 trillion on January 21, 2009 to $18.005 trillion most recently."
Fast forward to today when we are happy to report that according to the US Treasury, America's debt-funded spending spree, while supposedly slowing down if looking at the declining monthly budget deficit report, never actually has.
As of the last day of 2014, total US debt soared by $98 billion in one day (driven again by Social Security debt surging on the last day of the month to a record $5.117 trillion), and closing off 2014 with a new all time high total of $18.141 trillion in Federal debt - an increase of $136 billion in the month of December and $790 billion for all of 2014.
Source: US Treasury
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No one said, that a leftist Utopian paradise would be cheap.....and you can keep your doctor too.
We’ve got to euthanize these ‘everyone gets a trophy’ baby boomers before it’s too late. Stupid assed soccer mom, meet guillotine.
"Whenever destroyers appear among men, they start by destroying money, for money is men's protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked, 'Account overdrawn.'
Francisco d'Anconia
Wasn't he Carlos Slim's love child?
Easy for Francisco to say, with his inherited copper mines and all. How hard did he work to inherit his mines?
LTER you have an acolyte, look he is envious of what others worked hard to amass.. Your right the copper mines should have gone to the peoples, tragedy of the commons to follow shortly..
Not the point. Francisco did not work hard to get those mines.
Everyone on Atlas Shrugged was either a thief or a spoiled royal trust fund brat. Except for Galt, Rearden and the norwegian pirate, whom i bet in real life would be denounced even on ZH as a terrist.
Last minute post-holiday discount shopping?
I don't even track so much the numbers anymore, but the degree of nonsense embedded in the numbers.
All the numbers are now "Winston Smith" numbers, and only reveal their degree of commitment to cover up.
Like how the "magic bullet theory" revealed how dedicated the Warren Commission was to the cover-up of the coup against Kennedy.
The banksters need to repay us.
The complicit-media also functions to some degree as a "memory-hole."
Meh, what's a few hundred billion dollars here or there? In the rigged banksters monopoly game it really means nothing at the end of the day, because it is just a game after all.
Look! Up in the Sky...it's a bird...it's a plane...no...it's.....
I am happy to note that I'm someone elses debt and thankyou very much bankster M'Fers.
So why all the touts that Mr Obama has reduced debt?
Libatards claim reduction in 2nd derivative. Funny, most libs have no idea what a 2nd derivative is but would love to collateralize it..
Whew, glad that shit is not MY debt or I'd be concerned.
All are rich!
Phrases of the late economic journalist Joelmir Beting (Tambaú, December 21, 1936 - São Paulo, November 29, 2012) was a journalist and sociologist brasileiro.1 great contribution to professional journalism, economics and communication, pioneered the translation of difficult terms technical economics to everyday life:
"The stock exchanges, such as aircraft, are one hundred percent safe: every airplane that up is down".
"We have six calendars in the world today: the Gregorian calendar, or Christian, the Jewish calendar, the Islamic calendar, the Japanese calendar, the Chinese calendar and the Brazilian calendar".
"If we can not improve what causes fever, at least we have to improve the quality of the thermometer."
"Nature does not defend himself; she takes revenge. "
"Half of humanity goes hungry. The other half is regime. "
"In economics, it is easy to explain the past. Easier still is to predict the future. Difficult to understand the present. "
"There is no political solutions to economic problems."
"You can only explain what you understand."
"Modernising is not sophisticated. Modernize is to simplify. "
"When prices rise is inflation; when down is promotion. "
"The management of the economy has only two problems: when policies fail and when the measures work."
:-)
I thought the russians had their own calendar. Or is it just like the gregorian but with offset days?
Joelmir was full of shit.
Yeah yeah....shame shit different day....
But...The Girl Scouts are seriously growing some KILLER POT these days!
;)-~
So according to the 7 year twitch, debt doubles !
Well, that's handy!
How do you spend 18 trillion and have no gold to show for it?
Gave it to China.
Gave? Paid to China.
Americans are in-debt beyond the prospect of ever paying it off and are the World's official drunken sailor Gubberment of all time. With this level of debt breaking into the New Year it is evident to all with half a brain in their head that the USA is bankrupt and will end up declaring chapter 11
before any sort of reset manifests. Moreover, where are the ratings agencies on this debt trail, Tyler? Are the ratings agencies going to stay mum for all of Q1?
All I want to know is who owes what to whom.
If someone owes it, it has to be owed TO someone else.
There's something resembling a red, slightly rounded triangle buzzing about in my brain, but I can't quite pin it down.
"The world will soon wake up to the reality that everyone is broke and can collect nothing from the bankrupt, who are owed unlimited amounts by the insolvent, who are attempting to make late payments on a bank holiday in the wrong country, with an unacceptable currency, against defaulted collateral, of which nobody is sure who holds title."
Sounds about right!
Ouch. Sounds rather damn accurate.
18 trillion, huh? Well, maybe America does have a problem, but it sounds to me like America's CREDITORS have the real problem here...
Bankruptcy - Which chapter? It's been a free-for-all, a goddam robbery that has been ongoing and without restraint since 911 - the day the US govt colluded with foreign entities to destroy US property and kill as many citizens as possible to enrage the nation against "terrorists." But there were no terrorists, just self-absorbed very rich men who think they're parents are going to show up and save them on the day they are convicted of premedicated homicide and treason.
they're = their
Another poster pointed out the lack of Bankruptcies over the last several years.
28 second mark below.
Did anyone review?? Anyone? Did anyone do a six-month review?
"I've abandoned free market principles to save the free market system" - George W. Bush
https://www.youtube.com/watch?v=Tmi8cJG0BJo
The rate of interest tells you how many must default.
A loan only 'produces' the principal, not the interest.
Zero interest rate should mean no bankruptcy.
By the way, GW also killed a lot of folks to protect their freedom.
All we have to do is default. If we didn't pay interest, the budget would balance. There does not seem to be a price for defaulting. I see people declare bankruptcy one day and get a credit card the next.
I have believed the USA would go bankrupt for over 40 years and today, I live better than I ever did. So I have been wrong for 40 years, this thing has a long way to go.
"I see people declare bankruptcy one day and get a credit card the next."
Exactly. They are targeted by credit card companies, in many cases the SAME companies whose debt they discharged in the bankruptcy!!!
Why? Because those companies know that those 'customers' are unable to do bankruptcy for at least 7 years...it isn't about ability to pay, it's about cashflow and the ability to keep loans on their books that don't have to be written-off unexpectedly. They don't care if they're actually PAID, just that they never have to record a loss.
There's no price for defaulting because there can't BE any price for something like this. The whole system is built on fraud, smoke and mirrors, how do you price the risk on such a thing?
The whole THING is risk...the very banks that you depend on to keep your money safe are TARGETING people fresh out of bankruptcy to loan it to...what does this tell you about the risk you are assuming? What, you need a PRICE to tell you to run the fuck away from these assholes? C'mon...
No one playing this game should expect to be able to exact any price from those they play with.
the new currency commingonline will solve everything it will be issued by a consortium of central banks after all the gold is audited and the debts voided those with a surplus in gold will decide how to divide up the countries with a deficit. I should think a large part of the midwest would go to china so the can feed themselves with american labor and productivity. theuseless american city fwellers can be left to starve since they serve no purpose.
I say we pay off our foreign creditors in full and then stick the remainder to the Fed. We storm the Fed and then march on down to Congress and tell them exactly how it's going to be done from this point forward.
Or maybe you have now reached the edge of the cliff, and its A LONG WAY down.
"we all float down here"
Yep,,, that'd be the american taxpayer...
We'll all be RICH. RICH I tells ya.
Just have to chime in here.
The similarities to the American Revolution are aboudently clear.
American Revoulution part II is happening as we speak. If Zerohedge has a backbone then why not tell it as it is?
Martial Law is coming. Be prepared. Gold, Silver, food and ammo. Don't let them force you to go anywhere. Fight anyway you can. Just don't give in. Hold your ground. Make it so hard that it hurts!
Remember the saying "NUTS". Let's all be tougher than that!.. Just saying our Government is out to force us into submission. I say NUTS to that and fight every inch of the way. Who's with me?
That's one trillion per golf hole.
ha ha! you took the wood out for that one? double (obama) bogey or (US) eagle on the last?
can i get a reciept?
Would you loan $$$'s to your next door neighbor who was $18 Trillion in debt? Exactly..... That the US is still able to "borrow" money is a fact that is SCREAMING something's wrong, big time...
Because we are the worlds reserve currency with a strong military we can print money. Don t need to borrow. Most democrats believe that debt doesn't have to be repaid.
Welfare does't have to be repaid. It all makes so much sense to me now!
It does not need to be repaid. Any holder of US debt is just an investor. All investments have some risk. If some moron wants to loan money to the US government, let him eat his future losses.
As it currently stands the US government is getting free money from "investors". Not a single one of your precious was spent on paying this debt. Even the interest is paid by borrowing.
it all keeps working as long as non-US central banks take the other side, one hand washes the other to prevent currency debasement of every (major) currency.
provided other countries centrsal banks accept swap lines with every country QE is underwritten - someone needs to do the arithmetic - one countries QE is another countries "reserves".
of course, it's all BS, but bankers win big time by arranging swaps and transacting in "reserves" of central banks.
it's not borrowing, it's "swapping".
Obama said Bush was unpatriotic for spending 3 trillion!
Obama said a lot of shit. Who can keep track?
Who cares what is stored in the bankster computers if humanity is going to get wiped out one day.
I live in a world of lies. I'm glad by believing that I'm in the minority or we would all be in serious trouble.
Used to be, debtors went to debtor's prison.
But in this era, the debtors shift it all on the back of the American taxpayer, and "we all in prison now".
Meanwhile, we wait for the charade to end. Observant people know it will; nobody knows exactly when. The only certainty is it won't be pretty.
Now creditors go to creditors prison. In both cases, the jailers re the banksters.
18 Trillion Debt
18,000 Dow
Coincidence?
Deficit spending pumping GDP and the stock market
Who could be against that?
I tried to explain to my father who is a retired sheriffs of 30yrs about how fucked we are. He said that's nonsense because we have the backing by the full faith and credit of the United States.
I said and what do you think that means?
He said what do you mean?
I said exactly. How do you explain to someone something when their job depends on them not knowing?
I stop talking to my dad about politics.
Full Faith And Credit of the United States is one of the most deceptive marketing slogans ever created; the phrase is meaningless hyperbole. A more honest and descriptive phrase/clause would begin with: Full Mistrust And Debt of the United States. BTW, TalkToLind never discusses economics with family members either. I am sure thankful we Z.H. bitchez have each other to vent with.
Sigh. Net debt is 14 trillion. The Fed balance sheet, which is mostly treasuries, is over 4 trillion. When they mature, it'll get paid back to the treasury.
MOAR!!!! Plz. With a side of popcorn.
100 billion? Audited or not?
100b ain't a thang
when you be rollin on hope an' chainz
The fiat money system was created to support communism. The only way communism can work is by fiat money system. The only way the fiat money ponzi scheme called the federal reserve can continue is thru the destruction of those who will be dependent on the ponzi scheme and/or the destruction of all property rights, which creates in either case the totalitarian state.
Very well said. Very succinct. So simply stated even an above average American can figure it out. Which means that 90% of the country has no idea what you just said.
Damn, I didn't even get a reach around!
The trillions of debt doesn't matter as long as the USD is the world's reserve currency. We don't even need to print fancy paper, just generate a few bits of computer data. When the bits mature, we just replace them with newly generated bits. The problem would start with the waning of the dollar's reserve status, when creditors would demand something tangible for repayment. The US would NEVER stand for this, it would rather start WWIII and the world would rather swallow than fight another world war.
Record debt to Social Security? Hmmmm. That must mean that contributions in are still exceeding outflows otherwise the US debt that Social Security owns wiould go down. Is this some kind of good news in reality?
Dave Ramsey to the rescue!
Yellen free money mayham. Keep printing bitch. When it collapses, quess who gets the assination treat and party bag? Not us tax payers. Nor the derivatives obligation. You do. I can't wait to buy your unaffordable luxury property.
Starting to add up.............. happy new year hedgers!........... hope everyone had a nice holiday.
Nothing sums this up better than this song international Voodoo..you are going to die"
https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rj...
15.5% Bankruptcy Rate per person over 20 Years for US Citizens (Snapshot in Time).
What does ZH Think about the Cost of Living, Jobs, Economy, and Health Care in Light of this???
----
1.7 Million People in US will Face Bankruptcy this year due to Medical Bills (Jim Cramer). 147 + 98 = 245 M working aged. 1.7 M / 245 M = .69% Bankruptcy Rate per year per person Minimum. A US Rate of .77% Bankruptcy rate per year per person is reasonable based on 1.7 M / 219.6 M aged over 25 years old.
20 Years Rate = 1.7 * 20 / 219.6 = 15.5% Bankruptcy Rate per person over 20 Years.
http://www.amednews.com/article/20130708/business/130709932/6/
http://www.debt.org/bankruptcy/statistics/
http://www.infoplease.com/us/census/data/demographic.html
http://quickfacts.census.gov/qfd/states/00000.html
- 60% of bankruptcies are due to medical bills.
- Younger patients had two to five times higher rates of bankruptcy than cancer patients 65 or older.
- Since the early 1990s, bankruptcy has been used with increasing frequency by older individuals. While more senior citizens are declaring bankruptcy, a decreasing percentage of filers are younger than 25.
------------------------------
---- Bankruptcy Rate --------
------------------------------
115.6 million = Total Households
2.63 people per Household
74.3 Million people under 18 years old
244.7 Million people over 18 years old
99.4 Million people under 25 years old
219.6 Million people over 25 years old
319 Million = Total Population (FRED)
245 Million = Total Population over 16 years old (BLS)
147 Million = Total Employed (FRED & BLS)
92 Million = Total Not in Labor Force (FRED)
98 Million = Total Not in Labor Force (BLS over 16)
Active Population: Aged 25-54: Males for the United States©
2013: 53,964,000.00000 Persons (+ see more)
Annual, Not Seasonally Adjusted, LFAC25MAUSA647S, Updated: 2014-02-05
http://research.stlouisfed.org/fred2/series/LFAC25MAUSA647S
Bankruptcy is now the new normal course of business for Americans. Within 10 years 99.9% of us will be bankrupt and begging for food and water. This is Obama’s plan for “true income equality" – everyone bankrupt. When this comes to fruition the riots and killing will eliminate about 150 million people. Whoever is left gets the spoils. Meanwhile Obama and the .1% will be in their guarded mansions watching all the mayhem on big screen TV’s and betting who will get killed next…
The curve is flattening out, debt is contained.
Woe unto those to do not understand how compound interest works.
We're at 10 cents or so of every tax dollar going to interest carry. Spending a few hundred billion less of borrowed money is better than not, but it doesn't flatten a thing.
So a quick calc gives me roughly $26,000 per resident over the span of Calniggula's rule. That's of course just $26,000 sunk cost and represents not even a meaningful fraction of all that this miserable sociopath has imposed upon the world.
If we exit 2015 reasonably intact, God save us after that too because the trend is NOT our friend.
Its just paper. You ascribe magical powers to a pile of documents.
Bunch of bean counters, obsessing over "documents" of a financial nature. None of it is real.
Grandmaster Putin: Russia Earns $20 Bln, Recovers Stocks Of Its Companies.
http://inserbia.info/today/2014/12/grandmaster-putin-russia-earns-20-bln...
Is this real or surreal?
It's not all bad news really. On a grander scale it's still not large enough to begin rounding up to a quadrillion. So we got that going for us.
confetti here confetti there, pretty soon your talking a wedding.
Everyone knows the $100 Billion is money to support Obama’s new illegal alien project. Obama’s oval office slogan is “…an illegal alien voting on the next election day keeps the Republicans away…”
I got the solution! Just mint 18 one trillion dollar palladium/gold coins the size of mother's ships in Independence Day, that ought to do it.
Is that chart the S&P 500? Looks just like it...
rounding error
All this debt talk is bullshit. That's just what the sociopaths have over-spent on the roughly $110 trillion spent since 1980.
That's right--in the last 35 years, fed/state/local govts have spent about 130 trillion dollars, 110 of which wasn't debt. Sure, they've given lots away in the form of direct payments (social security, disability, pensions, and welfare) but a lot of it, in fact most of it, has gone into building control systems.
Isn't this what govt is about? Telling people what to do and putting in systems to make sure they respond. It's no surprise the economy is in the shitter with the drag imposed by tens of millions of people--bureaucrats, spies, regulators, enforcers, collectors, auditors, contractors, scientists, engineers, psychologists--on and on it goes.
They've spent as much to build their entities as everything you see around you. All the businesses, houses, cars, aircraft--everything you see that's privately held is matched in size by govt systems operating 'behind the scenes'.
The nature of this monstrosity is to (1) do nothing and milk the system for all it's worth (2) find things it can do when it fails to meet is always-ambiguous mission goals. Even if the search for new things to do is a small portion of govt workers, it never, EVER, stops. It has no restraints except for budget (which means it has no restraints). There is nothing it's busy body employees won't do to make you comply.
Between employees, contractors, and workers that primarily serve govts, the US likely has 50 million people involved in controlling the rest. Most of these people believe they are at least beneficial, and definitely entitled to the salaries and benefits they get. Most are a bunch of fucking assholes. They might be friendly on the surface but scratch the veneer and they are a bunch of selfish, lazy, moody, manipulative self-important narcissitic shitbags, unchecked by competitive pressures. Even worse--they've put in mechanisms to protect themselves at all costs. If a budget needs to be cut, services to the sweaty, smelly subjects gets cut first.
To top it off, now more than ever the govt is buying private property and entities via securities purchases. It's going to end up becoming the largest owner of [formerly private] entities, and the largest customer of said entities. Look at health care--1/6th of the US economy. They have control of the entire supply chain, from the education system that trains medical staff and researchers that devise techniques and compounds, to insurance companies and the methods of dispersing coverage, to hospitals that deliver service and determine pricing. The more govt gets involved, the shittier it runs.
This 100 trillion dollar monstrosity is not going away. It's so big and pernicious that it's unmanagable. It takes a year or more for new employees to figure out what's going on in most of these entities; there's no way elected officials are around long enough to find and fix problems, if they even bother to look, which they NEVER do. The organizational problems within these tight-knit communities of freeloaders are out-of-sight, out-of-mind, and completely out of control.
Given the level of govt involvment in everything, and it's god-awful methods of execution, I can't believe the US has lasted so long. It's unsustainable. It will fail. And like a paranoid, narcissitic, envious bully fighting for a lifeboat on a sinking ship, it's not going to go down without taking everyone else with it. It will hold everything and everyone hostage for it's seat on the lifeboat, even if it means everyone dies.
That's what happens when govts perceive a 'nation' as 'the govt is the nation' instead of 'a nation of sovereign individuals'.
The debt is never going to be repaid - that much is obvious.
The question is whether a world war will truly be used to cover default.
The debts of governments don't actually represent "debts" in the traditional sense of the word. I mean once you accept that the governments are not financially constrained like house holds and are also the sovereign issuers of the currency that the "debt" is denominated in then how can they have a debt? The "debt" that the government has is simple a way to account how much net financial assets the fed/treasury has pumped into the economy.
Wrong.
Do you not understand that the US government does not print money - that it borrows the currency from the private Fed, and that each dollar represents debt to repaid by a tax on labor?
Good grief, man.
Correct. The Fed (along with, of course, fractional banking) simply creates money out of thin air 24/7/365 but if not "repaid" then there is hell to pay. The "almighty dollar" is, like all fiat currencies, a complete farce, only given value in the minds of those who either don't understand how the system works, or understand but go along with the charade.
It's a sick, depressing thing. Worse, part of what gives the USD any illusion of value is that it is essentially a promissory note on the backs of future tax payers that we will pay the taxes to service the debt. So, in a system that creates money out of thin air, why do the citizens have to pay tax at all? There are only two reasons: 1) to further the illusion of value of the fiat money/debt, and 2) to control citizen behaviors.
We've been getting awe inspiring headlines that the debt went up $1B in just one day ... the last day of December. Yet, from this article, they spent $129B in the other 30 days. That means the last day debt increased at a rate 1/4 the normal. All this time I'd been reading those headlines as a "bad" thing. Looking more closely it is an overwhelming "good thing".
I've been wishing for a government 1/10th the current size. I'll happily settle for 1/4th the current size as a first iteration.
OOPs. Got the decimal place wrong. It was $100B that last day. Not a good thing.
It'll be over 20 trillion in 2016.
Who cares,
They are not going to pay it back anyhow.
Either they loot nay country/continent (Russia or Africa), or the citizens will be on the hook (via tax system, or not getting the pensions and healthcare)
The US government can and should start printing its own currency - US Notes rather than Fed Reserve Notes - and declare it legal tender. Declare the debt owed to the Federal Reserve itself as Constitutionally void and pay remaining creditors with the new US Notes.
Of course, to do so would require a sort of national vote of "no confidence" in Congress.... and Maidan-like protests.....
https://docs.google.com/document/d/165i0dicryJ_KtzCr6agR6O6v4XaRM2EDr6f1...
"They who have put out people's eyes reproach them of their blindness" John Milton 1642
It's time to call the bluff on this $18 trillion by those holding the I.O.U.'s to demand redemption of those IOU's.
Call the Fed's bluff.
"Call the Fed's bluff."
To the US Federal Reserve it's just a PhD game.
If it was $400 trillion they'll just print $400 trillion without winking an eye.
Nothing backs the dollar.
Bankruptcy http://www.wfs.org/blogs/thomas-frey/when-countries-go-bankrupt
What happens when a nation goes bankrupt?
"When a country goes bust, the pain is felt on very deep levels. The most basic systems and institutions that people have come to depend on simply disappear. Power companies stop operating, the police stopped working, gas stations close, grocery stores run out of food, postal workers stop delivering mail, retirement checks stopped coming, and banks close their doors with bankers fleeing the country, taking people’s life savings with them."
https://www.youtube.com/watch?v=Sug7bWxTuSo
The Take - Argentina after bankruptcy
The 100 Billion increase in the Federal Debt happened at the same time the Federal Reserve have published data showing an increase of 256 billions in the adjusted MB
Where are the other 156 billions?
I was compiling today my charts about Bitcoin and USD M1 and MB and bang!!! +8% in MB in two weeks.
Did Chair Yellen got a brand new Helicarrier to shower down cash in her friends pockets?
http://tinyurl.com/novzq57
ZH likes to point out something like this, yet not followup when the debt is reduced by $60 billion the following day, Typical focus on negative or bad news only, and no followup when the bad news is mitigated in question.