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It's Official: US Debt-To-GDP Passes 100%

Tyler Durden's picture




 

With precisely one year left for the world and all of its inhabitants, at least according to the Mayans, not to mention on the day of the Winter Solstice, it is only fitting that US debt, net of all settlements for all already completed bond auctions, is now at precisely $15,182,756,264,288.80. Why is this relevant? Because the latest annualized US GDP, according to the BEA, was $15,180,900,000.00. Which means that, as of today, total US debt to GDP is 100.012%. Congratulations America: you are now in the triple digit "debt to GDP" club!

(naturally, this is using purely "on the books" data. If one adds the NPV of all US liabilities, and adjusts GDP for such things as today's housing contraction, then the magical triple digit threshold was breached long, long ago).

And here is the breakdown for the forensically inclined ones:

I. Total debt as of December 20: $15,131,979,264,288,80 (source):

II. Net cash settlement of all completed auctions: $50,777,000,000.00 (source):

III. Total GDP: $15,180,900,000,000.00 (source):

=> Total Debt/GDP= $15,182,756,264,288.80/$15,180,900,000,000.00 = 100.012%

 

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Wed, 12/21/2011 - 19:19 | 2002800 NotApplicable
NotApplicable's picture

Thing is, the long calander is so long, they've lost the new one.

It's probably packed away in a box in storage somewhere.

Wed, 12/21/2011 - 20:54 | 2003027 AssFire
AssFire's picture

Actually, it was stolen and sold for scrap value in the late 880's during the great Rock Default Swap collapse of the Mayan stone currency...one remark I found interesting was inscribed describing the collapse..."They currency stones became as worthless as paper"

Wed, 12/21/2011 - 21:06 | 2003055 tmosley
tmosley's picture

Yeah, that Mayan stuff is nonsense.  Everyone knows that the world ends December 31st.  That's when my calender ends, after all.

Wed, 12/21/2011 - 21:55 | 2003151 pods
pods's picture

Well you got just over a week to prevent the end of the world.  

I would not wait till the last minute either!

pods

Wed, 12/21/2011 - 18:14 | 2002547 jeff314
jeff314's picture

are you close to the new debt ceiling???

Wed, 12/21/2011 - 18:14 | 2002548 AtomicWarhead
AtomicWarhead's picture

The Treasury Bond Market is going to blow up like an atomic bomb ... you don't believe it's there until you have been erased from planet fiat ...

USA, USA, USA !

Wed, 12/21/2011 - 18:15 | 2002553 Jlmadyson
Jlmadyson's picture

Probably because S&P has to do it at the right moment. Whenever the talking heads deem fit. I'm with the other guy on this one though; this long of a wait means 2 notches down.

Wed, 12/21/2011 - 18:16 | 2002556 A Lunatic
A Lunatic's picture

It isn't my debt so I don't give a shit.

Wed, 12/21/2011 - 18:19 | 2002571 devo
devo's picture

Have you heard of taxes and inflation?

Wed, 12/21/2011 - 18:24 | 2002588 A Lunatic
A Lunatic's picture

Have you heard of the underground economy? Starve the fucking Beast and stop making excuses.

Wed, 12/21/2011 - 18:26 | 2002613 Long-John-Silver
Long-John-Silver's picture

Anyone found accessing the underground economy will be categorized as a terrorist. All terrorists will be shot at sunrise on Presidential order. BTY; Trials are no longer required.

Wed, 12/21/2011 - 19:31 | 2002835 NotApplicable
NotApplicable's picture

I agree, but unless you're using junk silver or some other alternative, non-fiat currency, you're fairly powerless at protecting your purchasing power from the beast. At best, you will avoid the IRS, and guess what, they're extremely well-armed, and will loot everything you own if you take them on. Oh, and they have their own court system, where they rarely ever lose.

So many times I've wanted to go the Irwin Schiff route, and make them prove that I'm liable (as no one is, its all "voluntary"). Or demand they provide a legal form (there are none, as then they'd have to abide by the rules of the Paperwork Reduction Act where the form would have to have a valid control number (as the current one is expired and will never be renewed, as they'd have to show the law that authorizes the collection of this info (there is none))).

Buuuuuuuuuuut, I'm not stupid enough to pretend that I have "rights" within this criminal system. So, what can I do, other than to minimize creating transactions that they consider taxable.

Wed, 12/21/2011 - 19:59 | 2002917 A Lunatic
A Lunatic's picture

Listen, I will concede that there is no longer any way to live 100% free of government intrusion in one form or another, however, I try to live as close to that benchmark as possible. One can opt out of the system in many ways without unnecessarily becoming a martyr. Minimizing taxable transactions is one method. Abstaining from debt is another. I happen to live in a user friendly state which allows me to live a more independent lifestyle than one in D.C. or NYC. My greater point is that people must learn to stand up for themselves if they wish to be free. Farmers markets, barter networks, businesses that deal in cash.

Wed, 12/21/2011 - 18:28 | 2002628 NOTW777
NOTW777's picture

it is your debt and you dont live in the world by yourself

Wed, 12/21/2011 - 20:10 | 2002950 A Lunatic
A Lunatic's picture

Then you will have no issues with armed confiscations of your hard earned wealth (as if you had any) in order to pay off debts you did not create. You are part of the problem.

Wed, 12/21/2011 - 18:15 | 2002558 hmmmstrange
hmmmstrange's picture

Time estimate on quadruple digit debt to gdp?

Wed, 12/21/2011 - 20:32 | 2002985 smiler03
smiler03's picture

Not long if the Dragon family redeem their "thousands of trillions" of US bonds ;O)

Wed, 12/21/2011 - 18:18 | 2002568 s2man
s2man's picture

Woohoo!  Where is the little emoticon with the party hat and noise-maker?  <:-)--?

Wed, 12/21/2011 - 18:19 | 2002574 Bindar Dundat
Wed, 12/21/2011 - 18:33 | 2002643 s2man
s2man's picture

That sucked.  I'd rather see civil war.

Thanks for the link.

Wed, 12/21/2011 - 18:54 | 2002719 BigDuke6
BigDuke6's picture

That link is slanderous to gold.

Remove it immediately.

Wed, 12/21/2011 - 19:50 | 2002880 NotApplicable
NotApplicable's picture

He sure doesn't have much of an imagination. He just glosses over all of the horrible events, and focuses most of his effort on food prices and politics. What a hoot!

Maybe he doesn't want to scare his son?

Wed, 12/21/2011 - 20:01 | 2002923 BigDuke6
BigDuke6's picture

Yeh, what about the lord hughmungus and the gangsta rappers coming to get the white women?

Not a bit of it.  Goddam bread and food stamps....

What about the ZH good guys with the gun stockpiles taking over their communities and getting all the hot chicks?

And sayin' gold was useless - i didn't red him b4 but i will now. 

Wed, 12/21/2011 - 21:07 | 2003056 walküre
walküre's picture

Great find! Cool that the former mayor has such insight and wisdom.

Wed, 12/21/2011 - 18:19 | 2002576 bobert
bobert's picture

120% before we start to feel the pain.

 

Wed, 12/21/2011 - 18:24 | 2002602 falak pema
falak pema's picture

If the USA were not country of reserve currency, with A 100% ratio it would be toast. They say beyond 90% all countries are toast. So USD is living off a false cushion of hopium with a trade balance the size of a grand canyon wide. 

Argentinaaa and the Perons, Is USA with the Bushes and O'banana!

Wed, 12/21/2011 - 18:33 | 2002646 bobert
bobert's picture

80% is the irresponsible point according to my old textbooks.

It's a new paradigm, however, everything has changed and....is under control by the way, so no need to worry.

I just picked 120% because it seems to be posing a problem currently for Portugal, Spain, Italy etc.

Any guess as to the date we hit 120%?

Regards.

Wed, 12/21/2011 - 20:00 | 2002922 XitSam
XitSam's picture

Next Tuesday, 2:34pm EST.

Wed, 12/21/2011 - 19:28 | 2002824 AustriAnnie
AustriAnnie's picture

Falak, don't you know that nothing bad can ever happen to the USD, because we have the world's reserve currency and the world's biggest military? Thats the trend and the trend is your friend!  USA -- Empire forever!  Unicorns with little flag hats and red white and blue skittles for everyone!

 

Thu, 12/22/2011 - 14:34 | 2004672 DaveyJones
DaveyJones's picture

but this time is different

Wed, 12/21/2011 - 18:20 | 2002580 Mister Minsk
Mister Minsk's picture

Amerika is Debt Nation...

Wed, 12/21/2011 - 18:21 | 2002582 AC_Doctor
AC_Doctor's picture

And pretty much all of the Republican candidates for President arn't going to do jack shit about this except for Dr. Paul.  In Romney's and Gingrich's sick minds, this deficit spending is mandantory.

Wed, 12/21/2011 - 18:29 | 2002631 NOTW777
NOTW777's picture

and blame Bush - you're quick

Wed, 12/21/2011 - 19:09 | 2002771 Iwanttoknow
Iwanttoknow's picture

Why fucking not?The 911 occured on whose watch?the Bogus war i and II started on whose watch?Obummer is third term bush.

Wed, 12/21/2011 - 19:43 | 2002857 Imminent Crucible
Imminent Crucible's picture

More like 6th term Bush 41/Clinton/Bush 43. Same ol' same ol' foreign and fiscal policies.

I hope and pray that no one here is still stupid enough to say "But Clinton balanced the budget"--by simpling taking Social Security and Medicare/Medicaid OFF budget.

No U.S. debt--none--has been paid off in the last 50 years, just rolled over.

Wed, 12/21/2011 - 21:08 | 2003061 walküre
walküre's picture

For those with amnesia or a fetish to feel more pain, there's always Bush III on the plate!

Wed, 12/21/2011 - 18:21 | 2002589 lolmao500
lolmao500's picture

Let's not forget the GDP will be revised down to AT LEAST 15 trillion flat.

Wed, 12/21/2011 - 18:22 | 2002593 grunk
grunk's picture

Is there a Hallmark card for such an occasion?

Wed, 12/21/2011 - 18:24 | 2002595 Jlmadyson
Jlmadyson's picture

At the rate we are climbing it probably ain't going to take long for 120%.

Revised GDP down. Pshh they will spike up somehow.

Wed, 12/21/2011 - 18:23 | 2002596 i love cholas
i love cholas's picture

man, 2011 has been a great year for celebration. Not only did we receive an AA+ on credit mid-term paper. we received a 100% on our debt end of year power point project! USA USA USA USA!

Wed, 12/21/2011 - 18:26 | 2002608 Greenhead
Greenhead's picture

If you look at debt to income like buying a house, it appears that we're subprime!!

Wed, 12/21/2011 - 18:39 | 2002677 KCMLO
KCMLO's picture

Given government receipts vs debt service, we were below subprime a long time ago.  Excluding ridiculous "stated" or "no income" subprime loans, the worst allowed DTI I ever saw allowable was 65%

Wed, 12/21/2011 - 19:01 | 2002739 Hansel
Hansel's picture

Subprime is contained!

Wed, 12/21/2011 - 18:26 | 2002609 YesWeKahn
YesWeKahn's picture

You have seen nothing yet, the next president will do 100% increase.

Wed, 12/21/2011 - 18:27 | 2002620 Reese Bobby
Reese Bobby's picture

I'd like to thank the global bank cartel and the politicians and central banks they own; and a shout out to the military-industrial complex as well.  Of course special thanks to China for empowering us to achieve this level of debt burden.  Finally, a special thanks to the 50% of Americans on the government teat and the sub-par educational system that creates them.  Well done everybody!  Now go watch some more reality television...

Wed, 12/21/2011 - 18:27 | 2002621 Doc
Doc's picture

Ballin!

Wed, 12/21/2011 - 18:29 | 2002632 non_anon
non_anon's picture

The crooks in DC are giving it a 110% effort in keeping this zombie alive

Wed, 12/21/2011 - 18:30 | 2002636 jason403
jason403's picture

Funny we hear so much of PIGS countries deficit-to-GDP ratio, yet never for the United States, even though they have had 2 years of deficit-to-GDP over 10%.  I just wonder what driver it will take for USA to collapse.  Just don't get how it is possible to print all this money, and not have massive inflation, doesn't make sense to me.

Wed, 12/21/2011 - 18:31 | 2002638 Jlmadyson
Jlmadyson's picture

So what was the debt ceiling they gave Obama? Guessing he will just slide through before it hits.

Wed, 12/21/2011 - 18:35 | 2002655 NOTW777
NOTW777's picture

what ceiling

Thu, 12/22/2011 - 00:51 | 2003472 WonderDawg
WonderDawg's picture

"Ceiling" is a euphamism for "target".

Wed, 12/21/2011 - 18:33 | 2002645 uno
uno's picture

Ponzi milestone, THANKS Federal Reserve, took less than 100 years

Wed, 12/21/2011 - 18:34 | 2002647 Mr_Wonderful
Mr_Wonderful's picture

Yeah, yeah but as Tyler well knows this is just the headline number. Then there´s the looming off balance sheet stuff and you have a more realistic 800% ratio.

Wed, 12/21/2011 - 18:34 | 2002648 stant
stant's picture

nice to be part of something bigger than myself

Wed, 12/21/2011 - 18:37 | 2002660 bill1102inf
bill1102inf's picture

1000% in UK.  We need to catch up

Wed, 12/21/2011 - 18:37 | 2002663 KB
KB's picture

As feared and painted: here

or at Saatchi: here.

 

 

Wed, 12/21/2011 - 18:42 | 2002682 lolmao500
lolmao500's picture

You all cry, but really, the debt increase rate has been going down.

2008 deficit : 1.47 trillion

2009 deficit : 1.683 trillion

2010 deficit : 1.73 trillion

2011 deficit : 1.148 trillion

Republicans and democrats are both scum, but at least republicans (this time) are spending less than the democrats.

Wed, 12/21/2011 - 18:52 | 2002715 downrodeo
downrodeo's picture

oh boy.

 

you know they play for the same team right. i mean the republicrats and democants. i hear what you're saying, but you gotta get over the idea that anything will ever get better with our current system. what are we going to have newt as our next president?

our political system is a sad joke.

Wed, 12/21/2011 - 19:11 | 2002779 lolmao500
lolmao500's picture

I know all about them. Was just saying that some of the tea partiers at least did SOME good...

But yeah the whole system needs an enema. And Newt needs to go to PRISON.

Ron Paul 2012 or WW3, that's your choice America.

Wed, 12/21/2011 - 19:59 | 2002911 NotApplicable
NotApplicable's picture

I'd assume they've just learned to cook the books better to appease the Tea Party folks.

They sell sizzle after all, not steak.

Thu, 12/22/2011 - 01:14 | 2003509 UP Forester
UP Forester's picture

Corzinomics for all!

Wed, 12/21/2011 - 18:44 | 2002683 silverserfer
silverserfer's picture

and of course today they announce that scientists have create an avian bird flu that is highly contagous between humans and the government says they shouldnt do that but they cant "legally stop them from doing it." So there you have it, its going to be the mad scientists unleashing this next year. Something tells me its all orchistrated and the vaccines will be available only to the privelaged inner circles of soceity. Funny how the news is released in a manner like oh you diddnt see that one coming but we told ya so.  

it will probably fix the economy though and lower the unenployment rate.  Great way to usher in a NWO and global currency & WWIII.  

Wed, 12/21/2011 - 20:02 | 2002927 topcallingtroll
topcallingtroll's picture

What is scary is that if my wife and i could put ebola genes into the virus foot and mouth disease then just about anyone can. It takes about 50,000 dollars of equipment. Oh. And a couple of viruses.

Foot and mouth disease is the most contagious virus to mammals with recorded transmissions documented up to two hundred miles away without a carrier.

If we could do it, then it is simply a matter of time ane a couple of crazy suicidal psychos before it happens.

Obtain antisera from the two or three percent who survive. It is your only hope.

Wed, 12/21/2011 - 20:22 | 2002966 NotApplicable
NotApplicable's picture

Those "crazy suicidal psychos" are better known as the CIA, and I've no doubt they are well aware of what you speak.

There's likely more than two of them as well.

Wed, 12/21/2011 - 18:43 | 2002684 AmazingLarry
AmazingLarry's picture

Beyond parabola. Spiral out, keep going...

Wed, 12/21/2011 - 18:46 | 2002695 Yen Cross
Yen Cross's picture

Build the pipeline!

Wed, 12/21/2011 - 18:47 | 2002696 downrodeo
downrodeo's picture

ugh, i think i'm gonna be sick   /sarc/

Wed, 12/21/2011 - 18:49 | 2002703 Elwood P Suggins
Elwood P Suggins's picture

It doesn't matter.  Paul Slugman says so.

Wed, 12/21/2011 - 18:49 | 2002706 Mr_Wonderful
Mr_Wonderful's picture

Now seeding The Financial Report of the U.S. Government as per 9/30/2010. Enjoy.

http://thepiratebay.org/torrent/6904100/The_Financial_Report_off_the_U.S...

Wed, 12/21/2011 - 19:01 | 2002721 Jlmadyson
Jlmadyson's picture

Fitch warns on US AAA rating again, but no action until 2013.

What a bunch of shills.

Though really S&P will likely downgrade again before both other two do one. What a game.

Wed, 12/21/2011 - 18:54 | 2002722 Ag1761
Ag1761's picture

Today is like the doomers Christmas dinner come early, Tyler you have excelled today with the tasty courses of heads up information. We just need a sovereign default before midnight for pudding.

 

Wed, 12/21/2011 - 19:00 | 2002738 s2man
s2man's picture

Go long Tums!

Wed, 12/21/2011 - 19:04 | 2002756 Dcheeth2
Dcheeth2's picture

So, how does anyone get all this debt down?

Obviously, the normal channels are out, otherwise it would have been done by now. So, without resorting to conspiracy theories about old men in an old house carving up the globe, seriously, what friggin plan do these fucking lunatics have?

Wed, 12/21/2011 - 19:16 | 2002792 Mr_Wonderful
Mr_Wonderful's picture

There is no need to get it down.

In 20-30 years a relatively small tax on citizens of China will handily cover retirement and medical unfunded obligations of the west. It´s the great evening out wave we find ourselves in presently. Systems will merge. It has been a foregone conclusion for decades now. Just look at the trading channel of U.S. Govt. debt since 1985. It will undoubtedly keep heading down towards zero as yield is concerned.

Wed, 12/21/2011 - 19:22 | 2002807 Greenhead
Greenhead's picture

They will print, simple.  After all, it isn't real money, it's FIAT!!!!!!!!!!!!!!

Wed, 12/21/2011 - 21:22 | 2003097 swani
swani's picture

That is the plan.

Wed, 12/21/2011 - 19:19 | 2002766 Yen Cross
Yen Cross's picture

 Chocolate Starfish for sale. Arrr Tuggahh...( Russell Crowe)... Sailing the F/X Seas!

Wed, 12/21/2011 - 19:13 | 2002785 yogibear
yogibear's picture

Obama it's time to double up! Paul Krugman would be in his glory if we boosted doubled it to 30 trillion.

Obama has used Europe as an ideal economic model. Here we come Greece!

We don't care about any debt ceiling, just get rid of it.

 

Wed, 12/21/2011 - 19:22 | 2002803 Yen Cross
Yen Cross's picture

  F..King Krugman. I like that guy @ the Financial Times. He has balls!!!

Wed, 12/21/2011 - 19:16 | 2002798 michigan independant
michigan independant's picture

My favorite:

by Phil Gramm
on Sun, 08/09/2009 - 17:48
#31090

Mr. Durden, I suggest that you respect the opinion of a former US Congressman, US Senator, Ph.D. of Economics, and UBS Vice Chairman of the Investment Banking. I was the co-sponsor of the Financial Services Modernization Act of 1999 which opened up the markets between the banking, securities, and insurance companies. I will say that I am very proud of the work that I have done in trying to modernize investment banking. Deregulation will prove to be critical in our economy's recovery as free market enterprise is the only way growth is going to happen in our new world economy. The gov't regulation and mandates in the mortgage industry caused the housing crisis we see today. We don't need to compound the problem with more regulation based on outdated economic theories, such as the Glass-Steagall Act of 1933. What is the point?

 

by Phil Gramm
on Sun, 08/09/2009 - 17:08
#31056

 

Wed, 12/21/2011 - 19:23 | 2002810 yogibear
yogibear's picture

Yes, since the repeal of the Glass-Steagall Act of 1933 the banking system has done very well to police itself (sarcaism). Like hiring child rapists for teachers in an elementary school.

Wed, 12/21/2011 - 19:28 | 2002825 Silverballs
Silverballs's picture

I'm switching to the hard stuff tonight

Wed, 12/21/2011 - 19:53 | 2002891 topcallingtroll
topcallingtroll's picture

I have moved well past the hardstuff to absinthe.

King of Gold. 100mg thujone.

Czech republic, but you can have it sent to an american address.

Wed, 12/21/2011 - 19:28 | 2002826 Yen Cross
Yen Cross's picture

 Mi. Independant? 4th grade? Can you even syllabalize ( risk)??????

Wed, 12/21/2011 - 20:04 | 2002929 michigan independant
michigan independant's picture

You need some humor to enjoy the gatekeeper's side of a conversation. Crass thought defines what you are not who. I wish the best to you and all who are working for the best outcome for our community and family in a free market we wish all to see. Sorry not to elaborate on the topic but I do miss Phil and his grace of commentary. Yours is typical of the day and always will wish you well forward. I also find more relavance in fourth graders than some thought's around the forums most days. 

 

Wed, 12/21/2011 - 21:11 | 2003068 Yen Cross
Yen Cross's picture

Thank You, I see your points. Merry Christmas

Wed, 12/21/2011 - 19:43 | 2002859 topcallingtroll
topcallingtroll's picture

America used to be the land of the free.

We did what Ben Franklin warned us not to do.

Now we are the land of the lazy, entitled, and self centered.

Wed, 12/21/2011 - 19:44 | 2002860 mmc1968
mmc1968's picture

This article is misleading.  $4.7 trillion is intergovernmental debt, which should be eliminated when consolidated.  This is just debt that the government owes to itself - so no real debt at all.  It sits as a liability at one department and as an asset in another department.

Wed, 12/21/2011 - 19:49 | 2002875 topcallingtroll
topcallingtroll's picture

Isnt most of that social security?
Where government debt is an asset of the SS trust fund but a liability of the treasury?

It may look like a circle jerk but that seems like it most definitely should count.

Wed, 12/21/2011 - 19:54 | 2002898 mmc1968
mmc1968's picture

It should not count because an entity can not owe money to itself.  The point that you are trying to make, if I take it one step further, is whether the US goverment should accrue liabilites on its balance sheet for future promises.  I believe that they should, but that is a completely different issue.

Wed, 12/21/2011 - 20:17 | 2002958 NotApplicable
NotApplicable's picture

Even so, it still impacts the reality of gov. debt and spending, regardless of whether or not it's on the books. So it really isn't that different of an issue. Because, in the end, the money isn't owed to itself, but to SS recipients.

In other words, it "shouldn't count" only in a flawed accounting sense where all has not been accounted.

So, yes, you are correct, but Tyler is right in including it.

Wed, 12/21/2011 - 21:24 | 2003100 The Old Man
The Old Man's picture

Let's just hope it's Congresses Pension plan.

 

Wed, 12/21/2011 - 20:34 | 2002995 Blano
Blano's picture

The Feds don't owe Social Security money to itself.  They stole it from all the people who paid in and left them with IOU's.  It has to be paid back.  Why is that so hard to understand?

Wed, 12/21/2011 - 21:24 | 2003101 swani
swani's picture

They were just rehypothicating. Everybody's doing it.

Wed, 12/21/2011 - 21:34 | 2003122 swani
swani's picture

The Social Security money that is supposed to be sitting in assets waiting to find it's way into the hands of it's appropriate owners, is about as safe as the segregated funds were, with that gambling addict and his kleptomaniacal creditors over there at MF Global.

Wed, 12/21/2011 - 22:23 | 2003194 IndicaTive
IndicaTive's picture

Kind of like if someone borrows from their 401k, say, to buy a house. Money owed to self. Makes sense. No worries at all.

Wed, 12/21/2011 - 19:44 | 2002861 Schmuck Raker
Schmuck Raker's picture

Let's all hope Million Dollar Bonus will pipe up with words of wisdom for us.

He's a Great Man. And we need his advice now, more than ever.

Wed, 12/21/2011 - 20:18 | 2002961 NotApplicable
NotApplicable's picture

I'll drink to that!

Wed, 12/21/2011 - 19:52 | 2002886 Yen Cross
Yen Cross's picture

 You guys keep things in check.  Thank You

Wed, 12/21/2011 - 19:54 | 2002896 M4570D0N
M4570D0N's picture

+100%. Would read again.

Wed, 12/21/2011 - 19:57 | 2002907 PulauHantu29
PulauHantu29's picture

Whed does this inflation from China bounce back to the USA? I just bought a cahsmere sweater on Ebay for $29.99!  Some reported cotton/cashmere/etc rose 70% this year and The Gap, etc warned prices of cotton would soar. I don't see it....

Add to that the increased labor costs in China of about 40%, yet I see stuff from China all over WalMart, JCP, and so on even cheaper then last Christmas.

Don't get me wrong, i love the inexpensive goodies but am wondering where this inflation is that Goldbugs and other warned about?

just ask'n....

Wed, 12/21/2011 - 20:20 | 2002962 walküre
walküre's picture

food and feed= Grains. Meats. Dairy. Hay.

how's that synthetic $1.99 Walmart T-Bone steak tasting?

Wed, 12/21/2011 - 22:17 | 2003185 Troll Magnet
Troll Magnet's picture

ZIRP = deflationary. only temporary though. the central planners have no choice but to print unless they're willing to let their franchise go down in flames.

Wed, 12/21/2011 - 23:58 | 2003387 walküre
walküre's picture

not in food & feed

increasing demand from India and China, decreasing areable land sources. more leverage and financial vodoo does not equal higher yields in food & feed production.

compare prices yoy on hay in your area

Wed, 12/21/2011 - 20:02 | 2002926 Yen Cross
Yen Cross's picture

29 I love your posts.  Stay flat.

Wed, 12/21/2011 - 20:13 | 2002952 DMA
DMA's picture

Can I hear a Bank Holiday ? 

Wed, 12/21/2011 - 20:18 | 2002959 walküre
walküre's picture

Italy's economy is sliding into the abyss. Q4 GDP ugly and FUBAR!

Wed, 12/21/2011 - 20:32 | 2002976 reTARD
reTARD's picture

U.S.A. U.S.A. U.S.A. Bitchez!!!

Now can we go beast mode? It will be too easy with our Plunge Protection Team and TPTB.

Wed, 12/21/2011 - 20:29 | 2002979 Alex Kintner
Alex Kintner's picture

 Disclaimer: "No Bankers Were Harmed During The Creation Of This Debt. The World Economy Got Sick And Somebody Shot The Taxpayers But That's About It."

Wed, 12/21/2011 - 20:31 | 2002982 Yen Cross
Yen Cross's picture

 Kudlows ass clown , is weak!!! BUT YOU HAVE BIG EARS AND  (A)  j.d.     ( jURIS SOMETHING?)

Wed, 12/21/2011 - 20:33 | 2002993 Everybodys All ...
Everybodys All American's picture

Obama is going to be judged as the worst president in our history. His financial geniuses of Bernanke and Geithner, staffs of Lawrence Summers, Romer, Jarret and countless others simply are epic failures. Nearly 5 trillion more in debt in 3 yrs is so irresponsible words can't express my disdain.

Wed, 12/21/2011 - 20:58 | 2003040 roadhazard
roadhazard's picture

And by looking at the GOP field they are making sure Obama gets to stay in the drivers seat for four more years. Would You want to be in charge of this train wreck.

 

 

Wed, 12/21/2011 - 22:47 | 2003240 Everybodys All ...
Everybodys All American's picture

I don't disagree this is going to be a difficult assignment. In 1980 Carter was leading against Reagan up until the final debate. Carter is not much different than Obama. Both are progressive idealogues. Neither one were/are good for economic growth. The media is going to portray the GOP field as they always do. Incompetant, stupid, war monger, etc. The playbook remains the same. The left's problem will always be that they need capitalism and businesses to succeed so they can fund bigger government. The bigger government gets though the slower and less efficient the economy becomes.

Anyone who goes into ths mess better realize that major sacrifices/cuts need to be made and the public is going to hate him for it. Ron Paul's trillion dollar cuts are what is necessary and if not we will be Greece in very quick order. Growth can get the US economy out of this mess but with the large debt bearing down it is indeed almost an impossible problem to solve.

Wed, 12/21/2011 - 20:37 | 2002999 Yen Cross
Yen Cross's picture

mY IMPERITIVE IS (2 SOMETHING).

Wed, 12/21/2011 - 20:42 | 2003009 youLilQuantFuker
youLilQuantFuker's picture

It's not that bad for the world reserve currency. 300% would be a level 1 alert, 500% would be fatal.

Lotsa wiggleroom.

Wed, 12/21/2011 - 20:52 | 2003023 Snakeeyes
Snakeeyes's picture

That is. US Federal debt exceeds Fannie Mae and Freddie Mac debt. Clinton's greatest con!

http://confoundedinterest.wordpress.com/2011/12/16/housing-starts-and-ho...

Wed, 12/21/2011 - 20:52 | 2003025 ebworthen
ebworthen's picture

This makes me want to max out my credit card on a bender in Vegas, really.

Wed, 12/21/2011 - 21:11 | 2003054 steelrules
steelrules's picture

WOO HOO!

 Looks like we made it.

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

Wed, 12/21/2011 - 21:18 | 2003086 swani
swani's picture

What's the Underground Economy? A blow job for some legal help? That kind of thing?

Wed, 12/21/2011 - 21:19 | 2003089 GubbermintWorker
GubbermintWorker's picture

Yabut, debt is money.......we're RICH!!!!

Wed, 12/21/2011 - 21:38 | 2003091 swani
swani's picture

 BIG leverage, baby. We want to follow in the footsteps of the Motherland and get to 1000% GDP in 4 years. Can we do it? 

Wed, 12/21/2011 - 21:30 | 2003111 jomama
jomama's picture

did i miss something or didn't this happen in late october/early november?

Wed, 12/21/2011 - 21:38 | 2003125 mick_richfield
mick_richfield's picture

I wonder what the real-debt to real-economic-activity ratio is?   I'm sure it's quite a bit worse than 1::1.

Wed, 12/21/2011 - 21:42 | 2003129 GubbermintWorker
GubbermintWorker's picture

 Brain fart

Wed, 12/21/2011 - 21:53 | 2003135 jack stephan
jack stephan's picture

The number has passed a while ago, godamn that number is staggering.  I had to go back and wince......... now to cheer myself up......robin meade and kimberly guilfoyle soapy shower invite, They are both 5'2, makes you feel like a giant. kerplaaaa!

Thu, 12/22/2011 - 09:19 | 2003760 CJHames
CJHames's picture

Most excellent choice in women, jack stephan.   

Wed, 12/21/2011 - 23:54 | 2003377 ub40onlyonce
ub40onlyonce's picture

That waa what Democrats called a "Lock Box" back in the day.  The only thing coming out of that box is a big fat turd.

Wed, 12/21/2011 - 23:54 | 2003379 ub40onlyonce
ub40onlyonce's picture

That waa what Democrats called a "Lock Box" back in the day.  The only thing coming out of that box is a big fat turd.

Thu, 12/22/2011 - 00:49 | 2003468 Peter K
Peter K's picture

The Bamster is W inning T he F uture:(

Or just plain ole Winning ala Charlie.

Thu, 12/22/2011 - 04:48 | 2003628 goldenbuddha454
goldenbuddha454's picture

Can we now go ahead and ask the IMF for a bailout?  Somehow, that gold and silver is looking mighty precious about now.

Thu, 12/22/2011 - 09:10 | 2003751 CJHames
CJHames's picture

Nothing that a good world-wide depression, followed by a total global currency collapse and WWIII won't fix.  Then, of course, we get one currency and one-world gov't.

I mean geesh, what are you people worried about?

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