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Total US Debt Soars To 101.5% Of GDP

Tyler Durden's picture





 

There is nothing quite like a $70 billion debt auction settlement at the last day of a month to bring total US debt to a record $15.692 trillion, which happens to be just $600 billion shy of the $16.394 trillion debt ceiling. (and no, contrary to simple economic textbook lesson, this does not mean that the private sector just got another $70 billion in debt capacity courtesy of taxpayers, as explained here). And now that we know what Q1 GDP was at the end of Q1, or namely $15.462 trillion, it is simply math to divine that today alone total US/debt to GDP rose by 50 bps to a mindboggling 101.5%.

Below is a chart of two lines with different slopes. We leave it up to readers to figure out which line is GDP and which is total debt.

And as noted yesterday, now that the end of month auction has settled, one can easily see why the Treasury forecast of debt issuance through the end of September will only be correct if somehow the Treasury finds a way to print its own money without reliance on the Fed, or else every US taxpayer somehow hikes their tax payments by 15% voluntarily. Good luck on both counts.

Then again who cares about the short term. Here is what the total US debt/GDP will look like, frankly under either administration as both the presidential candidate and the incumbent have absolutely no idea how to fix an excess debt problem without issuing more debt (nor do they have any interest to).

And for those who still believe that insurmanoutable debt is suicide, we have good news, you are right, at least according to a new paper by Reinhart, Rogoff and Reinhart (via The American):

– We identify 26 episodes of public debt overhang–where debt to GDP ratios exceed 90% of GDP–since 1800. We find that in 23 of these 26 episodes, individual countries experienced lower growth than the average of other years. Across all 26 episodes, growth is lower by an average of 1.2%.

If this effect sounds modest, consider that the average duration of debt overhang episodes was 23 years. In 11 of the 26 high debt overhang episodes, real interest rates were the same or lower than in other periods.

– Obviously, it is possible that new developments in technology and globalization will provide such a remarkable reservoir of growth that today’s record debt burdens will eventually prove quite manageable. On the other hand, the fact many countries are facing “quadruple debt overhang problems”—public, private, external, and pension–suggests the problem could in fact be worse than in the past, a question we do not tackle here.

– Nor have we paid attention here to the likely possibility of significant “hidden debts”, especially public sector, which Reinhart and Rogoff (2009) find to be a significant factor in many debt crises, and as documented in detail in the Reinhart (2010) chartbook. Another line of reasoning for dismissing concerns about public debt and growth is the view the causality mostly runs from growth to debt.

Our analysis, based on these cases and the 23 others we identify, suggests that the long term risks of high debt are real.

 


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Tue, 05/01/2012 - 16:39 | Link to Comment NewThor
NewThor's picture

FUBAR bitchez!

Tue, 05/01/2012 - 16:48 | Link to Comment resurger
resurger's picture

The beginning of the end Bitchez

Tue, 05/01/2012 - 16:50 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

The end of the beginning...

Tue, 05/01/2012 - 16:54 | Link to Comment BoNeSxxx
BoNeSxxx's picture

How long before "Treasury Forecast" becomes as oxymoronic as "Military Intelligence"?

Tue, 05/01/2012 - 21:52 | Link to Comment AldousHuxley
AldousHuxley's picture

Patriotic Rant

 

Amerika, fuck yeah!

#1 in debt you betcha!

 

Savings for suckers, just spend money you don't have!

Double down on Facebook IPO, you've got it made!

Buy a house or two,

illegal Mexicans can do it too.

that's the American way,

the American Dream!

 

Sheila Blair giving everyone $10,000,000,

and millionare's tax is only 15%!

God Bless Bernanke and the federal money machine!

God Bless Amerika, we don't have to produce anything ever again.

 

It's true that poor are fat in Amerika.

It's true that idiots are rich in Amerika.

It's true that taxes don't pay for healthcare.

It's true that taxes don't pay for education.

 

We are coming for you Iran,

To liberate you of your oil.

New World Order,

Is here for all of yall.

 

We do it again and again

USA, USA, USA......#1!

We do all this with only debt!

 

Tue, 05/01/2012 - 21:36 | Link to Comment Pairadimes
Pairadimes's picture

...or "Congressional Ethics Panel?"

Tue, 05/01/2012 - 17:35 | Link to Comment Mark Carney
Mark Carney's picture

"This is not the end, this is not even the beginning of the end, but this is the end of the beginning"

 

-Winston Chruchill

Tue, 05/01/2012 - 17:39 | Link to Comment sablya
sablya's picture

That curve of debt vs time into 2084 shouldn't be linear!  It fails to take into account compounding which is a biatch when it is working against you.  All debt systems are exponential and so the curve should look linear only on a LOG scale.  

Tue, 05/01/2012 - 17:44 | Link to Comment Chaffinch
Chaffinch's picture

$16 trillion isn't what it used to be...

Tue, 05/01/2012 - 20:34 | Link to Comment Sam Clemons
Sam Clemons's picture

Krugman told us we shouldn't be concerned about the debt yet.  

Tue, 05/01/2012 - 19:40 | Link to Comment sablya
sablya's picture

http://www.usdebtclock.org/cbo-omb-gop-budget-estimates.html

The Debt clock predicts that, on this day in 2016, the gross debt to GDP ratio will be 127%, according to the current rates.  It might even be worse than that if GDP takes a turn for the worse, housing doesn't pick up, the student loan crisis blossoms, war with Iran or some other country becomes a reality, etc., etc.  

Tue, 05/01/2012 - 21:58 | Link to Comment banker99
banker99's picture

Why does nobody ever add in the $5.5 trillion of debt on the books of Fannie Mae and Freddie Mac in looking at the U.S. total debt picture. Uncle sam is on the hook for that as well and continues to fund the quarterly losses and preferred dividends to itself. With this debt the U.S. debt is really 21.4 trillion, or 135% of GDP, or well on the way to being Greece.  

Tue, 05/01/2012 - 22:04 | Link to Comment AldousHuxley
AldousHuxley's picture

When inflation is 4%, zero rate coupon on treasuries is a net loss.

 

Dumbass Chinese are losing money they gained on hard slave labor.

 

 

Tue, 05/01/2012 - 22:10 | Link to Comment KickIce
KickIce's picture

Dumbass Chinese are also buying gold, oil and food commodities.

Tue, 05/01/2012 - 22:02 | Link to Comment AldousHuxley
AldousHuxley's picture

Who cares about debt to GDP?

Those that do, we invade.

 

maxing out credit is good,

when you know you will never pay it back.

 

If you going to commit suicide tomorrow,

does it matter if you pay today with cash or credit?

 

 

Tue, 05/01/2012 - 22:32 | Link to Comment CURWAR2012
CURWAR2012's picture

Correct, HOCKY STICK IT BIATCH!!

Tue, 05/01/2012 - 17:56 | Link to Comment Mary Wilbur
Mary Wilbur's picture

Churchhill

Tue, 05/01/2012 - 19:42 | Link to Comment smiler03
smiler03's picture

Churchill if you want to get it right.

Tue, 05/01/2012 - 18:54 | Link to Comment francis_sawyer
francis_sawyer's picture

So what if it's the fucking end... It is a friend...

~~~

http://www.youtube.com/watch?v=ZDN9y2vTdUs

Tue, 05/01/2012 - 16:53 | Link to Comment NewThor
NewThor's picture

When Ben Bernanke was appointed the national debt was $7,932,709,661,723.50.

It's almost double in 7 years.

obaMABUSh = the bernank

Tue, 05/01/2012 - 16:58 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Spending comes before printing (which, in turn, precedes spending).

Are we clear on this?

Tue, 05/01/2012 - 17:02 | Link to Comment NewThor
NewThor's picture

Crystal clear.

....but if the Federal Reserve buys 63% of treasuries,  then it is a TOTAL ENABLER of the debt.

Tue, 05/01/2012 - 17:04 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

The Fed doesn't buy anything...it just stores obligations for your grandkids.

Tue, 05/01/2012 - 17:23 | Link to Comment flacon
flacon's picture

except it won't be them that will have to deal with it, it will be us. 

Tue, 05/01/2012 - 20:12 | Link to Comment vast-dom
vast-dom's picture

No chance there's so much more hopium left it's kinda funny actually... when debt is a 199% of gdp then maybe....maybe then.....

Tue, 05/01/2012 - 21:42 | Link to Comment Road Hazard
Road Hazard's picture

Hahahah......you people make me laugh. You think the US hitting 101% is bad, take a look at Japan's debt to GDP ratio but I have to warn you, prepare to piss yourself while your head explodes! Even with Japan's debt to GDP ratio WAY beyond our own, they carry on. Heck, they're even covered in nuclear waste yet life continues and on here, you people that are affraid of your own shadows, freak out at our debt/GDP raio hitting 101%. DOOM AND GLOOM.......PANIC, BUY SILVER, BUY GOLD........DOOM GLOOM!!!!!!!!!!!!!!!!!!! AHHHHHH! GRAB YOUR BUG OUT BAG, HEAD FOR THE HILLS........STOCK UP ON AMMO, WATER, FOOD AND TAMPONS?!?!#?!@@!# ? $@??!` THE END IS NEAR!!!!!!!!!!!!

 

Tue, 05/01/2012 - 22:04 | Link to Comment RafterManFMJ
RafterManFMJ's picture

I concur. And I'm pretty sure fukushima will be a net boon to their economy; their exports of circus freaks will ramp up in the coming years. Yes, you've convinced me -  I'm going to the big city on Friday and sell blood plasma so I can buy Yen.

Wed, 05/02/2012 - 02:12 | Link to Comment Lednbrass
Lednbrass's picture

You have convinced me.  The circumstances of the US and Japan are entirely the same as is the structuring of the debt.  Our societies are also remarkably similar.  Thank God you came here to shine your brilliance on the subject to clear everything up.

Now go stick your head in an oven.

 

Tue, 05/01/2012 - 16:50 | Link to Comment MillionDollarBonus_
MillionDollarBonus_'s picture

This figure looks inaccurate to me. I don't know where you're getting your data from, but I suspect this article is overexaggerating. Just typical doomer fear mongering. 

Tue, 05/01/2012 - 16:53 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

What does "overexaggerating" mean?

Tue, 05/01/2012 - 17:00 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

It's like masturbating, but after a Greek penis extension operation, while having to reach over a protruding, morbidly obese American gut.  You know what I am talking about right MDB?

Tue, 05/01/2012 - 17:01 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Did you just watch Seven?

Tue, 05/01/2012 - 19:30 | Link to Comment Muppet Pimp
Tue, 05/01/2012 - 22:35 | Link to Comment CURWAR2012
CURWAR2012's picture

Love the name man

Tue, 05/01/2012 - 21:38 | Link to Comment theTribster
theTribster's picture

+1 on the name.

Tue, 05/01/2012 - 20:04 | Link to Comment eaglefalcon
eaglefalcon's picture

It means mid overestimating

Tue, 05/01/2012 - 17:07 | Link to Comment WatchingIgnorance
WatchingIgnorance's picture

Nothing like MDB coming along reminding us of green shoots (sh*ts) all over the place, blah, blah, blah. I wish you shopped where I did. The faces of the sufferring are everywhere. And with each passing month, there are more and more.

Okay, MDB, would you please pass the blunt? Maybe that is what I am missing . . .

Tue, 05/01/2012 - 20:19 | Link to Comment Bay of Pigs
Bay of Pigs's picture

MDB just isn't fucking that chicken like he used to.

Tue, 05/01/2012 - 17:07 | Link to Comment fuu
fuu's picture

You should go back to being Robert Brusca, you were funnier then.

Tue, 05/01/2012 - 17:21 | Link to Comment NotApplicable
NotApplicable's picture

I LOLed.

Tue, 05/01/2012 - 18:27 | Link to Comment divide_by_zero
divide_by_zero's picture

+1

Tue, 05/01/2012 - 23:16 | Link to Comment akak
akak's picture

Yeah, whatever happened to Mr. Bruschetta here on ZH anyway?

One might say that his credibility ended up as, um, toast.

Wed, 05/02/2012 - 09:06 | Link to Comment fuu
fuu's picture

Rubber Balls has been MIA for a while.

Tue, 05/01/2012 - 18:00 | Link to Comment BigDeuceLittleToilet
BigDeuceLittleToilet's picture

FUBU Biatchez!

Tue, 05/01/2012 - 18:05 | Link to Comment Elwood P Suggins
Elwood P Suggins's picture

Good.  Only 118.5% to go and we'll catch Japan.  I'm tired of seeing them so far ahead of us.

Tue, 05/01/2012 - 19:32 | Link to Comment Peter Pan
Peter Pan's picture

A debt is only a debt for as long as it is acknowledged and for as long as the creditors are happy to see the debt  snowball gather size and momentum. Both of these conditions will at some point no longer apply. Foreigners and Americans be warned.

 

Tue, 05/01/2012 - 16:39 | Link to Comment Badabing
Badabing's picture

debt hogs

Tue, 05/01/2012 - 16:40 | Link to Comment outamyeffinway
outamyeffinway's picture

Now I sell my gold and buy Apple stock...

Tue, 05/01/2012 - 16:41 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Krugman says another 30% is no problem. Relax.

Tue, 05/01/2012 - 16:47 | Link to Comment cpzimmon
cpzimmon's picture

But the NYT says that Krugman is slick...or  was it  that he's a dick?

Tue, 05/01/2012 - 17:04 | Link to Comment NewThor
NewThor's picture

Paul Krugman says water isn't wet, fire doesn't burn and the Earth is flat.

Tue, 05/01/2012 - 19:37 | Link to Comment I should be working
I should be working's picture

And 5% inflation will make us all rich...

Tue, 05/01/2012 - 22:11 | Link to Comment RafterManFMJ
RafterManFMJ's picture

Paul Krugman says water isn't wet, fire doesn't burn and the Earth is flat.

 

No NewThor, I think Paul is wrong about that. I've read that there are four things that are sure.

AS I PASS through my incarnations in every age and race,
I make my proper prostrations to the Gods of the Market Place.
Peering through reverent fingers I watch them flourish and fall,
And the Gods of the Copybook Headings, I notice, outlast them all.

We were living in trees when they met us. They showed us each in turn
That Water would certainly wet us, as Fire would certainly burn:
But we found them lacking in Uplift, Vision and Breadth of Mind,
So we left them to teach the Gorillas while we followed the March of Mankind.

We moved as the Spirit listed. They never altered their pace,
Being neither cloud nor wind-borne like the Gods of the Market Place,
But they always caught up with our progress, and presently word would come
That a tribe had been wiped off its icefield, or the lights had gone out in Rome.

With the Hopes that our World is built on they were utterly out of touch,
They denied that the Moon was Stilton; they denied she was even Dutch;
They denied that Wishes were Horses; they denied that a Pig had Wings;
So we worshipped the Gods of the Market Who promised these beautiful things.

When the Cambrian measures were forming, They promised perpetual peace.
They swore, if we gave them our weapons, that the wars of the tribes would cease.
But when we disarmed They sold us and delivered us bound to our foe,
And the Gods of the Copybook Headings said: "Stick to the Devil you know." 

On the first Feminian Sandstones we were promised the Fuller Life
(Which started by loving our neighbour and ended by loving his wife)
Till our women had no more children and the men lost reason and faith,
And the Gods of the Copybook Headings said: "The Wages of Sin is Death." 

In the Carboniferous Epoch we were promised abundance for all, 
By robbing selected Peter to pay for collective Paul; 
But, though we had plenty of money, there was nothing our money could buy, 
And the Gods of the Copybook Headings said: "If you don't work you die." 

Then the Gods of the Market tumbled, and their smooth-tongued wizards withdrew
And the hearts of the meanest were humbled and began to believe it was true
That All is not Gold that Glitters, and Two and Two make Four
And the Gods of the Copybook Headings limped up to explain it once more.

As it will be in the future, it was at the birth of Man
There are only four things certain since Social Progress began. 
That the Dog returns to his Vomit and the Sow returns to her Mire, 
And the burnt Fool's bandaged finger goes wabbling back to the Fire;

And that after this is accomplished, and the brave new world begins
When all men are paid for existing and no man must pay for his sins, 
As surely as Water will wet us, as surely as Fire will burn, 
The Gods of the Copybook Headings with terror and slaughter return! 

 

http://www.kipling.org.uk/poems_copybook.htm

Tue, 05/01/2012 - 16:51 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

+1  You started with "Krugman says" and actually got me to read the rest.

Tue, 05/01/2012 - 16:51 | Link to Comment EscapeKey
EscapeKey's picture

£100 says he'll say the same thing once that mark has been hit.

Tue, 05/01/2012 - 16:54 | Link to Comment Sudden Debt
Sudden Debt's picture

And that you missunderstood him because ron didn't let him finish!

Tue, 05/01/2012 - 16:43 | Link to Comment AGuy
AGuy's picture

LOL! They estimated GDP at 15.5 Trillion? Must have Madoff running the numbers for them since there is no dip in GDP figure for the recession.  Real GDP is probably around 7.7 to 8.5 Trillion once you remove federal, state and local gov't spending which does not count.

Tue, 05/01/2012 - 16:53 | Link to Comment EscapeKey
EscapeKey's picture

Hedonics + imputations account for around 25% of GDP. So eliminate these instances of blatant fraud and double counting, and you're left with $11.6tn.

Tue, 05/01/2012 - 17:11 | Link to Comment Raymond Reason
Raymond Reason's picture

Or alternatively, create a few more spy agencies, a few more regulatory arms, and bring the debt/gdp ratio back below 100.

Tue, 05/01/2012 - 16:43 | Link to Comment marathonman
marathonman's picture

Bullish.

Tue, 05/01/2012 - 16:44 | Link to Comment youngman
youngman's picture

I think the Facebook IPO will be the begining of the end....after that big casino bet....and billions will be made...it will all start to fall apart..

Tue, 05/01/2012 - 16:47 | Link to Comment NewThor
NewThor's picture

I've got that funny feeling too.

Tue, 05/01/2012 - 17:09 | Link to Comment kekekekekekeke
kekekekekekeke's picture

that's what NIA kept saying in their emails until I unsubscribed, I never want to hear "BroadVision" again

Tue, 05/01/2012 - 19:03 | Link to Comment dougngen
dougngen's picture

seriously! they went off a cliff!

Tue, 05/01/2012 - 19:18 | Link to Comment Anonymous X
Anonymous X's picture

Uhm...What?

You clearly haven't been reading their emails thoroughly. I've made great gains in Broadvision and their older suggestion Mega Precious Metals, of course I do suggest doing a bit of research on your own.

Go check them out, some of their suggestions are even in Ron Paul's portfolio. They legitimately want to help people who fear that our government is out of control (which it is) and provide information on thriving during those times (buy gold/silver, stock up on food, etc.).

What's wrong with wanting to help people for free??? All you have to do is sign up to their mailing-list. Signup is at the bottom

http://inflation.us/

Tue, 05/01/2012 - 19:52 | Link to Comment smiler03
smiler03's picture

Wow, what a bang up-to-date website!

Most recent "Economic News" article was February the 8th 2012

Most recent "Our Latest Articles" was January 31st 2012

Most recent "Stock Suggestions" was December 12th 2011

Tue, 05/01/2012 - 20:55 | Link to Comment Anonymous X
Anonymous X's picture

haha it was totally a joke, im sure ZH'ers could've figured that out though :D

Tue, 05/01/2012 - 16:46 | Link to Comment Manthong
Manthong's picture

Bullish.

This has got to be good news since it suggests that we are in such great shape that we can grow our debt forever without regard for any of the traditional consequences.

$ 17.5 Trillion or Bust!

Tue, 05/01/2012 - 16:46 | Link to Comment zerotohero
zerotohero's picture

It will hit 20 trillion before anything changes/implodes.

Tue, 05/01/2012 - 16:47 | Link to Comment resurger
resurger's picture

you see, whenever the red line goes above the blue line (dont bother reading the footers) that ensures the AAA rating gentelmen .....

 

 

Tue, 05/01/2012 - 18:22 | Link to Comment Poetic injustice
Poetic injustice's picture

Example trial made out of Egan Jones ensures AAA rating forever.

Tue, 05/01/2012 - 16:48 | Link to Comment Sudden Debt
Sudden Debt's picture

TIK TAK TOE BITCHEZ!!

Tue, 05/01/2012 - 16:48 | Link to Comment Cdad
Cdad's picture

Fuckin' sociopaths...central bankers...chattering about everything today [including ironically how no QE is coming...now] while all the while failing to remotely address...their fucking total and complete failure.

4 years, $5 trillion in liquidity injections, the unemployed still languishing, housing legging down, GDP reversing...

What will it take before at least one of these guys is reported to be "hanging from a lamp post" somewhere?  Or how about...gasp...one of these clowns fired?  Maybe an announcement that one of them really needs to spend more time with family and is retiring?  

Nope...just more central banker bullshit...day after day...

....baaaaaaaaaaaa  baaaaaaaaaaaaaaa

Tue, 05/01/2012 - 17:08 | Link to Comment Rainman
Rainman's picture

Maestro Greenspan says stocks are very cheap and likely to rise.

http://www.bloomberg.com/news/2012-05-01/greenspan-says-u-s-stocks-very-cheap-likely-to-rise.html

Sell ! Sell ! Sell ! 

Tue, 05/01/2012 - 19:41 | Link to Comment I should be working
I should be working's picture

On Jan. 7th, 1973 the New York Times featured an interview with one of the nation's top financial forecasters, who urged investors to buy stocks without hesitation: "It's very rare that you can be as unqualifiedly bullish as you can now." 

That forecaster's name was Alan Greenspan.  Needless to say stocks didn't do so great in 1974, or until 1982 for that matter.  

See history does repeat itself!!

Tue, 05/01/2012 - 16:49 | Link to Comment mfoste1
mfoste1's picture

this is when the real growth begins!

/sarc

Tue, 05/01/2012 - 21:02 | Link to Comment BigDeuceLittleToilet
BigDeuceLittleToilet's picture

trust your hunch, will make a bunch!

Tue, 05/01/2012 - 16:50 | Link to Comment lolmao500
lolmao500's picture

Israeli election in September... Bibi is expected to get a majority. The second most powerful party will be Lieberman's party... even more right wing than Likud.

So the extremists will be in full power in Israel in October... perfect storm for an Israeli strike on Iran just before the US election...

http://www.haaretz.com/news/national/netanyahu-expected-to-announce-date...

http://www.haaretz.com/news/national/lieberman-yisrael-beiteinu-will-bec...

http://www.haaretz.com/news/national/haaretz-early-elections-snapshot-li...

The left wing in Israel is very afraid of Bibi, Barak and Lieberman... they think they gonna destroy Israel... they might be right...

http://www.haaretz.com/blogs/west-of-eden/has-israel-s-leadership-come-d...

http://www.haaretz.com/news/diplomacy-defense/tzipi-livni-quits-knesset-...

Tue, 05/01/2012 - 18:50 | Link to Comment yochananmichael
yochananmichael's picture

its the leftist that will destroy Israel, they certainly have no commitment to it.

Tue, 05/01/2012 - 18:50 | Link to Comment yochananmichael
yochananmichael's picture

its the leftist that will destroy Israel, they certainly have no commitment to it.

Tue, 05/01/2012 - 16:50 | Link to Comment Sudden Debt
Sudden Debt's picture

Obama will truely be remembered throughout history...

Tue, 05/01/2012 - 16:50 | Link to Comment Temporalist
Temporalist's picture

No worries.  Krugman said it can be 130% no problems.  I'm with him because he's got a beard.

Tue, 05/01/2012 - 16:52 | Link to Comment Sudden Debt
Sudden Debt's picture

So is this guy
http://www.youtube.com/watch?v=63D6NaVQD74&sns=em
But I wouldn't bet the house on what he says...

Tue, 05/01/2012 - 21:24 | Link to Comment GS-DickinDaMuppets
GS-DickinDaMuppets's picture

Sudden,... hey man don't post anymore links to the crazy bearded guy.  Sh*t, I don't know if I can go to sleep tonight, ....really scary stuff, damn near as scary as "Bennie and the Jets" - even worse than Timma !!

 

...doing GOD's work...GS-DickinDaMuppets

Tue, 05/01/2012 - 16:50 | Link to Comment chunga
chunga's picture

How long before America is foreclosed?

This makes me sick. This appeal was filed yesterday in Federal Court.

Foreclosure Happy Bankers Change Venue For Their Benefit. Federal Judge McConnell Orders Stay On All Foreclosures. Bankers Join Forces. File Appeal.

The key element to the Judge's STAY ORDER:

"Order the appearance of any persons necessary to settle any claims completely and/or order the appearance of any non-parties, including but not limited to municipal and other governmental officials and lien holders, that may be essential for a total resolution of the claims;"

The banker men and their black hat lawyers filed this the DAY BEFORE this "May Day" event.

Bankers love to leverage everybody else; but HATE being leveraged themselves.

Why are people protesting again?

Tue, 05/01/2012 - 17:11 | Link to Comment antisepticWipe
antisepticWipe's picture

That's gross.

Fuck every one of those bankers and their scumbag lawyers.

Fuck them.

Tue, 05/01/2012 - 16:53 | Link to Comment lolmao500
lolmao500's picture

And the last graph is optimistic... no deficit from 2012 to 2025 or so??? Total bullshit.

Tue, 05/01/2012 - 19:57 | Link to Comment smiler03
smiler03's picture

Ergo there is gonna be a multi $trillion default which will wipe the slate clean!

Tue, 05/01/2012 - 16:54 | Link to Comment Soda Popinski
Soda Popinski's picture

That gives us until mid-September, excluding any big events i.e. war,  more qe.  And somehow TPTB will find a way to drive down the PMs.  I've started to expect the opposite will happen of what should, in every situation.  Its bizarro world.

Tue, 05/01/2012 - 17:08 | Link to Comment Zero Govt
Zero Govt's picture

well the one thing that has been highly predictable is the debt holes since 2008 have been dug even deeper by the politicians and bankers and the central planners, sorry bwankers, have printed the crap out of our monopoly money

shame there isn't a counterfeit money ETF

Tue, 05/01/2012 - 16:55 | Link to Comment Oxygen
Oxygen's picture

I think the Facebook IPO will be the begining of the end....after that big casino bet....and billions will be made...it will all start to fall apart..

youngman  : When is the facebook IPO ?? What do you said make sence.

First, bankers will make money

Second , Facebook may be close by Us Gouvernement because this site its too much dangerous for gouvernement.

 I live in Montreal and It's easy for people to organize protest with facebook. Gouvernement does not like that.

Third: All facebook share may go to ZERO. ( with all the rest! )

 

 

 

 

Wed, 05/02/2012 - 02:21 | Link to Comment Lednbrass
Lednbrass's picture

Facebook is great for government as it makes it very easy to track what people do, say, and think. Go ahead, plan your protest via Facebook- it makes it easier for them to figure out where to send the tear gas canisters which will at least save a few bucks.

Tue, 05/01/2012 - 16:55 | Link to Comment Sudden Debt
Sudden Debt's picture

Looks like the slaves will need to put a bit more back into it to pay off the intrest of the debt.

Tue, 05/01/2012 - 17:05 | Link to Comment Zero Govt
Zero Govt's picture

Yes comforting to know President Bumma doesn't want to leave the kids with debts from Washington to repay

hope he's not seen the student debt problem/mountain because they can't afford what the Super Committee couldn't solve either

Tue, 05/01/2012 - 16:56 | Link to Comment Racer
Racer's picture

WSJ writes: "U.S. Considers Notes That Float"

 

Is that to deter people from using them as toilet paper following the Zimbabwean problem with ones that didn't?

Tue, 05/01/2012 - 17:48 | Link to Comment SokPOTUS
SokPOTUS's picture

Heh.  Floaters.

Tue, 05/01/2012 - 21:12 | Link to Comment BigDeuceLittleToilet
BigDeuceLittleToilet's picture

Phantom Deuce

Tue, 05/01/2012 - 17:02 | Link to Comment Zero Govt
Zero Govt's picture

as a Democrat said the amount of US debt is equal to the amount of power and status the US carries worldwide... so the US is the simply 'The Greatest' (debtor nation) according to these 'Einsteins of Economics' in Washington

credit cards all round please

Tue, 05/01/2012 - 17:01 | Link to Comment MarkD
MarkD's picture

Ya but we got Bin Ladeeda........ so what's more important?

Can't we just put together a Super Duper Banana Split Deficit/Debt Reducing Congressional Bipartisan Committee to fix it?

Tue, 05/01/2012 - 17:00 | Link to Comment Alexmai
Tue, 05/01/2012 - 17:03 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Obama has a budget plan?  Then he is doing better than I thought!

Forward, march!

Tue, 05/01/2012 - 17:02 | Link to Comment lunaticfringe
lunaticfringe's picture

Tyler... not to mince hairs... but using your numbers the debt ceiling is 700 billion away...not 600....although to be fair at this point, 100 billion seems like such chump change. Forward, mf'ers!

Tue, 05/01/2012 - 17:07 | Link to Comment eaglefalcon
eaglefalcon's picture

Relax, the debt/GDP ratio passed 100% without a whimper. What difference will an extra 1.5% make?

Tue, 05/01/2012 - 20:36 | Link to Comment chump666
chump666's picture

Asia. They are about to HIT major inflation/turmoil/strife/riots.  They go, America goes. 

Then the world goes. 

 

Tue, 05/01/2012 - 17:06 | Link to Comment kekekekekekeke
kekekekekekeke's picture

we are fucked

Tue, 05/01/2012 - 20:38 | Link to Comment PeeramidIdeologies
PeeramidIdeologies's picture

+1 for the eloquence of your understatement! ;)

Tue, 05/01/2012 - 17:07 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Mr. Owl, how many days must Timmay raid the pension fund to keep the debt ceiling from being breached before the election?

Tue, 05/01/2012 - 21:17 | Link to Comment WmMcK
WmMcK's picture

The world may never know ...

Tue, 05/01/2012 - 17:09 | Link to Comment Haddock
Haddock's picture

It doesn't matter. It's never going to be paid back and everyone knows it.

Tue, 05/01/2012 - 17:11 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Paid back - no; but it will be reconciled one way or another.  And not everyone knows it - only the informed.  If everyone knew it, gold would be $10K/oz.

Tue, 05/01/2012 - 17:15 | Link to Comment Hannibal
Hannibal's picture

Govt (fiat) debt is pure abstract sybolism, a believe system (like religion) hence completely irrelevant and they don't matter.

Tue, 05/01/2012 - 17:33 | Link to Comment R_Soles
R_Soles's picture

Krugman is a fuckstick. How can any sane? person keep saying more and more debt is ok if we just use it to...(fill in the space as you see fit). WE, in North America, need production not consumption you cocksuckers or a French like revolution circa 1789 is gonna arrive with perhaps a subesequent reign ot terror somewhere to boot. Someone once said, "If you are in a hole, stop phucking digging"

 

So, there is that

Tue, 05/01/2012 - 17:40 | Link to Comment Dien Bien Poo
Dien Bien Poo's picture

maybe maybe. i would like to hear a coherent practical alternative given where we are today. everyone bitches here but few solid suggestions.

Tue, 05/01/2012 - 18:02 | Link to Comment Spacemoose
Spacemoose's picture

we are doomed because there are no politically palatable solutions.  real solutions would require balancing preserving the delta smelt against california central valley farm productivity.  or balancing the need for diversity co-ordinators against the need for more engineering professors.  or balancing the cost of the war on drugs against the benefits derived therefrom, for instance.  all of these solutions would be vetoed by special interest groups. 

Tue, 05/01/2012 - 18:06 | Link to Comment dwdollar
dwdollar's picture

You can't expect them to have a solution for a problem they don't understand.

Tue, 05/01/2012 - 19:24 | Link to Comment dougngen
dougngen's picture

let's see....STOP FUCKING SPENDING!!!! let idiots go bankrupt and purge the system! real honest business people would buy up the pieces of mismanaged corporations and hopefully run them for a profit! STOP distorting the market with government intervention!!!! let real market forces work!!!! Convict criminals instead of bailing them out!!!! Maybe some crazy f'ing ideas like that would work there poo...

Tue, 05/01/2012 - 17:45 | Link to Comment q99x2
q99x2's picture

'if somehow the Treasury finds a way to print its own money without reliance on the Fed'

Sounds like an assassination attempt.

The bigger the mind; the bigger the boggle.

Tue, 05/01/2012 - 17:43 | Link to Comment Boeing Boy
Boeing Boy's picture

Someone tell me how Americans are going to cope with austerity?

 

Tue, 05/01/2012 - 17:46 | Link to Comment SokPOTUS
SokPOTUS's picture

The Road

Tue, 05/01/2012 - 18:06 | Link to Comment shovelhead
shovelhead's picture

Long on Pb and brass.

Wed, 05/02/2012 - 02:25 | Link to Comment Lednbrass
Lednbrass's picture

In the end, they are the most powerful of all the preciouses.

Tue, 05/01/2012 - 21:56 | Link to Comment Yes_Questions
Yes_Questions's picture

 

 

The dominoes fall with austerity:

http://www.youtube.com/watch?v=OxQX9fYf2aI

FF to 2;25

Tue, 05/01/2012 - 17:46 | Link to Comment SokPOTUS
SokPOTUS's picture

$700 Billion; not $600 Billion; but hell; that could be one day's add, so why quibble?

Tue, 05/01/2012 - 17:51 | Link to Comment rumblefish
rumblefish's picture

Report from the field.... I've had three different clients in my office saying things are getting nuts in real estate in phoenix. Buyers are getting out bid, properties are be bought minutes after they hit the MLS , Reminicent of 2005/2006. One developer told me he busier now than in the boom. Did the bernak get his wish granted and we're gonna get price inflation in housing in the distressed markets?

If so, at what price and what's next?

Tue, 05/01/2012 - 18:32 | Link to Comment Poetic injustice
Poetic injustice's picture

Some places are more active in RE, because money flows there. DC is good example, as all government employees buy a house.
Cost? Your freedom and soul, as usual.

Tue, 05/01/2012 - 19:25 | Link to Comment PersonalRespons...
PersonalResponsibility's picture

"Did the bernak get his wish granted and we're gonna get price inflation in housing in the distressed markets?"

 

If so, I will sell into it and rent.

Tue, 05/01/2012 - 22:05 | Link to Comment Yes_Questions
Yes_Questions's picture

 

 

Guerrilla Marketing.

Tue, 05/01/2012 - 19:10 | Link to Comment Dr. No
Dr. No's picture

I see a leveling off in 2011, due to the debt negotiaons naturally.  As I recall, Guitner borrowed from the pensions to fund while the ceiling was raised.  SInce there was not a spike after the deal was done, I suspect he hasnt paid back the pensions yet?

Tue, 05/01/2012 - 19:10 | Link to Comment Hohum
Hohum's picture

Talking about "growth" is very funny.  By 2040, everyone will use that word to refer to infectious diseases, not prosperity.  And, no, that won't change if Ron Paul is elected.

Tue, 05/01/2012 - 19:30 | Link to Comment jmcaule4
jmcaule4's picture

If you guys like Zero Hedge, Alf fields, King Worlds News etc then you'll like my blog.

I'll be releasing my favored wave count tonight as well as a piece on when to expect the next round of quantitative easing from the FED.

Check it out!

http://jmcaule-whatimlookingatrightnow.blogspot.ca/

Cheers,

jmcaule

Tue, 05/01/2012 - 19:53 | Link to Comment Everybodys All ...
Everybodys All American's picture

Madoff goes to jail for his ponzi and Krugman gets to go on a book tour for advocating essentially the same thing for our economy.

Tue, 05/01/2012 - 20:28 | Link to Comment Curt W
Curt W's picture

Tyler 1st paragraph  16.39 minus 15.69 equals 700 billion

Tue, 05/01/2012 - 20:31 | Link to Comment loveyajimbo
loveyajimbo's picture

Lucky that Ben stopped the QE stuff... creating trash bonds with funny money is different than buying them with funny money... do you feel stimulated?

Tue, 05/01/2012 - 20:47 | Link to Comment orangegeek
orangegeek's picture

Keeping the markets aloft by leveraging the next twenty years.  All in day's work for central banker.

 

Dow entered into new 4 year territory.  Incredible.

 

http://bullandbearmash.com/index/djia/hourly/

Tue, 05/01/2012 - 20:56 | Link to Comment yogibear
yogibear's picture

Plenty of room to double debt again in 7 years to 32 trillion.

The goal is 200% of GDP. Before then the GDP will be adjusted to include the human, animal and insect waste production in the US so that the GDP is much better. 

 

Tue, 05/01/2012 - 21:05 | Link to Comment BlueStreet
BlueStreet's picture

We're all on the Titanic boys and you know what they say about boats, Bust Out Another Trillion.  

 

 

Tue, 05/01/2012 - 21:22 | Link to Comment gissaus
gissaus's picture

Ratio of Total Debt to Total Income is actually 619% when you consider that the estimated total revenue of the Federal Government for 2012 is $2.5 billion...scary

Tue, 05/01/2012 - 21:48 | Link to Comment Watts_D_Matter
Watts_D_Matter's picture

I just opened a bank account and got a free wheelbarrow....the lady said it will help when I make future deposits..

Tue, 05/01/2012 - 21:51 | Link to Comment jomama
jomama's picture

OT, that douchebag Krugman is over on reddit doing a Ask Me Anything thread.

I'd love to blow him up, but I'm not Kyle Bass.

 

Tue, 05/01/2012 - 21:58 | Link to Comment djsmps
djsmps's picture

Boy, never say Leon Panetta can go fuck himself (being the worst murderer in this country). CBS News had a problem with it. Anyway, Leon Panetta can go fuck himself. I won't stand for mass murderers. But Satan welcomes him.

Tue, 05/01/2012 - 21:59 | Link to Comment Body of Lies
Body of Lies's picture

And how much of either statistic is true?

Tue, 05/01/2012 - 22:13 | Link to Comment Yes_Questions
Yes_Questions's picture

 

 

One O One Point Five GDP is much better manners than saying the horrid Fifteen Point Four Six Two Trillion in Debt.

 

Happy Hunger Games!

 

Tue, 05/01/2012 - 22:18 | Link to Comment deflator
deflator's picture

 I believe Krugman is wrong and is merely playing politics with those in the age group similar to his that is biased towards the past and extrapolating it indefinitely into the future.

 It's like being on empty and guessing how far you can go before running out of gas. Why even waste a breath on Krugman?

Wed, 05/02/2012 - 05:03 | Link to Comment Mr. Noatak
Mr. Noatak's picture

My opinions only:

Just as a thought experiment- what if the Constitution prohibited the US Gov. from buying its own bonds? Or suppose that it were treason for any state to spend more than it received in revenues in a calendar year?

If all this were so, I predict that our standard of living would be considerably lower. What I mean to say is- our standard of living IS considerably lower, but we cannot comprehend it yet because all the minted currency floating on the horizons is obstructing our world view.

Wed, 05/02/2012 - 08:32 | Link to Comment Bogdog
Bogdog's picture

I just pooped myself.

Fri, 05/04/2012 - 13:40 | Link to Comment Republicae
Republicae's picture

Government solutions become problems which require more government solutions which become problems which require more government solutions which become problems....etc. How rational is that?

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