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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 | 2389259 NewThor
NewThor's picture

FUBAR bitchez!

Tue, 05/01/2012 - 16:48 | 2389295 resurger
resurger's picture

The beginning of the end Bitchez

Tue, 05/01/2012 - 16:50 | 2389306 mayhem_korner
mayhem_korner's picture



The end of the beginning...

Tue, 05/01/2012 - 16:54 | 2389326 BoNeSxxx
BoNeSxxx's picture

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

Tue, 05/01/2012 - 21:52 | 2389875 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 | 2389876 Pairadimes
Pairadimes's picture

...or "Congressional Ethics Panel?"

Tue, 05/01/2012 - 17:35 | 2389436 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 | 2389448 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 | 2389458 Chaffinch
Chaffinch's picture

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

Tue, 05/01/2012 - 20:34 | 2389778 Sam Clemons
Sam Clemons's picture

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

Tue, 05/01/2012 - 19:40 | 2389661 sablya
sablya's picture

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 | 2389925 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 | 2389943 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 | 2389966 KickIce
KickIce's picture

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

Tue, 05/01/2012 - 22:02 | 2389936 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 | 2390031 CURWAR2012
CURWAR2012's picture


Tue, 05/01/2012 - 17:56 | 2389476 Mary Wilbur
Mary Wilbur's picture


Tue, 05/01/2012 - 19:42 | 2389666 smiler03
smiler03's picture

Churchill if you want to get it right.

Tue, 05/01/2012 - 18:54 | 2389587 francis_sawyer
francis_sawyer's picture

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


Tue, 05/01/2012 - 16:53 | 2389320 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 | 2389346 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 | 2389365 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 | 2389373 mayhem_korner
mayhem_korner's picture



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

Tue, 05/01/2012 - 17:23 | 2389420 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 | 2389736 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 | 2389881 Road Hazard
Road Hazard's picture 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 | 2389941 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 | 2390366 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 | 2389307 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 | 2389319 mayhem_korner
mayhem_korner's picture



What does "overexaggerating" mean?

Tue, 05/01/2012 - 17:00 | 2389354 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 | 2389364 mayhem_korner
mayhem_korner's picture



Did you just watch Seven?

Tue, 05/01/2012 - 19:30 | 2389645 Muppet Pimp
Tue, 05/01/2012 - 22:35 | 2390036 CURWAR2012
CURWAR2012's picture

Love the name man

Tue, 05/01/2012 - 21:38 | 2389878 theTribster
theTribster's picture

+1 on the name.

Tue, 05/01/2012 - 20:04 | 2389725 eaglefalcon
eaglefalcon's picture

It means mid overestimating

Tue, 05/01/2012 - 17:07 | 2389378 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 | 2389748 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 | 2389381 fuu
fuu's picture

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

Tue, 05/01/2012 - 17:21 | 2389415 NotApplicable
NotApplicable's picture

I LOLed.

Tue, 05/01/2012 - 18:27 | 2389542 divide_by_zero
divide_by_zero's picture


Tue, 05/01/2012 - 23:16 | 2390148 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 | 2390817 fuu
fuu's picture

Rubber Balls has been MIA for a while.

Tue, 05/01/2012 - 18:00 | 2389483 BigDeuceLittleToilet
BigDeuceLittleToilet's picture

FUBU Biatchez!

Tue, 05/01/2012 - 18:05 | 2389494 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 | 2389650 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 | 2389260 Badabing
Badabing's picture

debt hogs

Tue, 05/01/2012 - 16:40 | 2389265 outamyeffinway
outamyeffinway's picture

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

Tue, 05/01/2012 - 16:41 | 2389268 GeneMarchbanks
GeneMarchbanks's picture

Krugman says another 30% is no problem. Relax.

Tue, 05/01/2012 - 16:47 | 2389291 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 | 2389372 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 | 2389653 I should be working
I should be working's picture

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

Tue, 05/01/2012 - 22:11 | 2389951 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!

Tue, 05/01/2012 - 16:51 | 2389311 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 | 2389313 EscapeKey
EscapeKey's picture

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

Tue, 05/01/2012 - 16:54 | 2389325 Sudden Debt
Sudden Debt's picture

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

Tue, 05/01/2012 - 16:43 | 2389273 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 | 2389317 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 | 2389402 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 | 2389275 marathonman
marathonman's picture


Tue, 05/01/2012 - 16:44 | 2389281 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 will all start to fall apart..

Tue, 05/01/2012 - 16:47 | 2389293 NewThor
NewThor's picture

I've got that funny feeling too.

Tue, 05/01/2012 - 17:09 | 2389393 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 | 2389600 dougngen
dougngen's picture

seriously! they went off a cliff!

Tue, 05/01/2012 - 19:18 | 2389629 Anonymous X
Anonymous X's picture


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

Tue, 05/01/2012 - 19:52 | 2389690 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 | 2389811 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 | 2389287 Manthong
Manthong's picture


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 | 2389292 zerotohero
zerotohero's picture

It will hit 20 trillion before anything changes/implodes.

Tue, 05/01/2012 - 16:47 | 2389294 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 | 2389528 Poetic injustice
Poetic injustice's picture

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

Tue, 05/01/2012 - 16:48 | 2389298 Sudden Debt
Sudden Debt's picture


Tue, 05/01/2012 - 16:48 | 2389299 Cdad
Cdad's picture

Fuckin' sociopaths...central bankers...chattering about everything today [including ironically how no QE is] 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 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 after day...

....baaaaaaaaaaaa  baaaaaaaaaaaaaaa

Tue, 05/01/2012 - 17:08 | 2389388 Rainman
Rainman's picture

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

Sell ! Sell ! Sell ! 

Tue, 05/01/2012 - 19:41 | 2389662 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 | 2389301 mfoste1
mfoste1's picture

this is when the real growth begins!


Tue, 05/01/2012 - 21:02 | 2389827 BigDeuceLittleToilet
BigDeuceLittleToilet's picture

trust your hunch, will make a bunch!

Tue, 05/01/2012 - 16:50 | 2389303 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...

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

Tue, 05/01/2012 - 18:50 | 2389582 yochananmichael
yochananmichael's picture

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

Tue, 05/01/2012 - 18:50 | 2389583 yochananmichael
yochananmichael's picture

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

Tue, 05/01/2012 - 16:50 | 2389304 Sudden Debt
Sudden Debt's picture

Obama will truely be remembered throughout history...

Tue, 05/01/2012 - 16:50 | 2389305 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 | 2389314 Sudden Debt
Sudden Debt's picture

So is this guy
But I wouldn't bet the house on what he says...

Tue, 05/01/2012 - 21:24 | 2389865 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 | 2389310 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 | 2389398 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 | 2389318 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 | 2389710 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 | 2389328 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 | 2389390 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 | 2389334 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 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 | 2390370 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 | 2389339 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 | 2389375 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 | 2389342 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 | 2389463 SokPOTUS
SokPOTUS's picture

Heh.  Floaters.

Tue, 05/01/2012 - 21:12 | 2389846 BigDeuceLittleToilet
BigDeuceLittleToilet's picture

Phantom Deuce

Tue, 05/01/2012 - 17:02 | 2389358 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 | 2389359 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 | 2389360 Alexmai
Tue, 05/01/2012 - 17:03 | 2389369 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 | 2389370 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 | 2389379 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 | 2389781 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 | 2389380 kekekekekekeke
kekekekekekeke's picture

we are fucked

Tue, 05/01/2012 - 20:38 | 2389786 PeeramidIdeologies
PeeramidIdeologies's picture

+1 for the eloquence of your understatement! ;)

Tue, 05/01/2012 - 17:07 | 2389382 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 | 2389853 WmMcK
WmMcK's picture

The world may never know ...

Tue, 05/01/2012 - 17:09 | 2389387 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 | 2389400 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 | 2389392 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 | 2389432 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 | 2389449 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 | 2389489 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 | 2389498 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 | 2389633 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 | 2389454 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 | 2389457 Boeing Boy
Boeing Boy's picture

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


Tue, 05/01/2012 - 17:46 | 2389460 SokPOTUS
SokPOTUS's picture

The Road

Tue, 05/01/2012 - 18:06 | 2389500 shovelhead
shovelhead's picture

Long on Pb and brass.

Wed, 05/02/2012 - 02:25 | 2390372 Lednbrass
Lednbrass's picture

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

Tue, 05/01/2012 - 21:56 | 2389919 Yes_Questions
Yes_Questions's picture



The dominoes fall with austerity:

FF to 2;25

Tue, 05/01/2012 - 17:46 | 2389459 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 | 2389471 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 | 2389552 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 | 2389639 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 | 2389945 Yes_Questions
Yes_Questions's picture



Guerrilla Marketing.

Tue, 05/01/2012 - 19:10 | 2389613 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 | 2389614 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 | 2389646 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!



Tue, 05/01/2012 - 19:53 | 2389697 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 | 2389767 Curt W
Curt W's picture

Tyler 1st paragraph  16.39 minus 15.69 equals 700 billion

Tue, 05/01/2012 - 20:31 | 2389776 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 | 2389802 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.

Tue, 05/01/2012 - 20:56 | 2389814 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 | 2389832 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 | 2389861 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 | 2389894 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 | 2389904 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 | 2389926 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 | 2389920 Body of Lies
Body of Lies's picture

And how much of either statistic is true?

Tue, 05/01/2012 - 22:13 | 2389975 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 | 2389992 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 | 2390473 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 | 2390712 Bogdog
Bogdog's picture

I just pooped myself.

Fri, 05/04/2012 - 13:40 | 2397507 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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