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US Adds $120 Billion In Debt Since Debt Ceiling Hike On Friday, $310 Billion More On Deck In Next Two Months
Remember when the US hiked its debt ceiling on Friday courtesy of a formulaic 52 affirmative votes in the Senate, giving the Treasury $1.2 trillion in dry debt powder to attempt to grow the economy one more time according to the algorithmic fantasies of voodoo priests with pieces of Ivy League parchment on their walls? Well, two days later, the dry powder is less than $1.1 trillion. In other words, in the past two days, total US debt increased by $120 billion, along the lines of our expectations, as the Treasury filled up all the G-fund cash it had pillaged to continue issuing debt throughout the month of January even though it was formally above the debt ceiling. What is more concerning, is that as the chart below shows, the trendline of US debt since the beginning of 2011 is no longer a straight line, but has slowly transformed into a parabola, the very same word used as the root in such other infamous words as, for example, parabolic.
It gets worse: even according to the drastically, and very unrealistically, downward revised borrowing expectations of the Treasury released yesterday, the US will issue $444 billion in debt in this quarter. Today's number means that in February and March alone Tim Geithner will raise another $310 billion, which will send total debt to $15.7 trillion as of March 31. What is the final debt ceiling? Just under $16.4 trillion. So the US will have $700 billion in debt issuance capacity for the 7 months leading into the presidential election (and 9 until the end of the year).
Now naturally, if the debt ceiling becomes a sticking point at the election, Obama's chances of reelection plunge. Which makes us wonder - will Republicans grasp that the paradox of defeating Obama is precisely in giving him a carte blanche on all the stimulus programs he wants? Because if Congress approves another $200, 300 or even $400 billion in stimulus pork (the only thing better than one Solyndra? One thousand Solyndras!) the Treasury will drown in the need to raise hundreds of billions more, and will in fact hit the ceiling well in advance of the elections. As for the stimulus projects themselves, they will crash and burn just like all centrally planned endeavors, and actually results in a far worse outcome than if they had never been attempted. Because ironically, now that the entire world has passed the Rubicon, and unfortunately there really is no way of fixing anything, the only thing one can hope for is letting the status quo get on with doing what it does best, and leading the 100 year process of central planning to its sad and terminal conclusion, only after which can the "fresh start" reset occur. Ironically, the same thing is true with the farce that is the debt ceiling: the best way to finally get back to a fiscally prudent regime? Why go to town, of course.
And, we almost forgot to add, as of today, total debt to GDP is once again well over 100% even with the latest Q4 GDP data, at 100.4% and rising every day.
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We should probably spent a bunch of money on moon bases and toy soldiers to get us out of this.
-Paul Krugman, PhD. Nobel Laureate.
Sometimes you just have to suspend all reason and simply BELIEVE in the audacity of HOPE.
http://www.youtube.com/watch?v=Akoukq5DvAE
Bullish...
looks like gold ...
If the missing MF Global money could just be 'found' and used for the debt that would be cool.
Sadly, the MF Global money is only 1% of the latest increase. And people thought that was theft...
chump change
incredibly bullish...
It has been observed that each time the debt ceiling is raised an upturn in the gold curve does occur....not just your imagination.
Love these long cascades
wheeeeee
The $2.4 trillion last August was Obama's re-election money. I thought everyone understood that?
And he will spend the money in QII and QIII to give the appearance of prosperity. QIV means nothing to Obama.
I mean really is this not politics 101?
Clinton was the master.
2.4 trillion went to obama . . . ?
still talking dummies: I thought everyone understood that...politics 101, askin'em for'n answer, is this not 1<= 0 =>1 ?
just askin for it:
http://www.youtube.com/watch?v=DwDbd4jQpkA
The debt ceiling was increased $2.4 trillion last August.
again: george w. bush and barack obama -- the two worst back to back rulers ever. clinton, while a slimy criminal, had better fiscal policy and actually won, sort of, his one smallish war (serbia).
it's not true that all centrally planned endeavors are pointless or destructive: much government run research, education and infrastructure projects are quite useful. stopped cholera, etc. government, increasingly in the last decade particularly, has become so incompetent and corrupt that such a belief is dying. since government collects so much money (and can print more) it must be held to higher standards. jail the worst. ron paul '12.
My money is on recession this year. If true, another term for Obama is unlikely. This market is getting increasingly attractive for a big move into SPXU. I've been dollar cost averaging purchases on the recent sharp upward spikes, but there comes a day when it's time to hit it hard with the big short. Last time around credit spreads led the way (you didn't have to top time with technicals, just look for divergence in credit spreads versus equities).
This is getting to be quite the party for equities. Let's keep it rolling folks. I love a good melt up.
Forget intrade.
If you want to know who will win the POTUS election, just add up the money contributed to each candidate by Goldman & JPM.
Whoever collects the most from those two lieutenants of the House of the Red Shield wins - guaranteed.
'found'...Even, if it was your money?..."be cool"?
Pedantic. To see a truly parabolic chart in the financial world would be nothing less than incredible.
a typical parabola: http://tiny.cc/j84zs
pocket change for uncle sam...
pocket change for uncle sam...
except it's coming out of uncle ching's pocket, nice effort with the nonchalance though
Well, you've just seen one. "Pedantic." I don't think that word means what you think it means.
P.S. We don't make it to the upward slope, just a warning.
http://www.youtube.com/watch?v=OHVjs4aobqs
I'm sorry but I thought it was obvious what I was saying. I'll rephrase it for you; "I'm being pedantic but".
Pedantic . . . ? . . . neither the expected stark economy of words, on a finacial blog, nor even hyperbole itself quite account for the profligacy nor incisive sorcery of such an opening sentence, thusly:
Remember when the US hiked its debt ceiling on Friday courtesy of a formulaic 52 affirmative votes in the Senate giving the Treasury $1.2 trillion in dry debt powder to attempt to grow the economy one more time according to the algorithmic fantasies of voodoo priests with pieces of Ivy League parchment on their walls?
smiler03
get in on the fun, lighten up and enjoy the sarcasm
I prefer step functions myself however parabolas are very pretty.
smiler: i get a "bad gateway" message.
The debt is truly parabolic. It is quite sad.
http://ericsprott.blogspot.com/
It's not parabolic, it's exponential. I know what you're saying, and I understand that everyone says "parabolic" and that people don't mean it literally. But the fact is that it is exponential, and the ramifications of that fact are serious.
And while we're at it, everyone should note that exponential functions ultimately grow faster than parabolic functions. Much faster. Much, much faster.
In the immortal words of Buzz Lightyear, "To infinity ... and beyond!"
+ another 1
Correct, exponential is worse. I just wrote about exponential growth at my blog.
"Naturally, if the debt ceiling becomes a sticking point at the election, Obama's chances of reelection plunge. Which makes us wonder - will Republicans grasp that the paradox of defeating Obama is precisely in giving him a carte blanche on all the stimulus programs he wants?"
Good to know they put our interests before their political own
You still believe that left/right, red/blue party crap ... at this point in the game?
Newt or Mitt has NO plan for cutting ANY spending and Obama has obviously demonstrated his desire for govt spending, so I have to agree that R or D - we all will be fucked with a red, white, and blue dilrod.
FIFY. The election in November is already meaningless, if we even get that far. Consider the current lull the calm before the storm.
some call it sarcasm
What was the name of that strategy, to bring about marxism, i f I remember correctly, that involved letting capitalism run unchecked to get to the end state of socialism as quickly as possible? I have been trying to think of this for months. I think Obama was accused of being a disciple of it and it is just named after the last names of the people that used it/came up with it.
I feel like we are there with debt. If we dont get a Ron Paul to reign it in, it will be reigned in by racking up ever more amounts of it eventually. The difference to me is who gets a chair when the music stops, and also what kind of political regime we have after.
More like it's Odd A City (washington) could spend so much!
cnbc said that this parabolic spending was just temporary until the economy is back on firmer ground. The us treasury debt is still the safest asset. (;
And I will feel just that much more secure when I have to send them a check each month to keep my assets safe.
The parabolic spending is temporary. It is the exponential spending that will catch everyone by surprise.
cnbc said that this parabolic spending was just temporary until . . . it lands
nasa now having been charged with its arc
. . . as well as reentry
astronomical
*deleted* out of sequence
Hopefully Krugman has all his money in USTs.
things sure seem to be picking up maximum speed.......
You're correct, except you imply there's a maximum. There isn't and things are worse than meets the eye.
A classic sign of exponential growth is a doubling over some roughly constant period, aka N = X^(2t/T) where T is the time interval to double and t is the time we're at. For most processes, if you look at the exponent itself, it usually doesn't change (much) as the interval is roughly constnat, but the magnitude of the results doubles over the same roughly constant interval. And that repeated doubling over time turns into the insane, out-of-control numbers we're used to from exponential progressions. So, it'd be a fucking disaster if it were even this. But...
Tyler's graph has an offset Y axis and truncated X axis. Usually when this trick i used it's to make something look more exponential than it really is. In this case, it makes it look less exponential. Look at a 10-year or 50-year chart in constant dollars and it's pretty concerning. I eyeballed the long-term chart and it looks like we're doubling the debt every five years right now.
Now, that's bad, but what's terrifying is that a decade ago, the doubling interval was 15 years. In other words, not only are we dealing with an exponentially growing debt, we're dealing with an exponentially growing where the exponent that determines growth is changing, and as a result, the doubling time is decreasing.
If a system were simply accelerating it's speed -- it'd have a constant exponent describing it's speed equation. In the case of the US debt, the acceleration of the debt itself is accelerating, and the time interval to doubling in shortening. I don't think there's enough data to determine if the rate of interval shortening is linear or exponential, but if it's a linear case, we hit essentially infinite growth (aka dollar collapse to zero) in approximately 6 years. The scary little uptick at the very end of the chart could indicate exponentially growing acceleration. That means it happens sooner.
Nothing real can go to infinity, the charts are telling us something will change (and likely break down significantly) in five years at most. If the debt growth acceleration is itself exponential, the doubling interval will likely to be measured in months within a year. The fact that real markets aren't heading up on afterburners just shows that everyone is clueless and/or active intervention is keeping it from happening... but for how long?
+ 1 I wish I could give this + 1 quintillion.
seek is one of Zero Hedge's many treasures, I have found seek's remarks on gold and other matters to be spot-on.
I did not know that the exponent was increasing. Exponential growth on steroids. The end will not be pretty, I agree that something will break down, perhaps catastrophically, within a few years at most.
Nice post, seek.
Here's a formula that some may find instructive as to how the laws of physics can demonstrate how such things pan out:
v(f) = v(o) + at
[Final velocity is equal to initial velocity plus the acceleration times time]
N = X^(2t/T) = WW3
nice
I thought E=MC² described it, guess I keep seeing fiat mushroom clouds.
We're talking about Bernankenomics here.
We've stepped it up a few notches.
next stop: goat rodeo.
http://www.hussmanfunds.com/wmc/wmc120130.htm
It basically is over. I'm having the gold talk with everyone I know. It consists of: Buy gold and silver. If you don't and are broke in 10 years, I told you so. Don't come crying to me.
10 years is pretty optimistic, but then again Bernanke Wallpapering has made the house stay up longer than I would have believed possible.
Exponential Bitchez!!!
to the trillionith power
Kanye West - Stronger
http://www.youtube.com/watch?v=PsO6ZnUZI0g&ob=av3e (4:27)
+1
Get it right, man.
http://www.youtube.com/watch?v=K2cYWfq--Nw
rap remixes are garbage
Correct, and it's not just mincing words. The difference is profound.
That chart soars like a rocket trail...no BTFD there
Value of one gold mark in paper marks
ZWDvUSDchart
<-- Do 100 trillion USD debt ceiling raise now. This should tide us over for 2 years (hopefully)
<-- Raise the debt ceiling each month, after a dramatic, for-show only, meaningless debate
--Sen. Barack Obama, D-Ill.
Senate Floor Speech
2006
100 trillion USD. That's like 200 loaves of bread in 1923 Reichmarks.
Think big man, think BIG....
That's like 2 loaves. 5 fish. fishes. loafs. 5 loafs. 2 fishes . . .
whatever, loafs,oafs&wishes, Think biblical man, think BIBLICAL . . . . .
where even ellipses be thee fruitful. and multiply
or 1/2 cup of coffee in 2008 zimbabwe bucks.
I can get a McDonald's or Dunkin' Donuts coffee, both far superior to Starbucks burnt roast, for around a BernankBuck.
As long as that remains the case, it's all good.
/s
That's 6 year old bullshit....math and logic now suspended until Nov.7...Weimar here we come.
come indicates future tense, are indicates present tense.
were indicates past tense.
both are and were are hilarious in that sentence.
absolutely hilarious.
pardon me, while I pull my fingernails out for my further amusement.
You nailed that one! 1933 Germany had extreme left and right wings, high unemployment 4 years after a depression, they introduced a bill that allowed them to stray from their Constitution and they crushed any opposition. Does any of this sound familar?
Familiar? Nope. This country's nationalism is strong, we have avoided the depression, and government follows the charter of our Republic to the letter. Now excuse me while I take the DUHllors I saved from my underwater NINJA loan refi through BofA, buy...excuse me finance a Chevy Volt over six and a half years, eat my bailout burger from McDonalds, and buy some US savings bonds for my children.
I voted for the second option.
"Debate", that's like a "Summit", right? I like those.
Why should Europe have all the fun?
Yeah, they should form something between the House and Senate.
They could call it, oh, I don't know, maybe, Super-Committee?
That would be AWE-SOME!
Growth of debt ceiling limit from 1940 through present (h/t Barry Ritholtz):
http://www.ritholtz.com/blog/wp-content/uploads/2011/05/Debt-ceiling-cha...
Look at the trajectory in the post-1971 period, which was, just coincidentally I'm sure, nothing short of a rocket trip after we went off the gold standard or any other 'built in' measure that restrained the amount of fiatski that could be replicated.
We're spending $1.43 for evey dollar of revenue coming into Treasury, so at least we've got that going for us now, and the future looks bright.
/s
Bullish...
The futures so bright I gotta wear shades!
http://youtu.be/8qrriKcwvlY Music always helps me feel better when comtemplating this unfathamonable numbers racket!
St. Carlin said the best thing about religion is the music..maybe goes for economic reporting too. In this excerpt Goldenberg the rich jew is played by Kudlow (cellos) and Schmuyle the other jew by cramer (muted trumpet)....
http://www.youtube.com/watch?v=kUsnOUI39ns
Wicked chart.
Hockey sticks are cool
And everyone thought Al Gore invented the hockey stick graph....
Whoopsie...lol.
"The academic at the centre of the ‘Climategate’ affair, whose raw data is crucial to the theory of climate change, has admitted that he has trouble ‘keeping track’ of the information.
Colleagues say that the reason Professor Phil Jones has refused Freedom of Information requests is that he may have actually lost the relevant papers."
Gosh, golly. who'da thunk it.
http://www.dailymail.co.uk/news/article-1250872/Climategate-U-turn-Astonishment-scientist-centre-global-warming-email-row-admits-data-organised.html
The continued, and accelerating, melting and retreat of both polar and alpine glaciers worldwide would tend to refute that claim.
No.
Its because they dont make ice the way they used to.
Really, links.. How many glaciers have been studied to verify this?
http://www.guardian.co.uk/environment/2010/jan/20/himalayan-glaciers-melt-claims-false-ipcc
How about the Guardian, more to everyones liking? IPCC lied, no say it ain't so..
And under those glaciers they find Viking settlements or smth like that. And some mountain passes used by the Romans become practicable.
Whodathunkit? You and the 3/100 scientists who simply can't (sarc) be wrong on climate change.
The Daily Mail? Good grief, you lot certainly don't mind slumming it with the worst of the MSM when the tale fits your loopy agenda.
http://blog.ucsusa.org/dismal-science-at-the-wall-street-journal?utm_source=sp&utm_medium=head&utm_campaign=sp-head-wsj-01-30-12
I'll add this to the growing list of your treasured delusions that are enabled by denial.
"The stars at night, are big and bright!" <clap!clap!clap!clap!>
Hey... Are you denying Al Gore is a genius?! That man sacrificed for us, to save us from global warmering. I have it on good information that he savi.g energy at his compound as we speak. Al is a science man, unlike you crazy deniers!
Everything is ok.. go file your tax confession and spend this instant. Be a Paytriot! damn you!
Loopy agenda?
Your boy Al Gore has been moonlighting as the local weatherman & "climatologist" for over twenty years now and has consistently, spectacularly wrong.
The only nutcases who still believe that CO2 causes "climate change" are the ones who sit around clapping while chanting "the stars are big and bright" without contemplatiing that something so bright can also be very hot.
That would be you GoinFawr ROTFL!!!
You see its like this, my trollish space traveler.
Scientists don't fight peer review of their findings & theories, they invite it.
They don't manipulate their data to arrive at a preconcieved outcome. And they certainly don't lose the very data they stake their theories & livlihoods upon. When they find their predictive models don't work (even when looking back at known knowns) they don't ask for more funding for a different model or re-enter false data to get the desired outcome, some actually revisit their original hypothesis.
Agenda you say?
Bravo. Well said my friend.
Be quiet.. Al is a great man! A GREAT MAN!!!!!!
makes me dizzy. i think these hights make me afraid...think I'll go ease my mind by rolling in silver coins. bitchezz.
It would be interesting to run a chart of the price of silver vs. the debt ceiling....might be instructive on how far below its true value silver really is now.
Issue a number of dollars equal to Graham's number
"Graham's number is unimaginably larger than other well-known large numbers such as a googol, googolplex, and even larger than Skewes' number and Moser's number. Indeed, the observable universe is far too small to contain an ordinary digital representation of Graham's number, assuming that each digit occupies at least one Planck volume." - http://en.wikipedia.org/wiki/Graham%27s_number
+ 1
That was most interesting Dr. Acula, thanks for sharing that.
Bernanke and the boyz drive convertibles, we don't need no stinking ceiling.
What I can't believe is that anyone even wants to be POTUS anymore.
...fortunately there are a few egomaniac control phreaks left....but as the insanity bar keeps getting raised each passing hour, we may just run out of ones with enough maniac in them to want it.
any prospective POTUS must be endowed with a spine-like steal . . .
which is only the kind of backbone fortified/reinforced.w/intestinal fortitude found amongst those who can withstand the demands of what useful and/or usurious ULNA+RADIUS provide when in the hands of past-masters reaching all-the-way-up to the humeris
. . . yet, now matter how forewarned, are they ever forearmed:
http://www.youtube.com/watch?v=DwDbd4jQpkA
"spine-like STEAL" freudian but accurate slip
@ A Lunatic, psychopaths do.
It isn't a question of IF Amerika defaults, it's only a question of WHEN. If Chalky Hussein Soetero gets reelected, I'm guessing sometime in 2013 nobody will loan Amerika any more money and this stinkhole becomes Greece in spades. If Romney, or some other Repub gets the nod, the markets will give them a chance to bring some sanity to the table. If the Repubs blow it, sometime in 2014 the gig is up as well. Gold $5k - fiat zero.
http://vegasxau.blogspot.com
Those who spam CTRL+P never default.
You have until the first collapse. Then you have an economy and a currency that is already devalued and will be the target for every bond investor currently holding USD.
The US at that point will sink like a brick, as will every other fiat paper..
Personally I intend to retain my paper wealth and deal with the problem by not eating food again, ever.
There may be a flaw in my plan, but I don't see it...
Can I be a central banker now?
Be your own Central Bank. Buy gold.
fofoa.blogspot.com
It's cheaper to stop eating...
The Fed/ Bernanke will lend forever. So thats not the issue. It's the value of the USD. Buy GOLD!
We have already defaulted. By definition, paying somebody back in something worth less than what they lent you is defaulting. Ours is just a camouflaged version.
You know what...I'm gonna start cheering it on.
You go debt ... Run. Run run run.
I love you debt. You make me richer every day and give my mom and dad so many things they depend on like food and healthcare and drugs...
I want drugs too. Can you help me with that too?
You want drugs?
VOTE RON PAUL!
And yet Timmay is considering issuing negative yield bonds? I guess that was the logical next step - To get people to PAY the Treasury to steal from them.
A mobster would agree protection don't come cheap.
Timmay is a well behaved monkey who entertains the masses to fill the organ grinders tin cup.
Yes, yes I am....
Holy. Fucking. Shit. O_O
And the complete media blackout for the last few months continues. People simply clueless. Except that they have clearly given up on paying down any debt and are in a perpetual holding pattern - gratifying themselves with the latest "iProduct", eating out, etc. as if nothing is wrong... but nothing is better at the same time. Is a very odd point in time. Feels all wrong. I wager it is going to end badly and people are going to look back with horror regarding the warning signs they ignored.
At this late stage, I almost think it's better for people to just get blind sided. Let them enjoy the last few moments in bliss before the storm of misery hits. Because there's no way this can be fixed without a catastrophic collapse and widespread misery.
It's also helpful for those of us who are attempting to prepare. Because the longer the panic is staved off, the longer we have to prepare. Once the panic has started, it's already too late to do anything to help yourself.
+1
What exactly will happen to those holding personal debt (mortgage, car, student loan)? Would a few gold/silver coins pay off the loan institutions? What happens to those who aren't holding any PMs or collateral to pay off their loans?
1. You end up in a camp.
2. You end up in a camp.
3. You end up in a camp.
Perhaps, you have the wrong idea about "PMS"!
Paying off debt?...R U CRAZY??
A few coins will take care of all those annoying little slave debts.
watch your fucking mouth o_0
Take $100 billion in Fed money, buy every share of Facebook's IPO, borrow $500 billion more in Fed money to buy every share of Facebook again causing Facebook's valuation to skyrocket, sell shares to sucker in Chinese government for $15 trillion. BINGO DEBT PROBLEM SOLVED!!!!
Relax, It's a drop in the really big fkn bucket.
Well, I guess this will indeed be the most expensive presidential election ever.
Costs a lot of money to buy votes
But, but, but Newt GinGrinch said we need an American moon base...
See that's a common misconception of his actual comments on the topic.
What he said was "America needs moon beads"
It's a mardi gras reference. The guy is totally into it.
No, I think he was referring to the base of the American moon party.
http://images.picturesdepot.com/photo/w/women_mooning-31519.jpg
Now that's a party I could get behind!
lol.. thanks for the laughs guys.
I love ZH.
his recent trips there made him say it.
All that's left now, is for Canada and Mexico to start trading with each other in their own
currencies and avoiding the USD. That should push things over the edge and cause the Dollar to collapse.
To boost the value of the Dollar we could back it with the Greek Drachma.
When the Greek Drachma makes its long awaited re-debut, it will probably be on more solid footing than the USD ...
The Canadian PM and party governing Parliament would have to have some big stones to do that. Just because we can beat them at ice hockey...
Winning The Future! When the debt ceiling is broken, we need to create a new one to break, so on and so on. We need to raise funds to battle the invaders from Planet X!
Paul Krugman (Crakerjack Prize recipient, Lt.Cmr. of the Broken Windows for a Brighter Future Brigade)
(sarc off)
Shits all fucked up and shit.
I truly applaud your post, but want to point out a minor discrepancy is the closing slogan:
http://28.media.tumblr.com/tumblr_lslypiW8nj1r4r3emo1_500.jpg
you made me spit immitation burrito coverings on my monitor.
I pissed myself.
'algorithmic fantasies of voodoo priests with pieces of Ivy League parchment on their walls'
It's a pleasure for my eyes to read and my ears to hair.
Yes ZH has been known to cause the growth of ear hair.
Bernanke and the Fed can just keep buying all those unsold treauries. A good case for countries to move to another reserve currency. Obama, the congress and senate, Bernanke and the Federal Reserve are all abusing the privilage of having the US as a reserve currency.
The credit rating agencies should be downgrading US debt.
1. QE $1 trillion more
2. Buy all the available gold in the world
3. ???
4. Profit!
Debt for fiscal year starting October 1 2011 till January 31 2012 : 565.80 billion or 4.64 billion/day ($14.96/day/citizen) or ($1.692 trillion deficit)
Debt for calendar year 2012 till January 31 : 133.2 billion or 4.29 billion/day ($13.86/day/citizen) ($1.565 trillion deficit)
Current debt as of January 31 2012 : 15.356 trillion
Current debt ceiling : 14.694 trillion (first phase) 15.194 trillion (second phase) 16.694 trillion (final phase)
At the current average rate of 4.465 billion in new debt/day (or about $14.40 in new debt per day for every citizen in America...and that is just federal) it will take about 299 days before reaching the final phase of the debt ceiling hike, so around November 25, 2012.
US GDP : 15.294 trillion Q4 2011
US debt : 15.356 trillion
Total debt to GDP ratio : 100.40%
Q: How can they spend another $1.2T and not move the economy into the black?
A: That's the amount of money needed just to backfill the crater the TBTF banks blew in the economy since 2008. To actually get back into the black you need a lot more than that.
There's a lot of evidence that suggests that the U.S. economy is a net destroyer of wealth. In other words, without a transfer of (real) wealth to the U.S. from abroad (in return for the fake "wealth" of $ and T-notes), the U.S. economy would cannabilize itself and quickly be on the road towards self-destruction.
Picture a bucket with a hole in it. You turn on a water hose to try and fill it up. It doesn't work. You turn up the hose so that the rate of water coming into the bucket is greater than the rate of water coming out of the hole at the bottom. Ah, there you go, now the bucket at least LOOKS full, except you can't turn off the hose without it emptying again. That's the U.S. economy now. The hose can not be turned off.
http://youtu.be/IWYXg3DfE_E M. Franti/Spearhead may help here!
Placeing technology and power into the hands of fewer and fewer people; the right people.
Of course the tech will end up controling them rather then they controling it.
this from the "stay away from the hot tub" news.
.
Credit Suisse one percenters David Higgs and Salman Siddiqui admit fraud in subprime mortgage scandal
Both men will cooperate in wider fed probe of subprime mess
Comments (8)
By Richard Schapiro / NEW YORK DAILY NEWS
.
Read more: http://www.nydailynews.com/new-york/credit-suisse-percenters-david-higgs-
salman-siddiqui-admit-fraud-subprome-mortgage-scandal-article-1.1015355#ixzz1lBfSF3k2
.
Hank Williams My Bucket's Got A Hole In It on 78
http://www.youtube.com/watch?v=Gzzd5PMdOzw
ChrisfromMorningside - That's EXACTLY the case. Amerika (formerly America) is now a nation where the shape shifters (most accountants, most investment bankers, most attorneys, almost all goverment INC.) merely shift wealth from one sector to another, and these individuals and organizations produce nothing of net value.
There's a massive contrast between a nation that makes things of tangible value, that few other nations can produce, that are desired the world over, and can be exported and sold in exchange for real value in return (and a nation that is self-sufficient in full or part, as well) and a nation that has a massive segment of its workforce dedicating their efforts to merely shifting wealth from one area to another area, resulting in at best, a zero net gain, and often times, a highly destructive wealth affect and even a massive torching of capital.