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Another One Trillion Dollars (1,000,000,000,000) In Debt

George Washington CryingDid you know that the U.S. national debt has increased by more than a trillion dollars in just over 12 months?  On September 30th, 2012 the U.S. national debt was sitting at $16,066,241,407,385.89.  Today, it is up to $17,075,590,107,963.57.  These numbers come directly from official U.S. government websites and can easily be verified.  For a long time the national debt was stuck at just less than 16.7 trillion dollars because of the debt ceiling fight, but now that the debt ceiling crisis has been delayed for a few months the national debt is soaring once again.  In fact, just one day after the deal in Congress was reached, the U.S. national debt rose by an astounding 328 billion dollars.  In the blink of an eye we shattered the 17 trillion dollar mark with no end in sight.  We are stealing about $100,000,000 from our children and our grandchildren every single hour of every single day.  This goes on 24 hours a day, month after month, year after year without any interruption.

Over the past five years, the U.S. government has been on the greatest debt binge in history.  Unfortunately, most Americans don't realize just how bad things have gotten because the true budget deficit numbers are not reported on the news.  The following is where the U.S. national debt has been on September 30th during the five years previous to this one...

09/30/2012: $16,066,241,407,385.89

09/30/2011: $14,790,340,328,557.15

09/30/2010: $13,561,623,030,891.79

09/30/2009: $ 11,909,829,003,511.75

09/30/2008: $10,024,724,896,912.49

The U.S. national debt is now 37 times larger than it was 40 years ago, and we are on pace to accumulate more new debt under the 8 years of the Obama administration than we did under all of the other presidents in U.S. history combined.

Of course all of the blame can't be placed at the feet of Obama.  During the last two elections the American people have given the Republicans a solid majority in the U.S. House of Representatives, and the government cannot spent a single penny without their approval.

Unfortunately, House Speaker John Boehner and the Republicans that are allied with him have repeatedly turned their backs on the people that gave the Republicans the majority and they have authorized trillions of dollars of new debt which will be passed on to future generations of Americans...

Since John Boehner became speaker of the U.S. House of Representatives on Jan. 5, 2011, the debt of the federal government has increased by $3,064,063,380,067.72. That is more than the total federal debt accumulated in the first 200 years of the U.S. Congress--during the terms of the first 48 speakers of the House.

In fact, if all of that debt had been given directly to the American people, every household in America would have been able to buy a new truck...

The $26,722 in new debt per household accumulated under Speaker Boehner would have been more than enough to buy every household in the United States a minivan or pickup truck--or to pay three years of in-state tuition (not counting room and board) at the typical state college.

Sometimes we forget just how much money a trillion dollars is.  In a previous article, I included some illustrations that I believe are helpful...

-If you were alive when Jesus Christ was born and you spent one million dollars every single day since that point, you still would not have spent one trillion dollars by now.

-If right this moment you went out and started spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.

We are doing the exact same thing that Greece did, only on a much larger scale.  What we are doing is not even close to sustainable, and it will inevitably end very, very badly.  The following is what Michael Pento, the president of Pento Portfolio Strategies, told RT the other day...

"That $17 trillion everybody says its 107 percent of GDP, that’s true. But who really cares about the percentage of GDP? It’s the percentage of the debt as a percentage of the revenue – its 700 percent of our revenue. Deficits are growing at 30 percent of our revenue every year added to the deficits we have already. So it’s unsustainable. What is going to happen eventually – a currency and bond market collapse! And it’s not going out 20 years, as I also heard someone mention. In 2016 we’ll probably be spending 40 percent of all of our revenue just to service our debt. That is what the interest payments will equal."

The U.S. debt situation is so bad that even the Prime Minister of Cyprus is scolding us...

"The U.S. has been fortunate in the sense that it’s like a bank, it prints the money that other people accept. So you can live beyond your means over an extended period of time without being punished by the market."

Unfortunately, we will not be able to live way beyond our means forever.  Reality is going to catch up with us at some point.

Right now, the rest of the world is lending us giant mountains of money at interest rates that are far below the real rate of inflation.  This is extremely irrational behavior, and this state of affairs will probably not last too much longer.

But if interest rates go up, it will absolutely cripple the U.S. economy.  For much more on this, please see this article.

And what would make things much, much worse is if the rest of the globe starts moving away from using the U.S. dollar.  At the moment, the U.S. dollar is the de facto reserve currency of the planet and this creates a tremendous demand for U.S. dollars and U.S. debt.

If that changes, it will be absolutely catastrophic for the United States, and unfortunately there are already lots of signs that this is already starting to happen.  I wrote about this in my recent article entitled "9 Signs That China Is Making A Move Against The U.S. Dollar".

But don't just take my word for it.  Just a couple of days ago a major U.K. newspaper came to the same conclusions...

China has overtaken the US as the world’s largest oil importer and goods trading nation. Over the next five years, it will surpass the rest of the world combined in its consumption of base metals.

Given the scale of the country’s consumption of fossil fuels and raw materials, it is only a matter of time before the renminbi replaces the dollar as the primary currency for trading commodities and resources such as crude oil and iron ore.

The debt ceiling farce in Washington and China’s growing reluctance to continue underwriting the US economy by buying up its bonds and adding to America’s near $17 trillion (£10.5 trillion) debt mountain suggests that this tectonic shift in the global trade system could be just around the corner.

So what will happen when the rest of the world decides that they don't need to use our dollars or buy our debt any longer?

At that point the consequences of decades of incredibly foolish decisions will result in an avalanche of economic pain that the American people are not prepared for.

Earlier today, I came across a photograph that perfectly captures what America is heading for.  The following photo of Mt. Rushmore crying has not been photoshopped.  It was taken by Megan Ahrens and it was posted on the Tea Party Command Center.  If George Washington was alive today, this is probably exactly how he would feel about the nation that he helped establish...

Mt. Rushmore Crying

 

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  • Ralfine

    The interesting part is that the increase reduced from 1.9 trillion per year from 2008 to 2009 to 1 trillion per year from 2012 to 2013.

    It woul be better, if that would be zero, it woukd be great if that would be less than zero.

    • jaxon64

      I also found it interesting that somehow the 85 billion per month that the FED has been creating out of thin air by buying mortgage securities and treasury securities ($45 billion and $40 billiopn respectively) for month after month–and yet these numbers were never added into the “national debt” charts. Even though they are debts held against the citizens of the nation…
      The drop from 1.9 trillion to 1.1 trillion has got to be that creative math they have been using ( the same creative math they use to tell us unemployment is dropping and that there is no inflation.)…it also could have something to do with the $800+ billion stimulus…

      • Ralfine

        85 billion per month is about 1 trillion per year. So perhaps this does not need to be added but is another representation of the debts.

  • Syrin

    I love how liberals claim to care about kids then fight tooth and nail for the right to abort millions of them annually then saddle the surviving next several generations of kids with debt that will utterly ruin their future. These “people” are overtly evil. They cannot claim ignorance. They threw a temper tantrum when the credit card company told them they maxed out all their cards and owed trillions, then blamed all the problems on those thinking we should reign in our debt and spending. There is no concern for their kids’ future. Just their day to day power grab and self indulgence. These people are truly evil, not ignorant, evil. If you doubt me, think of what America looks like in 10-20 years from now and how many warnings they chose to ignore. EVIL.

    • Gay Veteran

      I love how conservatives claim to care about kids then fight tooth and nail to cut food stamps.

      • kfilly

        It shouldn’t be the gubernment’s job to feed the homeless. Before the socialist Federal Reserve Bank and their progressive tax scheme, people were wealthier as a whole. People lived better off when they kept their own money. People were able to donate money to charities to help those in need without feeding a bureaucratic gubernment. Inflation was also nonexistent prior to the Federal Reserve’s creation which means that everyone was better off.
        Just as an example of what I am talking about I will tell you about my personal finances. I have made roughly $57k so far this year. I have paid roughly $14k in various forms of taxes. It would be better to have a limited Constitutional gubernment. People could pay whatever excise taxes needed to run the gubernment (maybe around 10 percent). I could donate $5k to a charity of my choice to help those who are truly in need. I would also be able to invest the additional money so that I can retire (as there wouldn’t be Social Security). That system was tried in the US. Everyone in our country was better off under that system than our current system (even the poor). More gubernment is not the answer.

        The problem with our situation is that the gubernment always got involved in social issues. I mean who wouldn’t want to receive a paycheck from the gubernment when they retire, who doesn’t want to help out those in need, and who doesn’t want to help people pay for healthcare. The problem is that the gubernment is creating an expanding number of people dependent upon them. People never want to bite the hand that feeds them. The American experiment as we know it is over because we the people were too dumb to keep. We let the tyrants appeal to our emotions, and allowed them to conquer us. We are at a tipping point. Half the country is dependent on the other half. Half are already slaves controlled by the gubernment (welfare and social programs are the new slavery). Even though I was never really free in this country, I like the illusion of freedom I have had for a majority of my life. I will die a “free” man.

        • JustAnAvidReader

          government*

        • Ralfine

          With 10% of your income you can’t run an army that has bases around the world and aircraft carrier fleets that are larger than a medium sized town, and submarines, each of which is able to destroy the worldltiple times with their multiple heads nuclear missiles, and land based ICBMs, and a long range bomber fleet, with fighter airplanes to interceot and protect and attack; all of which needs to be maintained and replaced every few years.

          THAT’s where you could start savings.

          Diego Garcia is a US base in the Indian Ocean leased from the UK for 90 years. Just imagine Iran would lease an Island in the Caribics for an army base. Only for protection and security, of course.

          • kfilly

            I am not arguing with the cuts you proposed. Read George Washington’s farewell address to see how far we’ve fallen from the ideas of our country’s founding.

      • TooLittleTooLate

        I just love how goverment of ANY kind claim the responsibility of thinking they can care for my healthcare over my very life or death. I love how they claim they are doing good by creating thousands of departments that require my money to run, my money to redistribute to the cronies they find most useful. I love how they do this for my own good…. I love that when they do this, they take money from the economy that would have been invested wisely by someone who would have been scared to lose it while the ones we have now seem to just print it up and wipe their collective butts with it.

      • nekksys

        We, the People, have a social obligation to help each other when we are in need. This obligation is NOT “the government’s” responsibility. For far too long, we have completely ignored our individual obligations to help our neighbors in need and have insisted on pushing that off on to someone else; that someone else being “the government.”

        But who IS “the government?” Isn’t this a government “by the People, of the People and for the People?” Isn’t it??

        “When the People fail to stand for something, they will fall for anything.”

        That is precisely what has happened in these United States; we have fallen for the line that we can have it all without needing to work hard, save money, be economically prudent, socially responsible or anything like that! We have become a nation of rampant consumers who put little to nothing back into our own economy, and even the world economies, other than a demand for more stuff for less money. As a result, we have created mess we can never recover from without incurring huge losses of money, resources and people.

        I spoke about the need for less fingerpointing and more action the other day. Someone responded saying fingerpointing was a good idea because we can find the root of the problem that way… WRONG! Fingerpointing is merely placing blame rather than seeking solutions. Solutions require accurate facts and analysis as inputs in order to devise the correct action plan. You can’t devise an action plan while you’re squabbling over who did what to cause the problem. The causes of this mess are clear and have been glaring us in the face for the last 3 decades.

        So you’re now asking, “What’s the solution?” Simple…

        1) End entitlements – That’s right, I said END entitlements. No one should rely on a hand-out. Hand-outs make people lazy and unwilling to care for themselves. My parents worked hard to save money so they could have a peaceful retirement. Why is it state and federal workers can piddle away their earnings and not be required to develop their own retirement plan while private sector workers must plan and save in order to have a retirement at all? Because government workers feel entitled. Shut down entitlements, period.

        2) End welfare as we know it – Yes, END welfare. Sure, food stamps are a good thing … when a need truly exists and no other option exists. But why must we rely on “the government” to feed the People? Our communities need to establish ways to help those who are less fortunate with clothing and food banks. Other possibilities exist as well. It should be the People who care for each other; not “the government.”

        3) Reduce military global presence – Why do we need bases in so many foreign countries? Invariably, we become that nation’s “police force” in due time. We went in to Vietnam under the pretext of it being a “police action.” We went into Kuwait as a “police action” in order to clean up the mess the Kuwaiti’s made because the were side tapping Iraq’s oil wells. Panama, the Falklands, Iraq, Afghanistan and the list goes on of places we have invaded for the purpose of a “police action.” We have enough problems at home to keep soldiers busy without sending them to die overseas.

        Those are just starting points. Thing is, we still have to get off our collective rumps and get busy working to fix our nation as a whole. The question is “When?”

        • kfilly

          A different way of stating what I said, and I wholeheartedly agree!

        • Gay Veteran

          unless you want rampant crime, you can’t just do #1 and #2.
          You have to bring JOBS back to America.

          • nekksys

            There are jobs here. The lazy jerks who are sponging off the rest of us don’t want to do them. Jobs such as landscaping and fruit / vegetable picking are done by folks who will gladly do any job just to have a paycheck. Try to tell an 18y/o white kid to go pick fruit in an orchard and see what happens. Why do you think there are so many African Americans working fast food jobs? It’s because they need money to live and will do what they should to get it.

            And that isn’t even the whole of the situation… Every white American youth I can think of seems to think they deserve $20/hr to sit on their back side and do nothing. They think they are entitled to high pay for little work. Since when has that ever been the case? I work for a news outlet and spent a lot of time and money educating myself. (I spent my money to educate myself; not “the government’s” money…) Because of economic conditions and my current location, I make what some would say is a ridiculously small amount compared to my education and working history. That doesn’t matter to me. I have a job when others don’t because I am willing to do whatever I have to in order to have an income. (Of course, I’m also prepared to live without an income but that’s a separate issue…)

            The “rampant crime” you speak of will only serve to weed out those who are “living sponges”; those who contribute very little, if anything, to society as a whole. It’s better known as natural selection. Those of us who have had the foresight to see what’s coming and have prepared ourselves for that eventuality will be the ones who survive your “rampant crime.”

            Also, I know you’re going to scream that I’m being racist because I threw in that bit about white kids and appear to favor African Americans. Here’s your surprise for today: I’m a nearly-50 year old white male from the Midwest. My children are half-Asian and I’m currently dating a white woman. So scream “Racist!!!” all you want. It’s patently untrue in my case.

            Pull your head out and Think Deep…

          • WW

            Would nice if you happened to mention that despite making up some 13% of the population African Americans take up 38% of the welfare budget where as White Americans makeup a far larger proportion of the population yet only claim 37% of the welfare budget.
            Undoubtedly I am racist for pointing out these official statistics because they don’t support your POV. Skin colour is quite irrelevant when pointing out facts!

          • nekksys

            In my original post, I was pointing out the fact there
            are jobs here in America which Americans could do. The fact is, they won’t because somehow these jobs are beneath the
            younger generation’s standards. The contentions I propose were also in favour of those who will do what they must to have an income rather than holding out and waiting for “the perfect job” to fall in their lap. Most blacks I know, including those on welfare who also work, are of that type. Regardless of the task, they will do it so they can have an income and care for their family. I’m glad to see you missed all of that in the first paragraph.

            No, I wouldn’t say you’re racist. However, I won’t hesitate to point out a single percentage point difference between who takes what part of the welfare budget makes your contention almost unimportant: the number of recipients is approximately the same so who makes up what percentage is irrelevant to me. (Percentages are often used in statistics to skew opinions in the favoured direction.) In this case, the actual number of recipients is approximately equal when viewed directly.

            What I am going to do, though, is point out that you, like many others, seem to pick and choose single words or phrases and extrapolate them out to the Nth degree. You picked out the mole hill and ignored the mountain it sat on. You saw the word “Racist” and immediately took that tact.

            Quit the nitpicking and try to view the whole picture before you open your pie-hole…

      • GSOB

        I love how everyone looks to the government to care for their own children.

    • rat28

      Actually GOP=EVIL

      • TooLittleTooLate

        ALL OF IT is evil right now. If you are in the mainstream of EITHER party, I’d say you are bought off, payed for and guilty of treason. Both parties want to have their thumb over your very life and death. They both want to know what you say on the phone…. or have kill lists of U.S. Citizens…. drones over your heads and cameras on every corner. They want our guns and they want us on our knees.

        • nekksys

          Hear! Hear!!

        • SallyQ

          Well said.

    • RarefiedSnotress

      To be honest, most of the aborted kids would likely have been unwanted welfare kids, so it IS actually fiscally prudent.
      I haven’t maxed my cards. I can still buy a house outright.

      • TtT Engine

        Oh Yeah, Ebenezer “decrease the surplus population”. , i.e. 55 million U.S. abortions and counting, = a morally depraved society and now a financially bankrupt society. God gets the Last Word. Christi Fidelis !

        • RarefiedSnotress

          If men don’t know when to keep their pants on, we have to do something.

          • Rick Maddocks

            Ahhhh .. you mean women have nothing to do with it? WHO the F%#K ARE you? HITLER in a dress? And since when should anyone’s right to life be determined by their “desireability” or “utility” for YOU? I suspect you are far less than “desireable” to many. Maybe we should abort YOU too? TODAY would be good.

          • RarefiedSnotress

            That’s right. I’m Hitler in a dress. You should see where I have his ‘stache shaved. ;)

          • TtT Engine

            Oh yes, I see how it works. First eradicate our Judaio-Christian value system which teaches sexual morality. This liberal evil decision then leads to droves of unwanted pregnancies. Then you resort to another bad decision, you kill the unwanted baby to make up for the first evil decision. Secular liberal logic=moral depravity=the death of the West. Christi Fidelis !

          • RarefiedSnotress

            I personally NEVER made a mistake.. but I wqould abort it if I did :P

          • nekksys

            Yeah, it’s called SAY “NO!!!” and enforce that boundary.

            DUH!!!

        • Gay Veteran

          that’s ripe coming from the person who has NEVER adopted an unwanted child

          • TtT Engine

            You cannot be Pro-Life unless you have adopted a child ?Homemade nonsensical criteria. Secular liberalism at its finest. Nice try. Abortion is murder and we live in a morally depraved culture of death. Down in the depths of your soul, YOU KNOW IT ! Christi Fidelis !!

          • Gay Veteran

            typical anti-abortion zealot, not willing to personally bear any of the burden, better just to make slaves out of women and force them to give birth

          • nekksys

            Have you?

      • Rick Maddocks

        Perhaps true … but insensitive and outright crass. “Rarefied Snotress” indeed. Good you are rare. We need less of you. Go buy a house and live alone … where you belong.

        • RarefiedSnotress

          I’ve been living in sin for 9 years Rick. Where I go, he goes.
          We’re moving to Tampa after he gets disability to a huge complex w/4 pools.. 2 heated. It passes time nicely while the interest rates go up and house prices drop.

          • Rick Maddocks

            It will be fun to know you are twisting in the wind honey. Enjoy your swimming pools … while you still can.

          • RarefiedSnotress

            Jealous

          • GSOB

            Well,

            Look at this way then…

            “Money doesn’t always bring happiness. People with ten million dollars are no happier
            than people with nine million dollars.” –

          • nekksys

            Seriously? Really?? So you’re saying he’s disabled… Is it a mental disability? After all, he is with you…

          • RarefiedSnotress

            COPD, arthritis around some metal plates, etc.

    • silverbug

      What is the definition of a liberal? Maybe you need to look that up.Oh dont bother, here it is .I have done the thinking for you

      lib·er·al [lib-er-uh l, lib-ruh l] Show IPA

      —adjective

      favorable to progress or reform, as in political or religious affairs.
      (often initial capital letter) noting or pertaining to a political party advocating measures of progressive political reform.
      of, pertaining to, based on, or advocating liberalism, especially the freedom of the individual and governmental guarantees of individual rights and liberties.
      favorable to or in accord with concepts of maximum individual freedom possible, especially as guaranteed by law and secured by governmental protection of civil liberties.
      favoring or permitting freedom of action, especially with respect to matters of personal belief or expression: a liberal policy toward dissident artists and writers.
      of or pertaining to representational forms of government rather than aristocracies and monarchies.
      free from prejudice or bigotry; tolerant: a liberal attitude toward foreigners.
      open-minded or tolerant, especially free of or not bound by traditional or conventional ideas, values, etc.
      characterized by generosity and willingness to give in large amounts: a liberal donor.
      given freely or abundantly; generous: a liberal donation.
      not strict or rigorous; free; not literal: a liberal interpretation of a rule.
      of, pertaining to, or based on the liberal arts.
      of, pertaining to, or befitting a freeman.

      • SallyQ

        Yes, that’s the dictionary definition–and the definition of the philosophies of the Classical Liberal (nee Libertarian)–it is NOT, however, an accurate definition of what passes for a liberal today, which is, in fact, in acts, deeds and philosophies, a socialist. Liberals/democrats today regard anybody’s personal property whether that be land, money, whatever, as up for grabs by the guberment for redistribution purposes, and are just happy as clams when all people are leveled to poverty since nobody should “be any better” than anybody else. It is an immoral philosophy based in greed, envy and avarice. What we currently have in this country is a Fascistic (Fascism, Communism and Socialism are all effectively the same thing economically, only the specific means of centralized ownership nee, tyranny vary) state wherein the corporations, nearly all owned by the big banks (read Internationist banksters) who then control effectively all. Our government ceased, de facto, to be our government with the ruinous coup that took place in the establishment of the Federal Reserve (which is neither Federal nor a Reserve, but is in fact a private banking cartel made up of privately owned banks owned some 80% by the Rothschilds cabal et. al. and the rest by the Morgan and Rockefeller interests. This is fact, not speculation. If you want the detail of this heist/Ponzi scheme, then read “Secrets of the Federal Reserve” free online, or The Creature From Jekyll Island by G. Edward Griffin.). We are now dealing with the ruinous–and by many of us, utterly predictable effects–of the insanities of Roosevelt’s (socialist) policies in the Great Depression, the Great Society (nee socialist) policies of Johnson, and the insane warmongering of nearly all administrations since the days of Wilson (who gave us the Federal Reserve over a Christmas holiday), and that barely scratches the surface. We have for a hundred years had to cope with the ever more ruinous monetary policies of the “liberals” and “conservatives” at all levels of government, and wholly owned as they are still, by the banksters and mega-corporations that finance them. And we are no different from most any other country because these same banksters own all central banks with only a very few countries still free of them…the last I read these were North Korea, Syria and Iran–can these recent determined efforts to still more war with these nations be just a coinkie-dinkie?? Lest you doubt what I have read, I would ask you to take a study of the various groups such as the Council on Foreign Relations, the Bilderbergs, and the Trilateral Commission, and the attitudes, ideas and various statements made be those persons who are members of them. Our country is, effectively, lost to us, it has been hijacked, stolen right out from under our noses by these shysters. How or if we are ever to recover it I don’t know, but there will be hell to pay for all of us in the next coming few years, that is certain. Claire Wolf put is succinctly: America is at that awkward stage: It’s too late to work within the system and too early to shoot the bastards. It appears that we are finally reaching that abyss, and where it will take us, God only knows.

  • Tim

    It seems to me that the recent last-minute “agreement” suspended the statutory debt limit until February 7th, 2014. (This is what they did earlier this year from the end of January until about May 18th.) So now there is literally no restraint on the federal government’s spending.

    We only have a few months before the charade about the debt limit starts again in Washington.

    • GSOB

      Consider it as borrowed time,

  • transumer

    If god wanted us to live within our means, she wouldn’t have given us numbers like quadrillions.

    • Rodster

      Spoken like a good progressive and Statist. Paul Krugman would be proud of you.

    • Uh-huh

      transumer…that is actually funny!!…what comes after quadrillions?…quintillions…mind-boggling to say the least. The numbers are so far out there already…there is NO way to fix this.

  • Rene Girrard

    We Americans need some hope don’t we? When everything around us is in decline, we need some hope. The Tea Party is the only group that stands for middle class values that made Ameria great, and look how much they are attacked by the news media and our political leaders. Maybe an economic collapse is the only thing that will get middle class Americans mad enough to get back to a government that represents us and not the elitist interest.

    • Jim Davis

      When the Tea Party denounces all of the wars of aggression this country has been engaged in, then maybe I’ll start giving them so creedence. You can’t be for limited government at home, and empire building abroad. Big government can not be compartmentalized.

      • Contiki

        Well put Jim Davis I too like what the tea party is doing and at least willing to stop spending so much. Sadly the Bush into Iraq fiasco was the latest ginned up war which I want know part of for my country.

    • TooLittleTooLate

      The part that sucks is that even if we were to get the Tea Party elected in both houses and put a Ted Cruze in the white house, to put the country back on track will mean we’re all going to face a whole lot of pain before it gets better.

      In short order, the pain would all get blamed on the Tea Party and they’d get thrown from office until the EBT cards we smoking from overuse….

      I’m afraid we’re in for the reset, “the hard way”.

    • El Pollo de Oro

      The Tea Party could have been a strong third-party libertarian resistance movement, but they were totally co-opted and neutralized when they allied themselves with the failure that is Republican Party and became useful idiots for the Military/Industrial Complex, the Prison/Industrial Complex and the oligarchs of Wall Street. They would have been much better off allying themselves with the Libertarian Party.

    • Lennie Pike

      They are not the only group, or even close to what America needs. America needs to return to the U.S. Constitution.

      Is the Tea Party willing to end the Fed, return to honest money, and enforce free markets? From what I can tell, they’re as afraid of freedom as the fascists in control now. And why wouldn’t they be – just as the Fascists in control now, they would come out on the losing end of a competition on a level playing field because people who join political parties are really good at nothing other than politics – ganging up against the few actually talented, honest, and hardworking American INDIVIDUALS left remaining.

      The Tea Party was immediately co-opted by the Republican Fascist Party.

    • M W

      The Tea Party – the voice of the Koch brothers. Had they not been co-opted they might have done some good. The oligarchs have the ability to co-opt any movement that poses a danger to their political hegemony.

  • Rodster

    So what will happen when the rest of the world decides that they don’t need to use our dollars or buy our debt any longer?

    We first become Detroit then fast track to Greece. That’s when you’ll see and hear the Progressives crying to Mommy and Daddy Gov’t for help.

    • GSOB

      You should expect to see scattered family members reunite and consolidate with their neighbors and private church meetings, like in China.

  • rat28

    Debt is not a dirty if it means saving our country. Bush has digged this hole so deep , 2 wars on credit card, tax cut for richest , biggest expansion of medicare entitlement and the biggest financial collapse. Obama has to do everything he can to save all of us ..

    • 2¢Wurth

      Do you even read more than the titles to Michael’s articles? Do you realize that Dear Leader has been with us now for five long years. He is a narcissistic megalomaniac. He is entirely devoid of an emotion toward you as a human being. He is not doing anything to “save us”, he is intentionally destroying the foundations of the Republic and replacing it with a feudal socialistic compact that will wreck havoc with life as YOU know it. Enjoy the ride my uninformed friend.

      • rat28

        The author is being bias..

        • Gene Baugh BBA

          Yes he has a bias and it affects his writing but is he not entitled to his bias? If Romney were president he would not word things the way he does but it would not change the situation we are in or the statistics he reports.

      • Gene Baugh BBA

        Democrats say the same kinds of things about Republicans. Take off your party glasses and see clearly.

    • Gene Baugh BBA

      You can’t blame long term economic cycles on whoever happens to be in office at the moment. Obama can’t save us any more than Romney could have, Obama is just more likely to take care of the population as we work through this. It’s a Depression.

  • K

    Just further proof that both parties are corrupt to the core. Did you see 60 minutes, story on leadership packs? What more proof do any of you need? They are in D.C. to stuff their own pockets. The only people they represent, are the ones who help them stuff their pockets. I assure you each and everyone of them has an escape plan, for when things collapse.

    • markthetruth

      LOOP HOLES for the ELITE and SINK HOLES for the REST OF US !!!

      the end…

    • jacklohman

      And it will continue, until we get public funding of campaigns. And at a lot less than $1 trillion. Let’s spend that money on jobs instead!!!

      Debt = spending = campaign bribes!!! Do you get it? In 2014, vote ONLY for newcombers.

      • K

        I would add, vote 3rd party whenever you can. Until both main parties realize they could both lose, nothing will change.

        • jacklohman

          I’m beginning to change my thoughts… to “independents” who force a thought process and avoids the eccentrics. ANYBODY but a D or R.

    • Jodi

      Oh, I’m sure they do have an escape plan. You can count on that one.

    • jarradcvh059

      My Uncle John just got an awesome silver Volkswagen CC by working
      online… hop over to these guys J­a­m­2­0­.­ℂ­o­m

  • MeMadMax

    Pretty soon it will be a trillion a month…. then a week… then a day…

  • Just Waiting

    The decision to raise or hold the debt limit would have been important if it wasn’t the seventy-something time we have been through this charade.
    Wish there was someplace I could go where politicians are afraid to lie, cheat and steal…where currency isn’t fiat…where I don’t need permits to exercise my rights…where there is no income tax…where there is no thieving banks…
    In five years, if everything falls apart, that place might be right here.

  • tacoma

    Another trillion in debt, but who are the creditors? Who continue to be foolish enough to buy such amount of additional Treasury bond?

    I don’t know but I suggest little of that are bought by foreigners and foreign governments. They are not THAT stupid. They are too busy getting ready to roll out Plan B – move out of the USD come the next banana monkey fight in Feb.

    I suggest most of the new trillion debt is bought by the Fed and Wall Street banksters. The former is part and parcel of the giant Ponzi. The latter is just the washing
    machine men laundering and recycling the fake stuff printed by the former

    • Jimbo

      The Chinese buy UST’s to keep their own currency low and improve export conditions. If China re-balance to a more domestic consumer based economy, then a stronger Yuan will benefit them more (cheaper import costs). This will reduce their requirement to hold FX reserves. The Yuan direct swap deals with Australia, Europe et al are part of this re-balancing.

  • markthetruth

    Nobody has time to pay attention when they wakeup to their Cellphone Alarm, Grab a $7 cup of coffee then back home their all watching Netflix , then twitter , Post on their Face Book , Vote for American Idol. Text awhile , maybe waste their time and money one Something-bid.*o* ,watch a Exercise Video . Boy now their to tried to look for a job and go to Sleep. Shoooof !!!

    What a tough Life they live !!!

    the end…

  • GSOB

    “Let this truth about Jesus sink into your heart.

    If you have ever been impressed with any man’ knowledge about people or wisdom in discerning motives and explaining actions and predicting behaviors—if any character in fiction or person in history or living counselor or scholar has ever impressed you,

    ……..the knowledge of Jesus should be infinitely more impressive.

    The person who matters most knows most.” -

  • whteshark

    All this end of the work talk, tch, tch.

    After I got done licking the s h i t off his boots, Obama told me everything would be ok.

    Hey, Survivor’s on………..

  • Ideas Time

    It is all funny money so who cares. When you loose a game of monopoly, do you pay it back. It all nothing more than conterfeit paper that has intrinsic vlaue for now. Don’t forget its not even leagal under the consitution and if the world is willing to trade paper for real goods, well?

    • Jimbo

      It is funny money but it has been exchanged for tangible goods. I could give you a monopoly note in exchange for a loaf of bread but if I refused to accept that same note from you when you wanted to buy a pint of milk from me, game over. No more bread for me.

  • sre

    I heard an interesting thought the other day. If you owe the bank 1,000,000.00 dollars, you’re in trouble, but if you owe the bank 100,000,000.00 dollars, the bank’s in trouble. Can’t e look at the national debt that way?

    • Jimbo

      An old argument but what does the bank do? If the bank continues to lend to you to keep you and itself afloat, it just postpones the day of reckoning and makes the ending far worse. Of course there is always the chance of a miracle (you may win the lottery) and that is the path that the US government is on now. Buy some time and hope for a miracle.

      • GSOB

        Perhaps some breakthrough, invention or discovery.

        • davidmpark

          Or, we just reopen the locked up resources…

        • Jimbo

          There is always that possibility but with a global economy, who would benefit financially from the invention? The company who invented it would do well, but they could build it anywhere so why build it in the USA or pay profit taxes in the USA?

  • George

    The plan is to collapse the system, blame it on capitalism and set up a totalitarian one-world system. The Bushes, the Clintons and Obama are all players in this.

    • GSOB

      Who is the planner?

      • SallyQ

        Chiefly, the International Bankster Elites that own virtually all governments via the private central banks (we call our the Federal Reserve) and money issuing mechanism.

        • GSOB

          Agree, …and all involved at that level are probably not in the phone book.

  • Mr Bill

    I have researched and written about the Total Federal Debt off and on for the past 2-3 years. I want to make three key points here. I apologize in advance for the length, but I promise you will have a much better grasp of the debt situation if you read to the end.

    1. The Treasury and US government have been misrepresenting the numbers over the past few months. Specifically, the total debt was reported to be rising throughout 2013, until 2-3 months ago. Then it was reported to be flat (no change at all) since then – ABSOLUTELY, IMPOSSIBLY FLAT! The data implied that the debt has basically risen to near $16.7 trillion then flat lined. Now, it is reported that suddenly the government has spent $0.328 trillion all of a sudden to bring the total to $17.1 trillion. $16.7T + $0.328T is awfully close to

    the the reported $17.1T. I would bet a dollar to a doughnut that the Treasury has been playing dodge ball with the numbers and now reports the dodgy hidden numbers.

    2. I have looked at the total debt and annual deficits from 1970 to 2010 and I found the total debt has been rising steadily since 1970 as exponential growth in total debt. On average, the increase has had a steady rate around 9 percent per year, every year for 40 years. In any given year, it may be a little higher or lower, but you can make close estimates assuming 9 percent.
    Let’s work with the 9 percent annual figure. This translates into a statement that the annual deficit is estimated to be about 9 percent
    (or 0.09 fraction) of the total debt for the prior fiscal year (September 30). T the total debt for the current (upcoming) year will be the estimated current year deficit added to the prior year total debt.

    So, we can estimate the upcoming deficit will be 0.09 x prior year total debt and the upcoming total debt will be (1.09) x prior year total debt.

    3. Let’s test point 2 above, using the reported 9/30 numbers from this article. I copied the numbers and rounded of a little to allow my numbers to be included.
    Starting from 2008, I have estimated the annual deficit and the total debt for 2009 forward, using an average 9 percent exponential growth applied to the reported prior year total debt:
    Next Year
    Reported Total Debt Deficit (est) Total Debt (est)
    2012: $16,066T + $1.446 = $17.512
    2011: $14,790T + $1.331 = $16.121
    2010: $13,562T + $1.221 = $14.783
    2009: $11,910T + $1.072 = $12.982
    2008: $10,025T + $0.902 = $10.927

    The reported total debt for 2009 ($11.9) and 2010 ($13.6) greater than the estimated total debt for 2009 (($10.9) and 2010 ($13.0) implies the annual increase was a bit more than 9 pct. The years 2011 and 2012 are very close to 9 pct.

    But, the main conclusion is that the Total Federal Debt has been steadily growing at 9 percent annual compounded (exponential) growth for 40 years and appears to be continuing into the future. It is no surprise that the total debt is in the $17 trillion dollar range and deficits are beginning to exceed $1 trillion annually. The annual deficits will continue to expand beyond 2013 unless very drastic action is taken.

    WE CANNOT RESOLVE THE FEDERAL DEBT CRISIS UNTIL WE BEGIN CUTTING A TRILLION DOLLARS PERMANANTLY FROM THE BUDGET, HOPEFULLY WHILE PRESERVING THE OVERALL WELL BEING OF THE NATIONS POPULATION.

    • GSOB

      Must be a Ron Paul fan.

      • Mr Bill

        Nope
        I have simply reported my homework.

        It is up to you to decide how we, as a nation, should proceed

        • nekksys

          Good post, Bill. It seems our research matches one another’s quite well.

    • pauly

      Of course the FED’s number’s are all bs. From USDEBTCLOCK.ORG (fed number’s), global silver reserves increased by 2,000,000,000 troy oz’s one day. Nobody noticed.

    • TooLittleTooLate

      All true but, compound this with the FED’s balance sheet expansion ( endless QE )and the fact that many countries are exiting U.S. treasuries. The only major buyer of any of it is now our own FED.

      We simply can not continue to print money and move it from pocket to pocket and keep our status in the world as the reserve currency….. Well, that is unless we kill a lot more brown people to keep the petro-dollar working.

      Our FED is holding interest rates at unprecidented levels for a LONG time now. It will lose control if it has not already.

      UUUUUgh! I guess I better get some work done today…. Sometimes, it seems to surreal to all be true.

    • M W

      If you look at a chart of the amount required to service the debt (interest only payments), we’re at the inflection point of the hockey stick. Very soon the line will go almost straight up…

    • Gene Baugh BBA

      Cut 1T from the budget and watch the economy flatline.

      • Mr Bill

        You are probably correct or, at least, there would be severe social pain. But $1T is the current deficit and with an unchanged trend it will be approaching $1.5T – $1.7 in 6 years.
        I feel that it is important for the nation to grasp the numbers involved.

        One of my biggest concerns is the US government actions. It appears there is major dysfunction and I fear the PTB may chase each other around the ideological mulberry bush and create the social pain anyway, without really dealing with the magnitude of the issues for the populace.

        • Gene Baugh BBA

          You are right and we already have social pain reflected in the employment numbers, homelessness and poverty.
          Right now the government must spend to make up for contraction in the private sector. They have no choice.
          The Tea Party’s good intentions may bring economic disaster.

  • davidmpark

    “There is a time in every man’s education when he arrives at the conviction that envy is ignorance; that imitation is suicide; that he must take himself for better for worse as his portion; that though the wide universe is full of good, no kernel of nourishing corn can come to him but through his toil bestowed on that plot of ground which is given to him to till. The power which resides in him is new in nature, and none but he knows what that is which he can do, nor does he know until he has tried. Not for nothing one face, one character, one fact makes much impression on him, and another none. This sculpture in the memory is not without preéstablishcd harmony. The eye was placed where one ray should fall, that it might testify of that particular ray. We but half express ourselves, and are ashamed of that divine idea which each of us represents. It may be safely trusted as proportionate and of good issues, so it be faithfully imparted, but God will not have his work made manifest by cowards. A man is relieved and gay when he has put his heart into his work and done his best; but what he has said or done otherwise shall give hint no peace. It is a deliverance which does not deliver. In the attempt his genius deserts him; no muse befriends; no invention, no hope.” Ralph Waldo Emerson, Self-Reliance

  • Clemenzza

    So when the HNIC sais the national debt rose only $700B last year his was lying (imagine that)? Accounting gimmicks hid $328B. 5th straight year of trillion dollar deficits.

  • Nic

    In usa, if you want rent an apartment, you need to have a good credit. Only way is to borrow as much as you can and never pay back . you can file bankrupt then next day banks want give you free money. Now some guys borrow and pay their boss to work.
    Crazy, no?

  • El Pollo de Oro

    The debasement of the BRA dollar is bound to lower the standard of living for most Americans. Best case scenario: the BRA dollar, as Gerald Celente predicts, is formally devalued during a bank holiday. When the banks reopen, your money will have the value of the Guatemalan quetzal.

    Worst case scenario: the BRA dollar is debased to the point that it ceases to exist.

    “America seems to be mimicking pretty closely Angentina during their collapse.”—Max Keiser

    “When this thing collapses, you won’t be able to get your money out of the bank. They’re
    gonna do it like they do in every Third World country. Our forecast is for a bank holiday and a formal devaluing of the dollar.”—Gerald Celente

    “The middle class is about 25% of what it was in
    the 1950s, and it’s about to be gone.”—Alex Jones

    “The world is looking for an alternative to the dollar.”—Dr. Paul Craig Roberts

    We were once a great country. Now, we’re a rotting banana republic. And it’s going to get a whole lot worse.

    • Jimbo

      The dollar is being devalued now by QE. It may not show in the FX markets, but that is because the Dollar is held as a reserve by many foreign countries. If reserves start getting dumped, the Dollar will plummet. Any formal devaluation will just hasten the process.

      • El Pollo de Oro

        Jimbo: Quantitative is easing us right into Third World currency debasement. The “American exceptionalist” types have a hard time believing that the BRA dollar could cease to be the reserve currency, but they don’t know their history. Empires fall.

  • Cyber Revengeance

    i think they are planning to do so in this decade. According to them they saved us from 2008 crisis by dumping huge sums of money. this increased the debt but saved the world. They don’t consider debt a problem. So they plan to increase the debt limit following this decade.
    But the drama they do and how they get people into supporting this is really interesting to see. All of them know what they want to do and agree on same path.

  • http://www.facebook.com/joseph.kuan.98 Joe

    Madoff: Told you so. I am just a small fish out there.

  • XSANDIEGOCA

    At the height of his fame, Willie Nelson was asked by one of his sidemen what he would remember. Willie replied he would remember just how good it all was. Store up your memories. Hold your family close. Terrible days lie ahead. From time to time it will provide some relief to remember just how good it all was.

  • THE TRUTH HURTS

    America is in hyperinflation………85 billion……86…….87…….100…….150………..200 ect.
    we are in the early stages of hyperinflation and the fed is lying about the amount of money they are printing, its a lot more than 85 billion per month. its more like 185 billion per month.

  • Piglet

    During all of the blather on TV concerning the spending debates, I never heard any so-called newsman or journalist point out some of the simple facts easily available in Michael’s articles, such as the fact that in excess of 40% of federal spending is financed by debt. I never saw any news show put a graphic on the screen showing how the debt is absolutely skyrocketing. Instead, it was all just a matter of raising the debt level to be the answer to all problems. People are being kept in the dark concerning how dire the situation really is, but soon it will be impossible to ignore.

  • SafetyViking

    Because it’s just make-believe money. Isn’t it?

  • jakartaman

    And the Demidopes think this can go on forever?
    Are they mentally challenged or what.

    • Donald Wilson

      They first have to have a brain …

  • nekksys

    Let it all fall down. We can rebuild something better. China rose and fell once. So did India, Iran/Iraq, Greece, Rome and Egypt. All for the same causes as well, I would guess. Either way, it’s going to be bad; worse than bad. Our streets will run with blood. Gravediggers won’t be able to keep up with the burials of those who were murdered or those who starved to death. The sooner this thing collpases, the less painful it will be in the long run.

  • tortas

    the government has been taken over….look at the GOP logo

  • Trailer Park Investor

    If our founding Fathers could only see us now?
    I would bet they would commit suicide and forget the whole thing.
    My Dad was a young man during the depression, he never owned a credit card and would not finance anything but a truck and paid that off early.
    He told me back when he was young IF you wanted to eat, sleep in a bed and live indoors you worked and worked hard.
    Today America is full of lazy eaters and that is all they do well is eat, watch TV and the younger ones play video games. These will be the first to go when SHTF.

    • Donald Wilson

      Roger on that…

  • Trailer Park Investor

    IF the politicians really wanted to FIX anything they would make lobbying illegal and make using insider information to make investments that pay off BIG for them illegal. I guess that proves they think they are better then the rest of us.
    Politicians are bought by the highest bidder.
    What could be better?

  • John H. Ruszkowski

    The US is beginning to look like the fall of the Roman empire. It’s just a matter of time before we no longer exist as a great nation.

  • Lennie Pike

    Let’s see……… 1 trillion is almost 80 billion per month X 12 months.

    Joe Kernen co-anchor of Squawk Box a morning show on CNBC today said: “80 billion monthly getting spread all around. It’s not going anywhere is it?”

    Getting spread all around but not going anywhere?!!!!!!!!!!!!!! How can that be?!!!!!!!!!! Translation: The 80 billion is free money going into the pockets of the elite – none is going anywhere else – as into the pockets of the non elite, so the threat of hyperinflation or of interest rates going up is held in check.

    Was Joe Kernen trying to make an honest statement, or gloating about this theft from the
    American People. Who knows, who cares. Some day soon CNBC will not exist anymore.

    If we only had a pure Fascist government and not a mafia gang robbing the American People blind by creating free money for themselves, things would be much better.

    They are absolutely above the law. We are allowing these criminals to enforce draconian laws against us, but for themselves make it up as they go and see fit. The tyrrany today is a thousand times worse than in 1776.

    If this country did not consist of a majority of zombies, something could easily be done to have all of these scumbags. luciferians, and traitors either imprisoned or executed – the present legal penalty for treason. Until this action is taken, nothing will change.

    • M W

      We’re no longer a country ruled by law…

      • GSOB

        Government can easily exist without law but law can not exist without government.

    • Gene Baugh BBA

      I think Joe is saying the funds are going into the banks reserves but not being lent out. The banks are afraid to lend and the people are afraid to borrow or don’t qualify. Still QE is lowering long term interest rates if you can afford to borrow. Big corporations are about the only ones who can take advantage of the situation. As bad as things are I assure you they would be worse without QE. Think: if our economy sucks now how much more would it suck if long term rates were higher?

  • M W

    There’s a jubilee coming…

  • bill

    I agree-the 60 mins story shows just how corrupt the whole system is- they all should be in jail!!!

  • Phillie

    If someone doesn’t like it, we can turn their country into a parking lot! That should settle it.

  • Brian Harrington

    the goverment will pay down the debt they don’t care and get use to it the whole thing is a big ponzi scheme and it is going to bite em in the rear and the whole world is going down with us but there will be a civil war in this country or a holocaust and it is comming in a few years period

  • TonyS

    First of all, US public debt represents the total savings or the private sector – or the propensity for the private sector to save in US
    financials assets. US Treasuries are nothing more than dollar deposits over at the Federal Reserve. It’s more of a national equity, not debt in
    the conventional sense.

    Secondly, the US doesn’t borrow its own
    fiat from China. The Chinese have a reserve account over the FED (a checking account). Reserve accounts have dollars. Those dollars had to have been spent into existence at some point by the US government in order for the Chinese to have dollars to purchase US financial assets.

    The interest rates are set by FED. The FED controls the rates all along the term structure, although there is some inflationary bias which is
    accounted for.

    Lastly, this whole we’re-leaving-debts-to-our-children meme is nonsense. In real economic
    terms, such a burden cannot exist for our kids or grandchildren, since they’ll get to consume whatever they produce. This is one of the biggest
    reactionary/right wing propaganda pieces I’ve read in YEARS. There’s no reason that government spending from previous years should prevent our children or grandchildren from being able to produce the real goods and
    services they’re capable of producing.

    Just like the readers of this website, our children and grandchildren will be able to work and
    produce their output of real goods and services, REGARDLESS of how many Treasury securities we roll over every year ( FYI, it was well over 50
    trillion last year – total roll over). In economics, no such theory exists, where we have to sacrifice today’s output for some date in the past, or rolling it over to previous generations. This is as nutty as when politicians refer to “unfunded liabilities”.

    • Jimbo

      You are insane. You have no idea what you are talking about. I have never read so much rubbish in my life.

      • TonyS

        LOL. I have no idea what I’m talking about. Okay.

        Take a look at Japan. They have debt-to-GDP ratio of over 200% and have had ZIRP for over two decades. No hyperinflation, no spike in interest rates; they’re not the world’s reserve currency and they continue to issue Yen as they see fit.

        Again, a Treasury is nothing more than a dollar deposit at the FED, similar to your savings account where you can earn some interest, as opposed to keeping your money in a checking account (reserve account). Moving money between reserve accounts and Treasuries cannot pose a financial constraint on the US government. What part of this don’t you understand?

        • Jimbo

          Japans debt is 90% owned by domestic holders and until last year Japan ran consistent trade surpluses. Japan is in trouble but you are trying to compare it to the USA which has had a consistent trade deficit for over 20 years.

          You are insane. You try to push an argument that debt doesn’t matter, that it is really an asset, that QE is a positive thing. Again, you haven’t a clue what you are talking about..

          • TonyS

            So what? Around 46% of US debt is owned by “foreigners”. The foreign sector desires to save in US financial assets. We’re a better place to park wealth than any other place on the globe. They have dollar deposits at the FED, oh the horror of it all.

            Our budget deficit acts as an artificial trade surplus. International trade is a zero sum game. Everyone can’t run a trade surplus at the same time, just like every sector of the economy can’t simultaneously be in surplus. This is pretty obvious.

            I never said that debt doesn’t matter. The only constraint of the federal government is inflation. However, as I also previously mentioned, with our excess capacity and dismal employment numbers, inflation isn’t even a concern at this juncture.

            I never said QE was a good thing. I was pointing out that it’s nothing more than an asset swap with no new net creation of financial assets. It was a failure. QE actually took money away from the private sector; that was money it could have earned on interest from US Treasuries.

          • Jimbo

            Totally, unquestionably insane.

          • TonyS

            Another erudite response by Jimbo!

          • Jimbo

            Factual, with numbers that can be backed up with evidence and an amazing thing called common sense. You should try and get some of that.

          • TonyS

            I have plenty. I’ve posted daily Treasury statements for you twice or three times already. They also contain up-to-date yearly balances.

            Again, for the third time, the US Treasury rolled over 61.5 trillion last year alone. Where the hyperinflation? Where’s the dollar collapse? Why haven’t interest rates increased? Get back to me, I’ll waiting for a rational reply at some point.

          • Jimbo

            I am well aware of the Fed balance sheet and the statistics.

            Unfortunately, your complete misunderstanding of the basic concepts of economics means that you read something different in the numbers than I do.
            Where I see 2 + 2 = 4 you see 2 + 2 = banana.

            Please go away. You are a fool.

          • TonyS

            Fascinating.

            Again, please tell me where’s the hyperinflation? Where’s the interest rate increases?

            I only mention this since it’s all we hear about every day, day in and day out, about out huge debt ($17 trillion) and we should all hide under our beds due to the massive supply of Treasuries (mostly in the 10s of billions of dollars about to be auctioned off (these types of rants usually come from CNBC resident moron, Rick Santelli or some other buffoon.

            We’re also told that this supply will cause rates to increase or spike or the no one will purchase US paper. Oh my god, what of the Chinese don’t buy US paper?

            Yet, if look at daily Treasury statement, the US government has sold well over $50 trillion of debt this year with ZERO trouble or consequences. This is nearly four times the national debt which took a little over 220 years to accumulate. We sold four time that amount so far this year. What’s happened this far? Nothing, zip, nada. Rates are at zero. Interest rates are a function of the FED exercising its authority. Period. End of story. I suggest you take a look at the daily Treasury statements.

            You’ve insulted me multiple times. It doesn’t matter. I, unlike the plethora of self-proclaimed geniuses here, have an extensive background in finance and economics.

          • Jimbo

            Another new name. You really are on a mission.

            If you want to see inflation. look no further than stocks.
            As for the rest of the rubbish you type, You really are insane.

          • JamesS

            Inflation is defined as an increase in the general price level, not asset classes or sectors of the economy.

            How are we going to have a rational discussion if you don’t even understand how inflation is defined?

          • Jimbo

            Inflation is any price increase pure and simple.

            You are a moron.

          • GSOB

            Not all economist agree on what causes inflation so get off your high horse will ya?

          • Gene Baugh BBA

            Corporations are benefitting from the low interest rates boosting earnings, hence higher stock prices. That is not inflation.

          • Jimbo

            Price to earnings ratios are way out of line at the moment. Shares are overvalued. That is the inflation.

          • Gene Baugh BBA

            They are not that out of line,
            1929 PE was 30
            2000 PE was 45
            Current PE is pushing 20 but we are in a zero interest rate environment.

          • Jimbo

            CAPE is 24.28

          • Gene Baugh BBA

            Yes CAPE is always higher. But we have never seen stimulus like this before. Still nowhere near past PE peaks.
            I think without ZIRP and QE we would be well on our way to undervalued 8 PE. As an investor I would like to see that. It would mean this whole thing is over and you could invest with confidence for the long term.

          • GSOB

            I always thought the FED Reserve was a government entity.

          • Lennie Pike

            “With our dismal employment numbers inflation isn’t even a concern at this juncture?”

            How about 100 million jobless Americans finally storming D.C. and Wall Street with modern day pitchforks and torches? Would that be of concern to you?

            And by the way, you are wrong, there is a lot of inflation right now and there has been since Glass – Steagall was rescinded. The official inflation rate is a huge lie.

          • TonyS

            “How about 100 million jobless Americans finally storming D.C. and Wall Street with modern day pitchforks and torches? Would that be of concern to you?”

            It sure would. That’s the point, all this propaganda about US public debt, comparing currency issuers to households, etc. is a bunch of propaganda and nonsense. It’s like the 1% have hoodwinked people. It’s crazy talk. We could dig ourselves out of this situation in a couple of years with a jobs program and increasing aggregate demand.

            Um, Glass-Steagall was set of provisions within the US Banking Act of 1933, so you’re tying that to inflation? Inflation is an increase in the general price level, not sectors or certain assets.

            On a side note, money creation in and of itself doesn’t cause inflation contrary to some of the Austrian and Monetarist ideologues and cult members. Spending by itself doesn’t result in inflation.

            The result of a constant and continuous rise in the price level is when demand exceeds the capacity of the the economy to expand so it can meet increasing production.

            This can occur if government spending outpaces the savings desire of the non-government at full employment, where labor bargaining power is raised, which then bids up the price of materials and energy.

            Looking at money creation or the amount of government spending from its effect on demand relative to supply will never forecast any type of inflation rate.

          • Gene Baugh BBA

            QE is a positive thing to the extent that it is lowering long term interest rates. If you think it’s bad now how much worse off would we be if long rates had been higher?

          • Jimbo

            QE lowers rates but it is achieved by creating artificial demand for bonds. It also has diminishing returns with the 10 year up 100 basis points in the last twelve months.

            All QE has achieved in reality is a stay of execution for the US economy. Much like a third credit card can keep a debtor afloat for a while. Once you go down the path of QE there is no going back.

          • Gene Baugh BBA

            It has backed off in Q3 today was 2.50%. What QE is trying to do is stave off deflationary collapse by keeping not only short but LONG rates low. Remember Taper = tighten and we are nowhere near time to tighten. Not for a long time. We have not seen the FED take such emergency measures in our lifetime because the economy has never been so weak in our lifetime. Deflation is the enemy.

          • Jimbo

            QE is money printing. I don’t want to get into another “it’s just an asset swap” argument like I had with TonyS.

            QE is an absurd concept that is employed when all other conventional measures have failed.

            There is no history of QE ever being used effectively and it will never be proven to be effective until it stops and is subsequently unwound.

            QE can’t stop, it can’t be tapered and it will increase until the whole crazy scheme collapses in on itself.

          • Gene Baugh BBA

            QE has never been done before that I know of and it can’t stop until the economy can handle higher long term rates. Not any time soon

          • Jimbo

            First attempt was the Japanese in 2001 so we are all guinea pigs in a mad experiment I am afraid.

    • Joe Kleinkamp

      This moronic diatribe asserts the most twisted incorrect perspective on the debt problem I’ve ever seen. You write: “First of all, US public debt represents the total savings or the private sector. . .” Are you nuts? The public debt accrues from money LOANED to the private sector, or foreign sovereigns or the Federal Reserve through the sale of treasuries. We, the public, are all responsible for the repayment of the debt and its interest through taxation or, worse yet, through more borrowing which further compounds the debt problem. That interest is money that can no longer be used to fund education or infrastructure or the military or medicare or Obamacare etc. Interest buys you nothing except reparation for your prior overspending. Your whole post sounds like a BS essay test question answer written by a failing economics 101 student with a bad hangover.

      • Jimbo

        There was a theory doing the rounds that Tony S was in fact a paid shill. However, if his job is to convince people on here that US debt is a harmless accounting exercise, his application of logic lets him down stupendously.
        He claims to be a bond trader.

        I am with you. He is a mathematician who can’t add 2+2, a doctor who can’t apply a band aid and cook who doesn’t know how to fry an egg.

        He knows a lot of complex stuff but he has no grasp of the basics.
        Total fail.

        • Lennie Pike

          Cut him some slack, to a lot of people lies sound like the truth.

          Some day they will realize what they are.

          • Lennie :Pike

            If they don’t already.

        • Joe Kleinkamp

          Haha! Sad thing is that there are other clueless people who believe that more debt is the answer and will point to his convoluted drivel and say, “yeah, what he said!”

      • TonyS

        The US doesn’t borrow its own fiat. It doesn’t borrow that which is freely issues. Borrowing from whom? Government deficits provide the private sector money (financial assets) to invest. For example, if the federal government decided to tax back all the money it has ever ‘printed’, we wouldn’t have any money to do anything with.

        Operationally, your federal taxes don’t fund the federal government, sorry to break it to you. All bond purchases and tax payments are made with money that has already been spent. If this wasn’t the reality of the situation, there wouldn’t be any dollars available for the purchases of US Treasuries or to make any tax payments.

        We’ll use federal taxes as example, since spending precedes any ‘borrowing’ and/or tax payments under a fiat system. If we take what I said, and include “loans” from the FED, I’m absolutely correct. Bank reserve accounts are the only means possible for the settlement of bond auctions and for taxes to get paid to the Treasury. The primary source of balances in reserve account are from PREVIOUS government deficits, which mostly “loans” from the FED or credits to reserve accounts. The FED loans occur through the buying of private securities, repos, loans or even overdrafts. So, in order for the bind sales to settle or to pay your tax obligations, there had to have been previous government spending.

        Economics 101, lol. I doubt some of you have even taken a accounting class let alone anything resembling an economics class. Oh yeah, repeating one liners by retards like Ron Paul or his genius son don’t count.

        • nekksys

          Seriously? Do you have any clue about monetary theory at all?? If you do, answer me this: Where does money come from and upon what commodity/commodities is/are money based in order to have real value?

          If you fail this question, I can take you back to school and educate you properly…

        • GSOB

          “The US doesn’t borrow its own fiat”

          Are you sure about that?

  • Sam Johnson

    It is time to overthrow the governement. In fact, it is our duty according to our Constitution… “That whenever any Form of Government becomes destructive of these ends, it is
    the Right of the People to alter or to abolish it, and to institute new
    Government, laying its foundation on such principles and organizing its powers
    in such form, as to them shall seem most likely to effect their Safety and
    Happiness.”

    • GSOB

      It takes a leader to overthrow a government.

      Pray for leaders

    • nekksys

      Sam, that was the Declaration of Independence… But you do have a valid point and I’m on board with it. Lemme know when you want to storm the castle.

  • Kent Harris

    The world economy will implode in 2 years. It may seem hard to fathom but it will. The situation will be absolutely dire for most of us. Wih the destruction of the dollar war will be the answer. Americans cannot tolerate a lower standard of living and they will fight to maintain that living no matter what.

    • GSOB

      Nothing happened on the last blood moon?

    • Mr Bill

      Regrettably, you are right about war. History does show that war is usually the perceived answer for an economic crisis. But, look carefully at the history of wars involving the USA, from 1800 to the present. Every war over the entire history of America gave rise to substantial increases in total Federal debt and inflation. In each case, following the wars, only about 50 percent of the total incremental debt from the war was recovered after the war. Given the rationing and increased debt load, I can’t see where war supports the standard of living of the general population. Of course, the war financiers and material suppliers of the winning side benefit significantly.

      • Hammerstrike

        The war this time will be within the US´s own borders.
        This time between the workers and the parasitocracy.
        War with Iran is unaffordable, US army is too weak for that now and will be even weaker with more political correctness and racial quotas.

        • Gene Baugh BBA

          U.S. too weak to topple Iran? I have to disagree.

          • Hammerstrike

            Yes.
            Of course you disagree, you believe the US military have the world´s most advanced military technology but they don´t.

    • Hammerstrike

      They´ll have to do some exercice first. )

    • Gene Baugh BBA

      The world economy already has imploded we are living now in the aftermath.

    • GSOB

      I won’t hold you to the timing but agree with you (10/26/13)

  • 2Gary2

    There is no way to make needed public investments and temper the extreme
    inequality that threatens our democracy without progressive tax reform

    • Mark Caldwell

      ‘Progressive Tax Reform = taxes hiked up to 40% So, the spending and borrowing is fine but the answer is to suck more blood out of the people? Collectivism is the love child of petty tyrants and Marxists.

  • Vermaphax

    I’m glad you actually typed out that number, I think people are numb to the fact of how much that really is. 999,000,000.00 is 1 million short of 1 billion. You remember when you where a kid and asked your siblings what you would do with a million dollars? America spends that once a minute. That’s 1,000,000.00 Dollars every 60 seconds. I haven’t even come close to trouble we are in. I mean 999,999,999.99 is basically 1 billion now times it by 2 and you have 2 billion…that’s 2,000,000,000.00 cuz 2,999,999,999.99 is just short of 3 billion. Still not even close because it takes 999 billion to make 1 trillion, not trying to insult anyone’s intelligence but seeing it is different than reading it I think. BTW that was 999,999,999,999.00 for 1 trillion now times that by 17… we will never pay that out. It’s not scientifically possible at this rate of spending. The S has already HTF it started with a fart when they nixed the gold standard or even when we ate the lie that was THE FED

    • Mr Bill

      Add to that notion that 1 trillion is 1 million
      1 millions. Or 1,000,000 more 1,000,000s and we presently have 17 more of that whole bunch.

  • Aiden Flanagan

    Yes, Bush royally F’d things up for this country, but Obama has had plenty of time to cut spending and put us back on track … he has not done this as you can tell by our out of control debt pile we’ve accumulated.
    In addition to the ridiculous amount of debt Obama has added to our already burdensome predicament, people should not forget about the fact that he has also increased the amount of physical money in circulation by leaps and bounds as well.
    Somebody needs to put their foot down as president and it doesn’t seem that the Republicans or Democrats are up to the task.

  • Mr Bill

    I took a look at the US Debt Clock website today to get a better idea of the current magnitudes of the budget items that are adding to the total federal debt in real time right now. I think the clue to fix the US debt problems lie in understanding the relative relationship of these numbers. This was a quick look, but they may give some useful insights.

    First, 91 pct of the total Fed revenue ($2.741T) is made up of three taxes (47 pct personal income, 35 pct payroll and 9 pct corporate).

    Second , the debt clock shows 81 pct of the total Fed expenses ($3.517T) is made up of five budget categories (24 pct medicare/medicade, 23 pct social security, 17 pct defense, 10 pct income security (welfare) and 7 percent federal pensions).

    Third, there is a sixth expense category that is not reported in any formal budget – supplemental appropriations.These expenses include pork projects, undeclared wars, etc. I estimated annual supplemental appropriations expenses were about
    $0.4 trillion back in 2010 and rising. If we just keep it the same as 2010, that accounts for an added 11 pct of the government expenses, or 92 pct of the total expenses for 2013.

    So, let’s pretend we are on that new TV show “Are You Smarter than a Congressman”. Can we even imagine a scenario where we, the citizens, might some starting point that might be negotiated to help solve this pending debt crisis. Let’s discuss this in a civil fashion. Is Nancy Pelosi correct when she declared that “There is nothing else that we can cut!” or others in Congress who suggest that “We must cut social programs, because our military adventures are too important!”

    Let me start first. My first caveat is this simply a starting point. It does not reflect my political or ideological point of view. Nor does it reflect anybody’s views I have not considered where to go next, or what any impact might be. I am merely sending up a test balloon. If it doesn’t make sense after we debate let’s make some reasoned adjustments and try something else.

    My starting point is trivially simplistic, but here it is:.
    Look at the preceding info or go to the debt clock or other valid resource and get a good idea of what the Income and expense numbers mean to you. Realize the problem is too big to be solved by any one or two categories. Rather look at all three income categories and all six expense categories.
    Then let’s pick a single number for across the board changes . Let’s say 10 percent as a starting point. Raise all taxes by 10 percent and cut all expense items by 10 pct. Do it IN ONE YEAR, not the 10 year horizon. Do the arithmetic and what do we get annually?
    $247 billion increased income
    $326 billion decreased spending
    $573 billion reduction in annual deficit.
    This is about half of the annual deficit that we expect may cause such a crisis.

    This is obviously not the final answer. There must be much negotiation and “screaming and hollering”, but this trivial start suggests that a suitable solution that does not severely damage our whole society.

  • Mike M.

    Clearly, those who are in DC to do what’s best for this country are scumbags. However, the voters put them there—many times, repeatedly. This puts your typical US voter in the same category as those they elect. With all we know about how our senators and representatives are truly lowlifes, many will get re-elected if they chose to run again. They have done nothing but give themselves and their cronies immunity from prosecution when they eventually get caught with their proverbial hand in the cookie jar. It’s no wonder why al-Qaida hasn’t struck in this country since 9/11—they see the devastation those in DC are subjecting this country to. If they (the terrorist operatives of today) lived for a hundred years, they wouldn’t come close to doing the damage our lawmakers (read “lawbreakers”) have done in the last 5 years alone.

    • Gene Baugh BBA

      We probably can thank the Patriot act, DHS, and the NSA for some of that luck too. If bombs were going off here like they do in other parts of the world people would be clamoring for more instead of saying they are going too far. We are at war.

  • BT

    perhaps its time to start marching in the streets….

  • ohwell

    so it only prove that on money we should have put “in money we trust”… the action speaks louder then words…

  • GSOB

    This is all misleading.

  • GSOB

    Go take a stress reliever elsewhere.

  • Alex Cyr

    Take out the federal reserve.

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