If you haven’t heard yet, the United States of America just hit $16 trillion in debt yesterday. On a gross, nominal basis, this makes the US, by far, the greatest debtor in the history of the world. It took the United States government over 200 years to accumulate its first trillion dollars of debt. It took only 286 days to accumulate the most recent trillion dollars of debt. 200 years vs. 286 days. This portends two key points:
This is banana republic stuff, plain and simple… and smart, thinking people ought to be planning on capital controls, wage and price controls, pension confiscation, and selective default. Because the next trillion will be here before you know it. ( Courtesy Zero Hedge)
While I mentioned this before , I will mention it again. At present, we see no substantive effort to do one thing to slow the Unsustainable debt we are piling up at an ever increasing rate. Think about the information above. It took us 200 years to accumulate the first trillion dollars! So …here we are. Do you now understand why interest rates can not be allowed to rise? Pull out your calculator and see what a rise of 2% does to your debt service. You don’t have to be a math wiz to know what it does..Its game over. Also, this 16 Trillion….Well lets get real…. its actually multiples of that due to unfunded liabilities and Off Balance Sheet Book Cooking. Not only is the federal government busted, the states have the same problem…See snippet below
U.S. states’ debt tops $4 trillion-report
Tue Aug 28, 2012 9:39pm IST
Aug 28 (Reuters) – America’s 50 state governments owe $4.19 trillion, including outstanding bonds, unfunded pension commitments and budget gaps, according to a new report.
At $617.6 billion, California had by far the biggest total debt, more than twice the total of No. 2, New York, with $300.1 billion owed, according to State Budget Solutions, a research and non-partisan advocacy group.
Texas, with $287 billion owed, New Jersey, with $282.4 billion, and Illinois, with $271.1 billion, ranked next among states with the biggest total debt, according to State Budget Solutions. Vermont had the smallest debt load at $5.85 billion.
The annual study said state governments had benefited in the last year from smaller budget gaps and reductions in loans taken from the federal government during the worst of the Great Recession to pay unemployment claims.
Those trends helped reduce total debt, which includes medical insurance due retired government workers, from last year’s $4.24 trillion of total debts owed by the 50 states, according to State Budget Solutions.
Okay so let me make a couple of comments. Those in leadership positions in our country KNOW EXACTLY what the score is when it comes to this. Two nights ago, we heard Paul Ryan at the Republican National Convention state with respect to our current economic problems, that ” We don’t have a lot of time” to address this. Why would he say that? Because he knows, as well as Obama, that with out radical spending cuts and living with in a budget, we will not slow or stop anything. The current administration has not had a budget for the last three years, do you actually believe they are going to address this? The short answer is, they won’t,… not now,….. not tomorrow,….. not next week,…. not ever….. Its not fixable at this point, especially with the idiots who comprise the congress and the Presidency. (I doubt Romney will address this either) So,….. if its not fixable because there is no will to do so, whats going to happen. I will tell you what will happen. At some point, the Market is going to exert its discipline and your not going to like that one bit…..Its like Nature, it doesn’t suffer fools lightly.
So….If they are going to do nothing to stop this, and the results are likely catastrophic, its now left to YOU, to take care of yourself and your family. We are rolling down a path that is clearly not sustainable…What are you going to do?