As Justin stated in the open forum: Time to break out the Party Hats!
The United States total public debt, commonly called the national debt, or U.S. government debt, is the amount of money owed by the federal government of the United States to holders of U.S. debt instruments.
The United States total public debt, commonly called the national debt, or U.S. government debt, is the amount of money owed by the federal government of the United States to holders of U.S. debt instruments.
Note: this national debt figure (below) does NOT include unfunded liabilities.
David Walker, Former Comptroller General of the United States, places these "Unfunded" Future Obligations of our Nation at $100 Trillion Plus.
The two biggest unfunded obligations are Medicare and Medicaid followed by Social Security, interest on the National Debt, Civil Service, Postal and Military Retirements, etc.
BTW: The National Debt (below) has increased an average of $3.68 billion per day since September 28, 2007! Just look at that baby spin!
Since 2002, the national debt ceiling (a congressionally approved moving target that is not supposed to be exceeded) has been raised 7 times, as follows:
2002: Raised from $5950 billion to $6400 billion
2003: Increased again - from $6400 billion to $7384 billion
2005: Wasn't enough - increased to $8184 billion
2006: Raised from $8184 billion to $8965 billion
2007: Big one this time - from $8965 billion to $9815 billion
2008: July 08 housing Bailout package included provision for increase to $10,600 billion
2008 Bailout Package Plan: Increased ceiling from $10,600 billion to ~ $11,300 billion
So, can this National debt and list of unfunded liabilities ever be repaid? Well, the answer could be a yes or No...
No: Only if our country defaults on its debt, but it wont... Option two (yes answer below) has already been selected.
Yes: It WILL be paid through significantly devalued payouts caused by monetary expansion - i.e. a hyperinflationary blowout!
Weimar and Zimbabwe here we come!
9 comments:
I was reading a article the other day that pointed out the following; if one hears the talking heads start babbling about how the Fed Debt is being paid down then you better quickly convert your US dollars into something else, like gold and silver. Actually, one should have started a couple of years ago at the least. Once the Fed Debt is paid down we'll wake up one morning and the old fiat cash won't be excepted and a new one will replace it.
Here is a hint, buy all the gold and silver you can get your hands on. You'll at the least be able to pay off all your debts including home with a hand full of gold are silver coins.
Amused
Here's a question..... has the U.S. ever done more than pay interest on its debt (i.e. have we ever actually budgeted some dollars to the principal)?
I believe that currently something like 20% for our tax dollar goes to pay interest. What will it be after a couple years of 2 trillion a year deficits?
Will the debt ever be paid off? I would think the chances are slim to none. The debate is whether it's done via default or through inflation.
Both will be bad for the majority of citizens, but then, just as the majority can't control their credit card debt (or even their weight), so it is that the U.S. is unable to control its budget.
It appears we're headed for a fall, the only question is what form it will take.
One last thing, people use the phrase "hyper inflation" all the time. So lets define hyper versus just "inflation".
25% per year, 100%, 1000% ...?
Even our language seems subject to inflation.
INTEREST: Back in 2006, approx 20% of our Fed Income taxes went towards paying interest on the National Debt - http://docs.law.gwu.edu/facweb/jsiegel/Personal/taxes/debt.htm - I don't know what the percentage works out to today.
HYPERINFLATION: Although the threshold is arbitrary, economists generally reserve the term “hyperinflation” to describe episodes when the monthly inflation rate is greater than 50 percent - Unlikely you say?
Massive monetary expansion in the US may lead foreigners to dump their dollars (due to being a poor store of value). This action would spark a dollar crash and INSTANT hyperinflation for US consumers.
TPTB would likely allow hyperinflation to run for some time - to pay off debts with worthless dollars - then eventually change to a new currency...
The way we finance our national debt is unsustainable: It is madness! There is a better way. Check out www.sons4liberty.blogspot.com
according to this article,
http://www.businessinsider.com/us-debt-100-percent-of-gdp-2010-6
Federeal debt is not really 13 trillion but more like 8.6 trillion, the debt to the Public. The 4.5 trillion is debt the Fed owes to itself and should not be accounted.
-guy
"Debts and deficits don't matter."
- Dick Cheney
I feel a lot better now.
The major us banks are finished
The national debt is out of control.
Remarkable
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