$12 Trillion in debt - did anyone notice?
Anyone hear that sound - yup, crickets chirping.
This week's MASSIVE/UNPARALLELED sale of US debt ($153 Billion) caused the Gvt's public debt load to slice through the $12T mark like a hot knife through butter.
Next: expect our Congressionally authorized debt ceiling of $12.104 trillion to be breached by the end of November 09 - if so, and if the limit isn't raised by then, our Gvt could be forced to shut down... Don't expect that to happen though - lawmakers will once again raise the ceiling, as they have done more than 90 times since 1940 -- eight of them since 2002.
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: Another Bailout Package Plan - increased ceiling from $10,600 billion to ~ $11,300 billion.
2009: Ceiling increased to $12.104 Trillion as part of the American Recovery and Reinvestment Act of 2009 - an economic stimulus package that was approved in February.
The United States total public debt, commonly called the national debt, or U.S. government debt (clock below), 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 (above) does NOT include unfunded liabilities.
David Walker, Former Comptroller General of the United States, places "Unfunded Liabilities" - Future Obligations of our Nation IF we actually had the money in the bank today - at > $100 Trillion.
So, will our National debt (and unfunded liabilities for that matter) ever be repaid?
Well, that answer could be a No or Yes...
Answer #1 - No: If our country defaults on its debt the debt won't be paid - but that option will be avoided at all costs (Pun intended)...
Answer #2 - Yes: And this option has already been selected.
It WILL be paid through significantly devalued payouts caused by monetary expansion that will eventually lead to a currency collapse and hyperinflationary blowout (same end result as a default, just more palatable).