Trillions Of Troubles Ahead

Trillions Of Troubles Ahead
If the government stays on the course it’s been on for the past forty years without a radical change, the federal government will soon have a $10 trillion budget.

In other words, the federal budget deficit will be $1.4 trillion. Just to make the size more visible, that’s $1,400 billion.

Our colleague Rob Arnott, who always does terrific research, wrote in his recent report that “at all levels, federal, state, local and GSEs, the total public debt is now at 141% of GDP. That puts the United States in some elite company–only Japan, Lebanon and Zimbabwe are higher. That’s only the start. Add household debt (highest in the world at 99% of GDP) and corporate debt (highest in the world at 317% of GDP, not even counting off-balance-sheet swaps and derivatives) and our total debt is 557% of GDP. Less than three years ago our total indebtedness crossed 500% of GDP for the first time.”

Add the unfunded portion of entitlement programs and we're at 840% of GDP

emphasis mine

The United States as a whole is spending almost eight and half times it's production output and that's before any expansion of healthcare or any new bailout/stimulus programs.

This is the economic engine of the world?
.

Well,it's just like I say, "People want to blame the most recent presidents for our current mess, but in reality, this has been coming for at least the last 40, maybe even last 50 years."

[edit on 21-12-2009 by SpeakerofTruth]

Easy solution. Move North!
Your political system is all but failed the people it was meant to protect.

I seriously can't believe the good people of the United States have not took back control of their government.

Everyone of those crooks who agreed to bail out wall street should not just loose thier jobs but should be hung in the streets.

reply to post by Kargun



You're missing the point.This is not a recent phenomena.

Reading this stuff gives me ulcers and the desire for a vasectomy.

Compounding interest with a fiat currency- who'da thunk it.

Ron Paul.

Ten trillion budget???!!!

So, if we spent a million dollars a day, since the the day Jesus was crucified.....

Wow.

reply to post by SpeakerofTruth


1971 was a major tuning point.
.

Originally posted by Kargun
Easy solution. Move North!
Your political system is all but failed the people it was meant to protect.

I seriously can't believe the good people of the United States have not took back control of their government.

Everyone of those crooks who agreed to bail out wall street should not just loose their jobs but should be hung in the streets.

Moving north won't help, the Governments Socialist Republik of Kanadakastan is just as bad if not worse than the US. Our criminals in government just have a heavier hand in the media and having been pulling this crap for so long the sheople have wiped it from their genetic memory.

Every country in the world has these problems, some to a greater extent than others, but the depth of the problems is always limited by MSM control and things like denying FOIA requests.

What we need is deconstruction of the present political systems and reconstruction of something real and fiscally manageable.

Cheers - Dave

Originally posted by Gools
reply to post by SpeakerofTruth

 

1971 was a major tuning point.

.

Exactly, gold was $34.50 an ounce in 1970, Nixon took us off the gold standard permanently. That is to say NO DEBT could be settled with gold as opposed to trading in gold was restricted before that time.

spiritualeconomicsnow.net...

Wish more people would read her articles and book. She is so enlightening. And the actual debt of the U.S.A. is, read it somewhere, and I believe it was around 140 trillion dollars. Most of it isn't reported because the people would go nuts.

Let’s use the power bill as the example:

The power company has access to the trust account, from which it draws, in order to have the capital to provide us power. At the end of the month, those at the power company send us a ‘statement of account’. What the top part is telling us, without actually stating, is, “We went to your asset trust account and withdrew $100 in order to provide you power; is that alright with you, Creditor? If so, please just evidence your acceptance of this by writing on this statement, ‘Accepted, the account number, the number of the bond backing the account, which only you would have, and your signature.’ As we have sent the cheque for you to endorse, which will bring your trust account balance back up to zero, please sign and endorse it and return it to us with the statement so that we can balance our books.” The story is the same for credit-card statements.

What they actually write is, “Be sure to return the voucher with your payment”, thereby misleading us to think that we are required to give them $100 worth of our labour, along with their cheque which offsets the liability, and nothing else. They are simply soliciting our agreement which our signature indicates. So, the voucher/cheque will balance not only their books but also the asset trust account. But somehow, we got roped into forking over our debt-notes (which they want as much as we do because we all use dollars to obtain what we need and want, yet have nothing to do with the account with the power company). These debt-notes have nothing to do with “paying our bills”; there is nothing to ‘pay’, nothing with which to ‘pay’, and the account cannot be ‘paid’ – it can only be offset with the cheque/voucher they sent us for our signature.

AND:

Now, our cash is in the public and ought not to be because the public doesn’t operate in cash; it operates via double-entry bookkeeping, ‘t-charts’ of asset and liability, because there is no ‘money’. Since all these debt-notes are out there as “the debt”, in the “public”, this means that we are the cause of the “public debt” which must be offset. But, what we are told is that the public debt must be “paid” and, of course, this is an impossibility because if we ‘pay’ ‘public debt’ with ‘debt’, all that occurs is that we double the debt. The only way out of this mess is for us to do whatever it takes to remove the debt-notes, aka ‘cash’, aka ‘the debt’ from the public. For a long time, we thought that we had to offset the public debt, but the public debt has not been caused by anything other than our having put cash where it not only doesn’t belong and cannot be used in any productive manner but also is creating havoc with the economy. Now that we know that we must get the debt out of the public, so that there is no more ‘public debt’, how do we recall the trillions of dollars of debt?

We call in the biggest, best, most-efficient debt collectors in the world: the IRS. If they can’t do it, no one can. So, by filing the correct forms with the IRS, we let them know how much of our cash/labour/debt-notes we have errantly put out there into the public. We are so sorry we made this ridiculous mistake, but, we took the word (“Be sure to return this voucher with your payment” – hmmm. I guess I have to send a cheque along with the voucher – BEEEP! Wrong-o!) of people at corporations, forgetting that corporations are “for-profit”, faceless, heartless, entities with no intent other than ‘economic growth’ and to control the planet through the use of our energy. Sure, we might encounter a friendly voice at the other end of the phone, but she has been as programmed as the rest of us in our thinking that we are obligated to “pay our bills”. Very few of us know that with every dollar we put into the public and neglect to claim it back, we are creating more and more problems for our fellow man, never mind for ourselves and our families.

[edit on 21-12-2009 by daddio]

I find it ironic, the government cannot pay back ITS DUES, but we the poelpe are expected too. they dont go to jail for reckless overspending, but certain,ly WE can, an at least WE try to balane our budgets* Governemnt cannot..in fact, they steel and skim left n right practicaly. captilasim sucks donkey d***

reply to post by Kargun


The only thing that's giving countries like Canada or the Nordic countries the semblance of paradise are their relatively smaller populations. If you encourage people to move there, you will end up like the countries' you got away from.

Look at Japan. They have a reputation for taking care of their own. But even their government borrowed their way into 200% of GDP.

[edit on 12/22/2009 by eldard]

Originally posted by Gools
This is the economic engine of the world?

And if we experience a full-blown depression , they'll tell us it's really a good thing because when you shut the engine down , the parts last longer.

Canadian Garth Turner over the weekend.

Superior

Defenders of the Canadian way are predictable.

Without saying so, they always have the same refrain: we’re superior to the Americans.

Full Text

[edit on 22-12-2009 by OBE1]

reply to post by OBE1


Yeah but only slightly...
.

reply to post by Gools


Nah, we have more guns lol

But yeah there is no reason to move to Canada, my taxes would increase for my health care if you all did that.

I pay enough taxes thank you very much.

Actually, after some reasearch I realize that the guy making half of what I do pays more taxes.

Strange isn't it?

In any case, we usually follow America everywhere anyway. Our premier has his head shoved so far up Obama's ass I don't know where he ends and the other begins.

~Keeper

Originally posted by tothetenthpower


I pay enough taxes thank you very much.

Actually, after some reasearch I realize that the guy making half of what I do pays more taxes.

Strange isn't it?



~Keeper

Seems strange , mind telling me where you researched that.

Maybe I'm working too much by that statement

reply to post by Gools


The Corporate Debt explosion will soon collapse world economy -- hope you got that survival garden planted:

www.nytimes.com...

Doesn't look like there will be anything bad until 2012. I live in canada, and there are no signs of economic stress here at all. In fact everything is booming. I own a lawn care business, and people are phoning me off the hook, and the year has barely started. People have money, people are spending money. So, in my world, the economy is doing great. No one that i know has complained about it. So how is it possible that its all going to collapse soon?