The Congressional Budget Office (CBO) forecasts the U.S. budget deficit will hit $1.3 trillion this year. An astronomical figure, to be sure, but that’s lower than was projected in March. It’s also less than last year’s record $1.41 trillion deficit, which was close to 10% of GDP.
And, that's the good news. As the deficit grows so does the national debt, which is currently more than $13.3 trillion, according to official figures.
But the situation is actually much, much worse, according to Boston University economics professor Laurence Kotlikoff.
“Forget the official debt,” he tells Aaron in this clip. The “real” deficit - including non-budgetary items like unfunded liabilities of Medicare, Medicaid, Social Security and the defense budget - is actually $202 trillion, the professor and author calculates; or 15 times the “official" numbers.
“Congress has engaged in Enron accounting,” says Kotlikoff, who recently penned an op-ed for Bloomberg entitled: The U.S. Is Bankrupt and We Don't Even Know It.
Yet, the debt market continues to have an insatiable appetite for U.S. Treasuries; heading into Monday's session, the yield on the 30-year Treasury bond (which moves in opposition to its price) was at its lowest level since April 2009.
Everyone is playing musical chairs with their money, hoping when the music stops they wont lose everything. Bernacke is the baffoon conductor and Timmy Geitner is the little demon in the organ. I chose not to play and take my money and go home. Because those boys lie and dont play fair ;-)
ReplyDeleteThe article states:
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Yet, the debt market continues to have an insatiable appetite for U.S. Treasuries;
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But did not the Federal Reserve just recently announce that they were buying US Treasuries?
So maybe only yhr Federal Reserve has an "insatiable appetite for U.S. Treasuries" and thus is just expnading the USA Debt even more.
and the just keep printing more and more money.
ReplyDeleteGet the Zionists away from our government. Print our own money and get rid of the Private rothchilds owned Federal Reserve, which is no more a part of the US Govt. than Federal Express is. Also vote out every incumbent and do not vote for ANYONE that remotely has any interest in serving as a slave for ISRAEL. If you are for Israel you are against The USA.
ReplyDeletepeople here arent smart. do you all know that Obama just prevented the economys from failing? Keep hating, Obama has alredy fixed it. you guys need to stop trying to make something out a nothing. You have to print money to save things thats how finaces are increased.
ReplyDelete10:56 (#2) = Troll
ReplyDeletehay anom 10:56, what did obama do to save economy, be very,very specific! Outline the whole process of him preventing the failing economy. If you can not do that, just name 3 things. Damn you are smart! (troll)
ReplyDeleteI kinda sort hate obama for just being such a hypocrite BUT 10:56 is semi-correct...The problem is Obama was able to give the appearance of fixing things and that the stautus quo was back...Of course we know it was all stolen or misused and that NOW there is no doubt that there will be a crash.
ReplyDeleteAnyway, obama made his play and gave out large sums just like bush jr. and it quieted the market and kept it from exploding...Basically it slowed the crumbling temporarily.
Way I look at it is they know it's going to crash...Might as well buy some time and fuck all the investors at the time...Then technically he'll be able to pay you the trillion he owes you but the truth is it has no value no more than zimbaween currency.
Plus it forces everyone to accept the Amero or whatever new currency they want to put up because at that point we need something to value in order for trade to continue.
Remeber that the Euro forced crime syndicates to "Use it or lose it?" They all had to buy things or get caught for having a ton of money that was unexplained?
It cuts out part of the "Black Market" makes people spend...Artificially boosts everything...Gives government new powers over currency whatever they want it to be.
Plus remember when the USSR fell and all the real rich became super billionaires by buying everything for pennies?...Start saying it...Oligarchs...We live in an oligarchy run by old white oligrachs.
I mean it fits that it all be a wealth grab and on top of that a culling would happen...get rid of the old and weak...If the markets collapse how many would die off in say a 1-2-3 month period...If you couldn't get your meds?...If your aid stopped coming in?...If your unprepared ass had to survive off whatever you had in the pantry?
Most families would crumble in 2 weeks...Especially in Cali...Home of the unprepared.
Then the US would fall into line with the IMF that thinks...That both Europeans and the US need to cut social programs.
OMG it's like killing 4-5 birds with one stone...Ha at that point the Religious Right could make a case for their anti-christ theories.
I love conspiracies but I'm more of evil cabals running the world for profit...Not so much on the anti-christ or lizard people...Anybody seen my tin foil hat? I left it around here?
Obama alone has spurred tremendous economic growth. Just think of all the new highly skilled jobs created to feed his ego, kiss his ass and haul his family around on weekly vacations. He spends enough on entertainment alone within 24 hours to make up for 25 bankrupt families annual pre-BR expenditures. The silver back wife has employed at least 75 servants that would otherwise be on welfare. Yup, um um um has done it all for the good of the country.
ReplyDeleteWTF are "finaces" 10:56?
The way I figure it is pretty soon there will be piles of that useless moolah around, bales, mountains maybe and I plan to make me a playpen with it in the field next to the outhouse.
ReplyDeleteI will bring babes there. They will love rolling in all that sweet sweet money.
If that gets old, I'll cut the fence to the hog yard and run'em in there and set a match.
At five million a plate that will be some barbque
Don't do it
ReplyDelete99.3% of it has more than a trace of cocaine on it
You, your kids and yer Pigs will be higher N a kite
10:56 - Most people here are smarter than you think. But reading at your comments below are really eye opening.
ReplyDelete(P)people here arent(aren't) smart. (D)do you all know that Obama just prevented the economys (economy) from failing? Keep hating, Obama has alredy (already) fixed it. (Y)you guys need to stop trying to make something out a (of) nothing. You have to print money to save things(.) (T)thats (that's) how finaces(finances) are increased.
If you are in the 5th grade or below please ignore the corrections. If older, please learn to spell so people can read your misguided comments. And ObaMao has solved nothing. He has instead added to the depth of the continuing collapse with his free money policy and continued debt spending.
10:56 is an Obama voter and it shows. Uneducated illiterate boobs voted this poser into office. Unfortunately and thanks to public schools, over 50% of the population is with 10:56.
ReplyDeleteYeah and w bush and his two losing wars costing us trillions had nothing to do with what is happening now, and he was so good responding to 911 and katrina, this whole downfall started on bush's watch, I would like to see any of you loser repugs do better.
ReplyDelete5:00 Yo Homie Yohamabama is agonna do the impossible!
ReplyDeleteThat;s right; this stupid duchebag is gonna do more harm in 2 years than dickbag W did in 8 !
You name 2 wars ; trillions ; 911 and Katrina on an 8 year watch.
Try this can't find my penis so sent for one in a jar.
Still in 2 wars and soon to be in a 3rd . We have won nothing, distilled nothing and re-affirmed - nothing.
2 states now in Litigation with Yobama over immigration - like wow man - has that ever like even happen before? Not!
Yobama wants desperatly to build a beautiful new Mosque at ground zero - how touching
The disaster in the Gulf had a vacationing barry
to busy to do much besides wait 45 days before speaking with Tony Haybaby on what to do; meanwhile we have a 20 mile oil slick 1/2 amile down headed for the eastern seaboard - cost?
Oh - it's friggin' priceless !
He also instigated a behemoth health care bill that has every company in the USA shedding full time employees and CYA for the next year and a half because the 2,752 page document is so fucking vauge it will take an army of lawyers 10 years to figure out what it says. Total cost? get back to us in 5 years-maybe,
Yohama spent 47 Billion on the too big to fail GM which now repays us by building a brand new plant
In mexico ) oh by the way - they owe "us " 40.2 Billion yet - how's that all shaping up ? Well, my 401 K is down 42% - can I get me some O dat ?
Yobama has repeatedly scolded I meaned scolede Amadenajad about his actions = sanctions even!
Today they unveil the new 600 mile missle - yummy! Oh by the way - the Russians are enriching our uranium - Oh boy! that;s great
I would go on but shit! I'm tired
barry wins - he's so fucked up and is burning so many candles at both end, the middle and the core - he wore us all out
I wouldn't expect anything less from a 49 year old
Community organizer who smokes Wintons
HufuckingRah
5:00 PM - The Democraps have been in control of the purse strings for 4 years now - 4 YEARS!! But Obama Maniac supporters like you look at who the Prez is and blame him?? The Democraps for the last 4 YEARS have spent this country into poverty - and it's all been on the DEMOCRAPS watch. Get a life!
ReplyDeleteHeres a quote I read on survivalblog.com that left a profound impression on me about the Weimar Republic collapse.
ReplyDelete"Near civil war between town and country was a pervasive feature of this break-down in social order. Large mobs of half-starved and vindictive townsmen descended on villages to seize food from farmers accused of hoarding. The diary of one young woman described the scene at her cousin’s farm: 'In the cart I saw three slaughtered pigs. The cowshed was drenched in blood. One cow had been slaughtered where it stood and the meat torn from its bones. The monsters had slit the udder of the finest milch cow, so that she had to be put out of her misery immediately. In the granary, a rag soaked with petrol was still smouldering to show what these beasts had intended,' she wrote." - Adam Fergusson, When Money Dies: the Nightmare of The Weimar Hyper-Inflation
The book is available at Amazon, if you can afford the $799 price tag for hardcover.
Weimar inflation was not created by just some”normal” government urge to print money,but arose in particular conditions, the impossible cost of the Versailles war reparations imposed on Germany by other imperialist powers including America made this inevitable .
ReplyDeleteWeimer style inflation will emerge (after deflation ) in the particular economic conditions faced by America as the US ponzi economy cannot pay its way either.
Either it will attempts to inflate away its debts government and private, or defaults by devaluing the Dollar.
Americans owe too much and so do its banksters in promises of bond dividends payments to the Americans and to foreign investors holding treasury and GSE mortgage bonds.
No country will trust investing in American bonds for decades.