Last week, a bit of news came out that—weirdly—didn’t garner the attention or the reaction one would have thought it would:
As for the total debt, as of January 2011, the U.S. Treasury had $8.965 trillion in outstanding securities, plus an additional $5.166 trillion in “non-marketable” securities—that is, intra-government debts. The total outstanding debt of the U.S. Federal government is $14.131 trillion.
Martin Armstrong, Feb 15th: Government Is On The Brink Of Collapse
The Next 17 Big Companies That Are Heading Toward Bankruptcy
The U.S. Federal government deficit for fiscal year 2011 was revised to $1.645 trillion. That revision was up from the previous estimate of $1.4 trillion, which itself was a revision just a couple-three weeks ago by the Congressional Budget Office from the White House’s earlier projection of $1.267 trillion in December.
The additional $378 billion in deficit spending comes from loss of tax revenue: Both from the fall in tax receipts due to the ongoing depression we’re experiencing, as well as from the idiotic budget deal with the Republicans, whereby the Bush-era tax cuts were extended.
These deficit numbers are huge. Huge. HUGE.
As for the total debt, as of January 2011, the U.S. Treasury had $8.965 trillion in outstanding securities, plus an additional $5.166 trillion in “non-marketable” securities—that is, intra-government debts. The total outstanding debt of the U.S. Federal government is $14.131 trillion.
The U.S.’s gross domestic product in 2009 was $14.29 trillion.
More Here.Martin Armstrong, Feb 15th: Government Is On The Brink Of Collapse
The Next 17 Big Companies That Are Heading Toward Bankruptcy
It's going to be at least about 4 Trillion by the end of the year. I believe we have about a trillion per each quarter.
ReplyDeleteAnd of course revenues are down. They can lie about employment statistics all they want, but if people don't have jobs they can't pay taxes. In reality, the unemployment rate is much higher and the government won't due a thing to help anyone.
Taxes mostly come from the middle class. The lower class has no money and just takes government benefits for the most part. The higher classes just don't pay taxes. So it's the middle class, but there has been a war on the middle class and now the middle class is about dead.
Add to that the fact that college and graduate school grads, essentially the under 30 group, either do not have jobs or are so leveraged with retarded student loan debt that they can not contribute to the economy at all and most are stuck living at home with their parents and delaying their lives.
We are rapidly approaching third world country status.
Please, let's always consider the "Unfunded Liabilities" when discussing the true indebtedness of our country. To not include Social Security, Medicare, Prescription Drugs, Fannie Mae, Freddie Mac, TARP, QE 1-2-3-4-etc, is like discussing your family financial situation without including your house payment, care payment, boat payment, credit cards, college loans, personal loans, etc. The estimated figure of $200 TRILLION MUST be highlighted daily to awake the sleeping public of exactly how bad the situation really is.
ReplyDeleteWith a total net worth of somewhere between 110 and 150 Trillion dollars ( depending on whos stats you use ) the Government is pretty much on par with the average household in this country which is debt equals twice actual earnings. They will push it to the limit; which I do not know where is; but they'll find it !
ReplyDeleteThis will be the year it all comes together though I think - countries, people, states and municipalities; are all broke and heavily reliant on Uncle Sugar; who is also --------
BROKE
Uncle Sugar should cut Military Funding by half in order to save the country, but it wont because this country is run by the military industrial complex, as Eisenhower warned about, but no one listened.
ReplyDeleteso without QE we'd of had the visible failed auctions and defacto default, the "when will we see it" events. but it's happened, we're here, just remove the artificial life support, the QE and bank windows. seems things got worse when states lifeline-the BAB's-weren't extended..oops..guess things don't always go on as before.
ReplyDelete..but it's not important, what matters is nascar is starting up, and the app for phones is a must have, a new mall store selling diamonds, and those tickets to the concert...eating and drinking and partying and marrying until the doors closed and left them out
2:25 I could cut it by 75% and effectively protect our country - that is how out of control
ReplyDeleteour military spending is.
But; it also closely mirrors the rest of our out of control spending. Our entire gluttonous
way of life is going to come to a sudden stop -
soon.