Tuesday, March 29, 2011

How Big is The Federal Budget Disaster?

The devastating images from Japan are seared into our collective memory. With 10, 901 dead and another 17, 038 still missing, the human toll is almost beyond comprehension. The 9.0 magnitude earthquake and resulting tsunami that ravaged Japan has become the most expensive natural disaster in recorded history.

From Fox News:

Japan's Cabinet Office on Wednesday estimated the catastrophe...could cause losses between 16 trillion yen ($198 billion) and 25 trillion yen ($309 billion). That figure compares with estimates from the World Bank and Goldman Sachs for losses of $235 billion and $200 billion, respectively.

The $309 billion price tag would make Japan's earthquake the costliest on record, surpassing the $125 billion that the Insurance Information Institute estimates Hurricane Katrina cost the Gulf coast in 2005. It would also top the $100 billion in damage caused by the 1995 Kobe quake in Japan.

Uh... hold on a minute. Something seems wrong with these numbers.  Do I understand this correctly; all those coastal cities and towns that were leveled, the tens of thousands of cars and homes that were pulverized, all the stores, shops, factories, warehouses, schools, freeways, roads, ships, aircraft, trains, port facilities and infrastructure reduced to rubble and it will only cost as much as US Federal deficit for a couple of months?

First a quick look at the Congressional Budget Office report for February, 2011. Two sentences stand out.

[The] CBO estimates that the deficit in February 2011 was $223 billion, which is very similar to the deficit recorded in February 2010.

[The] CBO estimates that the federal government incurred a budget deficit of $642 billion for the first five months of fiscal year 2011, $10 billion less than the shortfall recorded in the same period last year.

Shocking and inconceivable, how else to describe the monumental scale of the Federal deficit as measured by the devastation from Japan? Hundred of billions of dollars each month, the accumulated treasure of great empire is being hemorrhaged into oblivion, without purpose, thought or rationality. Why would anyone spend a nation into more debt then could ever be repaid? The GOP House is far too complacent, eager only to symbolically nibble at the edges of this crushing burden. Meanwhile our Socialist Administration, content to bleed this nation into second-class status, gleefully ticks off each day that brings our nation $4.1 billion dollars closer to insolvency, instability and the end of our Constitutional Republic. 
Link Here..


  1. I wonder what the levels of radiation are in southeast Missouri. My 15 year old daughter has been having nosebleeds off and on for 3 days now. She texted me today saying "please make them stop." A friend of her's at school told her she keeps seeing kids get nosebleeds. Don't know if it is coincidental or if there is a connection.

  2. to 7:47:

    Look up HAARP and New Madrid fault line. That may explain the nosebleeds.

  3. Thanks for the info. Perhaps it is the HAARP. I know the kids are scared and they have been talking on facebook about it. She said they talk about their distrust in the governmentin school. She thinks its low level radiation making their nosebleeds. I tell her I don't know for sure. It's hard to be parent and not be able to give a definitive answer to your child.

  4. It's over for the US soon, plain and simple. Baby boomers can't see, but they will soon know it....

  5. The “bigness” of the money printing disaster is found in a direct relationship combination of the amount ,the Quantity (Quantative Easing )of the mass of digitally transferred as electonic symbol / paper wealth Ben and the Treasury transfer to wall st. as national debt causing a loss of qualitive value of the individual paper dollars in mass ,circulating over time.

    But , basic premise ,Quantative changes making qualative changes .

    The end result is a dying killed by inflation an excess of crap dollar toilet paper .

    But Ben is confident that none of this is inflationary.

    And I, not being Einstein and mathematically challenged am not capable of writing a mathematical formulae on Crap.

    Any suggestions ?

    D = $
    T = treasury bill ponzi
    T =time
    Money= M
    Multiplied by m =mass of paper
    Treasury bills.
    Divided by Value_= V
    and rising prices= P
    Multiplied by the velocity of the money in circulation =C
    And variable effects of Black swan events BSE

    (As in Japan effecting supply chains of commodity production and foreign purchases of american debt or withdawal of treasury bills T ,effecting value=V of the Dollar =$.)

  6. 5,51 says

    "I tell her I don't know for sure. It's hard to be parent and not be able to give a definitive answer to your child"

    Advice from your government
    "Dont panic there is nothing to worry about" Just like the japanese govt says too.

    Just tell her its another yet to be declared official flu swine epedimic and nothing to do with radiation yet.

    Or just lie like you do about Santa or tell her
    another sign of the second coming of the lord to save us all.
    Or Uncle Ben Bernanke saying there is no danger of inflation.
    Everyday Harmess white lies.

    But its true ,the radiation levels are not yet dangerous in the US .
    But they DO indicate just how fast and how far radiation and even radiacive particles can travel when carried by winds.


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