Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
If You Get These 3 Things Right, You’ll Never Have to Worry About Money - 22nd Mar 19
March 2019 Cryptocurrency Technical Analysis - 22nd Mar 19
Turkey Tourist Fakes Market Bargains Haggling Top Tips - 22nd Mar 19
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

The U.S. Debt Ceiling Charade, $114.5 Trillion of Debt and Liabilities

Politics / US Debt Jul 27, 2011 - 05:18 AM GMT

By: Jeff_Berwick

Politics

Best Financial Markets Analysis ArticleWhat a circus the debate over the raising of the US Government debt ceiling has become.  It's fun to watch everyone involved wriggling around trying to ignore the blue whale in the room.

It used to be an elephant... perhaps around 1986.  But now, after a decade of wars and trillion dollar deficits, the US Government debt has become like the largest mammal in the history of the world - the blue whale - and is perhaps so large now that it might be in everyone's best interest just to ignore it or their heads may explode from realizing the enormity of the problem.


Beyond Salvageable

The official debt of the US Government is $14 trillion but they've spent more than $60 trillion that was supposed to be "saved" in things like the Social Security trust fund for decades now, meaning the total debt and liabilities of the US Government is now over $75 trillion - an amount that works out to over $1 million per family of four.

One of the most perfectly titled websites, WTFNoWay.com, has published a visualization of US Government debt that is worth checking out.  They calculate total debt and liabilities of $114.5 trillion (slightly above our estimate of $75 trillion) and show what that looks like in terms of $100 bills.

That stack on the right is what the total debt of the US Government looks like in terms of $100 bills.  Yet, there is no talk of reducing it anytime in the near future - only on how much to increase it by.

Barack's Two Choices

Barack Obama, puppet to the global financiers and other private interests, commandeered the airwaves of the US the other night to state that the options are simple.  He gave the US public two options:

"If you want a balanced approach to reducing the deficit, let your member of Congress know," he said. "If you believe we can solve this problem through compromise, send that message."

Is that all this is about?  A balanced approach or a compromise?  It seems so simple now.  Thanks, Obama-tron or those who write what you recite.

He doesn't mention the other two options.  Both of which are much less nebulous and are better for the US public in general in the long run.

One is to keep the debt ceiling where it is and immediately cut the US Government deficit by a tremendous amount to a level where it is not in deficit.  God forbid, only spend as much as you steal?  That's just crazy.

The other option is to default.  Admit that the US Government is so indebted that it is mathematically impossible to pay off the debts and liabilities and to default and renege on those debts.

But, those two options were ignored.

Instead he asked for the "help of the people".  He asked people to call in with their ideas as though perhaps some housewife from Nebraska might come up with something they missed at the last second!

And call in they did.  Congressional switchboards were swamped with calls.  There can only be one thing you can say with certainty about the tens of thousands who called - they are highly delusional!

Do they suppose that perhaps a quick call to some congressional intern with their ideas might get heard?  Or that there is some easy solution to this gigantic mess that only they could provide?

Instead, democracy was reduced to its ultimate and inevitable state: groveling.  Many people called in to beg their overlords to give them the money through various subsidies or tax breaks.  Or take it away from someone else who is not them.  At this point in democracy the government is just a big Santa Claus with a gun.  You ask him for stuff and cower in submission when he says no.

In reality, however, no matter what sayeth the man on the street the politicians will keep doing what they are doing and wrangle and do deals far from the prying eyes of the public and sell-off anything they can to fatten the pockets of themselves or their benefactors.  They have no skin in the game and are there just to take what they can.

The Show Will Go On

Even though they are getting down to the supposed final days of this dispute it is still highly unlikely that the politicos will not raise the debt ceiling.  The reason is simple.  A raising of the debt ceiling allows business as usual to continue in Washington - at least for the time being.  Not raising the debt ceiling means having to do things politicians don't like: be accountable, make cuts to the size of government and have less money in the trough with which to steal, bribe and finagle.

That's why not raising the debt ceiling at all, or lowering it, was never one of the choices offered.  And why gold hits new highs every day.

Subscribe to TDV today (90 day moneyback guarantee) to access our Special Report on How to Own Gold as well as get complete access to our newsletter and portfolio selections.

The Dollar Vigilante is a free-market financial newsletter focused on covering all aspects of the ongoing financial collapse. The newsletter has news, information and analysis on investments for safety and for profit during the collapse including investments in gold, silver, energy and agriculture commodities and publicly traded stocks. As well, the newsletter covers other aspects including expatriation, both financially and physically and news and info on health, safety and other ways to survive the coming collapse of the US Dollar safely and comfortably. The Dollar Vigilante offers a free newsletter at DollarVigilante.com.

© 2011 Copyright Jeff Berwick - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules