Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19
What UK CPI, RPI and REAL INFLATION Predict for General Election Result 2019 - 5th Dec 19
Supply Crunch Coming as Silver Miners Scale Back - 5th Dec 19
Gold Will Not Surpass Its 1980 Peak - 5th Dec 19
UK House Prices Most Accurate Predictor of UK General Elections - 2019 - 5th Dec 19
7 Year Cycles Can Be Powerful And Gold Just Started One - 5th Dec 19
Lib Dems Winning Election Leaflets War Against Labour - Sheffield Hallam 2019 - 5th Dec 19
Do you like to venture out? Test yourself and see what we propose for you - 5th Dec 19
Great Ways To Make Money Over Time - 5th Dec 19
Calculating Your Personal Cost If Stock, Bond and House Prices Return To Average - 4th Dec 19
Will Labour Government Plant More Tree's than Council's Like Sheffield Fell? - 4th Dec 19
What the UK Economy GDP Growth Rate Predicts for General Election 2019 - 4th Dec 19
Gold, Silver and Stock Market Big Picture: Seat Belts Tightened - 4th Dec 19
Online Presence: What You Need to Know About What Others Know About You - 4th Dec 19
New Company Tip: How To Turn Prospects into Customers with CRM Tech - 4th Dec 19
About To Relive The 2007 US Housing Market Real Estate Crash Again? - 3rd Dec 19
How Far Will Gold Reach Before the Upcoming Reversal? - 3rd Dec 19
Is The Current Stock Market Rally A True Valuation Rally or Euphoria? - 3rd Dec 19
Why Shale Oil Not Viable at $45WTI Anymore, OPEC Can Dictate Price Again - 3rd Dec 19
Lib Dem Election Dodgy Leaflets - Sheffield Hallam Battle General Election 2019 - 3rd Dec 19
Land Rover Discovery Sport Brake Pads Uneven Wear Dash Warning Message at 2mm Mark - 3rd Dec 19
The Rise and Evolution of Bitcoin - 3rd Dec 19
Virtual games and sport, which has one related to the other - 3rd Dec 19
The Narrative About Gold is Changing Again - 2nd Dec 19
Stock Market Liquidity & Volume Diminish – What Next? - 2nd Dec 19
A Complete Guide To Finding The Best CFD Broker - 2nd Dec 19
See You On The Dark Side Of The Moon - 2nd Dec 19
Will Lib Dems Win Sheffield Hallam From Labour? General Election 2019 - 2nd Dec 19
Stock Market Where Are We?  - 1st Dec 19
Will Labour's Insane Manifesto Spending Plans Bankrupt Britain? - 1st Dec 19
Labour vs Tory Manifesto Debt Fuelled Voter Bribes Impact on UK General Election - 30th Nov 19
Growing Inequality Unrest Threatens Mining Industry - 30th Nov 19
Conspiracy Theories Are Killing This Nation - 30th Nov 19
How to Clip a Budgies / Parakeets Wings, Cut / Trim Bird's Flight Feathers - 30th Nov 19
Hidden Failure of SIFI Banks - 29th Nov 19
Use the “Ferrari Pattern” to Predictably Make 431% with IPOs - 29th Nov 19
Tax-Loss Selling Drives Down Gold and Silver Junior Stock Prices - 29th Nov 19
We Are on the Brink of the Second Great Depression - 29th Nov 19
How to Spot REAL Amazon Black Friday Bargains and Avoid FAKE Sales - 29th Nov 19

Market Oracle FREE Newsletter

UK House prices predicting general election result

Burn the Flags, Can Trump Salvage The Sinking US Economic Ship?

Economics / US Economy Dec 01, 2016 - 01:54 PM GMT

By: Jeff_Berwick

Economics

When Nobel Peace Prize winner, Barack O’Bomber, was sworn into office on January 20, 2009, the national debt was $10.62 trillion.

The United States currently has a national debt total of over $19.9 Trillion according to the US national debt clock as of the writing of this blog. That’s an astonishing 87% increase in less than an 8 year period.


However, this past summer, during the US republican primary race, Dr. Ben Carson made a good point in mentioning that the $19 trillion dollar debt figure was actually quite misleading.

Most people never take into account that there is something called the Fiscal Gap, which at this point sits well over $210 trillion.  Given the current approximated population in the US of 315 million tax slaves, that is $666,666.66 per person!

This number includes all the unfunded liabilities owed by the government which are not put on the books such as the expenses of social security, medicare, medicaid, and departmental program funding etc vs the expected revenues from taxes. The two numbers should be equal or roughly balanced much like you balance your checkbook. When they are not in alignment it is referred to, politely, as a gap.

The only reason the United States is able to sustain such a massive gap and debt is because the dollar is a world reserve currency and as such, has the ability through the Federal reserve, to print infinite amounts of money.

In the past, we have seen how destructive the renunciation of a nation’s debt can be. For example, in the case of Brazil in 1982, when it announced that it was unable to make payments on its debt, the US Treasury responded by extending a direct loan of $1.23 billion to keep those checks going to the banks while a more permanent solution was negotiated through the IMF.

Of course, these restructurings never end up working which is evident because five years later, Brazil once again was forced to default on it’s then even larger $121 billion debt, a massive amount for the time, which rendered it so impossibly broke that it couldn’t even buy gasoline for its police cars. (Not a particularly bad thing in and of itself)

The result of a default or restructuring is always the same – the burden rests upon the shoulders of the taxpayers.

The same was true of Argentina in 1982 when they too could no longer service their debt. As always, their creditors immediately began negotiations for rollovers, guarantees, and new IMF loans which would inevitably plunge them even further into debt. By 1988, after the extension of new loans in the years prior, Argentina once again fell behind and stopped payments.

Getting back to the US, Trump is sending more mixed signals than a quarterback with Tourette’s.

On the one hand, Donald Trump has appeared to have expressed interest in returning to a precious metals standard through his meeting with the former CEO of the bank BB&T, John Allison, who stated  “the US should go back to a banking system backed by a market standard such as gold.”

On the other hand, it was just confirmed that ex-Goldman Sachs banker Steven Mnuchin, is Trump’s pick for Treasury Secretary. This is incredibly ironic considering Donald’s staunch criticism of Killary’s acceptance of money from the bank for speaking engagements.  This, along with many other potential appointments makes it seem as though Trump is just refilling the swamp, not draining it.

The truth is though, that this is all noise. Trump has no real viable plan for debt reduction, which is the biggest problem facing the nation. Even a return to a gold standard, which would be the best case scenario, would cause the biggest worldwide depression in world history as it would necessitate a reneging on the current debt which mostly underpins the world’s financial system.

In other words, something major must be broken if you want the debt to stop piling up. There must be a washing away of sorts.

That said, Trump brings a whole array of unknowns with him and there are sure to be plenty of shake-ups, which spell opportunities for speculators.  We’ll be analyzing many of them in the next issue of TDV to subscribers (see more info on subscribing here) set to go out later this evening.

We’ll soon find out exactly what Trump is up to… but in the meantime it appears he is already getting the hang of being a dick-tator:

Here was my polite, freedom friendly response to it:

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2016 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.

Jeff Berwick Archive

© 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