Posted on 09/04/2011 7:00:29 PM PDT by RobertClark
Remember when one month ago the US, to much pomp and circumstance, not to mention one downgrade, announced a grand bargain raising the debt ceiling from $14.294 trillion to something much higher, with a stop gap intermediate ceiling of $14.694 trillion, or $400 billion more. Well, as of today, or less than a month since the expansion, total US debt is at $14.697 trillion. Yep - the total debt is again over the ceiling, which means the US debt increased by $400 billion in one month. Score one for fiscal prudence. And while the total debt subject to the limit is still slightly less, at $14.652, one week of Treasury auctions and will be time for Moody's to justify again why the US is a quadruple A credit.
Something that has been making the rounds that puts it in a better perspective:
Here is why S&P downgraded the US credit rating.
• U.S. Tax revenue: $2,170,000,000,000
• Fed budget: $3,820,000,000,000
• New debt: $ 1,650,000,000,000
• National debt: $14,271,000,000,000
• Recent budget cut: $ 38,500,000,000
Now let’s remove 8 zeros and pretend it’s a household budget.
• Annual family income: $21,700
• Money the family spent: $38,200
• New debt on the credit card: $16,500
• Outstanding balance on the credit card: $142,710
• Total budget cuts: $385
DEFUND socialist collectives, foreign and domestic.
Always happy to help spread the ZeroHedge mindset. It is my ONLY source of financial data anymore. It is told like it is with no window dressing and no concern for softening the blow. The fight club mentality is quite a unique perspective - and I love it!
And the IMF is calling for us to abandon our Fiscal Austerity. LOL.
“The light at the end of the tunnel is not an illusion, the tunnel is.”
The light at the end of the tunnel is one of BOs high-speed trains.
Expected.
Man, you Americans are total amateurs at getting things off the books. Do you want to borrow Gordon Brown for a year or so?
/sarc
I would recommend you look up PPP (Public Private Partnerships) in the UK, to see just how far deficits can be taken “off the books.” IIRC our actual debt is something like 4 times our official debt.
I’d link something, but posting this from my phone and the browser is being awkward again. Might do a vanity tonight if anyone is interested.
Bookmark. Great perspective.
I agree.
Great post. Thanks.
Thanks. Bookmark.
Sure
Thanks, I wanted to add the total obligations but couldn’t quickly find an accurate figure. Just guessing, I’d say around 100T which one could compare to paying off a 1 million dollar home loan in the example above.
:)
I follow Tyler on Twitter (@zerohedge). The mas is relentless in his endeavor. I read one day him saying 8 screens was not enough! He definitely filters out the signal to noise regarding Europe.
Gordon Brown? Isn’t he the brilliant financial strategist that sold off all the gold so the Bank of England would have more room to store paper money?
And didn’t they announce beforehand their intention of selling so as to keep the price from going to high?
Yeah, does make one wonder who has the biggest dunce.
I forgot all about that. Will include it in the vanity, which will probably be up in about 10 hours. Work got intense this afternoon, and I still have to dig up some figures.
We might want to fix up our house while a dollar is still wroth 80 cents.
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