Skip to comments.US Closes 2011 With Record $15.22 Trillion In Debt, 100.3% Debt/GDP, $14 Billion From Debt Ceiling
Posted on 01/03/2012 5:36:55 PM PST by lbryce
Unabridged Title:US Closes 2011 With Record $15.22 Trillion In Debt, Officially At 100.3% Debt/GDP, $14 Billion From Breaching Debt Ceiling
While not news to Zero Hedge readers who knew about the final debt settlement of US debt about 10 days ahead of schedule, it is now official: according to the US Treasury, America has closed the books on 2011 with debt at an all time record $15,222,940,045,451.09. And, as was observed here first in all of the press, US debt to GDP is now officially over 100%, or 100.3% to be specific, a fact which the US government decided to delay exposing until the very end of the calendar year. We wonder, rhetorically, just how prominent of a talking point this historic event will be in any upcoming GOP primary debates. And yes, technically this number is greater than the debt ceiling but it excludes various accounting gimmicks. When accounting for those, the US has a debt ceiling buffer of... $14 billion, or one third the size of a typical bond auction.
It's very interesting how only a few days ago I was reading about the Kenyan Kommunist looking to raise the debt ceiling once again. Hopefully, saner heads might somehow penetrate his left-wing, liberal, spend-to-the-end, disease-ravaged addled brain, put things in perspective for him. Spending money, the compulsion for it, shop-a-holic-ism, if you will, is a form of self-medication, no different than other vices people have been known to be under the influence of.
Wot? Please speak English I don't understand . . . ."
I’m sure our great foreign policies had absolutely nothing to do with this country killing debt...The politicians are innocent, the banksters, those on Wall Street...
They’re all just innocence by-standers.
Only thing at this point is who gets screwed less out of the deal (here’s a hint; us taxpayers are paying this regardless).
“too big to fail” famous last words.
He wants the impetus to push 90 percent top income tax rates again.
What does he care? At worst, he isn’t going to be around for the collapse. It’s going to fall on us younguns, who are going to have to pay it all back.
We're now way more in debt than what we produce, or we are worth. Gezzz.
I say we keep up these great foreign policies, wide open borders, endless legal immigration, those great free trade policies, all those big biz & bankster bailouts, etc!
I say we elect another business as usual, big-gov insider!!
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Thou Shall Not Steal.
They’re tossing out the balloon of more easing today.Oil up over 3.00 now, getting close to 105. Commodities leading the false government protection rally. (They have to)
Continue to steal others fixed savings by the ease, and jack up their own salaries/pensions above the easing effects. sinister.
The only choice will be continued consumer shut down for rising price protection, resulting in unemployment pressure.
2012 Person of the Year:
The Big Fat Government Bureaucrat
[Well as my political science professors said 50 years ago, “We owe the money to ourselves. So what?” ]
If it were just $14 trillion we’d muddle through. But there are between $70 and $100 trillion in total unfunded liabilities (some even say $200T). The only way out is musical chairs with the Fed printing. Until the music stops.
Lots of people out here want business as usual...They have conflicts of interest etc. Temporary profits regardless of consequences...It’s all that matters.
I predict this thread will be as popular and public pay phones are.
Woo Hoo!!! We’re $15.22 TRILLION IN DEBT!!! Now that’s what I call “hope and change”!!! Thanks Barry!!!
Er,... I predict this thread will be as popular as public pay phones are.
And Obama and his friends are going to pay it all back when???
You could wipe out every federal department except for DoD and Social Security and Medicare and still not come close to resolving this debt problem long term. The interest on the debt alone will be too great by 2020 the way the feds are currently spending and borrowing. I’m not too hopeful that the ship will get righted regardless of who is elected in ‘12. The problem has grown too massive.
Yep...Watching all the cheerleaders do the pompom thing over their favorite politician, is funny, but only in a very insane way.
Maybe Obama sees the good people who bought the US debt as the 1% - folks he can screw over... That can happen.
But what happens 'next time'? Will the former investors - now referred to as 'chumps' - be there to loan cash again?
I doubt it. The US will quickly morph into Haiti or some equally stupid third world hellhole... No one's big enough to bail us out ...
That is a terrific graphic.
Oh, no. Don’t look at our US debt. China’s been collapsing several times a week for over five years now. ...”ghost cities,” no one to buy their products, and so on. Look at that. It was paid for by our globalist media sponsors and bipartisan, socialist controllers of politicians (recipients of incomes from all levels of government).
100,000,000 geezers (like me) after all the Boomers retire. (I had a head start -- I beat them all!)
Avg SS payment is $11,000/year
that's $ 1,100,000,000,000 a year for.. lets say 20 years
OK, so lets say that Medicare in those years is $80 trillion.
So far so good. No problem. There is no question that we owe Obamacare and Pelosi a debt of gratitude for solving the problem.
President Obama: At that age just a pill might be better than expensive cures.
PELOSI: Palliative End of Life Optimum Serenity Initiative
"Old people never seem to die, they just get in the way."
Former Governor of Colorado Democrat Richard Lamm: Seriously ill old people have a duty to die and get out of the way.
SS payments for retirees: A mil or two.
Medicare: $74.93 (500 million pills made in Red China)
See! No problem. Obama! Mmmm, mmmm, mmm.
The $600 trillion estimate for undocumented workers is a bit of a problem over the few decades -- both Parties do love those taxpayer-subsidized "cheap" labor and votes.
There is no simple fix for the numerous problems that confront our Republic. Problems that cannot be fixed during a single election cycle, nor even a decade.
Some of these problems have plagued us for decades, but the effects have been so long-term (like the proverbial boiling frog), that only now are the cumulative effects being noticed.
The slow, sad hollowing out of America's industry was somewhat hidden by the 'fix' of pumping money (debt) into housing... in many urban centers old factories were converted into residential condominiums in many choice locations (the Boston waterfront abounds with such lofts)... so the decay was limited to the worst, most undesirable places... this 'fix' is no longer feasible.
Housing booms and the jobs and market demand they have created in recent times will no longer be the salve which eases the pain of de-industrialization.
We now are faced with a brewing perfect storm that presents a variety of problems, any one of which could perhaps, be fixed... but as a coctail of very serious ills are impossible to remedy without some sort of revolution.
1.) The Social Security Ponzi Scheme
2.) The Federal Reserve Scheme
3.) A (debased) Fiat Currency
4.) Sovereign Debt of more than the nation's GDP (and growing...)
5.) A union-run, failing education system
6.) Excess litigation run by trial lawyers have created a lawsuit lottery that we all must pay for
7.) 3 levels of (excess)taxation (Local, State, Federal) as well as hidden taxes in every imaginable area
8.) The switch from HTM to MTM accounting (2007)
9.) 13% welfare-dependent minority 'workforce' which is resistant to education, prone to violence and criminality and devoid of familial responsibility and decency - 50 years of 'head-start' did NOTHING to fix this.
10.) "War" on everything with asset seizure the main focus (War on drugs, War on Terror, War on...) The result has been the institutionalization of society - we are all subject to searches by the various Gestapos.
Police can seize property and cash without consequence - even of some hapless man visiting a prostitute.
11.) Eminent Domain (used as a discounting mechanism by well-connected developers, or by income-hungry municipalities to deprive the rightful owners of prime property in order to increase tax revenue - without the annoyance of paying market price to said owners.)
12.) A fast emerging violent Police State and the institutionalization of society.
13.) More than 2 million Americans on a government payroll somewhere and/or at some level
14.) More than 50% of the population gets money from the government. (Salary, programs and entitlements)
15.) More than 45 million collect food stamps (that's a hidden 'bread line')
16.) An expensive imperial army with nearly 1000 bases, fleets and 'toeholds' worldwide
You could write a chapter on each of the above...
Who can fix this mess?
Nobody even has a realistic plan.
Even if we did, we would need to put the country back to the condition it was at the turn of the 20th century with regard to a business, regulation and tax environment - with few exceptions.
It still would not be the same - that is, as easy to re-industrialize - as nowadays, we are competing with China, India, Brazil and numerous emerging markets which in many cases have a better educated workforce and none of our disadvantages.
When is the last time you saw a new shining factory go up in the big de-industrialized city near you?