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  1. #1

    Federal obligations exceed world GDP

    Sounds like a great time to piss away a trillion on liberal crap!



    MONEYNETDAILY
    Federal obligations exceed world GDP
    Does $65.5 trillion terrify anyone yet?



    --------------------------------------------------------------------------------
    Posted: February 13, 2009
    11:35 pm Eastern



    By Jerome R. Corsi
    © 2009 WorldNetDaily
    As the Obama administration pushes through Congress its $800 billion deficit-spending economic stimulus plan, the American public is largely unaware that the true deficit of the federal government already is measured in trillions of dollars, and in fact its $65.5 trillion in total obligations exceeds the gross domestic product of the world.
    The total U.S. obligations, including Social Security and Medicare benefits to be paid in the future, effectively have placed the U.S. government in bankruptcy, even before new continuing social welfare obligation embedded in the massive spending plan are taken into account.
    The real 2008 federal budget deficit was $5.1 trillion, not the $455 billion previously reported by the Congressional Budget Office, according to the "2008 Financial Report of the United States Government" as released by the U.S. Department of Treasury.
    The difference between the $455 billion "official" budget deficit numbers and the $5.1 trillion budget deficit cited by "2008 Financial Report of the United States Government" is that the official budget deficit is calculated on a cash basis, where all tax receipts, including Social Security tax receipts, are used to pay government liabilities as they occur.







    But the numbers in the 2008 report are calculated on a GAAP basis ("Generally Accepted Accounting Practices") that include year-for-year changes in the net present value of unfunded liabilities in social insurance programs such as Social Security and Medicare.
    Under cash accounting the government makes no provision for future Social Security and Medicare benefits in the year in which those benefits accrue.
    "As bad as 2008 was, the $455 billion budget deficit on a cash basis and the $5.1 trillion federal budget deficit on a GAAP accounting basis does not reflect any significant money [from] the financial bailout or Troubled Asset Relief Program, or TARP which was approved after the close of the fiscal year," economist John Williams, who publishes the Internet website Shadow Government Statistics, told WND.
    Find out what's behind the chaos at the White House, in the No. 1 best-seller "Obama Nation"
    "The Congressional Budget Office estimated the fiscal year 2009 budget deficit as being $1.2 trillion on a cash basis and that was before taking into consideration the full costs of the war in Iraq and Afghanistan, before the cost of the Obama nearly $800 billion economic stimulus plan, or the cost of the second $350 billion in TARP funds, as well as all current bailouts being contemplated by the U.S. Treasury and Federal Reserve," he said.
    "The federal government's deficit is hemorrhaging at a pace which threatens the viability of the financial system," Williams added. "The popularly reported 2009 [deficit] will clearly exceed $2 trillion on a cash basis and that full amount has to be funded by Treasury borrowing.
    "It's not likely this will happen without the Federal Reserve acting as lender of last resort for the Treasury by buying Treasury debt and monetizing the debt," he said.
    "Monetizing the debt" is a term used to signify that the Federal Reserve will be required simply to ]print cash to meet the Treasury debt obligations, acting in this capacity only because the Treasury cannot sell the huge of amount debt elsewhere.
    The Treasury has been largely dependent upon foreign buyers, principally ]China and Japan and other major holders of U.S. dollar foreign exchange reserves, including OPEC buyers purchasing U.S. debt through ]London
    "The appetite of foreign buyers to purchase continued trillions of U.S. debt has become more questionable as the world has witnessed the rapid deterioration of the U.S. fiscal condition in the current financial crisis," Williams noted.




    "Truthfully," Williams pointed out, "there is no Social Security 'lock-box.' There are no funds held in reserve today for Social Security and Medicare obligations that are earned each year. It's only a matter of time until the public realizes that the government is truly ]bankrupt and no taxes are being held in reserve to pay in the future the Social Security and Medicare benefits taxpayers are earning today."
    Calculations from the "2008 Financial Report of the United States Government" also show that the GAAP negative net worth of the federal government has increased to $59.3 trillion while the total federal obligations under GAAP accounting now total $65.5 trillion.
    The $65.5 trillion total federal obligations under GAAP accounting not only now exceed four times the U.S. gross domestic product, or GDP, the $65.5 trillion deficit exceeds total world GDP.
    "In the seven years of GAAP reporting, we have seen an annual average deficit in excess of $4 trillion, which could not be possibly covered by any form of taxation," Williams argued.
    "Shy of the government severely slashing social welfare programs, federal deficits of this magnitude are beyond any hope of containment, government or otherwise," he said.
    "Put simply, there is no way the government can possibly pay for the level of social welfare benefits the federal government has promised unless the government simply prints cash and debases the currency, which the government will increasingly be doing this year," Williams said, explaining in more detail why he feels the government is now in the process of monetizing the federal debt.
    "Social Security and Medicare must be shown as liabilities on the federal ]balance in the year they accrue according to GAAP accounting," Williams argues. "To do otherwise is irresponsible, nothing more than an attempt to hide the painful truth from the American public. The public has a right to know just how bad off the federal government budget deficit situation really is, especially since the situation is rapidly spinning out of control.
    "The federal government is bankrupt," Williams told WND. "In a post-Enron world, if the federal government were a corporation such as General ]Motors , the president and senior Treasury officers would be in federal penitentiary



    Yes, we Libertarians are a bunch of wild and crazy guys!


    https://www.campaignforliberty.com/signup.php

  2. #2

    Re: Federal obligations exceed world GDP

    While the crazy left is still dancing in the streets after they raided the treasury and spent like a drunken sailer, thank you Glenn for bring everyone back to reality


  3. #3

    Re: Federal obligations exceed world GDP

    http://www.usdebtclock.org/

  4. #4
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    Re: Federal obligations exceed world GDP

    Ok so where has all this money gone maybe Israel? They seem to be buying a lot of military equipment those things are not cheap.

  5. #5
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    Re: Federal obligations exceed world GDP

    all the so called money problems /issues are easily fixed!? that's why nobody except the political HYPSTERS targeted victims are loosing any sleep over it!? it's just a game of 'chicken' to see who can keep office the longest by making the most unrealistic promises!? after all, in democracy, no 1 really wants to make any sacrifices!? not when 60% of the economy is based on unsustainable consumerism!? well, the only way it's sustainable is if we eliminate the inefficient consumers!? and just wanting to work is no longer an guaranteed exception to elimination!?
    take social security, to make it solvent they only need to raise the benefits age to 75!? simple enough!? : :crazy1:
    i do not endorse/recommend any advertising on scam.com associated with my name /posts or otherwise. thank you

  6. #6

    Re: Federal obligations exceed world GDP

    There is no hope. We have crossed over the line

    Barry and his Marxist agenda have sealed the deal

    Crapulis, Omnibus, cap and trade, Govt run healthcare, rush , rush , rush,.....

    TEA ANYONE ????

    I guess we are all just racists , Ill just go back to watch my Survivor reruns


    Sprott June 2009

  7. #7

    Re: Federal obligations exceed world GDP

    The complete collapse is running ahead of schedule

    Thank you PREZ





    Senate passes $1.1 trillion spending bill

    Measure authorizes more money to run much of the government



    WASHINGTON - The Senate on Sunday passed a $1.1 trillion spending bill with increased budgets for vast areas of the federal government including health, education, law enforcement and veterans' programs.

    The 1,000-page-plus package, one of the last essential chores of Congress this year, passed 57-35 and now goes to President Barack Obama for his signature.

    The weekend action underlined the legislative crush faced by Congress as it tries to wind up the year. After the vote, the Senate immediately returned to debate on health care legislation that has consumed its time and energy for weeks. Senate Democrats hope to reach a consensus in the coming days on Obama's chief domestic priority.

    --------------------------------------------------------------------------------

    The spending bill combines six of the 12 annual appropriation bills for the 2010 budget year that began on Oct. 1. Obama has signed into law five others.

    The final one, a $626 billion defense bill, will be used as the base bill for another catch-all package of measures that Congress must deal with in the coming days. Those include action to raise the $12.1 trillion debt ceiling and proposals to stimulate the job market.

    The spending bill passed Sunday includes $447 billion for departments' operating budgets and about $650 billion in mandatory payments for federal benefit programs such as Medicare and Medicaid, which provide health care benefits to the elderly, disabled and poor. Those programs under immediate control of Congress would see increases of about 10 percent.

    The FBI gets $7.9 billion, a $680 million increase over 2009; the Veterans Health Administration budget goes from $41 billion to $45.1 billion; the National Institutes of Health receives $31 billion, a $692 million increase.

    Voting along party lines

    All but three Democrats voted for the bill, while all but three Republicans opposed it.

    Democrats said the spending was critical to meet the needs of a recession-battered economy. "Every bill that is passed, every project that is funded and every job that is created helps America take another step forward on the road of economic recovery," Senate Majority Leader Harry Reid said after the vote.

    Republicans decried what they called out-of control spending and pointed to an estimated $3.9 billion in the bill for more than 5,000 local projects sought by individual lawmakers from both parties.

    The Citizens Against Government Waste said those projects included construction of a county farmer's market in Kentucky, renovation of a historic theater in New York and restoration of a mill in Rhode Island.

    Arizona Republican Sen. John McCain, a longtime critic of such projects, said it was "shameful" that so many had found their way into the legislation. Most Americans, he said, were watching football and not the Senate debate, adding, "If they knew what we are about to pass ...."

    Jobs plan

    The legislation also contains numerous items not directly related to spending. It provides help for auto dealers facing closure, ends a ban on ******* by the District of Columbia government for abortions and allows the district to permit medical marijuana, lets Amtrak passengers carry unloaded handguns in their checked baggage and permits detainees held at Guantanamo Bay to be transferred to the United States to stand trial, but not to be released.

    The bill also approves a 2 percent pay increase for federal workers.

    With the Senate concentrating on health care, attention on the upcoming jobs plan shifts to the House.

    The defense bill that will be the basis for the package normally enjoys wide bipartisan support, but Republicans, and some fiscally conservative Democrats, are unhappy with the prospect of another jolt of deficit-swelling spending.

    Proposals to put people back to work include tax breaks for new company hires, small business tax breaks, public works spending and federal aid to states.

    Congress is also likely to extend measures, included in the $787 billion stimulus act last February, that provide jobless payments and health insurance subsidies for the unemployed.

    Click for related content
    House passes historic financial rules revamp
    Pelosi backs compromise on health overhaul
    For more news in politics, click here

    Congress must soon raise the debt ceiling, now at $12.1 trillion, so the Treasury can continue to borrow, and Democratic leaders are eyeing a new figure close to $14 trillion, pushing the issue past next November's election.

    But a bipartisan group in the Senate says a higher ceiling should be tied to creation of a task force on deficit reduction, and House Democratic moderates say their votes could depend on winning a "pay-as-you-go" law requiring that new tax cuts or spending programs don't add to the deficit.

    Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or re

  8. #8

    Re: Federal obligations exceed world GDP

    tick, tock, tick, tock,

    Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
    http://www.shanghaidaily.com/sp/arti...cle_423054.htm



    Harder to buy US Treasuries
    Created: 2009-12-18 0:13:35
    Author:Zhou Xin and Jason Subler



    IT is getting harder for governments to buy United States Treasuries because the US's shrinking current-account gap is reducing supply of dollars overseas, a Chinese central bank official said yesterday.

    The comments by Zhu Min, deputy governor of the People's Bank of China, referred to the overall situation globally, not specifically to China, the biggest foreign holder of US government bonds.

    Chinese officials generally are very careful about commenting on the dollar and Treasuries, given that so much of its US$2.3 trillion reserves are tied to their value, and markets always watch any such comments closely for signs of any shift in how it manages its assets.

    China's State Administration of Foreign Exchange reaffirmed this month that the dollar stands secure as the anchor of the currency reserves it manages, even as the country seeks to diversify its investments.

    In a discussion on the global role of the dollar, Zhu told an academic audience that it was inevitable that the dollar would continue to fall in value because Washington continued to issue more Treasuries to finance its deficit spending.

    He then addressed where demand for that debt would come from.

    "The United States cannot force foreign governments to increase their holdings of Treasuries," Zhu said, according to an audio recording of his remarks. "Double the holdings? It is definitely impossible."

    "The US current account deficit is falling as residents' savings increase, so its trade turnover is falling, which means the US is supplying fewer dollars to the rest of the world," he added. "The world does not have so much money to buy more US Treasuries."

    China continues to see its foreign exchange reserves grow, albeit at a slower pace than in past years, due to a large trade surplus and inflows of foreign investment. They stood at US$2.3 trillion at the end of September.

  9. #9

    Re: Federal obligations exceed world GDP

    Bernanke Admits Printing $1.3 Trillion Out Of Thin Air
    21 April 2010 64 Comments
    By Greg Hunter

    USAWatchdog.com


    Fed Chairman Ben Bernanke admitted the central bank created $1.3 trillion out of thin air to buy mortgage backed securities. This shocking admission came from the Joint Economic Committee hearing on Capital Hill last week. I was dumbfounded when I saw Bernanke shake his head in the affirmative as Representative Ron Paul said, “Well, where did you get the money? You created this money. So you did monetize debt, and that went into the banking system.” I was amazed he admitted this. I looked up the original hearing on C-Span to make sure the clip was not edited. It was not.

    What is even more shocking is I could not find a single mainstream news agency that covered this revelation. Congress just finished voting on the bitterly contested Obama health care bill that is supposed to cost nearly a trillion dollars over ten years. (Some contend it will be more than twice that amount.) The mainstream media doesn’t even bat an eye over the Fed creating $1.3 trillion in a little more than a year to buy worthless debt no one else will touch. I do not get it. I guess we could have asked the Fed to print up a trillion dollars to pay for health care and avoided that drawn out battle in Congress.

    Then, Rep. Paul brings up printing another $105 billion to bailout Greece. Bernanke answers by saying, “. . . I think one of the agreements that the G20 leaders came up with was sort of a mutual commitment to put more money into the IMF as a way of addressing the financial crisis around the world. . .” Notice how Bernanke used the term “mutual commitment.” I think what that really means is an agreement between all the G-20 nations of a “mutual debasement of their currencies.” I think this is why gold has been rising in price around the globe. I have been saying for months that we are going to have some very big inflation. (Real inflation is already at 9.5% according to shadowstats.com.) I wrote about this last November in a post called “The Fix Is In.”

    I think Bernanke just opened the Fed playbook and revealed money will be printed to fix all financial problems. I don’t think he’s even trying to hide it anymore. Rep. Paul also brought up the big debt trouble coming soon with many, many bankrupt cities and states such as Los Angeles and California. I think they will all be bailed out one way or another by the printing press.

    New York Fed President William Dudley seems to be on the same page as his boss. Dudley recently said, “The fact that our foreign indebtedness is for the most part denominated in our own currency is a huge advantage in the event the dollar were to come under significant downward pressure.” (Zero Hedge has a complete text of Dudley’s speech, click here) Is Dudley making a not so subtle hint about devaluing the U.S. dollar? Once again, I say yes.

    Anyone with a savings account or money market denominated in dollars should be terrified. You have scrimped and saved only to have the Fed print money and devalue what you have worked so hard for! Inflation has been chosen for you by the Federal Reserve, and we the taxpayers can’t even audit its actions. Below is the video from the Joint Economic Committee Hearing last week. Watch for yourself Bernanke nod yes to printing $1.3 trillion:


  10. #10
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    Re: Federal obligations exceed world GDP

    bruce still predicting doom and gloom!? is it making him rich!?(LIKE GLENN) or he's an idiot!? hey!? were all in it together now, it's a small world now!? history says we always get thru the difficult times somehow!? :cwm2: :spin2: :freak3: :
    Last edited by lexx; 05-25-2010 at 10:54 PM.
    i do not endorse/recommend any advertising on scam.com associated with my name /posts or otherwise. thank you

  11. #11

    Re: Federal obligations exceed world GDP

    Well we just crossed the 13 trillion dollar mark

    AMERICA'S NATIONAL DEBT
    TOPS $13,000,000,000,000;
    DEBT PER TAXPAYER - $117,975;
    US DEBT TO GDP RATIO - 90.3%

    http://www.usdebtclock.org/

    We have a marxist regime in office who wants to destroy the free market and capitalism, and believes some people make too much

    No one on either side wants to make any meaningful cuts

    Ron Paul: No More Blank Checks for the Military-Industrial Complex!




    And the progressives have another spending package in the oven ready to be served, and a bailout for unions

    The Next Bailout: $165B for Unions

    http://www.foxbusiness.com/personal-...nsion-bailout/




    Good luck to all of us, we are going down

  12. #12

    Re: Federal obligations exceed world GDP

    Paging Dr Paul, Dr Paul...




    Signs of Hyperinflation?
    Sunday, August 1, 2010

    Victor Sperandeo is an experienced and well-respected trader who has previously traded for George Soros. He sees a good chance of hyperinflation developing in America, saying "If you research history there have been 30 occasions of hyper-inflation, all the numbers that take place 100% of the time in the other 30 occasions are here."


    Some key points:

    percentage of borrowing as a percent of expenditures is too high
    hyperinflation is a run on the bank
    hyperinflation comes from deflation
    bonds are for trading, not investng













    Last edited by brucefan; 08-08-2010 at 12:58 PM.

  13. #13
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    Re: Federal obligations exceed world GDP

    Quote Originally Posted by brucefan View Post
    Paging Dr Paul, Dr Paul...




    Signs of Hyperinflation?
    Sunday, August 1, 2010

    Victor Sperandeo is an experienced and well-respected trader who has previously traded for George Soros. He sees a good chance of hyperinflation developing in America, saying "If you research history there have been 30 occasions of hyper-inflation, all the numbers that take place 100% of the time in the other 30 occasions are here."


    Some key points:

    percentage of borrowing as a percent of expenditures is too high
    hyperinflation is a run on the bank
    hyperinflation comes from deflation
    bonds are for trading, not investng

    This all sound similar to what that "idiot" Glenn Beck has been saying. Can't be true. lol

    One question for you. It sounds like rather than a run on the bank, hyperinflation is a run on the government ie, massive loss in faith in government securities. Correct?

  14. #14

    Re: Federal obligations exceed world GDP

    Total lack of faith and trust in the currency and a run on anything denominated in dollars, like treasuries.

    People spend em faster then they get them as prices skyrocket

    He spoke about deflation, which didnt make much sense, although arrives at the right conclusion which is no one showing up to buy our bonds , so we have to monetize our own debt ( which we have already started to do)

    We need deflation to solve this

    We need prices to go down, and the recession to run its course, but the government wont let us heal

    So they print, and prop things up by adding more debt

    The only way out of this, is massive cuts which will cause civil unrest as the free goodies go away

    We are in pretty deep

  15. #15
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    Re: Federal obligations exceed world GDP

    Quote Originally Posted by brucefan View Post
    Total lack of faith and trust in the currency and a run on anything denominated in dollars, like treasuries.

    People spend em faster then they get them as prices skyrocket

    He spoke about deflation, which didnt make much sense, although arrives at the right conclusion which is no one showing up to buy our bonds , so we have to monetize our own debt ( which we have already started to do)

    We need deflation to solve this

    We need prices to go down, and the recession to run its course, but the government wont let us heal

    So they print, and prop things up by adding more debt

    The only way out of this, is massive cuts which will cause civil unrest as the free goodies go away

    We are in pretty deep
    Beck has been saying that rapid deflation usually preceeds hyper-inflation as well. If you think about it deflation can create hyperinflation but not directly because of the deflation. The kind of deflation we are seeing is not good and here's why. (I'm not at all sure this is what is about to happen but this is what the guy was talking about)

    Deflation can create Hyperinflation

    It is no accident that many of the worst periods of hyperinflation are preceded by deflation. In fiat currencies with high levels of government debt, severe cases of deflation cause a loss of confidence in the nation's currency by shrinking the economy and making the government's debt appear increasingly unsustainable. The loss of confidence then causes the flow of money to speed up as individuals become desperate to exchange cash for real goods as fast as possible, producing hyperinflation. As an example of deflation leading to hyperinflation, consider the case of theWeimar Republic. In 1920, Germany experienced a deflationary collapse, with the average citizen finding it harder and harder to get enough money for necessities. Banks, short of money, could not honor checks, and businesses were strapped for cash to buy materials and meet payroll. Fearing a collapse that would throw millions of workers out on the street, the German government desperately printed money in an attempt to re-inflate the economy. During this period, despite the government's money printing, the mark actually gained in value against foreign currencies, so that prices of imported goods fell by some 50%. Eventually, as a result of the money supply's rapid expansion, the nation's massive foreign debt, and the shrinking economy, German citizens lost all confidence in their currency, and the Weimar Republic experienced one of the worst cases of hyperinflation in modern economic history. Billions of hoarded marks came out of hiding and entered the marketplace. The chart below tells the rest of the story.




    How deflation creates hyperinflation

    1) Deflation slows the speed of money to crawl due to fears about the deteriorating economy. The public hoards cash, or, in the case of the US, short term treasuries.

    2) The slowing speed of money and debt destruction force the government to create huge quantities of cash to prevent prices and the economy from collapsing. However, because the public is hoarding cash (or short term treasuries), most of the money doesn't reach the real economy, which leads the central bank to print even more money. In essence, cash hoarding acts as a dam, preventing the enormous quantities of printed money from affecting prices.

    3) Deflation weakens economy until it leads to a loss of confidence. With doubts about the government's solvency growing, the velocity of money quickly picks up speed, and a flood of hoarded cash comes out of hiding, entering the marketplace all at once and creating hyperinflation.

    US stands on the verge of hyperinflation

    Gold Backwardation signals that the next phase of the economic crisis, a rapid acceleration in the velocity of money, is about to begin. Right now, the flow of money through the economy is basically frozen: everyone is panicking into treasuries due to deflation fears. Negative yields on the 3 month treasuries are a sign of this. Despite the glacial rate money is moving through the economy, the dollar has started to fall again, and gold has begun to rally. As this continues, investors will begin to questions the safety of treasuries, and sell them off. The money coming out of treasuries will add fuel to gold's rise and the dollar's fall. Once the dollar hits new lows and gold breaks convincingly over $1500, Investors expecting deflation will begin to panic, and a flood of money will come out of treasuries. It is then that hyperinflation will begin in earnest.

  16. #16
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    Re: Federal obligations exceed world GDP

    your forgetting 1 thing!? we ARE the BIG GUN!? we write the rules!? we can make anything happen we choose to!? of course if we are not really WE anymore, then it's all moot anyway!? i've already started my victory garden just in case!? :cwm2: :cwm2: :spin2: : :
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