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Showing posts with label national debt. Show all posts
Showing posts with label national debt. Show all posts

Saturday, December 10, 2016

30 years later the Dow is at the same ratio to debt as it was in late 1987

Following the 1987 stock market crash, the Federal Reserve began a new course of monetary policy in which they would use a combination of debt and manipulated interest rates... not to protect the bond markets or inflation, but to boost up the stock markets.  And in the just over 29 years since this policy started under Alan Greenspan, an interesting parallel has occurred.

The ratio of the national debt is virtually the same as the increase in the Dow Jones average.

National Debt

Dow

In 1987 the United States ended the year with a national debt of $2.35 trillion, and the Dow ended the year at 1927.31.  However, before the Oct. 19 crash it was at 2246.73, or a ratio of 1:.956 Debt to Dow.  This ratio of nearly 1:1 is significant because it is the starting point for a trend where the Dow would begin to rise either in tandem, or in the same multiples as the debt.

When Bill Clinton took office in January of 1993, the debt was at $4.064 trillion and the Dow was at 3301.  And the increase of debt from 1987 to 1993 was virtually the exact same increase the Dow experienced (42% vs. 41.6%) during the same period.

Most mainstream pundits and economic analysts love to tout how Bill Clinton 'balanced the budget' and added few deficits that led to increases in the national debt.  But what they willingly or unwillingly fail to mention is how the Clinton administration raided the Social Security Trust of over $3 trillion and replaced the cash with Treasuries (debt).  And instead of borrowing the money from the Federal Reserve, which would have officially been added to the National debt number, he instead robbed Peter to pay Paul, and his total increase to the debt was over $4.6 trillion to finish out his term with the real debt between $8.6 and $9 trillion.

But there was a caveat that needs to be added to this era as it was also a time when Alan Greenspan lowered interest rates from 7.25% in late 1987 to a low of 3.25% when Clinton took office in 1993.  And because of this near doubling of overall debt coupled with the halving of interest rates, the Dow subsequently more than tripled during this era known as the Dot Com Boom.

Real debt increase from Jan. 1992 to Dec. 31 1999: 120%.  Dow increase from Jan. 1992 to Dec. 31 1999: 348%.  Interest rates halved from 7.25 to 3.25%.

Over the course of the fiscally irresponsible years from 2000 to 2016, where the national debt doubled first under George W. Bush to $9.5 trillion and again under Barack Obama to its current level of $19.8 trillion, the stock markets climbed nearly in tandem to the rise in debt outside the stock market crash and declines of 2008-2009.  And most astonishing is that as of Dec. 9, 2016, the ratio of Debt to the Dow is back where it began nearly 30 years ago at a virtual 1:1 equivalent.

Dec. 9:  Dow close:


Dec. 9: National Debt


$19.87 trillion to 19,756     Ratio 1:.994

Coincidence?  Now imagine what the stock markets would look like if the government had not borrowed so much money... or if they decide to finally shut off the spigot... or the spigot is shut off for them.

Are you willing to put your retirement trust in the hands of entities that will not grow or survive without more and more borrowed debt?

Tuesday, September 6, 2016

Barack Obama went to Washington and all the American people got was $20 trillion in debt

When Barack Obama took office in January of 2009, the National Debt sat at $10.62 trillion dollars, where much of it is directly attributed to his predecessor George W. Bush, who practically doubled the debt from 2001-08 through multiple wars engaged upon in Afghanistan and Iraq.

But as we come to the end of Obama's eight years in office we are now entering a new era of debt creation, and one where little at all was done to try to stem both the flow of borrowing, and the winding down of Washington's eternal wars.  And as the National Debt crosses over $19.5 trillion on Sept. 1 of this year, it is estimated that the nation will breach the $20 trillion mark by the time the President ends his White House tenure in January of next year.

Image result for u.s. national debt explosion under obama
Earlier this week, the US national debt hit $19.5 trillion, for the first time ever. Since January 2016, it has increased by $500 billion, according to the US Treasury. 
US Federal Debt to Rocket to $28.2 Trillion Over Next Decade In 2009 when Barack Obama became president the debt was $10.63 billion. Currently, the debt ceiling has been suspended until mid-March which means the debt will rise further. "The total national debt when Obama leaves office in January is expected to approach $20 trillion by then," an article on Washington Examiner read. - Sputnik News
Unfortunately for the U.S. as well, the economy has declined overall at the same time debt has skyrocketed over the past eight years.  In fact, Barack Obama will become the first President in history never to have a single year in office see an annual GDP growth rate over 3%.
Barack Obama remains solidly on track to be the only president in all of U.S. history to never have a single year when the economy grew by at least 3 percent.  Every other president in American history, even the really bad ones, had at least one year when U.S. GDP grew by at least 3 percent.  But this has not happened under Obama even though he has had two terms in the White House. 
The following are the yearly GDP growth numbers under Obama.  They come directly from the official website of the World Bank… 
2009: -2.8 percent2010: 2.5 percent2011: 1.6 percent2012: 2.2 percent2013: 1.5 percent2014: 2.4 percent2015: 2.4 percent 
Does that look like a “recovery” to you? - Economic Collapse Blog
Image result for u.s. debt to gdp 2009 - 2016

The 1990's became known historically for Japan as the Lost Decade, and they have never recovered their economic might that turned them into the second largest economy in the world during the 1980's.  And unless something major changes for the next Presidential administration here in the U.S., this current ten year period for America will become its own lost decade, and signal the end of what was once the greatest economy the world had ever seen.

Wednesday, February 3, 2016

January ends with U.S. debt crossing over $19 trillion

A new report came out on Feb. 1 showing that the national debt has now crossed over $19 trillion, making it extremely likely that the U.S. will end Obama’s term in office with a debt obligation of over $20 trillion.  And with Congress simply abrogating their duties and giving the government carte blanche authority to borrow and spend as much as they want, whomever wins the Presidency this November will automatically come into office under a dual crises of recession and insolvency.
Right now the U.S.’s debt to GDP ratio is over 104%, meaning the country owes more in liabilities than it produces in annual revenue.  And for any entity but the Federal government, this would mean instant insolvency and the need for a declaration of bankruptcy.

Read more on this article here...

Saturday, January 2, 2016

Lions and tigers and derivatives and bail-ins… OH MY!

Perhaps it is because $247 trillion is just a number too big to contemplate, or that those in charge have an off button perpetually pushed when it comes to accepting the consequences of debt, but going into 2016 this black swan remains a ticking time bomb that can at any time crater the world even more than a conventional world war.
Oh, and by the way… this is just the derivative exposure of U.S. banks alone.
us_banks_derivatives_exposure_as_percent
Did you know that there are 5 “too big to fail” banks in the United States that each have exposure to derivatives contracts that is in excess of 30 trillion dollars?  Overall, the biggest U.S. banks collectively have more than 247 trillion dollars of exposure to derivatives contracts.  That is an amount of money that is more than 13 times the size of the U.S. national debt, and it is a ticking time bomb that could set off financial Armageddon at any moment.  Globally, the notional value of all outstanding derivatives contracts is a staggering 552.9 trillion dollars according to the Bank for International Settlements.  The bankers assure us that these financial instruments are far less risky than they sound, and that they have spread the risk around enough so that there is no way they could bring the entire system down.  But that is the thing about risk - you can try to spread it around as many ways as you can, but you can never eliminate it.  And when this derivatives bubble finally implodes, there won’t be enough money on the entire planet to fix it. - Economic Collapse Blog

Read more on this article here... 

Monday, December 28, 2015

Got Karatbars? The time has arrived where governments need your money to stay solvent

There are fewer and fewer people alive today who remember President Franklin Delano Roosevelt's bank holiday and subsequent confiscation of gold under Executive Order 6102 back in 1933, and even fewer who understand what individual control over their own money really means.  In fact, despite the Credit Crisis that nearly collapsed the Western banking system and brought about the concept of depositor bail-ins just seven years ago, most Americans and Europeans still trust the system and their government to hold their bank accounts, retirement accounts, and paper assets sacrosanct.


But history has shown that greed is a very powerful elixir, and very few if any institutions can withstand the corruption it brings over the course of time.  And while the vast majority of people find it difficult to believe that the government would ever pass a law to take their money held in a bank, broker, or retirement account, one such government is suddenly becoming ground zero for just that potential action.

Over the Christmas holiday, data points tied to a collapsing housing bubble and a destruction in Canada's oil industry has led the city of Ontario to publicly beg its citizens to help bailout the government as the municipality finds itself on the cusp of bankruptcy, and without hope of paying off $300 billion worth of debt it has accumulated.
Ontario Premier Kathleen Wynne is asking that you consider giving your money to the Ontario government as well. 
For a mere $21,000 for every man, woman and child in the province, Ontario could be debt free. 
No, this is not some kind of holiday joke about the Grinch who stole Christmas.
And, no, voluntarily donating to the government isn’t in lieu of paying taxes. 
It is in addition to them. 
Canada’s largest province has asked its taxpayers to donate their hard-earned money to the cause of bailing out the much indebted provincial government. 
On top of paying among the highest taxes in North America, and coping with skyrocketing hydro prices — hikes directly caused by the decisions made by this Liberal administration and the previous one — the Wynne government wants more. 
Treasury Board Chair Deb Matthews made the bold request last week, and specifically asked folks to donate their tax return rebate to help pay off the provincial debt. - Toronto Sun
Fast forward to the United States.



Following the 2008 Credit Crash and subsequent Great Recession, former Speaker of the House Nancy Pelosi proposed a bill that would have nationalized all 401K's, IRA's, and pension accounts under government control to help subsidize the then $14 trillion in national debt.  This bill never made it to the House floor, but since them the debt has risen to over $19 trillion and the same government has instituted two other schemes such as President Obama's MyRA program, and the Treasury Secretary's move of public pensions into U.S. Treasury debt that is as un-payable as Ontario's debt appears to be.

(Just read Secretary Lew's words during the last debt ceiling debate where Social Security would be un-payable without allowing the government the power to borrow more money)


The overall point is that the world is finally finding itself forced to pay the piper after years of irresponsibility and unsound financial practices that place global debt at a whopping $230 trillion, or
300% over the world's annual GDP.  And if anyone is wondering why the G20 is now forcing all Western nations to pass Bail-in laws to have you and I pay for the next financial crisis, all one has to do is look at what is taking place in Venezuela, Argentina, and now Canada to see that the Day of Reckoning is now upon us.


So if any cash, savings, or retirement accounts held by governments, or in banking institutions is as vulnerable as it was 80 years ago during the last great bank holiday, what alternative is there for you to protect your wealth, get it offshore and away from any potential confiscation, and into something that is not readily taken by these now insolvent institutions?

You can do this with a company called Karatbars



Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, Karatbars is working on a new e-wallet system that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.


The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Tuesday, November 3, 2015

President of debt: Newest budget signing will have Obama on cusp of doubling National debt

When Barack Obama signed the newest Congressional budget bill on Nov. 2 that would last through March of 2017, he added to his ongoing legacy of being one of the least fiduciary responsible President’s in history as the portion within the bill that raised the debt ceiling will see America’s future obligations rise to just under $20 trillion.  And perhaps the irony of it all is that President Obama is still making the claim that he is lowering the annual budget deficit despite the fact that his administration has borrowed more money each year than President Bush ever did during his eight year tenure.
When Obama took office in January of 2009, the national debt stood at $10.6 trillion.  And by the sixth year of his administration the debt had increased by more than $1 trillion per year to a total of $18.2 trillion before yesterday’s new increase.

Read more on this article here...

Wednesday, September 16, 2015

Next Democrat hopeful wants to follow in Obama’s footsteps by doubling national debt

Socialism works until you run out of other people’s money.  This is a famous quote that was attributed to the former Prime Minister of Britain during the final decade of the Cold War, and during the rise of socialism in what would become the European Union.  And since the 1980’s when capitalism flourished in its final decade of free markets, growth has been measured not by productivity, but by how much administrations around the world could increase their money supplies and national debts.
And while many Republican Presidents, including the well respected conservative Ronald Reagan, have used borrowing to facilitate their goals and agendas, it has been the current President, and the front runner from the Democratic Party for the 2016 election, that have placed any semblance of fiscal responsibility in the distant past, and could potentially be two back to back Presidents who would double the national debt during their times in office.

Read more on this article here...

Tuesday, December 9, 2014

U.S. National Debt crosses $18 trillion with 70% coming from Obama’s tenure

While it took longer than expected, the U.S. National Debt has now officially exceeded $18 trillion, and is 107% of the total amount of GDP created in the economy for 2013.  This number also represents a watershed moment where President Barack Obama has been the instigator of almost more debt himself than all other Presidents combined, with his ownership ringing in at a whopping 70% increase since he took office in 2009.


Read more on this article here...

Tuesday, September 23, 2014

National debt has climbed an additional $1 trillion since debt ceiling was removed

While the American people continue to question the so called economic recovery, an overlooked aspect of the U.S. budget is no longer getting much press since Congress voted to remove the debt ceiling and allow the President to borrow money from the Fed as he sees fit.  And while Obama supporters in the media continue to prop up stories of how the President has lowered the budget deficit, the fact remains that in the past year, the U.S. government has added over $1 trillion of new debt to the taxpayers balance sheet.


Read more on this article here...

Sunday, March 3, 2013

Sequester: $85 Billion savings gone in a single day

After more than a month of Congrssional and Presidential Kabuki theatre over the manufactured crisis known as sequester, the Obama administration in a single day negated any potential savings the $85 Billion legislation would have cut from Federal Spending.

As you can see, the government borrowed enough money on Feb. 28 to balance out the $85 Billion in mandatory cuts, and made the entire debate over spending cuts a worthless political drama.


In just one day, the national debt increased by $80 billion, and wiped out all potential savings to the budget that might occur in 2013.

So from faux debt ceiling crisis, to the meaningless sequester crisis a month later, the year is still early for our elected officials to usher in several more crises to deceive the public on how bad the government's fiscal pocketbook really is.

Tuesday, December 11, 2012

Economist suggests scheme to pay off national debt with a few platinum coins

Welcome to a world where no one, including the government, is willing to pay off debts they incur.  As talks on the fiscal cliff stall once again on Dec. 11, an intriguing suggestion has been made by a university economist to pay off the $16.4 trillion national debt using a loophole scheme involving platinum coins.




Enter the platinum coins. Under current law, the Treasury is technically allowed to mint as many coins made of platinum as it wants and can assign them whatever value it pleases.

Under this scenario, the U.S. Mint would make a pair of trillion-dollar platinum coins. The president orders the coins to be deposited at the Federal Reserve. The Fed moves this money into Treasury’s accounts. And just like that, Treasury suddenly has an extra $2 trillion to pay off its obligations for the next two years — without needing to issue new debt. The ceiling is no longer an issue.

“I like it," said Joseph Gagnon of the Peterson Institute for International Economics. “There’s nothing that’s obviously economically problematic about it."

In theory, this is much like having the central bank print money. But, Gagnon said, the U.S. government would simply be using the money to keep spending at existing levels, so it would not create any extra inflation. And if it did cause problems, the Fed could always counteract the effects by winding down some of its other programs to inject money into the economy.

Is the platinum coin option really legal? Apparently so. - The Bulletin

What this would mean of course, is that the government would mint say 17 platinum ounce coins, giving them the denomination value of $1 trillion apiece.  Then, not only would they print the equivalent cash in a 'sale' of the coins, but after paying off the national debt, and debt owed to foreign and Fed creditors, they would have an additional $600 billion surplus, where Obama can sing to the world the lie that he not only balanced the budget, paid off the debt, but in fact, created a surplus.

We at The Daily Economist figure the Dow would open at 20,000, and Jim Cramer would hail it as the greatest financial move in history... like he did with Bear Stearns.

Friday, December 7, 2012

Demonocracy shows just how high $16 trillion will go

When most people try to picture a trillion of anything, it usually conjures up the distance between stars or galaxies.  But to the U.S. government, and our ever increasing national debt, trillions of dollars no longer phase legislators as the budget moves towards $4 trillion per year, and the national debt climbs to over $16 trillion.


Demonocracy has put together a very poignant video on just how much and high high $16 trillion would look if stacked on pallets, and raised to the sky.


Tuesday, October 2, 2012

Social Security benefits to reach $65 billion per month to government

It appears to be fortunate for the elderly and those on Social Security that Ben Bernanke implemented QE4evr last month, just as the national debt crossed over $16 trillion dollars.  Accordingly, that additional money is soon going to be needed as on Oct. 2, the cost to the government and to taxpayers for Social Security benefits has now reached $65 billion per month.



-The monthly SS payout is bigger than the market cap of some well know companies, including: Amex, 3M, US Bankcorp, Amgen, eBay and Caterpillar. Goldman Sachs is worth a measly $54b. SS could buy the whole thing with just three-weeks worth of payout.

-The annual cost for SS is greater than the ridiculous monster market cap for Apple. If SS used its muscle to buy big cap stocks, it could buy up all of the shares of Microsoft, Wal-Mart and Google in less than a year.

The annual SS payout is about the same as the GDP of the Netherlands. It is well larger than the output of either Turkey, Switzerland or Saudi Arabia. In 2013 SS will spend more than the GDP of Indonesia, a country of 250m people. - Bruce Kasting

Chart courtesy of Bruce Kasting
When you add this cost to the 47 million Americans on food stamps, and the over 100 million Americans who receive some form of government benefit, you begin to see why the system has no choice but to inevitably collapse at some point, and no amount of Fed spun money can keep up with the promises and corruption of politcians.

Monday, September 10, 2012

Government at work: Never a plan B for debt ceiling and Federal debt limits

Last August, the Republican led Congress played political games with the American people, and eventually broke their campaign promises by voting to raise the debt ceiling on our national debt.  Now that the 2012 elections are coming up fast, the government once again faces a new ceiling as very little attempts were made to step deficit spending.

Our government leaders, from Congress to the President are proving one thing... they are not the A Team, and for Americans, there is no plan b.



When Obama learned that the deal negotiated among the congressional leaders would require a two-step increase in the debt limit, he told Rob Nabors, the White House director of legislative affairs, “The one thing I said I actually needed, they didn’t get,” referring to Reid and Pelosi. “I needed this to go past the election, and they didn’t get it for me. This can’t work.”

Obama sent word that he wanted the two Democratic leaders at the White House at 6 p.m. that Sunday, July 24. No reason was given.
Reid arrived in the Oval Office with his chief of staff, David Krone.

“I don’t trust these guys,” the president said dismissively.
Krone either would not or could not conceal his anger.

“Wait a second,” Obama said, interrupting someone else who was about to speak. “I can tell David has something else to say.”
“Mr. President, I am sorry — with all due respect — that we are in this situation that we’re in, but we got handed this football on Friday night. And I didn’t create this situation. The first thing that baffles me is, from my private-sector experience, the first rule that I’ve always been taught is to have a Plan B. And it is really disheartening that you, that this White House did not have a Plan B.” - Washington Post via Zerohedge

This event is one of the underlying problems with Washington, and with politicians.  They have no concept of money, where it comes from, what it means to the economy by spending it, and thus, government has no clue about creating monetary policies that help the country, or the American poeple.



As Jeremy Irons said it best in his Margin Call speech... "It's just money... it's made up."  This is the world today, and money in the eyes of Wall Street, and the government.

Wednesday, August 29, 2012

Sweet 16: National debt crosses $16 trillion two months before election

One of the fundamentals of the rich is to invest using other people's money (OPP).  However, when the government does it using the taxes of its citizens, and borrowing of its future, it sure ain't about the accumulation of wealth and capital.

On Aug. 28, the United States crossed over the $16 trillion mark in debt, and marks the biggest four year rise in debt obligations in America's history.  And unfortunately for the American people, there is very little to show for it beyond inflation and little men hiding behind offices thinking they now how to spend your money.


$35 billion in unreconciled bond sales - Aug 28

Added to:


= $16 Trillion

Charts courtesy of Zerohedge

November 16, 2011 was a historic date: that's when the US officially surpassed $15 trillion in debt for the first time since World War 2. We celebrated it by cheering $15,OOO,OOO,OOO,OOOBAMA. Today, August 28, 2012, is when we can unofficially celebrate again, because 286 days after the last major milestone was surpassed with disturbing ease, total US debt following today's $35 billion auction of 2 Year bonds is, well, in a word: $16,OOO,OOO,OOO,OOOBAMA! - Zerohedge

Sweet 16... perhaps this was the hope and change Obama was really talking about.  The financial destuction of a once great nation.

Tuesday, July 3, 2012

U.S. now just $145 billion away from crossing a national debt of $16 trillion

The old adage of spending like a drunken sailor has morphed into an even greater cliche where the U.S. is now spending their future generations inheritance.  Even as investment banks and analysts across the board lower this years GDP expectations, the Federal government is increasing their dedicit spending, and is less than $145 billion dollars from crossing the $16 trillion dollar rubicon.

*Note the second chart, where the debt has crossed over the annual GDP.  This hasn't occurred in America since World War II.





Charts courtesy of Zerohedge

Tuesday, May 1, 2012

Government will run out of money before elections

The great Debt Ceiling debate of 2011 appears to have accomplished little but to maintain the status quo for big spenders in both the Republican and Democratic parties.  In fact, after the political rhetoric of the Super Congress, and cut spending took place over a month last summer, the end result has been an INCREASE in spending, so much so that the government is now expected to run out of money a full month before the Presidential elections.

This after Congress promised the American people that their raising the debt ceiling in 2011 would last until the end of 2012.

Earlier today, the Treasury forecast that in the third and fourth fiscal quarter of 2012 (April-September), the US would need a total of $447 billion in new debt (split $182 billion in Q3 and $265 billion in Q4), bringing the total debt balance to just over $16 trillion by the end of September. While this is a commendable forecast, and one which certainly has provided to alleviate rumors that the US debt ceiling of $16.4 trillion would be breached by the mid/end of September, the chart below shows that it may be just a tad optimistic.

The only problem is that when one superimposes the projected debt issuance with the historical one. ...So maybe someone smarter than us can explain how the trendline of debt issued to date, and the forecasted debt differ by a cumulative $300 billion over the next 5 months? - Zerohedge




Charts courtesy of Zerohedge

Since the Daily Economist already pointed out last month that reliance on government reports equates to misinformation, then the chances that the Obama Administrations Treasury Department actually projecting correct data is simply propaganda.  President Obama has spent more debt in his first 3 years than President Bush did in 8, and this includes paying for 2 wars.

No, the government will be bankrupt (Again) by the end of September, and the question will be, who will be able to use this politically to win the White House in November.

Friday, February 24, 2012

Independent study determines Ron Paul as only candidate who would cut US debt

In the 2012 election campaign, Americans hear many proposals and promises by candidates saying they would cut the deficit, and force fiscal responsibility onto Washington and the national debt.  However, in a new study by an independent source, Congressman Ron Paul comes out as the single and only candidate who would actually cut spending, and move to cut the national debt.

Budget Office


And here is a chart provided to show past promises made, kept, and instituted by the candidates running for President.

Thursday, February 9, 2012

Americans independence wanes as more people rely upon government than ever before

The Heritage Foundation just completed a new study on government spending, and 18 other critical areas where cost and dependence by the American people on government welfare and subsidies over self-reliance is at the highest point in history.

The Index of Dependence on Government generally works the same way. The raw (unweighted) value for each program (that program’s yearly expenditures) is multiplied by its weight. The total of the weighted values is the Index score for that year.
The Index is calculated using the following weights:
  1. Housing: 30 percent
  2. Health Care and Welfare: 25 percent
  3. Retirement: 20 percent
  4. Higher Education: 15 percent
  5. Rural and Agricultural Services: 10 percent
The weights are “centered” on the year 1980. This means that the total of the weighted values for the Index components will equal 100 for 1980, and 1980 is the reference year in comparison to which all other Index values can be evaluated as percentages of 100. - Heritage Foundation


With the scale going nearly exponential since 1980, the chances of a reversal become much slimmer as more people turn towards government than every before in their daily lives.  This chart can almost parallel the climb in National debt since the baseline year, and as such, the collapse of the economic structure will most certainly come at a time when the government no longer can afford to pay so much in welfare and benefits.

Wednesday, January 4, 2012

US begins 2012 completely bankrupt and within spitting distance of debt ceiling

As 2011 came to a close, the US national debt remained above the countries GDP numbers, validating that the Federal government owes more money than the nation takes in.  That, in no uncertain terms, equates to being bankrupt.

On top of this, the government has blown through the $1 trillion allotted to it by Congress back in August, and is within $14 billion of reaching the mandated debt ceiling once again.


Chart courtest of Zerohedge


At what point does the entire system seize up and default?  That is the question of confidence remaining for the US, the dollar, and the reserve currency.