Posted on 01/13/2017 7:07:33 AM PST by Perseverando
Only a few days after Trump’s inauguration ceremony, the U.S. National Debt will creep across the important psychological barrier of $20 trillion.
It’s a problem that’s been passed down to him, but, as Visual Caitalist's Jeff Desjardins notes, it certainly puts the incoming administration in a difficult place. The debt is burdensome by pretty much any metric, and the rate of borrowing has exceeded economic growth pretty much since the late 1970s.
How Trump deals with this escalating constraint will be a deciding factor in whether his administration crashes and burns – or ends up re-positioning America for greatness.
Donald Trump’s $20 Trillion Problem
Partisans will squabble about who added what to the mounting debt, but the reality is that none of that really matters. Both parties have kicked the can down the road for the last 40 years, and that has culminated in the current situation:
$19.957 trillion and counting.
Pres Trump needs to suggest AG Sessions rite an inquiry letter to the US Dept of the Treasury and be sure to ask what RAHM AND Obama were doing in the US Treasury after Obama got elected. There HAS to be a paper trail. One can get awfully rich awfully fast knowing the Fed's Treasury moves in advance. Read on.
"Don't worry, Mr President, the Dept of the Treasury is under your control."
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ONCE UPON A TIME, IN THE PRIVILIGED ENCLAVES OF
OUR NATION'S CAPITAL, RHAM EMANUEL HELD TWO JOBS Soon as they occupied the WH, Obama and the Chicago con artists (a) took control of the US Census; (b) Obama placed his COS Rahm Emanuel in control of the US Dept of the Treasury (oversees the IRS).
PAUSE TO REFLECT First-term Obama had tight control of Treasury; Obama calculatedly placed his then-COS Rahm Emanuel in a dual role.......in the WH and at Treasury. Obama had a stranglehold on Treasury via COS Rahm Emanuel's dual role
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THE SMOKING GUN---WSJ REPORT--On Jan 20, 2009 Timothy Geithner was appointed Obama's Secy of the Treasury. But within three weeks, the Obama White House tightened its grip on Treasury. Obama put his COS, Rahm Emanuel, in charge of Treasury---Rahm Emanuel's dual role was an unusual move.
When he got to Treasury, WH COS Rahm Emanuel was so involved in the inner workings that the phrase "Rahm wants it" had become an unofficial mantra among subservient govt staffers, prostrate in obeisance, scurrying to accede to Rahm's wishes, according to Treasury government officials. Reported by WSJ / 05/31/09
More here: http://online.wsj.com/article/SB124113406528875137.html
cont
One savvy FReeper posted that he knew a guy in one of those “too big to fail” firms.....guy was tearing down a $3 million-dollar home to put in a $20 million dollar home. Most of it paid for up-front by the guy's TBTF company; other TBTF banks chipped in for the guy's obscenely low mortgage.
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Here's why.
EXCERPT---FOURTEEN TRILLION DOLLARS Behind The Real Size of the Obama Bailout; A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street
SOURCE motherjones.com --- Mon Dec. 21, 2009 12:23 PM PST
The price tag for the Wall Street bailout is popularly put at $700 billion—---the actual size of TARP--the Troubled Assets Relief Program.
But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside untraceable money to bail out financial firms and inject money into the markets.
PAUSE TO REFLECT First-term Obama had tight control of the US Treasury; Obama calculatedly placed his then-COS Rahm Emanuel in a dual role.......in the WH and at Treasury. Obama had a stranglehold on Treasury via COS Rahm Emanuel's dual role.
To get a sense of the size of the real $14 trillion bailout, see MJ chart at web site. A guide to the pieces of the puzzle includes massive untraceable Treasury Department bailout programs.
Money Market Mutual Fund: In September 2008, the Treasury controlled by Obama/Emanuel announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].
Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokerages—as much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].
TARP: As part of the Troubled Asset Relief Program, the Treasury controlled by Obama/Emanuel made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid.
Government-sponsored enterprise (GSE) stock purchase: The Treasury controlled by Obama/Emanuel bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets."
GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury controlled by Obama/Emanuel may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion ---SNIP---.
LONG READ---go to web site to read more and checkout the shocking financial charts.
SOURCE http://motherjones.com/politics/2009/12/behind-real-size-bailout
Yep, President-elect Trump inherits an incredible debt from Bush Jr. and Obama. He should call out Congress with list of immediate cuts to get this under control: repeal/replace Obamacare, defund Planned Parenthood, defund PBS and Arts, DEFUND SANCTUARY CITIES, etc. Concrete steps to reign in the budget and debt. Despite this, I’m sure he’ll be faced with increasing the debt limit (maybe. how about an audit of the fed?).
We were suckered by that fake conservative, Dubya. But, at the time, we thought he was the real deal.
I'll go out on a limb and predict more of the same until the collapse.
Looking at it another way, let’s say that you were a business that was 20 million in debt. Your gross revenue annually is only 17 million and your gross profit is 3.5 million.
Your costs before net profit are:
To service your debt you have to pay 600,000 annually in interest to meet a 3% interest rate.
4 million goes to operational and employee expenses.
In short, you have zero profit, you have to borrow 1 million this year to keep going.
Next year your debt load is 21 million and the interest (pray the interest rate doesn’t rise) is 630,000.
How long will the bank let you keep doing this?
What do you need to do to turn it around?
Forget the ridiculous notion that the election mechanism is a national security issue and critical infrastructure, and switch that focus to the national debt being the problem.
bump to keep
no we didn’t. RINOs did but not Republicans.
...UN, foreign aid.
“We were suckered by that fake conservative, Dubya. But, at the time, we thought he was the real deal.”
Look at annual debt growth before and after Democrats took the House and Senate. The last two years doubled the debt of the previous 6. After Democrats ran on reducing it.
Amazing the Republic survived those incompetent men and their profligate ways.
defund PBS and Arts,
The liberals will claim that we hate Big Bird, if we try to defund PBS.
And the arts in general??? You mean we won’t subsidize any more “art” such as “piss Christ”, the portrayal of a crucifix in a jar of urine??? The liberals will claim that is “censorship”............
These are exactly the questions which I hope Trump and congressional Republicans will ask, and plan to deal with.
And the debt will be important now that Obama is gone, and it’ll all be the Republican’s fault!
A massive Federal debt is the natural consequence of a culture where people expect the government to pay their bills for them. When you run out of other people's money, you have to fabricate debt out of thin air and pass those costs on to future generations that aren't even alive yet.
Which is why Fiscal Conservatism and Social Conservatism are joined at the hip. Can’t have one without the other. The abandonment of the Traditional Family is the number one reason for the growth of Government.
There was a reason why the Fed stopped reporting one of the money supply measures (M3) in 2006. I know some savvy investors who saw this as an alarming piece of news and sold out of many of their holdings just before the 2008 financial collapse.
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