Federal obligations exceed world GDP

World Net Daily - Via Drudge ^ | Feb 13, 2009 | Jerome R. Corsi

[Islander7]

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.

[CottonBall]

Which ensures the dollar will plummet. You seem to be happy with these huge deficits the Dems are racking up. Or think they're not out of the ordinary. Why are you on this conservative site, anyway?

[Mase]

LOL! It could be like the last episode of Seinfeld. All the illiterates in one courtroom together pleading for their pound of flesh.

"No suit for you!"

[Toddsterpatriot]

Which ensures the dollar will plummet.

Off the foreclosure kick already?

You seem to be happy with these huge deficits the Dems are racking up.

I do? Where did you get that idea?

Or think they're not out of the ordinary.

These deficits are out of the ordinary.

Why are you on this conservative site, anyway?

I can't let ignorant posts and articles stand uncorrected.

[Toddsterpatriot]

All the illiterates in one courtroom together pleading for their pound of flesh.

LOL!

"No suit for you!"

You know, an ounce of gold has always......

[DuncanWaring]

Interest on our debt is not even in the double digits.

According to the US Treasury, Interest paid in 2008 on the Public Debt was slightly more than $450 billion.

Given that government revenue is somewhere on the order of $2500 billion, that puts the interest expense at nearly 20%.

Well into the "double digit" range.

With the National Debt now starting to increase at a rate of over $1000 billion a year, that extrapolates to 100% within a generation.

[CottonBall]

These deficits are out of the ordinary.

Then why are you defending them? You are contradicting yourself. Just bored I guess and want to argue. So, I'm done. I have better things to do.

[cc2k]

April Lexington wrote:

---

Um.... dude.... these ASSETS belong to the PEOPLE, not the government. IS the government planning to seize our private assets to pay this public debt????

---

The government already has seized many of these assets.

ANWR is federal property. Jimmy Carter signed the law that grabbed that land.

And in 1996, as a political favor to James Riady, one of Bill Clinton's largest foreign campaign fundraisers, Bill Clinton locked up the largest deposit in the world of low sulfur, low ash coal (the cleanest coal available). He called it the "Grand Staircase Escalante National Monument."

James Riady's father, Mochtar Riady, founded the Lippo Group. The Lippo Group is a large conglomerate in Indonesia, and they operate the mines at the second largest deposit of low sulfur, low ash coal in the world.

In 2000, James Riady pleaded guilty to campaign finance law violations and paid the largest ever fine (up until that time) for campaign finance violations.

As for the offshore resources, I'm not entirely sure who owns those, or why the government has to "lease" the property to the oil companies before they can drill. But those resources are not privately owned.

[1rudeboy]

LOL

Never fails to crack me up. People parachute onto a thread with a personal attack, and then later whine that "you have nothing to contribute but personal attacks."

I'm going to start posting the lovenotes I get, by the way. I think people have the mistaken impression that they are "confidential."

[1rudeboy]

Where are all the WND critics?

Personally, I'm waiting for Bush's secret plan to form the NAU to come to fruition. According to this author, I only need to wait ten more months.

[Toddsterpatriot]

Given that government revenue is somewhere on the order of $2500 billion, that puts the interest expense at nearly 20%.

We're talking about GDP. $450 billion is less than 4% of GDP.

With the National Debt now starting to increase at a rate of over $1000 billion a year, that extrapolates to 100% within a generation.

I wouldn't bet on that extrapolation continuing for a generation.

[Toddsterpatriot]

These deficits are out of the ordinary.

Then why are you defending them?

Where do you imagine I did that?

You are contradicting yourself.

Where? Show me.

So, I'm done. I have better things to do.

I guess running away is easier than providing proof for your claim. LOL!

[DuncanWaring]

We're talking about GDP. $450 billion is less than 4% of GDP.

The GDP doesn't pay interest on the national debt. The Federal Government pays interest on the national debt.

I wouldn't bet on that extrapolation continuing for a generation.

What are the circumstances that will cause GDP to increase faster, percentagewise, than the national debt and interest payments thereon?

[Toddsterpatriot]

The GDP doesn't pay interest on the national debt.

My comment was in response to this:

Does the ihterest on your mortgage exceed your annual income, after taxes? That's where we're headed.

The interest on our national debt is less than 4% of national income.

What are the circumstances that will cause GDP to increase faster, percentagewise, than the national debt and interest payments thereon?

I don't think it will, with a Democrat controlled House and Senate and a Marxist in the White House.

But that's not the same thing as agreeing with the idea that $1 trillion deficits will continue until interest on the national debt reaches 100% of GDP.

[April Lexington]

Wow! This is depressing...

[RockinRight]

Nope, because a point would nullify said Chicken Little thinking.