Posted on 12/20/2010 10:40:54 AM PST by Zakeet
By now everyone has seen and played with the US debt clock via usdebtclock.org whereby anyone who so wishes, can find every little detail about America's current sad fiscal state. The fact that America currently has just under $14 trilllion in national debt should be no surprise to anyone who professes to having an even modest interest in the state of the US economy. Yet a new feature on the "debt clock", namely one which extrapolates future debt at current rates of advancement (instead of one based on the always completely inaccurate CBO estimates), and looks at US debt in the year 2015 will probably make many stop dead in the their tracks. If anyone thought that $14 trillion in 2010 debt is bad, just wait until we hit $24.5 trillion in total US national debt in 2015. And it gets even more surreal: total US Unfunded Liabilities are estimated at $144 trillion, roughly $1.2 million per taxpayer... Was that a pin dropping?
As Zero Hedge has long been predicting, we anticipate roughly $2 trillion in incremental debt per year. Surprisingly we are not far too off from where the "debt clock" sees US leverage in 5 years. At an estimated $24.5 trillion in federal debt, our $2 trillion per year run rate is spot on. Another thing that is spot on: our prediction that the US will need not one but two debt ceiling increases in 2011. And probably 6-8 over the next 5 years.
Some other observations for the US economy in 2015 simply assuming current conditions persist:
And the most critical data:
Should one of the bolded predictions hit, the travails of Greek and Irish bondholders will be nothing compared to what those unlucky enough to be in possession of US debt in 2015 will have to go through.
I’m sure you know a lot about ass clowns since you defend those who donated to Obama all the time
Sorry, I don’t defend big government lovers, whether they’re liberals or “conservatives”.
Wrong you defend big government as long as it’s in the form of bail outs for the banks. You have defended Jamie Dimon on numerous occasions even though he donated heavily to obama and acorn and you have and continue to defend the bail outs even those that went to foreign banks.
Not even once.
Has it ocurred to you that the “public lands” may have been sold long ago, or pledged as some kind of collateral?
It has. "We'll just have to pass the bill to see what's in it..."
the only way i see out of this is selling off land, oil, natural gas, and other assets and ending al entitlements, govt pensions, etc.
This chart is an eye opener. The Fed simply cannot create that much new money without some negative result. Either the global system was in significantly worse shape that we ever knew or something really nasty is happening in real time and we haven’t yet figured it out. Either way...
Sure it was in worse shape and they knew it was long before we found out.
King suggested that the U.S., UK, Switzerland, and perhaps Japan might form a temporary new group to jointly develop an effort to bring together sources of capital to recapitalize all major banks. END SUMMARY
http://www.guardian.co.uk/world/us-embassy-cables-documents/146196
Now the Fed has used you and your children as collateral again for the foreign banks!
Fed throws euro banks a lifeline
snippet..
For an outfit whose policies supposedly are plunging the world into unspeakable conflict, the Federal Reserve is doing an awful lot to avoid another meltdown.
The Fed said Tuesday it would extend the dollar swap lines it provides to central banks in Europe, Japan and Canada in a bid to avoid a cash crunch like the ones seen to such devastating effect in 2008.
Your dollars, our problem?
The swap lines, under which the Fed provides foreign central bankers with essentially unlimited stocks of dollars in exchange for the equivalent amount of the counterpart’s currency, are intended to help head off a banking crisis like the one that appears to be developing in the European Union.
The European Central Bank said Tuesday that money market conditions are deteriorating, raising fears that rising government bond yields and undercapitalized banks will start feeding off one another in a sort of euro doom loop.
Investors have spent recent months backing away from the debt issued by weaker countries such as Spain and Portugal amid questions about their finances and the strength of their banks, which have been impaired by steep declines in property prices.
The financial temblors of the past two months have made it clear that, for all the talk at the beginning of 2010 about the Fed and other government bodies executing their supposed exit strategies and leaving financial markets to their own devices, we are still probably years away from a world in which your taxpayer dollars won’t be propping up the misguided ambitions of bankers everywhere.
Continue http://finance.fortune.cnn.com/2010/12/21/fed-throws-euro-banks-a-lifeline/
So where is this new capital supposed to come from? Thin air. Bernanke's rear end? Where is this big pile of "new capital" that is, apparently, just lying around waiting to be used to recapitalize the global banking system? Mars? Jupiter? Or, as I suspect, the other side of the looking glass.
I feel like I need to vomit...
A swap doesn't make anyone collateral. Sorry.
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