Debt Ice Berg

Monday, October 21, AD 2013

debt ice berg

 

Go here to read the accompanying article.  What lies ahead for this country is debt repudiation down the road or a new currency with the same face amount, and an actual value of 10% of current value, which is another way of saying debt repudiation.  This is going on in almost all the nations of the world and we are heading for a crash which will make the Great Depression seem like a minor blip in comparison.  The tragic element in this farce is that it is all man made and could have been avoided.

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8 Responses to Debt Ice Berg

  • “The tragic element in this farce is that it’s all man made and could of been avoided.”

    True.
    Greed is a scourge on society.
    Inflated egos feed inflated markets valuing false profits.

    Enter False Prophet with teleprompter in sight, Hope! Change! Devalue the dollar!
    Opps…..

  • And yet, there are articles that say America will never default or go broke or suffer a Great Depression no matter how much it prints and spends. Crazy, I know.

  • it would be more illuminating to depict nominal debt loads as a ratio of nominal gdp. this graph overstates the severity of the burden of service charges and distorts their evolution over time.

  • Here is the ratio of gross outstanding debt (which includes that held by the Federal Reserve and the Social Security Administration) to gross domestic product.

    1981 : 0.31
    1982 : 0.34
    1983 : 0.37
    1984 : 0.38
    1985 : 0.41
    1986 : 0.46
    1987 : 0.48
    1988 : 0.49
    1989 : 0.50
    1990 : 0.54
    1991 : 0.59
    1992 : 0.62
    1993 : 0.64
    1994 : 0.64
    1995 : 0.64
    1996 : 0.64
    1997 : 0.62
    1998 : 0.60
    1999 : 0.58
    2000 : 0.55
    2001 : 0.54
    2002 : 0.56
    2003 : 0.58
    2004 : 0.60
    2005 : 0.60
    2006 : 0.61
    2007 : 0.62
    2008 : 0.68
    2009 : 0.82
    2010 : 0.90
    2011 : 0.95
    2012 : 0.98

  • Looking at this, I am surprised the degree to which certain partisan narratives are supported. You can see the plateau in the late Reagan years, the forward advance during the period running from 1990 to 1995 (in spite of two income tax increases), the decline during the period running from 1995 to 2001, and then the increase from 2001 to 2007. About half the increase from 2001 to 2007 can be attributed to enhanced military spending. N.B. the raw debt figures from which this was derived were assessed on 30 September of each calendar year. The increase recorded from 2009 to 2010 covers a 12 month period after economic growth had resumed in the 2d quarter of 2009. And, yet, the increase in the debt burden in that one year equalled that over the entire six year period running from 1 Oct. 2001 to 30 Sept. 2007. I think I will remember that when some partisan Democrat motormouth runs on about George W. Bush “fought two wars on the credit card”.

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  • Clinton Cramer, “What is really tragic is how easy it would be to fix this. […] If the federal government would spend what it did in 2006 (you know, while we were fighting a costly war in Iraq), $2.655 trillion a year, combined with the 2013 estimate for receipts (2.712 trillion a year), we would have a balanced budget — actually, a slight surplus. Sure, we have more people out of work today than in 2006, and the government spends more on unemployment and various support programs — but we are not fighting a war in Iraq, either.”

    ‘Cuz post-modern ideologues who masquerade as economists can’t see it.

The Fiscal Cliff, Taxes, Math and the End of the Road

Friday, November 30, AD 2012

 

The above video by Bill Whittle from 2011 illustrates how deep in the hole we are when it comes to annual deficits.  The idea of the Obama administration that the Bush tax cuts must expire for “the rich” earning over 250K (In Chicago that would be a cop and his schoolteacher wife.) has everything to do with politics and almost nothing to do with deficit reduction.  Here is why.

If you abolished all of the Bush tax cuts for “the rich” earning over 250K a year, and assuming they did not come up with ways to legally avoid the additional tax by deferring income,  the Treasury, further making the rash assumption that increasing taxes does not have any negative impact on the economy, would receive about 70 billion dollars in additional taxes, according to the Congressional Budget Office.  This year our deficit is approximately 1.1 trillion dollars.  If we eliminate the Bush tax cuts for all taxpayers, the increase in taxes would be about 370 billion, according to the CBO, assuming, rashly, that increasing taxes on the middle class would not have a negative impact on the economy and swell the ranks of people qualifying for “freebies” from Uncle Sucker.

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9 Responses to The Fiscal Cliff, Taxes, Math and the End of the Road

  • Maybe it’s time to make “fiscal cliff diving” an Olympic sport….

  • Elaine, Medals of paper, tin foil, and CD’s of sounds of insane laughter from politicians/government spenders with a back beat of their footfalls running for cover as ill-gotten gains jingle in their pockets thinking they won the game.

  • With the lying, liberal (I repeat myself again) media 24/7 fabricating facts it is impossible to guide popular opinion or to make known the truth.

  • The problem is too many people want to believe that 1+1=1,000,000,000. Either we need a populace with better knowledge of arithmetic, or we ride the delusion to its inevitable conclusion.

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  • Wow!! What an anti-Catholic sentiment. What a shame that many so-called Catholic web-sites like this one have become a champion of the greedy and corrupt. The republican econoimc platform is precisely what Thomas More called in “Utopia” a “a conspracy of the rich”. Church doctrine has alays suported left-leaning economic theory. Including such great Popes as Pius XI, John XXIII and John Paul II. We have consistently suported labor rights and government assistance in bringing about economic equality. You seem to support the same type of wealthy, elite, fascist government that got Oscar Romero murdered in San Salvador. How dare you call youreslf Catholic.

  • Ah Stephen, your comment should be preserved in amber to represent the mind set of leftist Catholics at the dawn of the second decade of the twenty-first century! Of course you wasted not a moment in dealing with the substance of the post which is that the tax increases asked for by the President I am confident you voted for will do absolutely nothing to solve our basic budget problem of attempting to spend money that we do not have. Screeching insults against those who do not share your political ideoplogy will do nothing to alter reality, although I am confident you will attempt to continue to do so.

  • I think Gerald L. Campbell has a spam generator.

  • I call them hard-working, diligent, responsible. Stephen calls them “greedy and corrupt.”

    I can’t go on.

    Stephen is exempli gratia for my comment of 1130 hours, 30 November:,

    “With the lying, liberal (I repeat myself again) media 24/7 fabricating facts it is impossible to guide popular opinion or to make known the truth.” Add to the “lying, liberal” media, the brain-washing, so-called public schools and higher education systems.

    Again, in November 2008, they prove they are not racists. On November 6 and again on December 7, Stephen proves he is an imbecile.

Lessons For America From the European Fiscal Meltdown

Monday, November 21, AD 2011

Another fine econ 101 video from the Center for Freedom and Prosperity.   This video exlores the lessons that America can learn from the current European fiscal and debt crisis.

The lessons are very simple:

1.  Higher taxes lead to higher government expenditure and not reduction of government debt.

2.  A value added tax is a recipe for run-away government expenditure.

3.   A welfare state breeds dependency.

4.   Fiscal reform and reduction of government expenditure is impossible once more people are living off the government than are paying taxes to support the government.

5.   Bailouts do not work.

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5 Responses to Lessons For America From the European Fiscal Meltdown

  • Let a candidate take those exact 5 points and build a platform of specifics for election 2012, using campaign funds to hire this young student with a clear, studied vision as advisor in chief. Why let history repeat itself.

    The person talking to the curtains in the opening video, who was pooling (how gross!)guns, religion, and antipathy as a result of frustration with government, isn’t on a path to avoid crippling what’s left of the human spirit.

    While the OWS are still enmass, wouldn’t it be great for them to have the benefit of this 7:05 minute lesson in Econ 101 for America?

  • It is less complicated.

    When government (taxes and spending) grows faster than GDP there will be a disaster.

    PM: It won’t work. They have been taught what to think (brainwashed), not how to think. While we have them all in one place, . . .

    Bray for peace!

  • Wow !!
    She had my vote well before the economics started 😉

    Seems that’s a lesson that most western governments need to take on board, but are turning a blind eye to.

  • 1. No
    2. No
    3. No
    4. No
    5. No

  • Art,

    Care to elaborate?