Debt now equals total U.S. economy

[Nevermind]

You'e doing a heck of a job brownie.

http://www.washingtontimes.com/news/201 ... s-economy/

President Obama projects that the gross federal debt will top $15 trillion this year, officially equalling the size of the entire U.S. economy, and will jump to nearly $21 trillion in five years’ time.

Amid the other staggering numbers in the budget Mr. Obama sent to Congress on Monday, the debt stands out — both because Congress will need to vote to raise the debt limit later this year, and because the numbers are so large.

Mr. Obama‘s budget said 2011 will see the biggest one-year jump in debt in history, or nearly $2 trillion in a single year. And the administration says it will reach $15.476 trillion by Sept. 30, the end of the fiscal year, to reach 102.6 percent of gross domestic product (GDP) — the first time since World War II that dubious figure has been reached.

In one often-cited study, two economists have argued that when gross debt passes 90 percent it hinders overall economic growth.

The president’s budget said debt as a percentage of GDP will top out at 106 percent in 2013, but only if the economy booms.

“I still don’t see a sense of urgency from the president about the massive federal debt,” said Sen. Lamar Alexander, Tennessee Republican. “His budget calls for too much government borrowing – even though the debt is already at a level that makes it harder to create private-sector jobs.”

Speaking on MSNBC on Monday, Jacob “Jack” Lew, the White House budget director, said their long-term plan to lower deficits will stabilize the debt.

“When we came into office, when President Obama took office, the deficit was climbing to over 10 percent of the economy. We have a plan that would bring it down to 3 percent,” he said. “That is the most rapid reduction in the deficit in history. It is what we have to do to be able to say we’re paying our bills and we’re not adding to the debt.”

The administration said debt as a percentage of GDP will stabilize at about 105 percent in the middle of this decade, though those calculations assume economic growth levels significantly above projections of the non-partisan Congressional Budget Office.

The government measures debt several ways. Debt held by the public includes the money borrowed from Social Security’s trust fund.

Actual debt held by the public will reach 72 percent of GDP in 2011 and will climb as the Social Security trust fund’s finances continue to deteriorate

[EvilMadman]

D'Oh!

[Woland]

yeah, mos def obama's fault.

[SmokingGun]

The trade deficit is ballooning out of control.


http://www.bbc.co.uk/news/business-12431066

[lerxstcat]

Good time to put our ICBMs on full alert, default on all our debts and offer to nuke the planet if everybody doesn't just forgive the debts and start over with us! Hey' they've all defaulted on THEIR debts to us, that's half the reason we got to this point. So fuck 'em all!!! They'll still do business with us - if NOT us, then who?

I can't believe we are so freaked out about the idea. Do we really think we're better than the rest of the human race? Well if not, they have all done it. We owe it to the world to prove we dont think we are any better than they are by stiffing them on their debts as they have done us!

[SmokingGun]

Don't have an online source but on Real Time 2 weeks ago Maher said that at the moment 40 cents out of every dollar spent by the government is borrowed.

This is not sustainable, not even for another year. I agree with lerx, it's time to fuck over the people that have been fucking us over. They depend on the US *more* than the US depends on them, keep the nukes on hold (I'm watching 'The Road'!), but I'd say it's time to start doing some serious sabre rattling at the very least.

Hard to believe Obama didn't get some concrete agreements in place regarding China's currency manipulation, which is a huge, if not the biggest factor in the trade imbalance. They said nice things about cooperation and dialogue and all the usual shit, and unfortunately that was good enough for him and left it at that.

[Cliffenstein]

Good time to put our ICBMs on full alert, default on all our debts and offer to nuke the planet if everybody doesn't just forgive the debts and start over with us! Hey' they've all defaulted on THEIR debts to us, that's half the reason we got to this point. They'll still do business with us - if NOT us, then who?

I actually totally agree with this. And we do have the means to be completely self-sufficient...get back to making our own stuff, getting our own oil, etc.

[MitziDupree]

How's YOUR self-sufficiency going, Cliffy?

Moved the fam out of the crappy apartment yet?

[EvilMadman]

yeah, mos def obama's fault.

Hey, you're right!

[KneelandBobDylan]

Good time to put our ICBMs on full alert, default on all our debts and offer to nuke the planet if everybody doesn't just forgive the debts and start over with us! Hey' they've all defaulted on THEIR debts to us, that's half the reason we got to this point. They'll still do business with us - if NOT us, then who?

I actually totally agree with this. And we do have the means to be completely self-sufficient...get back to making our own stuff, getting our own oil, etc.

Except for the fact that American businesses, while making the largest profits in history, continue to ship jobs overseas.

It's not about whats best for America, or Americans....it's about money, and redistributing wealth........from the poor and middle class to the obscenely rich.

[Woland]

http://www.usgovernmentspending.com/fed ... _10_G.html

funny how it goes up during bush's reign.

but that be the deficit - shit that actually matters more than the debt.

[lerxstcat]

Good time to put our ICBMs on full alert, default on all our debts and offer to nuke the planet if everybody doesn't just forgive the debts and start over with us! Hey' they've all defaulted on THEIR debts to us, that's half the reason we got to this point. They'll still do business with us - if NOT us, then who?

I actually totally agree with this. And we do have the means to be completely self-sufficient...get back to making our own stuff, getting our own oil, etc.

Except for the fact that American businesses, while making the largest profits in history, continue to ship jobs overseas.

It's not about whats best for America, or Americans....it's about money, and redistributing wealth........from the poor and middle class to the obscenely rich.

You are right too. If we don't change the way we're doing things, even if we repudiated the debt it wouldn't take long to come back.

We need to pass laws severely penalizing outsourcing and make this about self-sufficiency rather than wringing every last cent of profit out of dismantling our production capacity. Tariffs and disincentives to outsourcing would protect us from this bleeding out we are suffering.

I am for capitalism, but not raping and bleeding dry our country. We have to put limits on it, like we did when we pased child labor laws and minimum wages in the first place.

[bane]

We need to pass laws severely penalizing outsourcing and make this about self-sufficiency rather than wringing every last cent of profit out of dismantling our production capacity. Tariffs and disincentives to outsourcing would protect us from this bleeding out we are suffering.

I'm all for this. Especially if it means I never have to talk to another "based in some third world country, can't do a damn thing for me but take up 30 minutes of my time while he reads the instructions from some damn manual, has absolutely zero ability to use his own fucking brain and only spouts off pre ordained cookie cutter answers and eventually apologizes for not being able to do a fucking thing for me,customer service asshole" on the phone again.

[Woland]

maybe it's time americans asked for a change .

[MasterOfMeatPuppets]

[vanitybinge]

I was hoping it would happen later rather than sooner. Good thing I've started buying silver already.

[MasterOfMeatPuppets]

I was hoping it would happen later rather than sooner. Good thing I've started buying silver already.

Should have invested in lead.

[vlad]

We need to pass laws severely penalizing outsourcing and make this about self-sufficiency rather than wringing every last cent of profit out of dismantling our production capacity. Tariffs and disincentives to outsourcing would protect us from this bleeding out we are suffering.

I'm all for this. Especially if it means I never have to talk to another "based in some third world country, can't do a damn thing for me but take up 30 minutes of my time while he reads the instructions from some damn manual, has absolutely zero ability to use his own fucking brain and only spouts off pre ordained cookie cutter answers and eventually apologizes for not being able to do a fucking thing for me,customer service asshole" on the phone again.

Peggy?

[bane]

We need to pass laws severely penalizing outsourcing and make this about self-sufficiency rather than wringing every last cent of profit out of dismantling our production capacity. Tariffs and disincentives to outsourcing would protect us from this bleeding out we are suffering.

I'm all for this. Especially if it means I never have to talk to another "based in some third world country, can't do a damn thing for me but take up 30 minutes of my time while he reads the instructions from some damn manual, has absolutely zero ability to use his own fucking brain and only spouts off pre ordained cookie cutter answers and eventually apologizes for not being able to do a fucking thing for me,customer service asshole" on the phone again.

Peggy?

Word.

[lerxstcat]

He vant CASH???? BWAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!

[vanitybinge]

I was hoping it would happen later rather than sooner. Good thing I've started buying silver already.

Should have invested in lead.

Ammo is definitely on the shopping list.

[MickeyG]

I don't feel like paying my mortgage so maybe I'll threaten my mortgage company and maybe they'll let me off the hook. But wait, I have no fire power so that won't work. Hey, maybe if America doesn't want to pay it's bills, maybe it's citizens that have student loans shouldn't have to pay them back either. Outsourcing? It's a free market, globalization, blah, blah, blah. Can't have it one way and not the other.

[lerxstcat]

I don't feel like paying my mortgage so maybe I'll threaten my mortgage company and maybe they'll let me off the hook. But wait, I have no fire power so that won't work. Hey, maybe if America doesn't want to pay it's bills, maybe it's citizens that have student loans shouldn't have to pay them back either. Outsourcing? It's a free market, globalization, blah, blah, blah. Can't have it one way and not the other.

Well you're right, your lack of firepower screws you. A couple thousand ICBMs is a unique inducement. Watch for Russia to do the same shortly after we do it.

Penalizing outsourcing to the point it's no longer practiced is the point, to rein in the free market. And yes, you can make it a combination of one way AND the other. China has, for years. That's why they're on top right now. Pay attention, man!

[MickeyG]

Penalizing outsourcing to the point it's no longer practiced is the point, to rein in the free market. And yes, you can make it a combination of one way AND the other. China has, for years. That's why they're on top right now. Pay attention, man!

No, I agree with what you say, but I don't think that free trade enthusiasts will. They only care about their bottom line and if shipping overseas helps them then that's what they'll do. A manufacturing economy is not what they want, they want us all to provide "services".

[Redbeard]

My wife works in shipping and recieving and she came home last night from work and stated she, and 50 others are laid off due to the uprising in Egypt and other countries in that area. AMERICANS losing jobs because of another country! Self Sufficiant??? DAMN RIGHT!!! We need to get back to basics! Be American, Buy American! Remember that slogan from the 80's? Be American, Buy American, and Stop ALL Foriegn Aid for now! We need to concentrate on US FIRST! We need to fix OUR COUNTRY FIRST!!!!!!

[MickeyG]

It does seem a bit odd that America owes a bunch of money, and yet doles out billions in foreign aid while some of our own suffer.

[Cliffenstein]

How's YOUR self-sufficiency going, Cliffy?

Moved the fam out of the crappy apartment yet?

It's not remotely a crappy apartment...and our lease isn't up until September.

[SLASH1976]

It does seem a bit odd that America owes a bunch of money, and yet doles out billions in foreign aid while some of our own suffer.

wanna be the world leader ? it's gonna cost you
If China and other countries some day start collecting those outstanding loans the US is fucked

[MasterOfMeatPuppets]

It does seem a bit odd that America owes a bunch of money, and yet doles out billions in foreign aid while some of our own suffer.

wanna be the world leader ? it's gonna cost you
If China and other countries some day start collecting those outstanding loans the US is fucked

How so? They can't repo a country like a used car.

[Woland]

but they can buy your land ( setting the market price very low ) and kick you out.