EASY READING CULTURE OF LIFE NEWS: US DEBT SHOOTING PAST $12 TRILLION « Culture of Life News 2
The US budget mess is infinitely worse this month than last year. The immense mess left by both political parties is endangering our nation. At every step of this road to perdition, Congress or the Presidents will talk out of one side of their mouths while preaching to us and then turn around and do the exact opposite. Tonight’s news makes it CRYSTAL CLEAR that the DNC leaders are working in tandem with the gnomes, not us. They have betrayed the voters. They are destroying America so a bunch of gnomes can keep their illicit wealth!
U.S. borrowing authority would rise to $12.1 trillion under an economic stimulus bill rapidly moving through Congress, congressional aides said on Thursday.
Congress must authorize any increases in the federal government’s credit limit, which currently is set at $11.3 trillion….
When President George W. Bush took office in 2001, the U.S. debt limit was around $5.7 trillion and debt rapidly rose through the eight years of his presidency.
Well, here we go! To the moon! If we add $2 trillion a year to our debts, in just 10 years, we will be at $22 trillion. Bush and Congress doubled our debts. This is a serious problem. For this wasn’t debt spending because we were waging a major war like, say, WWI or WWII. The last world war saw the US fighting on two fronts, the world’s biggest empires [in 1941, both Germany and Japan were both quite huge in size]. The US and Russia handily beat back the German empire and America and England fought off the Japanese empire. America funded much of that war’s munitions and equipment for all of our allies, big and small.
We also paid down the debts from that war, afterwards. We imposed on ourselves very steep Federal taxes. The country thrived. As the US built up its infrastructure and industries, unemployment fell and the middle class grew due to government initiatives coupled with strong union activities and the GI Bill opening the doors of the small academic elites wide to a flood of children of the laboring classes.
From Truman to Kennedy, the national debt barely grew at all, despite the Korean War and the Cold War. Below, I have some charts clearly showing how we fared under each President. The time scale is retrograde, starting in 2008 and working backwards. I chose to have this chart go from my birth in 1950 to modern times. The different color blocks show when the deficit doubled. There are 5 doublings during my lifetime.
It took from 1950-1975 for the deficit to double. It went from a quarter trillion to half a trillion dollars. 1974 is also the year of the Bretton Woods II Accords whereby the US strong armed the two empires we defeated in WWII, Germany and Japan, to strengthen their currencies so they would cease trying to flood the US with their industrial production. 1971 is when Nixon and Burns of the Fed Reserve dropped the gold peg.
We went through 7 Presidential elections and the budget deficit was increasingly an issue as time passed. During the 1960’s the silver in our coins began to rapidly vanish and gold was rapidly drawn down out of Fort Knox. Yet, our debts didn’t double due to one very simple thing: taxes were high.
A quarter century passed for the US to add a quarter trillion to the budget deficit. From 1975- 1981, in just 6 years, it doubled from half a trillion to a trillion dollars. It took Ronnie Reagan just 5 years to double it to 2 trillion. It took 7 years to double it to 4 trillion. Then, it slowed down.
This was due entirely to Clinton fighting a Republican majority in both houses. Stingy was the code. For the last three years of the Bush Sr. reign saw an extra trillion added very swiftly which increased the public debt by a third! It took Clinton nearly 7 years to raise his extra trillion in debt. In all, it took 12 years to double the immense debt to over $8 trillion, nearly all of this was done under Bush Jr’s reign of wars on terrorists. Today, we are entering Year Three of doubling the debt again. It has already risen by a trillion in just one year. And will add more than $2 trillion in 2009.
If we keep adding over $2 trillion a year, this will double the debt before 7 years is up. A law of nature is, nothing can double in size forever. And certainly, this is true of debts. Doubling debts are a red-hot warning sign. Especially if this is faster than doubling every 10 years!
Now for some subtraction: today’s debt is now $11,000,000,000,000 minus the 1950 Truman debt which is $257,000,000,000 we get a $10,743,000,000,000 differential. That is, a quarter trillion from eleven trillion means a differential of 10.7 trillion. One trillion is less than a tenth of the present deficit. So the old debt is a quarter of one tenth in size. See how tiny it is? The national debt has grown to be 44 times bigger than in 1950. This entire period spans only 58 years!
It grew from half a trillion in 1974, after the gold peg was dropped and after the Bretton Woods II Accords, to eleven trillion today. This is a period of only 33 years saw it grow 22 times bigger. The differential is still immense: $10,500,000,000,000.
In 1983, it grew from slightly more than a trillion to three trillion. That is 3.666 times bigger. Now, let’s go to the US Treasury, the place where we channel these immense debts to banks and hostile foreign powers seeking to destroy American power: http://www.treasurydirect.gov/govt/reports/pd/feddebt/feddebt_ann2008.pdf
Bureau of the Public
Debt’s Fiscal Years
2008 and 2007
Schedules of Federal
Debt Held by the Public
As of September 30, 2008, $5,210 billion, or 90 percent, of the securities that constitute debt held by the public were marketable, meaning that once the Federal Government issues them, they can be resold by whoever owns them. Marketable debt is made up of Treasury bills, Treasury notes, Treasury bonds, and Treasury Inflation-Protected Securities (TIPS) with maturity dates ranging from less than 1 year out to 30 years. Of the marketable securities currently held by the public as ofSeptember 30, 2008, $3,429 billion, or 66 percent, will mature within the next 4 years (see Figure 3). As of September 30, 2008 and 2007, notes and TIPS held by the public maturing within the next 10 years totaled $3,004 billion and $2,767 billion, respectively, an increase of $237 billion.
Debt held by the public primarily reflects how much of the nation’s wealth has been absorbed by the Federal Government to finance prior federal spending in excess of total federal revenues. As of September 30, 2008 and 2007, gross debt held by the public totaled $5,809 billion and $5,049 billion, respectively (see Figure 1), an increase of $760 billion. The borrowings and repayments of debt held by the public increased from fiscal year 2007 to 2008 due to an increase in short-term debt issuances by Treasury.
What do we see here? Look at that spike! Too the moon! We owe a LOT of short-term debts. The entities who needed this loot are easy to find: they are the gnomes on Wall Street and they ruined all the banks on earth and need to be bailed out. They also promised on a stack of Bibles to pay this back. If they can. And if they can’t an unknown amount of this lending will have to be paid for by the US taxpayers. The gnomes, of course, bend all their wills towards two things: cutting their taxes and getting bonuses no matter how badly they do their jobs.
U(AP) — Congressional leaders have killed a plan that would have forced financial institutions to compensate taxpayers if they paid their executives large bonuses after receiving federal bailout money.
The Senate had approved the repayment plan as part of an effort to crack down on Wall Street firms that paid huge bonuses — some in the millions of dollars — to their top executives even as they received taxpayer money in the federal bailout last fall.
The provision was removed as House and Senate negotiators hammered out final details of the $789 billion economic stimulus legislation this week.
A spokeswoman for Sen. Ron Wyden, D-Ore., said no one spoke against the amendment when Wyden introduced it on the Senate floor. “Somehow, it got stripped out behind closed doors,” said the spokeswoman, Jennifer Hoelzer.
Hang it all! This is what happens behind our backs when a bunch of slimy, stinky, nasty little gnomes get to operate behind the scenes and behind closed doors! This is treasonous! These same filthy little amoral monsters who birthed the Derivatives Beast and who destroyed all banks on this planet, want their loot! No matter what!!!
Everyone involved in this should be arrested for treason. Consorting with criminals who are abusing our economic system to enrich themselves via bribery and fraud should be arrested! And punished. Chinese-style.
A Chinese court has sentenced the former chairman of a state-owned holding company overseeing 30 airports, including Beijing International, to death for bribery and embezzlement amounting to more than 100 million yuan ($14.6 million), according to a report late Tuesday by the state-run Xinhua News Agency.The Jinan Intermediate People’s Court found Li Peiying, 59, former chairman and general manager of Capital Airports Holding Co., guilty of seeking or accepting bribes totaling 26.61 million yuan during an eight year period from 1995, the report said.Li was also found guilty of misappropriating 82.5 million yuan in funds for personal use during a three-year period from 2000.
That is under $15 million. Chump change for all the gnomes who have been steadily looting our banking systems and screwing up everything, royally. Quick trial and certain death await this guy. We should have an exchange program. China exports its criminal white collar guys and gets ours. This will put real fear into the many Madoffs we have littering the landscape.
I guess our Congress critters, many of whom at the very top are very rich and make oodles of money from the military/industrial complex, think they can get away with this total rip-off. Making loud noises about how they intend to rein in the greedy bastards and then, snickering as they undo all the public work, hoping no one will notice. I have long hated Pelosi and Reid. Many on the left, despise them.
But soon, the entire nation will hate them with greatest passion. Why are they protecting a bunch of rapists and robbers? Is it, perhaps, because they, themselves, are rapists and robbers? They are raping the US public by increasing our national debt while not punishing the very rich who refuse to pay taxes and want endless bonuses so they can own many castles and boats and jets while they live like kings and queens!
And what did Marie Pelosi and King Reid XVI say as they pulled this stunt? ‘Let them eat cake!’
In Fiscal Year 2008, the U. S. Government spent $412 Billion of your money on interest payments* to the holders of the National Debt. Compare that to NASA at $15 Billion, Education at $61 Billion, and Department of Transportation at $56 Billion.
The U. S. Dollar is being replaced by the Euro as the international trade standard. Could our large national debt be part of the reason? And now (2009) Congress is planning a program (Economic Stimulus) that will shift us from an “economic crisis” to a debt crisis! Are you ready? It’s your money Congress is spending!
Comparing this to the war money: $61 billion a year is about one third of what we are spending on our futile wars in Iraq and Afghanistan each year. Maybe we should demand Pelosi quit all her holdings in defense contracts and take up making profits from text books!
•Two parts of the federal government are running big surpluses.•We hit a .for debt as a percent of the economy (GDP)
The eye-popping $10 trillion gross national debt is owed by the “General Fund.” That’s the part funded by our income taxes. Half of that goes for the military and to pay interest on the debt. Fortunately, two huge parts of the budget, Social Security and Medicare, are running huge surpluses.
In the last
Borrowed by the – $ 10,770,031,766,323* $ 9,941,780 Income: Income taxes. Outgo: Defense 30%, Interest 19%, … Saved by the Social Security Trust + $ 2,398,149,383,909 $ 571,652 Income: FICA Payroll taxes. Outgo: Benefits and disability Saved by other Gov. Trust Funds + $ 4,823,871,265,377 $ 8,617,535 Income: FICA & gas taxes. Outgo: Medicare, highways, etc. Debt Held by the Public (net debt) – $ 5,946,160,500,945† $ 1,324,245 * Gross National Debt † Debt Held by the Public Debt Clock Source Data
U.S. Housing Plan to Fund Interest-Rate Reductions
The Obama administration’s housing plan will use government money to help reduce interest rates for struggling borrowers, while asking lawmakers to approve more ways to modify mortgages, according to a person briefed on the proposal.
U.S. Treasury Secretary Timothy Geithner intends to make the plan public in coming days, possibly within a week, said the person, who declined to be identified before the announcement. Some elements can begin immediately, and others must be considered by Congress.
Foreclosure filings in the U.S. surged 81 percent last year to 2.3 million, the highest on record, as home prices fell and tighter mortgage standards made it harder for homeowners to sell or refinance, according to RealtyTrac Inc. of Irvine, California, a provider of real estate data. The administration has pledged to use $50 billion to $100 billion for housing relief, taken from the $700 billion bank rescue package enacted last year.
This is NOT ‘government money.’ This is US taxpayer DEBT OBLIGATIONS. So, to help a bunch of people go deep into debt, buying grossly overpriced houses, we will take on even more debt? This $50-$100 billion will be given to banks to subsidize lending! We spend about half that much, on schools. Schools are PUBLIC, houses for individuals are PRIVATE. A huge, huge difference. Why should I pay taxes after I fought long and hard and suffered greatly, to get totally out of debt and pay off my mortgage. While others get to simply get a free deal at a cheap price which I have to subsidize? This is welfare. Of the worst sort. There is no need for me to put people into $600,000 homes when I lived in a tent for ten years so I could build a house with no loans at all.
Either we tax everyone right now to pay for these mortgages for private homes or we make everyone face reality: these houses never were worth so much, they were bloated in price due to too much lending to too many people who were way over their heads in financial troubles and should never had gotten these loans in the first place.
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