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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.
There are, however, some experts who estimate that the actual figure is larger still. One of them is Richard W. Fisher, the head of the Federal Reserve Bank of Dallas, who said in a speech before the Commonwealth Club of California: Add together the unfunded liabilities from Medicare and Social Security, and it comes to $99.2 trillion over the infinite horizon. Traditional Medicare composes about 69 percent, the new drug benefit roughly 17 percent and Social Security the remaining 14 percent.
Originally posted by David9176
Our debt is higher than the ENTIRE worlds GDP for 1 year which i believe is somewhere around 74 trillion.
You know I actually heard today it was really 78 trillion but ... Don't worry guys. It will be alright. Nothing to fear. Nothing to see here.
David, you are doing a wonderful job, thanks for daring to keep bringing awareness on the mess that we now call our government and our nation. Is nice to see somebody with such passion about our nations incoming demise . .
"A failure rate of 10pc would lead to the collapse of the Austrian financial sector," reported Der Standard in Vienna. Unfortunately, that is about to happen.
The European Bank for Reconstruction and Development (EBRD) says bad debts will top 10pc and may reach 20pc. The Vienna press said Bank Austria and its Italian owner Unicredit face a "monetary Stalingrad" in the East.
Almost all East bloc debts are owed to West Europe, especially Austrian, Swedish, Greek, Italian, and Belgian banks. En plus, Europeans account for an astonishing 74pc of the entire $4.9 trillion portfolio of loans to emerging markets.
They are five times more exposed to this latest bust than American or Japanese banks, and they are 50pc more leveraged (IMF data).
Whether it takes months, or just weeks, the world is going to discover that Europe's financial system is sunk, and that there is no EU Federal Reserve yet ready to act as a lender of last resort or to flood the markets with emergency stimulus.
The sums needed are beyond the limits of the IMF, which has already bailed out Hungary, Ukraine, Latvia, Belarus, Iceland, and Pakistan – and Turkey next – and is fast exhausting its own $200bn (€155bn) reserve. We are nearing the point where the IMF may have to print money for the world, using arcane powers to issue Special Drawing Rights.
Europe is already in deeper trouble than the ECB or EU leaders ever expected. Germany contracted at an annual rate of 8.4pc in the fourth quarter.
If Deutsche Bank is correct, the economy will have shrunk by nearly 9pc before the end of this year. This is the sort of level that stokes popular revolt.
The implications are obvious. Berlin is not going to rescue Ireland, Spain, Greece and Portugal as the collapse of their credit bubbles leads to rising defaults, or rescue Italy by accepting plans for EU "union bonds" should the debt markets take fright at the rocketing trajectory of Italy's public debt (hitting 112pc of GDP next year, just revised up from 101pc – big change), or rescue Austria from its Habsburg adventurism.
So we watch and wait as the lethal brush fires move closer.
If one spark jumps across the eurozone line, we will have global systemic crisis within days. Are the firemen ready?
All world currencies are declared WORTHLESS. A new currency called the YYR - Yuan, Yen and Indian Rupee - will be printed and issued. No coins. All paper. The NEW YYR will be initially valued at 50 YYR per gram of .999 gold. This Is for a reference point only. Specie will not be legal tender. Only YYR will be legal tender.
Originally posted by dean007
i think what there doing now is just running up the credit before they declare bankruptcy
just like when a person declares bankruptcy
and goes and buys a new car before same kinda of thing
the government has no intention of paying any of the money back
i mean do the math its cheaper to just declare war on who we owe alot cheaper