US has now pledged $12.8 trillion, nearly equaling entire US GDP

Bloomberg Article

March 31 (Bloomberg) -- The U.S. government and the Federal Reserve have spent, lent or guaranteed $12.8 trillion, an amount that approaches the value of everything produced in the country last year

The money works out to $42,105 for every man, woman and child in the U.S. and 14 times the $899.8 billion of currency in circulation. The nation’s gross domestic product was $14.2 trillion in 2008.

This is a scary thing people. What is scarier is the spending is not done. This is why other countries are starting to be wary of buying our debt and have no faith in the US dollar anymore.

Whether you believe conspiracy theories or not, we all should think about why this new Administration would knowingly put us in this position. In 2+ months, Obama's administration has tripled our deficit. The spending isn't near over and without our consent, we now each owe over $42,000. And your children do.

Ladies and gentlemen, we are on the brink. The question is, the brink of what? None of the options are good ones.....

That and the national debt is estimated to be around 21 trillions within 10 years... by the own government numbers... and that's if you are paid back the 12 trillions + if the US dollar DOESN'T collapse.

Yes, if I would be in the US, I would either prepare to live in a third world country and to prepare for revolution, or move OUT of the country.

I'm in Canada and I don't know yet if I'm staying or if I'm getting out of here. Because we'll be hurt about 60% of what you will suffer... 90% of our exports depends on you and 60% of our GDP is exports.

Whether you believe conspiracy theories or not, we all should think about why this new Administration would knowingly put us in this position. In 2+ months, Obama's administration has tripled our deficit.

Could you explain your statement there? What are you basing those numbers on and how can you claim that this new government has tripled the deficit when the only spending bill it's passed so far is the stimulus bill for something under $800 Billion?

Originally posted by mythatsabigprobe

Whether you believe conspiracy theories or not, we all should think about why this new Administration would knowingly put us in this position. In 2+ months, Obama's administration has tripled our deficit.

Could you explain your statement there? What are you basing those numbers on and how can you claim that this new government has tripled the deficit when the only spending bill it's passed so far is the stimulus bill for something under $800 Billion?

Look up the numbers, the deficit was roughly $1 trillion when he took office. Between stimulus and additional funds spent by the treasury, and Federal Reserve you get to a big number. Add in the proposed spending from Obama and the number is higher than 3 times what Bush left.

Those numbers I stated weren't my opinions. Those are the cold hard facts. Same as the fact that Obama in his first 2 months in office proposed more spending than every President before him COMBINED. Look, this is not an anti-Obama rant. If his policies work, great. But, in my opinion, these economic policies are suicide. He's a spender, and no one is denying that. You have to decide on your own if you think that a large central govt with its hands in every industry, running healthcare, etc, is a good thing. If you do, so be it. But to me its like we have a morbidly obese person, and they have to get healthy, so they start eating even more and even worse food..... What's going to happen to that obese person?

reply to post by Vitchilo

Yes, if I would be in the US, I would either prepare to live in a third world country and to prepare for revolution, or move OUT of the country.

I wouldn't be so quick to think this is isolated to the US. What do you think will happen to the rest of the world if the US collapses? If AIG is too big to fail, the US is even more so. The US may be on the brink of economic collapse but its collapse will bring a lot of the world down with it.

I wouldn't be so quick to think this is isolated to the US. What do you think will happen to the rest of the world if the US collapses? If AIG is too big to fail, the US is even more so. The US may be on the brink of economic collapse but its collapse will bring a lot of the world down with it.

I totally agree. There's not a lot of destinations to go to... I have few destinations... Costa Rica, Indonesia (if I can buy an island), NZ, Switzerland....

The fact is that there will be major shocks, and free trade agreements means it's impossible to do protectionism, so after the US collapses, if it's stay under trade laws, can't rebuild itself, and if it goes under IMF control, it'll be hell.

The epicenter is the US, it will take longer to recover in the US. The best estimates are 5 years, if we start solving the real problems NOW. If we continue down this path, 10-15 years... maybe it won't be able to ever recover to 2000s standarts of living in our lifetime.

After the collapse, if we want to come back from the dead, we need to do protectionism and face the backlash from the international globalist community...Obama won't do that. So let's hope the collapse happens BEFORE 2012 and we can have a competent REAL leader in 2012 so we can come back, otherwise it'll be third world status. Soviet Russia was in third world status from 1917 to 1989... the US could be the same if we continue down this path.

[edit on 31-3-2009 by Vitchilo]

A lot of that money is in gurantees and also a lot is recoverable. Heck bank of america just paid them a 403 quarterly dividend on the money that was loaned to them. At the end of the year they will have paid the govenment over 2 billion in dividend payments alone. Not to mention they still have to pay back every cent the government lent them. This 12 trillion figure is a worse case scenario. That is what they would spend if all the banks went bankrupt and none of the stimulus worked. And if that were the case it wouldnt matter how much the debt would be because then the USA would be bankrupted and would default on all their loans.

Originally posted by johnny2127
Look up the numbers, the deficit was roughly $1 trillion when he took office. Between stimulus and additional funds spent by the treasury, and Federal Reserve you get to a big number. Add in the proposed spending from Obama and the number is higher than 3 times what Bush left.

I think you need to look at the actual numbers and re-evaluate your claim. The new Treasury has only allocated a portion of the money originally granted to Paulson, so that's not money you can attribute to this government. Fed Reserve spending is also not calculated in either the past or present government's deficits. The proposed budget is for 2010, and is only marginally higher than the current 2009 budget which was set in April last year at $3.2 Trillion. The current 2009 deficit is approx $1.74 Trillion and the projected deficit for 2010 is $1.2 Trillion (a reduction of more than half a trillion dollars). There was no tripling of the deficit in the last two months.

I wonder when the thread will start about taking bets/guesses when the dollar/US will collapse..

Originally posted by Estharik
I wonder when the thread will start about taking bets/guesses when the dollar/US will collapse..

There will be no collapse. The fed has was to prevent that from happening.

Originally posted by mythatsabigprobe

Originally posted by johnny2127
Look up the numbers, the deficit was roughly $1 trillion when he took office. Between stimulus and additional funds spent by the treasury, and Federal Reserve you get to a big number. Add in the proposed spending from Obama and the number is higher than 3 times what Bush left.

I think you need to look at the actual numbers and re-evaluate your claim. The new Treasury has only allocated a portion of the money originally granted to Paulson, so that's not money you can attribute to this government. Fed Reserve spending is also not calculated in either the past or present government's deficits. The proposed budget is for 2010, and is only marginally higher than the current 2009 budget which was set in April last year at $3.2 Trillion. The current 2009 deficit is approx $1.74 Trillion and the projected deficit for 2010 is $1.2 Trillion (a reduction of more than half a trillion dollars). There was no tripling of the deficit in the last two months.

So if those aren't calculated in then what you are saying is its worse than the reported numbers. Thanks for making my argument for me

reply to post by mythatsabigprobe


I have been talking about this one for two days already, let me show you.

In one year between bush and Obama 10 trillion dollars has been allocated and added to the national deficit.

During Bush 4 trillions were added, under Obama in two month already 6 trillion, spend so far 2.6 trillion and the rest will be leached billions at a time.

More information here.

In just over one year the government has put itself on the hook for up to $10 trillion in guarantees to the financial sector – of which $2.6 trillion has already been spent. We need to make sure this money is working for the right cause.

Economy rescue: Adding up the dollars
The government is engaged in an unprecedented - and expensive - effort to rescue the economy. Here are all the elements of the bailouts.

money.cnn.com...

The site has a brake down of by month of how much money has been allocated, how much has been issued and how much more it will be given.

If you look closely you will see that some allocations are unlimited and some already in the trillions.

sorry to say this but yes under two months of Obama already 6 trillions are been added to the American debt and counting.

As we know is more than 50 trillions still on bad debt and as high of 200 trillion of hidden debt.

Let see how much more the Treasury printing presses can keep working before it burns the entire nation.

What the governmetn has been doing so far is nothing but issuing more debt to the tax payer at an unprecedented rate with not accountability and Obama now is just as happy as bush was to do it.

Originally posted by johnny2127

Originally posted by mythatsabigprobe

Whether you believe conspiracy theories or not, we all should think about why this new Administration would knowingly put us in this position. In 2+ months, Obama's administration has tripled our deficit.

Could you explain your statement there? What are you basing those numbers on and how can you claim that this new government has tripled the deficit when the only spending bill it's passed so far is the stimulus bill for something under $800 Billion?

Look up the numbers, the deficit was roughly $1 trillion when he took office. Between stimulus and additional funds spent by the treasury, and Federal Reserve you get to a big number. Add in the proposed spending from Obama and the number is higher than 3 times what Bush left.

Those numbers I stated weren't my opinions. Those are the cold hard facts. Same as the fact that Obama in his first 2 months in office proposed more spending than every President before him COMBINED. Look, this is not an anti-Obama rant. If his policies work, great. But, in my opinion, these economic policies are suicide. He's a spender, and no one is denying that. You have to decide on your own if you think that a large central govt with its hands in every industry, running healthcare, etc, is a good thing. If you do, so be it. But to me its like we have a morbidly obese person, and they have to get healthy, so they start eating even more and even worse food..... What's going to happen to that obese person?

The Gross national debt was actually 10.2 trillion when Pres Osama took office....

It seems like you're all getting confused about the budget deficit and the national debt. The national debt is approaching $11 trillion, up from $5 Trillion in 2000, and the budget deficit has been growing annually from 2000 when it was -$200 Billion to 2009 where it's now +$1.75 Trillion. That's ONE year's deficit, not all the years combined. Obama has NOT tripled the deficit OR the national debt. To triple the current deficit would take a budget of $7.75 Trillion and to triple the national debt would take spending of more than $33 Trillion.

Those numbers I stated weren't my opinions. Those are the cold hard facts. Same as the fact that Obama in his first 2 months in office proposed more spending than every President before him COMBINED.

I'm fascinated to know how you could ever believe something that ridiculous?