US Debt to Rise to $19.6 Trillion by 2015

Yes, we may be facing a deficit to be that big by 2015 that is just a few years ahead and with the HCR I expect much more.

Who is going to pay for that deficit? you me and the generations to come.

By 2015 the net public debt will rise to an estimated $14 trillion, with a ratio to GDP of 73 percent, the Treasury report said.

The economy is not going to get any better, the job deficit is probably to get worst, and all that is there to be is taxes and more taxes.

The U.S. debt will top $13.6 trillion this year and climb to an estimated $19.6 trillion by 2015, according to a Treasury Department report to Congress.
The report that was sent to lawmakers Friday night with no fanfare said the ratio of debt to the gross domestic product would rise to 102 percent by 2015 from 93 percent this year.

"The president's economic experts say a 1 percent increase in GDP can create almost 1 million jobs, and that 1 percent is what experts think we are losing because of the debt's massive drag on our economy," said Republican Representative Dave Camp, who publicized the report.

Midterm elections to come and if anybody think that a new Republican Congress and President will fix the problem then you are just dreaming.

Where the money has gone? or is still going?

First in the list, Bailouts to Wall street, then the wars in Afghanistan and Iraq.

www.cnbc.com...

What a joke this is. With the type of accounting they're using I bet the USA is already unofficially above a 100% Debt:GDP ratio.

Midterm elections to come and if anybody think that a new Republican Congress and President will fix the problem then you are just dreaming.

Beyond me why you blokes even think they could do a thing. Bernanke and the Fed is the one with the problem. Congress is just useless and doesn't control spending or monetary policy anymore.

I predict we'll see interest rates in the US rise after the elections in November. But there will be no change in the status quo until then.

[edit on 9-6-2010 by belial259]

reply to post by belial259


I am afraid you are very right, our GDP is already beyond 100% and has been like that for a long time, is just that in America we have a corporate media and a corporate run government that sugar coat the GDP figures and everything else and since the Bush administration it has gotten worst.

We can no trust numbers coming from the government anymore.

The deeper the debt, the harsher the austerity that follows, and the more angry the response from the general public.

I am of the opinion that we are circling the drain right now economically.. and unless some miracle comes along, we are all stuffed....

reply to post by thoughtsfull


Well economist are warning that the global economy can not longer sustain welfare nations any longer.

Just look at the downfall of economies around the world, look at the US, US government is now the biggest employer in the nation and still people depend on welfare to put food on the table.

How can nations get off the welfare state they have created when is not jobs to support a middle class that is the one to generate the necessary incomes for the nations to thrive.

But is one sector that is getting richer and profiting handsomely and that is the elites that government the banking system.

reply to post by marg6043


the way I see it is that as the private sector bled jobs the public sector picked them up... and no new jobs or industry came along to save the day.. no one gov has invested in new jobs or industry.. most nations infrastructure is begining to fail.. or on the route to failing..

The public sector needs to be trimmed down, and yet without jobs to go to, what happens to these people? again that comes back to the lack of new jobs and industry.

It appears to me, the creation of new jobs and industry is more or less falling under the term of being protectionist.. and so isn't going to happen. each nation blocking the other in this regard.. all very negative reinforcement which in my opinion is the one that is keeping us circling the drain.

And as we continue down this route I can't see anyong other recourse but invoke protectionism or we'll all implode. the problem is the way the deck is stacked, once one of the larger nations starts to implode so will the others..

Even if we enter into protectionist mode, it is (in my opinion) to late in the day to make a difference to the debt contagion that is lurking out there ready to consume us all.

reply to post by marg6043


And taxes and more taxes are just a form of control to keep the poor even poorer and take their money because the people in charge already know what I'm about to say. It has nothing to do with paying off the national debt, because the national debt can't be paid because that much money doesn't exist!

Anytime someone mentions raising taxes to pay the national debt just let them know it's pointless. Might as well lower taxes instead because the debt will never and can never be paid off that way.

That's the joke of it all, the M2 money supply is now only right under 9 trillion dollars and when you add the M3 money supply into it, it's just a little less than the 13 - 14 trillion we owe on the debt now let alone what we will owe by then. In other words, paying off the national debt would take EVERY SINGLE US DOLLAR IN EXISTENCE and then we would still OWE SOME!

The reason is because the way our money is created. Fractional reserve banking. When a bank takes out a loan from the reserve it's considered demand for the money. How much money is worth depends on how much demand there is for it. But you have to pay back interest on the loan. But the money to pay the interest IS NEVER CREATED! That means you always owe them more back than even exists.

The only way to fully pay back the loan is for someone else to come along and borrow even more money. Hopefully you will be able to get some of that money to pay back your loan. BUT THEY STILL OWE THEIRS. The only solution is hopefully a third person will come along and so on and so on. That's where our money comes from.

It never ends. But the whole time the debts only get bigger. Someone always owes more money than the last guy did. The government is one of those guys. The only way they can pay that debt back is if someone else comes along and borrows more than 19 trillion dollars, and the US government gets their hands on some of that. That's not likely to happen anytime soon.

As for paying the national debt? Well the US is broke. It can't pay it. But we have a fiat currency which means it's basically just paper. There's two ways to print that paper.

One is to take out another loan and use it to pay back the first loan. But that doesn't get us anywhere. If we take out a $19 trillion loan to pay off our debt then guess what? We still owe somebody $19 trillion!

The other way, is just to print more money. But guess what? That causes inflation because every time you print money, each dollar is worth less. It's supply and demand. The easier money is to come by, the less it's worth. The more money there is, the easier it is to come by. Same reason nobody wants to pick up a penny. It ain't worth nothing because you can find those everywhere right?

In the last two years alone, from the all the money the government has printed on their presses for the bailouts and things like that, the dollar's monetary base has increased almost 150% in two years! Luckily for us we were in a period of deflation. But eventually that little printing they did might just cut the value of the dollar in half or more and if so we can expect prices on EVERYTHING to at least triple. They've printed so much money that the reserve has said they're not even going to report how much they printed anymore so nobody KNOWS!

In fact if we don't see prices triple, that's even worse, because that means we're still having heavy deflation which means the economy isn't recovering like the news media is telling us it's going to. Either way, recovery or not, if you're poor, you're screwed.

If it's deflation you won't be able to get a job, and if the economy inflates it won't matter cause your paycheck won't pay the rent.

The whole system is screwed and the only way to get out of the national debt is to change our entire monetary system, because as of now almost all the money in existence is LOANED money. There is no free money to pay off the loan. That means the only way to pay the national debt is to print so much money the US dollar isn't worth anything anymore, or borrow more money! It's friggin insane.

[edit on 9-6-2010 by tinfoilman]

[edit on 9-6-2010 by tinfoilman]

And 19.6 trillion is if ALL GOES WELL... if no new war starts, if Europe doesn't collapse, if the US dollar doesn't collapse, if the tax income stay the same, if the interest on the debt stay the same, another big bank collapse or if the GDP doesn't take a massive drop...

Any of those scenario happen, it's BYE BYE.

19.6 trillion in debt in 2015 is HIGHLY OPTIMISTIC.

You can probably add a few trillions to that... and drop the GDP by at least 10% from now till 2015.

That would mean debt to GDP ratio of 150% by 2015.

But of course the government will TAX PEOPLE TO DEATH to ``save the country`` HAHHAHAHA... being slave to the banks will SAVE YOU of course...

The ONLY THING that will change this course is a RESTORATION of a constitutional government.

[edit on 9-6-2010 by Vitchilo]

Or maybe the big rats in the banking system and corporate America should give up their pensions and stocks and benefits and give them to the government help the deficit, right?



I am only dreaming, I wonder when US will start eying the pensions, SS and Medicare next.

Not that they already have something in the table for that, but as usual is to benefit Wall street.

What I find interesting is that no one speaks of the interest being levied on these figures? is the interest seperate or included?

If it is NOT added, what will the real debt look like and how on earth can you ever pay that down?

reply to post by thoughtsfull


Well the real debt is worst, much worst but is not taken into consideration because each individual state contributions to it and the revenue from state taxes.

Remember each state have its own deficits and taxes.

We are talking only about the federal government deficit, so if we are to add all the states, lo and behold, we are far from been a nation that can sustain anything anymore.

The good news: This 2015 prediction is totally bogus.
The bad news: It's an accurate 2011 prediction.

Originally posted by marg6043
reply to post by thoughtsfull

 

Well the real debt is worst, much worst but is not taken into consideration because each individual state contributions to it and the revenue from state taxes.

Remember each state have its own deficits and taxes.

We are talking only about the federal government deficit, so if we are to add all the states, lo and behold, we are far from been a nation that can sustain anything anymore.

hence why I can't help but feel we are circling the drain.. the little joke note left for the incoming British gov saying that there is no money left has an awful ring of truth around it... For me that is the most honest thing that has come from my Gov...

reply to post by TheComedian


Yes, 2011 is went the new increases of taxes are to be expected to support HCR.

That is coming our way.

reply to post by thoughtsfull


The only reason US and UK has not imploded yet, is because they are oil producing countries.

reply to post by marg6043


Hyper inflation by 2015.

US will either collapse, or a WWIII is imminent by 2015, which will destroy half of the world livelihoods.

Yes, to understand the full impact read Jim Marr's "Trillion Dollar Conspiracy" and Richard Sauder's "Hidden In Plain Sight".

Put down that remote, that love novel and start to reseach.

What's actually going on is far more earth shattering than any fictional novel.

But it's not real money. It's just ones and zeros in a data base, not backed up by any tangible assets or commodities. Eventually adjustments will be made with the click of a mouse. squeek squeek....

It's a disgrace that China, as largest bond/treasury holder, continues to trade in worthless US dollar.

The entire world is happily watching USA committing fraud (by printing endless paper money). Most probably, almost all countries doing the same thing to self-promote.

The victims = We, the common people who have to work like hell just to earn a loaf of bread every day.

Frankly, I wonder if we will be here in our present form as the USA in 2015. I just finished an article on the coming hyperinflation due to the debasing of our dollar by the US Treasury and the Fed, and folks...it ain't looking good.

Basically, if you taxed 100% of the money made in this country...the GDP..it would not pay off the debt owed. Other countries know this, or are coming to grips with it and will begin to get rid of our valuless fiat money that we are printing from thin air. This will inturn drive down the value of the dollar even more....

I never thought I would long for the good ol' days of Clinton.

As the dollar devalues, commodity prices will rise....the article was written in 2010, and current stats only confirm what it said. Get ready for weekly and then daily price increases...bread, gas, basic staples, and animal feeds.

We are basically reliving the 1920s and 30s all over again... and we know how that ended.