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US To End 2010 With $13.9 Trillion In Debt, Total Debt Incurred Since Great Financial Crash: $4.4 Tr

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posted on Dec, 19 2010 @ 05:29 AM
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US To End 2010 With $13.9 Trillion In Debt, Total Debt Incurred Since Great Financial Crash: $4.4 Trillion


www.zerohedge.com

Now that all recent bond auctions have settled, and with no further bond auctions scheduled until the rest of the year, we can look at the final tally of US total debt: the number - $13,879,785,000,000. This represents a $1.568 trillion increase in total US debt held by the public for 2010, and $4.388 trillion since the collapse of Lehman. This is in essence the cost to US taxpayers to keep the financial system solvent, as the US has become the biggest marginal leveraging actor in the world, with everyone else, notably US consumers, and Europe, doing all they can to strip as much debt as they
(visit the link for the full news article)


Related News Links:
forerunner.typepad.com
beforeitsnews.com




posted on Dec, 19 2010 @ 05:29 AM
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Shut down US bases in Iraq.
Bring home American soldiers.
Impeach Bush.
Protect US soil, border, air and sea.
Motivate and aspire citizens into science research and development.
Shut down Federal Reserve. Bring back gold standard
Redesign financial system.
With new inventions on the market, more jobs created.

Without the steps mentioned above, US financial wounds can never end.

www.zerohedge.com
(visit the link for the full news article)



posted on Dec, 19 2010 @ 06:21 AM
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reply to post by wisdomnotemotion
 


You want us to impeach Bush?



posted on Dec, 19 2010 @ 06:27 AM
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The First Stage of Inflation Has Already Hit, Next Up Is the Currency Collapse


www.zerohedge.com...


One of the biggest misconceptions about inflation is that the US Dollar needs to collapse in order for inflation to occur. While a currency collapse often accompanies periods of heightened inflation, this is not necessarily true. Case in point, the US Dollar actually rallied this year despite commodity prices exploding higher



As you can see, we’ve had an inflationary spike in commodity prices in 2010 despite the US Dollar rallying 2% during that time. Indeed, the inflation the US is experiencing today is rather unusual as it has been accompanied by deflation at the same time. As I write this, the US is experiencing deflation in housing prices and incomes combined with inflation in the cost of living (energy, food, commodity prices).

Thus, we see deflation and inflation occurring simultaneously. It’s not surprising as the Fed’s primary moves since the Financial Crisis hit are:
1) Buying debt
2) Pumping money into the banks

The first move was designed to attempt to stop debt deflation. As I’ve noted in other articles, the Fed is failing miserably at this (bonds are tanking).

The purpose of the Fed’s secondary move was to shore up the banks’ balance sheets (with hundreds of trillions in derivative exposure and off-balance sheet toxic debt, most US banks are insolvent). Indeed, the monetary base has more the doubled since the Financial Crisis began.





What you’re looking at is the Fed producing $1.2 trillion of money out of thin air. The reason we haven’t yet seen inflation in the form of a US Dollar collapse is because:

1) Europe is imploding pushing the US Dollar up
2) Banks are sitting on this money (not lending) so it’s not getting into the economy

Regarding #2, the below chart explains everything:





The above chart depicts the amount of money US banks are sitting on in excess of what the Fed requires them to hold (all banks must hold a certain amount of cash in reserves).

As you can see, up until early 2010, US commercial banks were sitting on nearly $1.2 trillion in excess reserves. So in plain terms, the Fed’s money pumping (at least the money we know of) has simply been sitting on banks’ balance sheets. In other words, banks aren’t lending it out, so it’s not getting into the economy (yet).

This is why the US Dollar has yet to truly collapse: the Fed’s money pumps have yet to get into the economy. Instead, the banks are just sitting on them. However, this doesn’t account for the Fed money pumps that are non-public.

It’s no secret that the Fed has been pumping hundreds of billions of Dollars to financial firms without the public’s consent. According to the Neil Barofsky, Special Inspector General of the TARP program, the Wall Street bailout could end up costing the US up to $23 trillion before it’s over.

Obviously a heck of a lot of money has been flowing into Wall Street that we don’t know about. And Wall Street has done what it does best, pour this money into the financial markets… which has driven stocks, commodities, and risk assets in general THROUGH the roof. This is also why stocks and commodities have displayed such an unusually high correlation since the Fed started its QE 1 program in March 2009: it’s all about Wall Street putting some of the Fed’s money pumps into the markets.





Thus today in the US we have debt and housing deflation… combined with cost of living and asset price inflation.

However, I want to stress that the inflation we are seeing today is just a taste of what’s to come in the next year. Indeed, our current inflation is all about loose money flowing into commodities, pushing up the cost of living. This is the financial speculation form of inflation and is just a precursor to the next, FAR MORE serious stage of inflation: the currency collapse.

Yes, deflationary forces remain a risk in the near-term given the systemic risk in place today (we never cleaned up the 2008 mess properly). But ultimately inflation is the end game. And when it hits in the form of currency collapse it will be fast AND violent.



posted on Dec, 19 2010 @ 08:31 AM
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Nothing to add except S & F !

This thread / source is presented in a manner a layman like me can understand without all the jargon and hyperbole and drama.

Thanks so much.

edit on 19-12-2010 by kinda kurious because: typos - spacing

edit on 19-12-2010 by kinda kurious because: see above



posted on Dec, 19 2010 @ 09:39 AM
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reply to post by wisdomnotemotion
 


Actually, it is much, much worse... $200 Trillion or $200,000,000,000,000. The scary actual U.S. government debt.
I hate to say it but $13.9 Trillion, as bad as it sounds, sounds more like a PR number to me.
edit on 19/12/2010 by Iamonlyhuman because: (no reason given)



posted on Dec, 19 2010 @ 09:43 AM
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Originally posted by Iamonlyhuman
reply to post by wisdomnotemotion
 


Actually, it is much, much worse... $200 Trillion or $200,000,000,000,000. The scary actual U.S. government debt.


The debt is whatever the central banks decide it is. The thing about fiat money is that its fluid and dynamic. Its value is not concrete. Its ultimately whatever the makers of the money and holders of the debt decide it is. Its all subjective, there isn't any objective value at all.



posted on Dec, 19 2010 @ 09:46 AM
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Originally posted by MikeboydUS
The debt is whatever the central banks decide it is. The thing about fiat money is that its fluid and dynamic. Its value is not concrete. Its ultimately whatever the makers of the money and holders of the debt decide it is. Its all subjective, there isn't any objective value at all.


Which is exactly why I like the calculation method that leads to the answer of $200 Trillion debt. It is simple and straightforward. Expenditures minus Revenue minus = Debt



posted on Dec, 19 2010 @ 10:37 AM
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Does it really matter?
It is a debt that continuously issued to the people of the US,.
and really could be paid off in no time if it were the choice of the
borrowers. I claim no responsibility for any of this debt and I always pay my bills.
Congress and Co. are the real owners of this debt. they make the choices to keep us
in this perpetual decline by presenting the illusion of debt.
It is a nice arrangement by the world banks in order to collect the interest.
If we had someone in real control of the US financial system, that wasnt corrupt and had
the honest interests of the people, then for starters we'd stop giving moneys to other countries.
edit on 19-12-2010 by Lil Drummerboy because: because we have this option



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