It's Official: US Debt-To-GDP Passes 100%

It's Official: US Debt-To-GDP Passes 100%

www.zerohedge.com...

With precisely one year left for the world and all of its inhabitants, at least according to the Mayans, not to mention on the day of the Winter Solstice, it is only fitting that US debt, net of all settlements for all already completed bond auctions, is now at precisely $15,182,756,264,288.80. Why is this relevant? Because the latest annualized US GDP, according to the BEA, was $15,180,900,000.00. Which means that, as of today, total US debt to GDP is 100.012%. Congratulations America: you are now in the triple digit "debt to GDP" club!

(naturally, this is using purely "on the books" data. If one adds the NPV of all US liabilities, and adjusts GDP for such things as today's housing contraction, then the magical triple digit threshold was breached long, long ago).

And here is the breakdown for the forensically inclined ones:

I. Total debt as of December 20: $15,131,979,264,288,80 (source):

II. Net cash settlement of all completed auctions: $50,777,000,000.00 (source):

III. Total GDP: $15,180,900,000,000.00 (source):

=> Total Debt/GDP= $15,182,756,264,288.80/$15,180,900,000,000.00 = 100.012%

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The bankers are mathematically set to begin the final drain of america. When debt is larger than gdp you have officially failed as an economic entity.

Well... it's about time...

reply to post by wisdomnotemotion


You said: "Congratulations America: you are now in the triple digit "debt to Gop" club!"

I noticed that you live in Singapore. Yes America is in tremendous debt...this the majority of the world knows.

However...it is disturbing to me that you are congratulating America on our debt....it seems to me that you are..smugly enjoying the fact that the United States is in such heavy debt.

reply to post by caladonea


First of all it isn't US debt. It is stolen money given to foreign bankers and then we are told to pay it back instead of who it was loaned to. All without our knowledge and consent. In other words we are the co-signer for someone else loans. The bought off president and congress signed the paper work for us. Now we have nothing and the banks have it all.

Originally posted by redrose123
reply to post by caladonea

 

First of all it isn't US debt. It is stolen money given to foreign bankers and then we are told to pay it back instead of who it was loaned to. All without our knowledge and consent. In other words we are the co-signer for someone else loans. The bought off president and congress signed the paper work for us. Now we have nothing and the banks have it all.

Exactly. We are not owners of this debt no matter what anyone says as far as voting those in responsible for bringing the country in debt. The government hasn't been working for the people for decades and if we have no real say in our direction we (or our daughters/sons/granddaughters/grandsons) should not be held accountable for this ponzi scheme called our monetary policy. We owe absolutely nothing, especially when considering that most of the numbers on their computer screens are made up, and for the fact that big business, wall street and international banking run our country.

I have close to no personal debt, own no credit cards and have no outstanding loans. I refuse to play their debt game and I'll be damned if I have to sacrifice my own real sweat, blood and tears for some fat cats pocket based on imaginary numbers that were used by corrupted public officials.

reply to post by redrose123


The money that was given to foreign banks mostly anyways wasn't from the "bailout" funds but rather through certain programs by the Federal Reserve that is not "debt" it's created monies. That which was delivered to foreign banks via the bailout funds is indeed debt, which we owe and pay for.

The USA however has been at 100+% of Debt to GDP for about 5 months now.

Its ok!
america is ready for a civil war.

what it should to is take over all banks and bussneses.
so they can make a clean start.

no one should have to pay the banks back.
we did this all to are selves.

Originally posted by Rockpuck
reply to post by redrose123

 

The money that was given to foreign banks mostly anyways wasn't from the "bailout" funds but rather through certain programs by the Federal Reserve that is not "debt" it's created monies. That which was delivered to foreign banks via the bailout funds is indeed debt, which we owe and pay for.

The USA however has been at 100+% of Debt to GDP for about 5 months now.

Can you explain what created monies is and how that is not debt. I was under the impression that all money currently created is now created as debt, in one way or another? Thanks.

Originally posted by caladonea
reply to post by wisdomnotemotion

 

However...it is disturbing to me that you are congratulating America on our debt....it seems to me that you are..smugly enjoying the fact that the United States is in such heavy debt.

Seriously?
With all that's going on you're most worried about how one guy views your country?

I think people are just glad to be able to point at the facts that they have been aware of for a long time and finally say "told you so" to all those who were ignorant enough to follow the "everything is fine!" propaganda.

I get fed up listening to a load of people suggesting that the US economy has a chance of climbing out of this hole. It's simply not possible.

reply to post by RogerT


Money created that is debt is monetized money, money the US creates for the purpose of being purchased as debt by its self. It's a way to keep inflation under control.. if you just print the money not as debt the money is circulated and needs to be redacted eventually, however the method of doing so is very difficult.

If you monetize, that is print for the sake of debt (buying your own debt) the Federal Reserve once the money matures destroys the principle and lends the interest to the Treasury. That cuts inflation by about 98% of the potential if the money was just created.

The money "created" by the Fed and given to international banks and our own banks are simply created, handed out, and retracted a short time later (most are 24hr loans) to cover balance sheets.

In other words, the Reserve can "print" as much as they want and it's not debt. When the Treasury places a Bond for sale and someone buys it, or money is created to buy it, that is called debt. Though monetized debt isn't really debt either .. since it's actually profitable for the government to do it.

Originally posted by buddha
Its ok!
america is ready for a civil war.

what it should to is take over all banks and bussneses.
so they can make a clean start.

no one should have to pay the banks back.
we did this all to are selves.

This is the purpose of all world wars, IMO. To "reset". Requires all those holding the debt be destroyed along with all the records. The bankers are so smug thinking they have us now. They actually think that the govts. of the world will not kill them all. All the while the govts used them as pawns, knowing that eventually they would have to kill them all once the ponzi scheme of money as debt spiralled too far.

so the end solution is inevitable war because the debt is too much to pay??

Does this mean that the US Dollar has finally collapsed unofficially?


I wonder how long it will take to hit the mainstream if that is the case. Anyone else have any data to show other countries who have exceeded the 100% debt to GDP ratio?

reply to post by yourmaker


No.. it means inevitable war because that's the only industry we have left we have not outsourced.

reply to post by InFriNiTee

I'm sure about one thing. I probably don't understand a lot with economics, but does this mean that the US Dollar has finally collapsed unofficially?

Not at all.. just means we have a lot of debt and little revenue. The USA has monetization capabilities that would allow us to use inflation to keep debt in control probably up to 300-400% of GDP.

Wow that's a lot of debt! I wonder how much interest we are paying on all of that...

reply to post by GuruAskew



Hmm looks like the US pays about $616 million per day on interest, of which about $74 million goes to China.

www.politifact.com...

reply to post by Rockpuck

The USA has monetization capabilities that would allow us to use inflation to keep debt in control probably up to 300-400% of GDP.

That is only true so long as the US Dollar is the International Reserve Currency. If we lose that distinction, our debt will become totally unmanageable overnight.

Unfortunately, the currency in demand for oil by OPEC is the defacto IRC. Since OPEC and allied oil-producing countries are presently dropping or considering dropping the dollar, our ability to retain the dollar as the IRC is somewhat questionable. Hence, an upcoming war is also inevitable against the single most uncompromising country when it comes to depegging from the dollar: Iran.

You don't really think we got rid of Saddam because he threatened George Bush?

You don't really think we had nothing to do with the protests all across the Middle East?

You don't really think Ghadaffi was taken out because he was a bad man?

You really don't think we just walked out of Iraq because of a three-year-old campaign promise? We got most of our troops out of the way of those missiles that are warming up.

The timing of all this is just too coincidental.

TheRedneck

Originally posted by TheRedneck
reply to post by Rockpuck

The USA has monetization capabilities that would allow us to use inflation to keep debt in control probably up to 300-400% of GDP.

That is only true so long as the US Dollar is the International Reserve Currency. If we lose that distinction, our debt will become totally unmanageable overnight.

Unfortunately, the currency in demand for oil by OPEC is the defacto IRC. Since OPEC and allied oil-producing countries are presently dropping or considering dropping the dollar, our ability to retain the dollar as the IRC is somewhat questionable. Hence, an upcoming war is also inevitable against the single most uncompromising country when it comes to depegging from the dollar: Iran.

You don't really think we got rid of Saddam because he threatened George Bush?

You don't really think we had nothing to do with the protests all across the Middle East?

You don't really think Ghadaffi was taken out because he was a bad man?

You really don't think we just walked out of Iraq because of a three-year-old campaign promise? We got most of our troops out of the way of those missiles that are warming up.

The timing of all this is just too coincidental.

TheRedneck

I concur with your excellent and truthful view points. Prep ourselves - it will be long, noisy and tough situations ahead.

We're all watching how the US government plays its big circus of financial manipulations and military killings.