Another One Trillion Dollars ($1,000,000,000,000) In Debt

Did you know that the U.S. national debt has increased by more than a trillion dollars in just over 12 months?  On September 30th, 2012 the U.S. national debt was sitting at $16,066,241,407,385.89.  Today, it is up to $17,075,590,107,963.57.  These numbers come directly from official U.S. government websites and can easily be verified.  For a long time the national debt was stuck at just less than 16.7 trillion dollars because of the debt ceiling fight, but now that the debt ceiling crisis has been delayed for a few months the national debt is soaring once again.  In fact, just one day after the deal in Congress was reached, the U.S. national debt rose by an astounding 328 billion dollarsIn the blink of an eye we shattered the 17 trillion dollar mark with no end in sight.  We are stealing about $100,000,000 from our children and our grandchildren every single hour of every single day.  This goes on 24 hours a day, month after month, year after year without any interruption.
Over the past five years, the U.S. government has been on the greatest debt binge in history.
The U.S. national debt is now 37 times larger than it was 40 years ago, and we are on pace to accumulate more new debt under the 8 years of the Obama administration than we did under all of the other presidents in U.S. history combined.

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From The Economic Collapse Blog:

Unfortunately, most Americans don’t realize just how bad things have gotten because the true budget deficit numbers are not reported on the news.  The following is where the U.S. national debt has been on September 30th during the five years previous to this one…

09/30/2012: $16,066,241,407,385.89

09/30/2011: $14,790,340,328,557.15

09/30/2010: $13,561,623,030,891.79

09/30/2009: $ 11,909,829,003,511.75

09/30/2008: $10,024,724,896,912.49

The U.S. national debt is now 37 times larger than it was 40 years ago, and we are on pace to accumulate more new debt under the 8 years of the Obama administration than we did under all of the other presidents in U.S. history combined.

Of course all of the blame can’t be placed at the feet of Obama.  During the last two elections the American people have given the Republicans a solid majority in the U.S. House of Representatives, and the government cannot spent a single penny without their approval.

Unfortunately, House Speaker John Boehner and the Republicans that are allied with him have repeatedly turned their backs on the people that gave the Republicans the majority and they have authorized trillions of dollars of new debt which will be passed on to future generations of Americans…

Since John Boehner became speaker of the U.S. House of Representatives on Jan. 5, 2011, the debt of the federal government has increased by $3,064,063,380,067.72. That is more than the total federal debt accumulated in the first 200 years of the U.S. Congress–during the terms of the first 48 speakers of the House.

In fact, if all of that debt had been given directly to the American people, every household in America would have been able to buy a new truck

The $26,722 in new debt per household accumulated under Speaker Boehner would have been more than enough to buy every household in the United States a minivan or pickup truck–or to pay three years of in-state tuition (not counting room and board) at the typical state college.

Sometimes we forget just how much money a trillion dollars is.  In a previous article, I included some illustrations that I believe are helpful…

-If you were alive when Jesus Christ was born and you spent one million dollars every single day since that point, you still would not have spent one trillion dollars by now.

-If right this moment you went out and started spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.

We are doing the exact same thing that Greece did, only on a much larger scale.  What we are doing is not even close to sustainable, and it will inevitably end very, very badly.  The following is what Michael Pento, the president of Pento Portfolio Strategies, told RT the other day…

“That $17 trillion everybody says its 107 percent of GDP, that’s true. But who really cares about the percentage of GDP? It’s the percentage of the debt as a percentage of the revenue – its 700 percent of our revenue. Deficits are growing at 30 percent of our revenue every year added to the deficits we have already. So it’s unsustainable. What is going to happen eventually – a currency and bond market collapse! And it’s not going out 20 years, as I also heard someone mention. In 2016 we’ll probably be spending 40 percent of all of our revenue just to service our debt. That is what the interest payments will equal.”

The U.S. debt situation is so bad that even the Prime Minister of Cyprus is scolding us…

“The U.S. has been fortunate in the sense that it’s like a bank, it prints the money that other people accept. So you can live beyond your means over an extended period of time without being punished by the market.”

Unfortunately, we will not be able to live way beyond our means forever.  Reality is going to catch up with us at some point.

 

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Right now, the rest of the world is lending us giant mountains of money at interest rates that are far below the real rate of inflation.  This is extremely irrational behavior, and this state of affairs will probably not last too much longer.

But if interest rates go up, it will absolutely cripple the U.S. economy.  For much more on this, please see this article.

And what would make things much, much worse is if the rest of the globe starts moving away from using the U.S. dollar.  At the moment, the U.S. dollar is the de facto reserve currency of the planet and this creates a tremendous demand for U.S. dollars and U.S. debt.

If that changes, it will be absolutely catastrophic for the United States, and unfortunately there are already lots of signs that this is already starting to happen.  I wrote about this in my recent article entitled “9 Signs That China Is Making A Move Against The U.S. Dollar“.

But don’t just take my word for it.  Just a couple of days ago a major U.K. newspaper came to the same conclusions…

China has overtaken the US as the world’s largest oil importer and goods trading nation. Over the next five years, it will surpass the rest of the world combined in its consumption of base metals.

Given the scale of the country’s consumption of fossil fuels and raw materials, it is only a matter of time before the renminbi replaces the dollar as the primary currency for trading commodities and resources such as crude oil and iron ore.

The debt ceiling farce in Washington and China’s growing reluctance to continue underwriting the US economy by buying up its bonds and adding to America’s near $17 trillion (£10.5 trillion) debt mountain suggests that this tectonic shift in the global trade system could be just around the corner.

So what will happen when the rest of the world decides that they don’t need to use our dollars or buy our debt any longer?

At that point the consequences of decades of incredibly foolish decisions will result in an avalanche of economic pain that the American people are not prepared for.

Earlier today, I came across a photograph that perfectly captures what America is heading for.  The following photo of Mt. Rushmore crying has not been photoshopped.  It was taken by Megan Ahrens and it was posted on the Tea Party Command Center.  If George Washington was alive today, this is probably exactly how he would feel about the nation that he helped establish…

Mt. Rushmore Crying

Comments

  1. I feel sorry with George Washington tear  drop

    • What do you think about the rest of the world? Debt is a cancer effecting the planet. China with the BRICS countries + 147 countries are finding out how much debt they have & the basic resources are in their boarders for a Debt Jubilee. Sorry, federal reserve is excluded. Crimes against humanity with prosecution will set set us free.
      Gold and Silver will find its Real Value!

  2. That $328,000,000,000 spent in one day was to replace the government thirft savings pension funds and other Federal cookie jars that were raided by Jack Lew over the last 5 months to keep the books balanced and checking account filled so bills were paid on time, sort of.
    $1 trillion in just abot one year.  Wow!
      Another year,  another trillion.  Just a walk in the park

    • Not to worry, AG.  It’s not as if this was REAL money, is it?  Heck no!  This is fiat paper Ponzi money that is whipped up out of thin air.  A single ASE has more intrinsic value than a trillion US fiat dollars.  It’s good that this is play money and not real money. No problemo!
       
      :-D

    • The energy and time expelled to obtain those fiat counterfeits (we’re forced to accept them by law) is real enough though.

    • Yes, it is, RRG… for now.

  3. Thank goodness, Ed. I was a little worried there.  It’s just funny money.  I’m laughing

  4. GLD is down another 10 tons to 871.72 tons. It’s now down 480 tons since December 2012.

    • I’m beginning to get the feeling that GLD is the hour glass, for which this manipulation scheme blows up. Every 0.01 tons is another grain of sand…

  5. I’ve teared up a time or two thinking about what the gov/TPTB are doing to us & our children. They were not the simple tears of sorrow but tears of rage. The kind of tears one gets when you become So Angry you just can’t hold them back. Of frustration because you know nothing you do or say will change the events unfolding and this tide of debt and slavery, evil will continue. Seeing desperate people who just finally snap or people who resist even a little killed. Shot down like dogs. People who speak out arrested, labeled  a “TERRORIST”. I knew after 9-11 and the patriot act the definition of that could change to mean anyone. It isn’t just here though. Like the law in Australia that speaking out against “man made” global warming hoax will land you in prison for example. In Japan the people are be cooked alive and the Pacific Ocean sterilized of all life. Tyranny is wining everywhere right now it seems. But, maybe it just seems that way.

  6. Rockets   Thinking and feeling much as you do, I am still convinced that the fundamental nature of Americans has not changed. It’s gone into hiding or bunkers to shelter against this national crap storm.
     We are a different culture than nearly any other country.  To get back on track, to our roots, will be wrenching and harsh.  Going cold turkey to break addictions is extremely hard but it can be done.  It must be done in this country as well as the other western nations or otherwise we could be lost.  The present generation is at great risk due to these problems,  not of their own making.
      
    The country elected the worst example of a president as could be possible and even worse given the problems we’ve had for the last 15 years.   The problems are not intractable but will not be solved by another law or measure proposed by the current crop of elected leaders, little more than vultures feeding off the accumulated toil of 2 centuries. 
    This really pisses me off, for both selfish and larger reasons,  since you, me and every other thinking person in this country is forced to work harder than ever  to counter the actions of our governments;  state, local and federal. Instead of working to build something, anything, of value, we have to work with both eyes on the rear view mirror to see what might be gaining on us.  I would rather have competitors on my 6 than the government.  The former I can deal with. The latter is hard to counter 

    • “… since you, me and every other thinking person in this country is forced to work harder than ever  to counter the actions of our governments;  state, local and federal. Instead of working to build something, anything, of value, we have to work with both eyes on the rear view mirror to see what might be gaining on us.”
       
      Just Galt the SOBs and call it good.  We need more and more Americans to join in a passive resistance movement wherein we do not work hard, we do not create “excess” income that can be plundered, and we return to a simpler and much lower cost lifestyle.  We create just enough wealth to supply ourselves with food, fuel, and the basic necessities of life.  In no case do we create spoils that can then be “redistributed” to those who have not earned them.  This whole BS system CAN be turned against itself and this is probably the best way to do it.

  7. Next generation will either wake up and tell DC to stuff it, you created the debt you pay for it. That is if we don’t go full civil war before then

    • Looks to me as if this might already be happening.  Given the “rousing success” of Obamunist Care, it looks a lot like the young people are not exactly flocking to this in the droves necessary to fund all of those who want FREE health insurance.  It is hilarious that the US Gov will not release any data on how many have signed up so far but are saying that most of their web site problems are due to huge traffic that is overwhelming it.  LOL!  If Obamunist Care is being overwhelmed, it is likely by incompetence.
       

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