Wednesday, January 30, 2013

Throwing money at an unsurmountable public debt

In 2011, Exxon/Mobil shares rose 20%, profits surged 35% to $41.1 billon 
Real debt is truly $20 trillion

Huddie Ledbetter's 'Bourgeois Blues'

“I call that burden the wages of sin because the effort to cover our country's current expenses with debts that will be borne by generations of Americans is simply evil.” - Porter Stansberry

The celebrated $1 trillion platinum coin

A Financial Analyst's view

Washington – Granted, the official net public debt of the U.S. is more than double what it was when Barack Hussein Obama got himself elected President. ($5.03 trillion)

Increased since 2008 by $5.5 trillion to $11 trillion, it's 80% of the gross domestic product, but the truth is, if you add in the stuff that's not even on the balance sheet - $5 trillion in obligations such as Fannie Mae's or Freddie Mac's, and $4.8 trillion in debts carried by various government departments – but upon which we the people pay the interest carry - you're looking at a $20 trillion anvil chained to the ankles of future generations, as yet unborn.

That's not the end of the story.

There is no end to it, but here goes.

Americans have paid nearly $200 billion interest for these obligations – and they aren't even on the federal balance sheet.

No one has the slightest idea how many trillions of dollars in debt the Federal Reserve has created – out of thin air – to manipulate the market rate of interest lower during this period.

One thing for sure, it appears that there is an unlimited source of credit based on the full faith and credit of the U.S. Treasury, and it means one thing - and one thing only.

All of us will certainly experience a lower standard of living, much lower, in fact, than that which the average person experiences on a daily basis at present.

An investment banker estimates that if a 4 percent interest rate were applied to this figure, it would take $34.3 trillion to repay what we the people owe right now.
Tomorrow? Next year?


But it's not that big a deal, according to M.I.T. Economist Paul Krugman, author of a “New York Times” column called “Conscience of a Liberal.”

The problem of the national debt could be easily solved, thusly:

“There's a legal loophole allowing the Treasury to mint platinum coins in any denomination the secretary chooses. Yes, it was intended to allow commemorative collector's items – but that's not what the letter of the law says. At any time, by minting a $1 trillion coin, then depositing it at the Fed, the Treasury could acquire enough cash to sidestep the debt ceiling – while doing no economic harm at all.”

Ho. Ho. Ho.

Tee. Hee. Hee.

Ready to rumba?

No comments:

Post a Comment