Posts Tagged ‘$14.58 trillion’

Tipping Point Crossed: US Borrowing Exceeds 100% Of Entire U.S. Gross Domestic Product

August 4, 2011

The United States of America probably just passed a point of no return.

We now officially owe more than the entire annual output of 307 million Americans.

US borrowing tops 100% of GDP: Treasury
AFP – 8/3/2011

US debt shot up $238 billion to reach 100 percent of gross domestic project after the government’s debt ceiling was lifted, Treasury figures showed Wednesday.
Treasury borrowing jumped Tuesday, the data showed, immediately after President Barack Obama signed into law an increase in the debt ceiling as the country’s spending commitments reached a breaking point and it threatened to default on its debt.
The new borrowing took total public debt to $14.58 trillion, over end-2010 GDP of $14.53 trillion, and putting it in a league with highly indebted countries like Italy and Belgium.
Public debt subject to the official debt limit — a slightly tighter definition — was $14.53 trillion as of the end of Tuesday, rising from the previous official cap of $14.29 trillion a day earlier.
Treasury had used extraordinary measures to hold under the $14.29 trillion cap since reaching it on May 16, while politicians battled over it and over addressing the country’s bloating deficit.
The official limit was hiked $400 billion on Tuesday and will be increased in stages over the next 18 months.
The last time US debt topped the size of its annual economy was in 1947 just after World War II. By 1981 it had fallen to 32.5 percent.
Ratings agencies have warned the country to reduce its debt-to-GDP ratio quickly or facing losing its coveted AAA debt rating.
Moody’s said Tuesday that the government needed to stabilize the ratio at 73 percent by 2015 “to ensure that the long-run fiscal trajectory remains compatible with a AAA rating.”

And that’s really not the one-fourteenth of it.

America doesn’t owe $14.5 trillion; it owes more like $200 trillion:

News from
The scary real U.S. government debt
Wednesday, October 27, 2010

Boston University economist Laurence Kotlikoff says U.S. government debt is not $13.5-trillion (U.S.), which is 60 per cent of current gross domestic product, as global investors and American taxpayers think, but rather 14-fold higher: $200-trillion – 840 per cent of current GDP. “Let’s get real,” Prof. Kotlikoff says. “The U.S. is bankrupt.”

Writing in the September issue of Finance and Development, a journal of the International Monetary Fund, Prof. Kotlikoff says the IMF itself has quietly confirmed that the U.S. is in terrible fiscal trouble – far worse than the Washington-based lender of last resort has previously acknowledged. “The U.S. fiscal gap is huge,” the IMF asserted in a June report. “Closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 per cent of U.S. GDP.”

This sum is equal to all current U.S. federal taxes combined. The consequences of the IMF’s fiscal fix, a doubling of federal taxes in perpetuity, would be appalling – and possibly worse than appalling.

Prof. Kotlikoff says: “The IMF is saying that, to close this fiscal gap [by taxation], would require an immediate and permanent doubling of our personal income taxes, our corporate taxes and all other federal taxes.

“America’s fiscal gap is enormous – so massive that closing it appears impossible without immediate and radical reforms to its health care, tax and Social Security systems – as well as military and other discretionary spending cuts.”


At this point, it is really only a matter of time before this most selfish, depraved and vile of all generations that elected the most evil president in its nations history collapses on top of its children.

Republicans most certainly did try – and will continue to try – to keep this nation from slitting its collectivist throat and collapsing.  But the demonic Democrat Party demonized them at every turn, and the demonization takes its toll.  The American people don’t support doing the right thing, the necessary thing.  They have stage four soul cancer and they want cotton candy rather than chemotherapy.

The Democrat Party is the party of destruction.  We are less than five years away from Medicare going bankrupt.  But what do they do?  They demonize any attempt to save the system, and essentially demand that the system collapse so that it can help no one.  And they do that because they know that the people are too stupid to know the truth and too depraved to have any desire of bothering to want to find out.  Republicans propose solutions; democrats lie and fearmonger and demonize Republicans, and stupid and depraved people believe the poisonous propaganda.

And then Republicans buckle and cave.

And this has happened over and over again while America races along on the fast track to suicide and hell.

One of the facts that has been pointed out many times is that America is not in Bible prophecy.  I used to wonder why.  Now I know the answer: because America won’t exist in a very short time.  Demonic liberals will collapse this nation – in a process that started with FDR’s incredibly lethal and incredibly infectious policies – and there will be no United States of America to BE in the last days.  There will only be an insignificant banana republic – which will exist as the laughingstock of the world – where America used to be.

Democrats couldn’t care less if America isn’t in Bible prophecy because they neither honor God or His Word (see my response to Obama’s mocking and distortion of the Word of God here, fwiw).  And as a result of Democrat ignorance and hatred of the Bible, we are even now contributing significantly to the coming of the Antichrist and the last days that we ourselves won’t survive to witness.  Liberals have been attacking our Christian foundations for over one hundred years in their effort to impose their utopian socialist schemes and we are losing our liberty at a frenetic pace as a result. Without the self-evident truth and its corresponding God-given rights that the left long ago rejected, all we have is the tyranny of powerful elites who become self-appointed dictators who get to decide what’s true and what is politically incorrect, who wins and who loses and who is allowed to be free.  Not only has the socialism that the American left embraces failed every single time it has every been tried everywhere on the planet, but in most cases it has led to an unparalleled crushing of the human spirit.

The tragedy is that the disaster that will surely soon overtake America will have been the most foreseeable and the most preventable one to ever overtake a civilization in the history of the human race.  Anyone with a mind, a memory and a conscience can see what is about to happen; but in the future, just as there was in 2008, there will be enough depraved Americans to tip the scale for the sweet-sounding policies that will result in America’s decline, destruction and death.

This is God damn America.  And God damn America deserves to die, and die it surely will.

We might be able to shrug off the cancer of liberalism for a short time and prolong the life of our nation.  But liberalism is a cancer of the soul, and ultimately the cancer of liberalism will kill America.

And the line that we just crossed as a nation with barely so much as a “ho-hum” is a disastrous line to cross, indeed.