Democrats are (once again) celebrating Hillary’s inexplicable ability to avoid the jailhouse. Republicans are celebrating Trump for Trump’s sake. It’s so exciting!
They should all take a brief pause to celebrate a mutual achievement, many years in the making. The on-books U.S. federal debt has hit TWENTY TRILLION DOLLARS ($20,000,000,000,000)!!!! Hooray for government!
Actually, it’s a hair under $19.4 Trillion. Or, it was; it has gone up many millions of dollars while I’ve been typing these sentences. But, heck, I’m celebrating early. Here’s where it stood just a minute or two ago:
Courtesy: U.S. Debt Clock.
Yes, your “share” of the debt is almost $60,000. Each one of your children “owes” $60,000 – today – tomorrow (hell, later this morning) it will be more.
The debt, if it must be divvied up, should be allocated among about 600 corrupt men and women – the President, members of Congress, Treasury officials, and Fed Governors. They each “owe” roughly $32.33 Billion. By the way, $19.4T is about 105% of our GDP.
That’s just for the federal debt, as officially and wrongly accounted. The total on-book liabilities including state, corporate, and your own debts comes closer to $66 Trillion (358% of GDP).
These are big numbers. They keep getting bigger.
A more honest accounting figures in the total of all liabilities like Medicare and Social Security shortcomings, which must under law be paid … somehow. The net present value of those liabilities is over $100 Billion (554% GDP). And, that’s what we owe, and need the money on hand to pay off, today. We’re in the hole. Deep.
Then, for honesty’s sake and as a precaution, one should calculate in the U.S. derivatives market. That means all of the side bets made by banks, insurance companies, and different funds – a sort of end around the Fed to create more money than really exists. That number is over $420 Trillion (what’s the point% of GDP). The global derivatives exposure pushes the number well over $1 QUADRILLION (Ha Ha % of GDP)! These extraordinary inclusions are important and necessary because, though they are private and fictitious, in the event of eventual default or collapse, they will be placed on the backs of the people. The banks are too big to fail, remember. Your share of that is something like $3,125,000. Got your checkbook ready, just in case???
Now for some predictions by me.
Presidents tend to serve two terms almost as a rule these days. I’d say there is, right now, a 65% chance Donald John Trump will be the 45th President. At the end of his second term the “official” U.S. debt will probably be somewhere around $40 Trillion. In the off-chance Hillary Rodham Clinton is elected, at the end of her second term the debt will also be about $40 Trillion. Again, that’s the loosely accounted debt. The real figure will be closer to a quarter Quadrillion, the hypothetical deviratives-based debt exposure closer to $2Q.
None of this will ever be paid. These numbers exceed the GDP of the entire world. The higher numbers are likely equal to, or exceed, the value of the entire earth and its contents. The only way to pay off such ridiculous amounts would be to print more money – which would have to be accounted as additional debt. Hilarious.
The politicians and the banksters would be content to let this cycle go on forever if that were possible. It is not. The people, the majority, don’t understand or care. It doesn’t hit home until the lights go out and the grocery store is derelict – ask those in Venezuela.
The only sane solution is to blank the books – entirely. The whole of all the debts should be repudiated and forgotten. This will happen at some point. It has to. We might as well make it an official decision. Thereafter, it might be wise to make debt illegal. How about a war on debt!? Debt issuance, by governments, banks, etc., could (should) be a felony; debt creation via usury and creation of supply inflating, funny money – capital felonies.
If that were now the law, we would need about 600 tall trees and 600 lengths of good rope. I think you’ll admit those are far easier and cheaper to come by than your $60,000 alternatives.