Real Wealth Society

Sunday, January 15, 2006

A Short Story About Billions and Trillions By SB Kayser

From the rants and observations series.

Our honored Guest and owner of the site named BabylonToday, dropped us a line 2 weeks or so ago to warned us of the following: In the next day or two Treasury will post interest for December 2005. I suspect it could run over 100 billion for Dec. alone, since this is one of two fat months (also June) for interest. ... So we went to the gov site where we read the shocking truth: December $ 92,920,923,827.69

Our pal's estimate was nearly correct. That the amount wasn't over $100bn shouldn't us any sense of a respite, we are dealing with an administration out of control and ready to borrow us into oblivion.

The more frightening is to see the jump over the last 18 years. December 2005 alone represents more or less 40% of the interests paid for the whole year of 1988 and which were: $214,145,028,847.73.

In one month!!

Also worrying is when we compare 92.9bn with $352,350,252,507.90 which is the amount of interest for the entire fiscal year of 2005, or nearly one thrid.

Sadly many americans are number blind when optimism lacks in the articles they read whatsoever: all what matters to them is that the Dow and the consumer conficence index perform well. And since it reached the 11,000 bench mark a few days ago, why bother? Right?!

Over the three last weeks alone, I have noticed the following:

That according to Siglitz, the Nobel prize-winning economist and probably the most vocal against WB and IMF, Iraq war could cost US over $2 trillion.

That the U.S trade deficit with China et al is now $700bn with no sign of slowing down; the federal budget deficit expected to balloon back above $400 billion for the fiscal year 2005 ... and finally Congress urging to raise the debt cealing which stands today at $8trillion-plus to avoid an unprecendent default.

Meanwhile Wall Street Gurus pat themselves on the back for having pocketed $21.5bn in bonuses for their own fiscal year 2005, all this at the expense of a middle-class caught in the inferno of debt and inflation, in other words on its death bed but which is paradoxically very proud to have achieved the American Dream of home ownership and being able to afford their kids' high education degrees.

High education?! Yes, dear readers the conventional wisdom has defined as **high education** the knowledge allowing such aberations to exist. People get college degrees to feed a monetary monstrousity. The only real money - that having an intrisic value besides gold and silver - in the world are the banking interests, odious sweat money. Eventually the compounding interests will gobble us all. I am not talking of some far way probability but "a" day of reckoning lying right around the corner.

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