Hey Buddy can you spare 65 trillion? By SB Kayser
(09/08)
Last august 28, the suntimes.com ran the following and terrifying headline: We can't afford to put off facing economic reality. The article revealed that the U.S. has about $80 trillion in future entitlement promises -- unfunded liabilities -- about six times larger than the whole economy. If this amount disturbs you, then please try visualising the mountain of banknotes representing 65 trillion, or the amount to put the country back on a "sustainable course". What is more, depending on how you do the accounting: real deficit $3.5TN for 2005.
Sustainable course. Nothing wrong with your sight, yes you're reading correctly.
On an international level, our bankrupt nation owes 14 trillion to foreign countries according to former Malaysian Prime Minister Mahathir Mohammad. Still much for you to envision, I assume. But don't worry, you are not alone: such numbers are nearly impossible for us to fathom. Me included even though my economic knowledge is well above the average.
On the household front, what the NY Times states is also highly distressing: in one year time, the 2004-05 cycle I mean, the debt rose to 132% of disposable income. And the whole picture is even more debilitating: household debt hit $11.5 Trillion last April. As for the corporate debt, it shows a 8.5 trillion black hole. For a report in depth, please visit the page of Michael Hodge.
How did we get there?
Elementary, my dear Watson . The answer is quite simple, so simplistic that it hurts: everything you thought you know about economics is false. Emotions will not solve the deadly economic entangled web of lies, we must define the new equations as fast as we can. Although the global bust is in the cards and will occur gradually as dominoes start falling one by one, we can make this financial holocaust the very last one ever.
Mainstream CNBC pundits and the like do not even (fully) understand the fallacies they are spreading with the blessing of their own central banks, because what matters to them is to get you buying stocks, and to pump up shares to fill the pockets of their cheerleaders such as Donna Hitscherich who claims like many others that the rising debt levels must be viewed along with other factors such as lower interest rates, which make it easier to carry higher debt loads. "You can't look at those numbers in the abstract", she says.
In the abstract! Sorry Donna and Co we're bleeding to debt and the mainstream TV broadcasts keep focusing on the alienating war on terror while the real terror - concocted by our national financial institutions and lawmakers - resides inside the gates . They all know what is going on and are perfectly aware that we are bankrolled into chaos. A few days ago, the IMF cautioned that the risk of a severe global slowdown in 2007 is substantial. No later than yesterday, two HSBC economists were too embracing the odds of a painful readjustment caused by the deflating housing bubble, one of them even said calmly: Americans will have no such luck this time around.
America is faced with a debt sentence and the guillotine threatens her economic neck.
Last august 28, the suntimes.com ran the following and terrifying headline: We can't afford to put off facing economic reality. The article revealed that the U.S. has about $80 trillion in future entitlement promises -- unfunded liabilities -- about six times larger than the whole economy. If this amount disturbs you, then please try visualising the mountain of banknotes representing 65 trillion, or the amount to put the country back on a "sustainable course". What is more, depending on how you do the accounting: real deficit $3.5TN for 2005.
Sustainable course. Nothing wrong with your sight, yes you're reading correctly.
On an international level, our bankrupt nation owes 14 trillion to foreign countries according to former Malaysian Prime Minister Mahathir Mohammad. Still much for you to envision, I assume. But don't worry, you are not alone: such numbers are nearly impossible for us to fathom. Me included even though my economic knowledge is well above the average.
On the household front, what the NY Times states is also highly distressing: in one year time, the 2004-05 cycle I mean, the debt rose to 132% of disposable income. And the whole picture is even more debilitating: household debt hit $11.5 Trillion last April. As for the corporate debt, it shows a 8.5 trillion black hole. For a report in depth, please visit the page of Michael Hodge.
How did we get there?
Elementary, my dear Watson . The answer is quite simple, so simplistic that it hurts: everything you thought you know about economics is false. Emotions will not solve the deadly economic entangled web of lies, we must define the new equations as fast as we can. Although the global bust is in the cards and will occur gradually as dominoes start falling one by one, we can make this financial holocaust the very last one ever.
Mainstream CNBC pundits and the like do not even (fully) understand the fallacies they are spreading with the blessing of their own central banks, because what matters to them is to get you buying stocks, and to pump up shares to fill the pockets of their cheerleaders such as Donna Hitscherich who claims like many others that the rising debt levels must be viewed along with other factors such as lower interest rates, which make it easier to carry higher debt loads. "You can't look at those numbers in the abstract", she says.
In the abstract! Sorry Donna and Co we're bleeding to debt and the mainstream TV broadcasts keep focusing on the alienating war on terror while the real terror - concocted by our national financial institutions and lawmakers - resides inside the gates . They all know what is going on and are perfectly aware that we are bankrolled into chaos. A few days ago, the IMF cautioned that the risk of a severe global slowdown in 2007 is substantial. No later than yesterday, two HSBC economists were too embracing the odds of a painful readjustment caused by the deflating housing bubble, one of them even said calmly: Americans will have no such luck this time around.
America is faced with a debt sentence and the guillotine threatens her economic neck.
posted by sbks at
11:59 AM
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