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As we enter these turbulent economic times, remember why we are where we are. It may seem easy to just put the blame on the Housing bubble, it may be easier still to call it debt bubble, but it really represents the degradation of the of America, its collapse and its inevitable demise. I ask you why was it that the US sought desparatelly to become debt free, independent of foreigners and free in the full sense of the word? WHY? Well, it is common sense, If you can produce goods than you own the market, if you are not in debt, you are not at the mercy of foreign powers for anything. Sadly the tradition of Hamilton, the American System and the protective tariff have died. Along with it went jobs, technology and freedom. China's rise is a copy of the system we mock and ignore, even though it is what built our economy. Great Britain used it, but after 50 years of dumping it, by WW I, they were dependent of goods from other countries and by WWII they almost died from German wolf packs. Germany rose form a newly unified coutry to a massive power, under Bismark. Japan grew under aprotective system form a defeated, nuked country to a industrial powerhouse. The same was true of the US, which is now on the decline. Accordingly, in 2017, the US will be total dependent on the world for its goods, and subsequintly it shall crumble in the following years to a second rate power like the former Soviet Union,

Alright, relax, if you don't want to here about how to have strong economy I understand, after all this is about what went wrong. I'll tell you what went wrong, the government went free trade, the government overtaxed, the government borrowed and so did the people to make up for the lame wage growth and debt they had. as a result, wages have stagnated, goods have infalted, the dollar has lost 96% of its value since 1913 alone, and Americas total debt, from the government, to the states, to the people to businesses has surged to $53 TRILLION. Thats $175,000 for every man woman and child!

Total Debt in 2007 $ 

 

US Debt Ratios

  

US Debt VS income

   

Debt and Income

 

It shows that in 1957 there was $1.86 of outstanding debt for each dollar of national income.

But, today's economy needs $4.70 in outstanding debt for each dollar of national income.

 Components of the Debt

  

WOW, we are in debt over eyeballs even if we were 2 times as tall as we are. Lets not forget our commitment to the medicare/medicade, and additional 60 Trillion, making the total $113 Trillion +, 8.7x more than our GDP, Thats madness. And you wonder why Americas economy is  int he tubes.

BOTTOM-LINE - - DEBT SUMMARY TABLE
AMERICA'S TOTAL DEBT (as of Jan. 1, 2008)
- $53 Trillion -

- add another $60 trillion for other contingencies such as Social Security/Medicare/Medicaid -

Our Federal Government Debt Report shows $9.2 Trillion of debt as of end CY 2007, the State & Local Government Report shows debt of $2.2 Trillion, and $41.6 Trillion of private (household, business and financial sector) debt is revealed in America's Total Debt Report.

These sum to $53 Trillion - - equivalent to $175,154 per capita, or $700,616 per family of 4.
(This sum does not include the federal government's un-funded contingent liabilities such as social security/Medicare/Medicaid estimated at $57 trillion, plus additional unknown amounts(?) for other contingencies listed below.)

The following table summarizes Total Debt in America - - as of December 31, 2007

DEBT TYPE

DEBT AMOUNT

Debt Per Child 
(per capita)

GOVERNMENT SECTOR DEBT:

Federal Government Sector debt - a record high as of year end 2007.
(Treasury data and Federal Government Debt Report, (includes $2.4 trillion federal govt. owes foreigners, plus $2.7 trillion debt owed U.S. domestic public, plus $4.1 trillion surplus siphoned from and owed to trust funds) - total $9.2 trillion

$9.2 Trillion

$30,559State & Local Government Sector debt - a record high 
(State & Local Government Spending Report)$2.2 Trillion$ 7,285Un-funded Social Security contingent liabilities estimated looking forward$7 Trillion$23,648Un-funded Medicare/Medicaid contingent liabilities *$50 Trillion$166,677Un-funded federal employee pension contingent liabilities (incl. Postal service)

? $4 Trillion

?

Un-funded federal employee medical contingent liabilities?

?

Un-funded state & local government employee pension & medical contingent liabilities

? $2.7 Trillion

?

Other off-budget Federal Govt. borrowings

?

?

SUM above Government Debt

$75.1 Trillion + ?

$248,675+?

PRIVATE SECTOR DEBT:

(see America's Total Debt Report)Household Sector debt - soaring record high$13.8 Trillion$45,695Business Sector debt - record high$10.1 Trillion$33,444Financial Sector debt (domestic) - explosive record high$15.8 Trillion$52,317Other (extra foreign debt in addition to such included in numbers above sectors)$1.8 Trillion$  5,960Un-funded business sector employee pension contingent liabilities

?  $0.5 Tril. ?

?

Un-funded business sector employee medical contingent liabilities

?

?

Impact trillions of dollars of derivatives (+ off balance sheet debt) on above business & financial sectors

?

?

SUM above Private Debt

$42 Trillion +?

$137,416 + ?

SUM ALL DEBT

SUM Government + Private Sector Debt (including Contingent liability items)

$117.1 Trillion+?

$386,091 +?

SUM All Government and Private Sector Debt (exclude contingent liability items)

$52.9 Trillion

$175,154

We don't 'owe it to ourselves' -
-  we owe $12.5 Trillion (24%) of above debt to international entities,
($2.4 Trillion owed by federal government plus $10.1 Trillion by private sector) >

[$12.5 Trillion]

[$41,391]

? = No reliable estimate available, or preliminary estimate only, or there may be other contingencies
For discussion see the Federal Government Debt ReportAmerica's Total Debt ReportTrust Fund Report articles, the State & Local Government Spending Report, the International Trade &  Debt Report and the Grandfather Social Security Report. (Debt Data Sources: Federal Govt. Treasury Dept.; Private Sector and State & Local Govt. from Federal Reserve flow of funds accounts, table D.3; International Monetary Fund; *Medicare/Medicaid per David Walker, US Comptroller General 7/22/07)

 Remmember, America is no longer Capitalist, its a Socialist Debt trap.

 

 

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