Schlagwort-Archive: USA in peril

Now keep your breath

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Well I looked over some old blog entries on my outer mises blog and found a most astonishing number:

Three years ago the US debt were 9.5 trillions. Now in November we have officially 15 trillions of debt. That mean more than 5.5 trillions more debt in just 3 years. Will say
the new debt growth is 10% a year !!!.

But imagine that is not even half the truth. The debts of Mae and Mac are undocumented. My figures to that time were around 5 trillions. And there were other promises of around 2 trillions.

Now if I take that in consideration we get from 9.5 to 22 trillions of new debt. that’s more than a doubling in 3 years or. The other way the debt growth is more than 25% a year!
Now if one things just Euro land is in knee deep trouble, think again.

Finally the truth is revealed. The poligangster are putting us all in misery. As Mises and Hayek have written. We were right and all others were wrong.

dead reace (was debt race)

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Well I hardly could believe that:
http://www.spiegel.de/flash/flash-25145.html

It’s about the not covered expenses in the different states.
Now I was thinkin California was “bad”. Well it is but there are worse states. Nevada has a deficit of 45.x % that means for every dollar they spend they have to
get a credit from 45 ct. This is impossible to bear for anyone… But togehter the picute is even more dire. More than half of the states have a deficit beyond 10%.

10% deficit means withing 7 years you double your debts. This is unbearable. And so one has to conclude. The US is broken. They are acting as “super power” but well if the
machines all destroyed in war. They can not even buy them anew.

Those having read this blog know what I think of debt. Debt is evil and it’s even worse for governments because they take everyone of us as hostages. Even if the Land is bankrupt, the bureaucrats will find a way to suck up everything they can get from their “citizens”. All in the name that the “state” does know better. Well there lies, statistics and deledefs speak. You just have to keep in mind double-speak is “politicians” land. The name it political-correct or whatever but it means they lie, and lie again and if that does not work they put out their guns and ask “kindly” for you money. Well there’s still one more efficient things taxes. And so they name their thefts “tax” and taxes are “ok” and because they are ok they can get it by whatever means they find.

What do they think

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I just will first start with 2 numbers

3 800 000 000 000

1 300 000 000 000

Now let’s see how this numbers are “related.” Let’s see
1 300 000 000 000 / 3 800 000 000 000 = 0.34211

or in per cent 34.211 %.

So what?

Well the US budget consists of 34.21% new debts.

Let me break it down for you.
You are earning 66 000 Dollar and you “spend” “100 000” Dollar.

The calculate the deficit will go down to 700 000 000 000 in 2014 (see http://www.usatoday.com/news/washington/2010-02-01-budget-obama_N.htm)

Let us assume a linea decrease over this 4 years so we’d have roughly 1.3 + 0.7 = 2.0 / 2 = 1.0
So overall 1 000 000 000 000 new debts over the next four years for every coming year.

The official debts of the US are nearing the 14 000 000 000 000. So we add another 4 / 14 = 28.6 % to this enourmous sum. And this are just the official figures.
Not included are every promise for retirement payments and probably a few thousand other “things.”

For just the 4 000 000 000 000 in the next 4 years the US will have to pay (assuming 5% interest) 200 000 000 000 a year. Just to get that “figure” right The German overall budget is
around 389 000 000 000. The overall interest to be paid will go up to 18 000 000 000 000 * 0.05 = 900 000 000 000

Let as assume that the budget will not grow (ha ha ha). So in 2014 the US has to pay 900 000 000 000 / 3 800 000 000 000 = 23.7 %

Nothing can grow forever and so they still face a new debts in 2014 than the end is near. It would mean the new debts of roughly 1 trillion is needed to just pay the interests. It’s absolutely impossible to bear. You can not us new debts to pay all debs for “long”. One still has to remember each year the interest raised around nearly a trillions. So something will happen. Past times show, inflation is the most likely outcome which let’s back to my My Predictions

Just see how others react on such debt avalanches: http://news.bbc.co.uk/2/hi/business/8518438.stm. See that the is the world largest holder of governement bonds all over the world.
See some discussions about the implications at: http://www.federalbudget.com/

It’s worse than I could ever imagine. And it has started with “just” the 700 billions of Paulson…. I’ve always written against this kind of madness. But you know the deledefs know “better”….