Category: US Debt
The analysis published under this category are as follows.
Monday, December 23, 2013
The Debt Rattle - How Do We Define Value? / Politics / US Debt
By: Raul_I_Meijer
I would like to get your thoughts on one of the most basic questions in an economy: what is value, what creates value, and how can value change or even fluctuate? Sometimes it’s best to take a step back and make sure we properly (re-)define the terms we use, lest confusion rules the day.
As a reference for the question(s) I want to use two articles I read over the past week. In particular, I’m interested in discussing whether the Fed’s Quantitative Easing (QE) programs have created value, and whether QE is capable of doing so in the first place. And I don’t mean obvious views like ‘money has no value at all because it’s created out of nothing as credit/debt’, we know that. I want to start with the idea that an asset, a good, plus the work man is capable of, can be assigned a value in dollar terms, and then see how that value is defined.
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Monday, December 23, 2013
The Ben Bernanke Economic and U.S. Debt Balance Sheet / Interest-Rates / US Debt
By: Raul_I_Meijer
Ben Bernanke announced a cut in QE by $10 billion a month this week, the financial press can’t stop talking about it and – what they call – “analyzing” it, and I still, after 8 years of Ben in the chair don’t know what puzzles me most: the quantity of attention paid to all things Bernanke, or the quality of it. I mean, I know why the press do it, but I have trouble understanding why they can’t constrain themselves.
If a financial system is as dependent on public money injections as today’s one, there is a very real risk that this market has in fact stopped functioning, and that what we’re watching are zombified movements that can continue only thanks to those money injections, which are in their manipulative character, frankly, more reminiscent of what one would expect to see in communist nations than anything else.
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Saturday, December 14, 2013
Who Needs the Debt Ceiling? / Politics / US Debt
By: MISES
Russell Lamberti writes: US lawmakers reached a budget deal this week that will avert the sequester cuts and shutdowns. These fiscal “roadblocks” supposedly damaged investor confidence in 2013, although clearly no one told equity investors who’ve chased the S&P 500 up 26 percent this year. But even so the budget deal is seen by inflationists as only half the battle won, because it doesn’t deal with the pesky debt ceiling. Unsurprisingly, the old calls for a scrapping of the debt ceiling are being heard afresh.
Friday, December 13, 2013
U.S. Congress Bravely Chickens Out of Dealing with Debt Crisis / Politics / US Debt
By: Peter_Schiff
Earlier this week Congress tried to show that it is capable of tackling our chronic and dangerous debt problems. Despite the great fanfare I believe they have accomplished almost nothing. Supporters say that the budget truce created by Republican Representative Paul Ryan and Democratic Senator Patty Murray will provide the economy with badly needed certainty. But I think the only surety this feeble and fictitious deal offers is that Washington will never make any real moves to change the trajectory of our finances, and that future solutions will be forced on us by calamity rather than agreement.
Monday, December 09, 2013
Detroit Can Go Bankrupt! / Politics / US Debt
By: Submissions
Kerry Lutz writes: As predicted many months, Detroit’s bankruptcy filing has been validated in a ruling by Bankruptcy Court Judge Steven Rhodes. He rejected numerous objections posed by unions, pension funds and retirees. They’re the big losers under any reorganization plan that scales back Detroit's long-term liabilities.
As a Financial Survival Network listener you knew this day was coming. The decision, which will be appealed, will eventually allow the city to proceed with what is currently the largest public bankruptcy in U.S. history.
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Thursday, December 05, 2013
America in Worse Fiscal Shape than Detroit - Video / Politics / US Debt
By: Videos
Boston University Economics Professor, Laurence Kotlikoff, says, “The country is in worse fiscal shape by many miles than Detroit. So, the country is essentially bankrupt.” Dr. Kotlikoff estimates the long term debt and liabilities of America are more than $200 trillion! He is spearheading a bill in Congress called The Inform Act. It is an attempt to wake up the nation to our dire financial situation so something can be done to fix this enormous problem. Dr. Kotlikoff explains, “The bill has been endorsed by over 1,000 economists, including 15 Nobel Prize winners in economics . . .
Wednesday, December 04, 2013
Detroit Bankruptcy: Banksters and Unions Conspiracy Against the Working Class / Politics / US Debt
By: Global_Research
Joseph Kishore writes: Last week, the Michigan branch of the main US union for state and local government employees filed a joint motion in federal bankruptcy court to push for the sell-off of artwork at the Detroit Institute of Arts (DIA). In precise legal language, the document exposes the unions as full participants in the bankers’ conspiracy against the rights of the working class.
The motion (available here) was drafted by American Federation of State, County and Municipal Employees (AFSCME) Council 25, an AFL-CIO affiliate, in collaboration with Financial Guaranty Insurance Company, a major bond insurance firm. The FGIC and AFSCME Council 25 were joined in the motion by a number of other banks and financial institutions.
Tuesday, November 19, 2013
U.S. Debt Russian Roulette? / Politics / US Debt
By: Andy_Sutton
One of the biggest shames in the world is when someone else has to take care of your business when you are perfectly capable of doing so yourself. It used to be the ultimate form of embarrassment. However, we in the United States have turned shame into an art form over the past hundred years or so, squandering everything from our riches and blessing to the sacred honor Thomas Jefferson wrote about all those years ago in a document that is barely covered in most school curriculums today.
Monday, November 04, 2013
U.S. National Debt to Double from $17.0 trillion to $34.0 Trillion? / Interest-Rates / US Debt
By: Profit_Confidential
Michael Lombardi writes:
Can it be true?
The U.S. Department of the Treasury has reported that for the federal government’s fiscal 2013 year, which ended on September 30, 2013, the U.S. government budget deficit was $680 billion—the smallest budget deficit in five years. (Source: Bureau of the Fiscal Service, October 30, 2013.)
Thursday, October 31, 2013
Protect Your Money From U.S. Debt Crisis / Stock-Markets / US Debt
By: EWI
Dear Reader
Ever heard of a wedding crasher? You know -- that distant “cousin” who shows up uninvited, hangs around the open bar all night, chugs down double-everythings and falls on his butt on the dance floor -- all before mysteriously vanishing and leaving his night of indulgence on the father of the bride’s tab.
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Sunday, October 27, 2013
How to Protect Your Money When the U.S. Debt Bill Comes Due / Economics / US Debt
By: EWI
Dear Reader
Ever heard of a wedding crasher? You know -- that distant “cousin” who shows up uninvited, hangs around the open bar all night, chugs down double-everythings and falls on his butt on the dance floor -- all before mysteriously vanishing and leaving his night of indulgence on the father of the bride’s tab.
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Saturday, October 26, 2013
Money Printing Debt Monetization Madness Continues / Interest-Rates / US Debt
By: Andy_Sutton
Now that another annoying gut check moment is safely in the rearview mirror, we can all get back to the business of filling the punch bowl yet another time. Yep, once again, we’ve proven ourselves to be among the dimmest of bulbs and are going right back to the bag of tricks that isn’t working anymore, but nobody seems to be noticing that – at least not on a meaningful level. Yes, I’m referring to the umpteenth opening of the monetary spigots announced gleefully in the mainstream press this week. The whole world is awash in money, every one is rich, and the party is bound to go on for at least another hundred years if you listen to the misinformation misfit mafia.
Saturday, October 26, 2013
Peak Prosperity - The Fed Can Only Fail. And We'll All Lose / Economics / US Debt
By: Dr_Martenson
The basic predicament we are in is that the current crop of leaders in the halls of monetary and political power does not appear to understand the dimensions of our situation.
The mind-boggling part about all this is that it's not really all that hard to grasp.
Our collective predicament is simply this: Nothing can grow forever.
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Thursday, October 24, 2013
U.S. Debt Dangerous Situation / Interest-Rates / US Debt
By: Fred_Sheehan
In May 2013, the U.S. Treasury had spent up to its statutory debt limit. Treasury Secretary Jack Lew wrote House Speaker Boehner that the Treasury would "begin implementing the standard set of extraordinary measures that allows the Treasury to continue to borrow and spend even after it has hit the legal debt limit."
Through October 16, 2013, the Daily Treasury Statement showed "Total Public Debt Subject to Limit" at $16,699,396. The "16" is trillions; the numbers are in millions. The "Statutory Debt Limit" (the next line on the Daily Treasury Statement), showed, day-in and day-out: "$16,699,421. The difference was $25,000,000: This figure adds back the zeros not shown on the daily posting.
Monday, October 21, 2013
U.S. Debt De-Crowning the Dollar / Politics / US Debt
By: Michael_Pento
The gradual erosion of the U.S. dollar’s status as the world’s reserve currency has been greatly hastened of late. This is due not only to the perpetual gridlock in D.C., but also our government’s inability to articulate a strategy to deal with the $126 trillion of unfunded liabilities.
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Monday, October 21, 2013
What the U.S. Debt Ceiling Deal Did Not Fix / Politics / US Debt
By: Money_Morning
Garrett Baldwin writes: While everyone in Washington right now is patting themselves on the back in the wake of Wednesday's debt ceiling deal, the reality is that it does little to address the nation's deepest budget issues.
True, the Band-Aid agreement will fund the U.S. government through Jan. 15 and lift the debt limit through Feb. 7.
But all it means is that Congress has just 90 days to take meaningful action on the problems that led to the government shutdown and debt ceiling fight in the first place.
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Monday, October 21, 2013
U.S. Debt Ceiling Deal: DC Wins, Americans Lose / Politics / US Debt
By: Dr_Ron_Paul
Washington, DC, Wall Street, and central bankers around the world rejoiced this week as Congress came to an agreement to end the government shutdown and lift the debt ceiling. The latest spending-and-debt deal was negotiated by Congressional leaders behind closed doors, and was rushed through Congress before most members had time to read it. Now that the bill is passed, we can see that it is a victory for the political class and special interests, but a defeat for the American people.
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Monday, October 21, 2013
Exorbitant Privilege, Deficit and Debt Damaging the US Brand / Politics / US Debt
By: John_Mauldin
There is no doubt that the image – what I will refer to in this letter as the "brand" – of the United States has been damaged in the past month. But what are the actual costs? And what does it matter to the average citizen? Can the US recover its tarnished image and go on about business as usual? Is the recent dysfunction in Washington DC now behind us, or is it destined to become part of a bleaker landscape? In this week's letter we try to answer those questions and more, as I step firmly into politically incorrect territory and offer a little advice to my junior senator from Texas. If nothing else, we will look at the problems we face in a different light.
Sunday, October 20, 2013
US Happily Digs its Own and Dollar's Grave / Politics / US Debt
By: Pravda
Yet another budget crisis in the U.S. has made many people around the world, even those, who consider themselves indifferent to the vicissitudes of political controversy and global economic problems, wonder what is going to happen to the American dollar.
The shutdown in the US - the controlled suspension of most public institutions due to the inability of the federal authorities to finance them - raised concerns not only with financial, economic elites and politicians all over the world, but with mere mortals as well. In Russia, many started talking about the looming collapse of the US financial system, the collapse of the dollar and the collapse of the entire global financial system. Some even said that the United States may switch to the new currency - amero - to get rid of the incredible national debt, which has exceeded the level of 17 trillion dollars.
Friday, October 18, 2013
U.S. Debt Credit Rating Downgraded to Same Level as Brazil? / Interest-Rates / US Debt
By: Profit_Confidential
Michael Lombardi writes: The U.S. government, after winning World War II for the Allies, was very convincing. It told central banks around the world that they should hold the U.S. dollar as their reserve currency instead of gold, based on the idea the U.S. dollar would be backed by gold. Only limited amounts of U.S. dollars could be printed, because the currency was tied to gold bullion. Central banks bought into the idea.