US Debt crosses 16 Trillion ($16,OOO,OOO,OOO,OOOBAMA! )

[darkinsky]

I have a doubt ..if all countries in the world have debt that too huge sum , who lends these kind of money ? World bank ?
The point to be noted it suppose a govt takes loan from a bank then its people inverted money..if it is a internal one then it will become govt debt from its citizen ..nothing to worry much ..if it is external debt then i wonder why every country has this debt !!

and where do you think the high interest money collected from third world countries go to??

 

[ahfatzia]

If the US government owes only $16 trillions that will a good news. When you add all those hidden debts it could add up to $120 trillions. How about the $45 trillions US consumers owe? And how much do the state, city and local municipalities owed?



The federal government actually has three different types of debt. There is “intragovernmental” debt, which is essentially debt that the federal government owes to itself, such as debt it owes to the so-called Social Security Trust Fund. If publicly held debt is like the money you borrowed from a bank, intragovernmental debt is like the money you swiped from your kid’s piggy bank. It may not be on your credit report, but you still have to pay it back. This debt exceeds $4.6 trillion.

There is also a third category of government debt: “implicit debt.” This represents the unfunded obligations of programs such as Social Security and Medicare — the amount that those programs owe in benefits in excess of the amount of taxes that they expect to take in. According to the annual report of the Social Security system’s trustees, that program’s unfunded liabilities now exceed $18 trillion. Medicare is in even worse shape. The most recent estimate of its finances, also released this week, warns that Medicare owes $36.8 trillion more in benefits that it is expected to be able to pay for. And that is the optimistic outlook: It assumes that all the projected savings from President Obama’s health care reform actually happen as promised, something that even Medicare’s own actuaries are deeply skeptical of. If those savings don’t materialize, Medicare’s debt could actually top $90 trillion!

full story>$120 trillion: The shocking true size of our nation's debt - NYPOST.com

 

[doublemaster]

If i get a free loan, keep on getting free loan, and get loan to pay loan and interest i would have been more richer than bill gate.
It is nothing great becoming developed country like this one

 

[ahfatzia]

If i get a free loan, keep on getting free loan, and get loan to pay loan and interest i would have been more richer than bill gate.
It is nothing great becoming developed country like this one

That's why many call the US government or some developed countries nothing but Ponzi schemes- borrowing new money to pay the old debts. But soon or later these schemes will come back to bite their a$$es.

 

[Hello_10]

That's about the only bright spot in our economy and the credit goes to Hilary. Too bad she's retiring because we sure can use her verbal skills on the behalves of our arm merchants.

more US's economy going down due to more borrowing to feed pensioners/welfare people, more they are selling arms in world? i dont understand, why would they 'arm' the whole World to feed their budget which has 46% share of just Social Security+Medical? how does it fit the logic to sell more arms to support a falling economy which has just no hope......

if you borrow to do business, invest in infrastructure then it mean it by doing business and get the money back this way. but borrowing more to feed 100million people who are dependent on Welfare, around a third of total US's population? and then they have started selling more arms in world, while they themselves have the highest arm to people ratio in world? does this means, more they are going down, more they want the world to fight and then they would have opportunity to feed their Western people this way???????

(its their Good Luck that hey have High Qualified Migrants who pay very high tax as they fall in high income group otherwise

Indian Americans top in income and education
Wednesday, June 20th 2012, 10:05 AM

Indians, who now number 3.18 millions, the third largest after the Chinese (4 million) and the Filipinos (3.4 million) have a median household annual income of $88,000, much higher than for all Asians ($66,000) and all US households ($49,800).

Indian Americans top in income and education - NY Daily News

RT: Over 100 million US residents on welfare

RT: Over 100 million US residents on welfare | News, Corrected

U.S. most armed country with 90 guns per 100 people

U.S. most armed country with 90 guns per 100 people | Reuters

Hate groups, citizen militias surge in U.S. as race and economy fuel tensions
Reuters Mar 9, 2012

WINSTON-SALEM, North Carolina — The number of hate and anti-government groups in the United States continued to rise last year, fueled by racial tensions, conspiracy theories and anger over economic inequality, according to a report by the Southern Poverty Law Center.

The most explosive growth came from the so-called Patriot movement, whose adherents view the federal government as their enemy.

The Patriot movement reached a peak in 1996, a year after right-wing extremist Timothy McVeigh set off a truck bomb outside the Oklahoma City federal building, killing 168 people. McVeigh and a co-conspirator were convicted, and McVeigh was executed.

The number of Patriot groups, a largely rural phenomenon sometimes referred to as the militia movement, increased to 1,274 groups in 2011 from 824 in 2010, the report released on Thursday said.

The number of those organizations has swelled in recent years since the economy slumped into recession and Democratic President Barack Obama, the country’s first black president, was elected in 2008, said the law center, which has tracked extremist groups for three decades.

A backlash against federal bail outs of the bank and auto industries, and discredited allegations that Obama was not born in the United States and therefore disqualified to be president, provided believers with the rationale to join such groups, according to the report.

Heated political rhetoric from this year’s presidential campaign could attract more adherents, said Mark Potok, senior fellow at the center and editor of the report.

“The campaign season has simply added fuel to the fire,” Potok said. These groups vehemently oppose Obama and abhor the possibility that he could be re-elected to a second term in November. “To them, that’s a horror show,” Potok said. The center counted 1,018 hate groups in the United States last year, up from 1,002 in 2010. The number of groups have been increasing since 2000, when the center counted 602.

Potok said it was hard to gauge how many Americans are members of hate groups, but estimated the number was between 200,000 and 300,000 people.


The U.S. election campaign season has simply added fuel to the fire


The center also estimated that some 300,000 Americans were part of the so-called “sovereign citizens” movement who flout most laws, do not pay federal taxes and even refuse to obtain driver’s licenses.

The report’s findings echoed comments last month in Washington by the FBI about a growing threat of violence by members of these “sovereign citizen” groups.

Stuart McArthur, deputy assistant director in the FBI’s counterterrorism division, told a news conference that routine encounters with police can turn violent “at the drop of a hat.” He cited shootings of police officers after routine traffic stops in Arkansas and Texas the past two years.

Convictions of such extremists, mostly for white-collar crimes such as fraud, increased to 18 each in 2010 and 2011 from 10 in 2009, the FBI said.

Most members of hate groups and anti-government organizations have not committed crimes, Potok said. But the center’s report highlighted recent examples where authorities accused militia members of plotting violence.

In one case, authorities accused four Georgia members of a militia group of plotting to obtain explosives and produce the deadly toxin ricin, with which they intended to attack government officials.

In Michigan, seven members of a Midwestern militia group called the Hutaree are standing trial on charges that they plotted to kill police to spark a wider insurrection.

The law center also found the number of groups specifically targeting gays and lesbians rose to 27 in 2011 from 17 in 2010, and the number of anti-Muslim groups jumped to 30 from 10.

But the number of so-called “nativist extremist” groups who harass people they suspect of being illegal immigrants appeared to be in decline. The number of those groups dropped to 184 in 2011 from 319 the year before.

The center attributed the decline in part to the push in some states for laws aimed at cracking down on illegal immigrants, the report said. “Nativist groups have lost the wind in their sails as their issue has been co-opted by politicians,” Potok said.

The Southern Poverty Law Center was formed in the early 1970s to defend the legal rights of African Americans following the civil rights reforms of the 1960s. It was instrumental in some convictions of members of white supremacist groups such as the Ku Klux Klan for civil rights abuses against blacks. It has broadened to other issues in recent years.

Hate groups, citizen militias surge in U.S. as race and economy fuel tensions | News | National Post

 

[doublemaster]

Sad part is. Other countries should keep paying US. Most depends on its economy. So they are in pressure to keep US safe. Otherwise they will also be in trouble.
Like India which is ready to pay to Euro.

 

[Pfpilot]

To better understand macroeconomics, it is always a good idea to expand one's perception to include the whole world and stop thinking from the viewpoint of a single entity. Nations don't function like households. A loan taken out by myself to buy a house adds very little, if anything, to my economic potential. It is paid back by additional funds I procure from my job, since the house is not a source of income itself and will not help me pay back the loan.

The way nations and corporations work is completely opposite; loans are taken to expand or develop some part of the infrastructure that directly or indirectly helps in the creation of greater wealth. A government developing better roads would speed up the transportation system of goods and services and hence increase profits, by lowering costs. On a similar level, a factory owner may invest in machinery that may produce more goods per day at a lower cost. Loans for these causes are greatly beneficial because they provide the party short on cash to expand its operations and in turn increase the revenue generated, while banks who are swimming in cash can lend it out and earn interest on the total, instead of letting it sit there. In the end, both sides are wealthier and loans taken by nations are often meant to be used for such purposes.
A nations income increases with a loan, while I would pay off my loan from existing resources without any value added to my revenue generating ability.

The Americans may have debt, but it isn't nearly the problem everyone makes it out to be. A temporary reduction in social services and a corresponding increase in taxes, all along with the efficient distribution of funds (preferably to projects that add the greatest value) will eliminate this debt in relatively short period of time.

As I have often said before, the Americans are the eventual end users of most products, and their corporations are the ones that provide people in other nations with jobs and income which allow those people to buy goods and services in those nations. A supposed collapse of the US would take the world down with it. For that reason, no one will let that happen, because the world as a whole will keep adjusting to allow the US with more wiggle room in order to keep their own smaller economies prosperous. The Americans are not a super power because they have military might, but it is because they have investments in the economies of so many nations. This has been the case since World War One and will continue to be the case. If the Americans are to somehow collapse, it would require all American corporations to simultaneously run out of money. Were that to happen, watch how India and China and all other developing nations crumble to the ground.

 

[Banglar Lathial]

A supposed collapse of the US would take the world down with it.

It's probably something American Jewish media propagate to reassure their ignorant public of their "importance", but can somebody explain how the world will be taken down by the Americans? The world consists of all the inhabited continents, I presume, in the exaggerated pronouncements of Jewish controlled Western media.

1. How would Russians be "taken down" by American economic collapse?
2. Why should GCC economies collapse if American economy collapses?
3. Why should the hundreds of millions of people in the villages all around the developing world be 'taken down' if American economy goes bust?
4. Why should the Iranian economy collapse if American economy collapses?
5. Why should Japanese economy collapse if American economy collapses when Japan's exports amount to less than 10% of its G.D.P. and its exports to USA is an even smaller portion of its GDP?

The list could be lengthened further, but I think all members get the general idea.

 

[longyi]

@ hello-10

It was a sarcasm that the defense industry is about the only bright spot in the US economy due to the tireless efforts of Hilary Clinton to stir up scare mongering sentiments in the western Pacific to boost up the sale of military hardware.

 

[faithfulguy]

It's probably something American Jewish media propagate to reassure their ignorant public of their "importance", but can somebody explain how the world will be taken down by the Americans? The world consists of all the inhabited continents, I presume, in the exaggerated pronouncements of Jewish controlled Western media.

1. How would Russians be "taken down" by American economic collapse?
2. Why should GCC economies collapse if American economy collapses?
3. Why should the hundreds of millions of people in the villages all around the developing world be 'taken down' if American economy goes bust?
4. Why should the Iranian economy collapse if American economy collapses?
5. Why should Japanese economy collapse if American economy collapses when Japan's exports amount to less than 10% of its G.D.P. and its exports to USA is an even smaller portion of its GDP?

The list could be lengthened further, but I think all members get the general idea.

Most countries in the world hold US dollar or bonds as the reserve currency, instead of gold or other precious medal. This means that they could print their currency taking into account of the US$ in their reserve, as US dollar back up their currency. This is done because there are not enough gold so US $ is treated as gold.

How would people regard their own currency if the object backing up their currency becomes worthless. Pretty much, their own currency is worthless. This is why US dollar would not collapse because it would take the world with it.

 

[Banglar Lathial]

Most countries in the world hold US dollar or bonds as the reserve currency, instead of gold or other precious medal. This means that they could print their currency taking into account of the US$ in their reserve, as US dollar back up their currency. This is done because there are not enough gold so US $ is treated as gold.

How would people regard their own currency if the object backing up their currency becomes worthless. Pretty much, their own currency is worthless. This is why US dollar would not collapse because it would take the world with it.

US$ is only held for foreign exchange reserves by those countries that are not far-sighted enough to disentangle from the mess yet. The question is one of American economic collapse, though, not just the collapse of the dollar.

For example, during 1997 Asian Financial Crisis, the currencies of Indonesia, Thailand and others plummeted in value compared to some Western currencies, but that did not mean all economic activity came to a halt in those countries. Because those countries' economic growth models were reliant on foreign investment and exports, their growth came to a halt.

What happens to those countries that are not as reliant on US$, or to those countries that are not as reliant on exports or foreign investments for growth?


Also, I am not sure I got this part.

This means that they could print their currency taking into account of the US$ in their reserve, as US dollar back up their currency

Could you explain it again? If my understanding of the above sentence is correct, then you are wrong, but I request you to clarify this sentence to remove any doubt.

 

[Splurgenxs]

16 trillion...the US economy is what 15 trillion? so thts what , a 107% debt ?

last time i checked China too was facing an internal debt ranging somewhere between 125% to 170%.

The numbers may be big ,but we need to see it in the respective context.

America would only need a little more than a year (if it didn't spend anything) to pay it all back..

 

[Banglar Lathial]

Another index I have yet to understand is the 'debt-to-GDP' ratio. Are external debts of respective countries to be paid off in exchange for their GDP? Is G.D.P. a measure of funds, or assets held by a country? Can a country claim "Our GDP was XYZ units last year, plz deduct ABC amount from this GDP as part of debt repayments"?

 

[fallstuff]

There is nothing small about USA.

 

[StormShadow]

But why thumbs up as if it is beneficial to India?? I'd be more worried India's economy than US's.