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US Debt Record:$7,995,462,387,011.49

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Gung Ho
0
Rep. Paul introduces bill to cancel $1.6T in debt held by Federal Reserve
By Pete Kasperowicz - 08/02/11 10:13 AM ET
Rep. Ron Paul on Monday introduced legislation that would lower the federal government's debt by canceling the roughly $1.6 trillion in debt held by the Federal Reserve.

Paul has argued for the last few weeks that the idea represents a quick way to make the growing fiscal crisis more manageable. Under his bill, H.R. 2768, the $1.6 trillion that the Treasury owes to the Federal Reserve would disappear.

The Federal Reserve began buying Treasury bonds in earnest late last year as part of its effort to keep long-term interest rates down. But Paul has argued that Fed purchases of Treasury debt represent a debt that the government owes to itself, and one that also leads to an unwanted and inflationary increase in the money supply.
Paul has also said the Fed is allowing the federal government to continue a spending binge it otherwise would not be able to afford, and is forcing the Fed to print money to keep up.

"If the federal government cannot cut spending and bring the budget back into balance, the Fed undoubtedly will be forced to simply monetize trillions of dollars in Treasury debt, which is nothing more than a stealth form of default," Paul said back in May.
Paul is highly critical of the debt-ceiling agreement that the House approved Monday, and said that rather than require real cuts in spending, the bill mostly cuts planned spending levels in the future. According to the legislation, discretionary spending in 2012 would be just $7 billion less than in 2011, and in 2013 it would be just $3 billion less than 2011 before allowing increases above 2011 levels.

"No plan under serious consideration cuts spending in the way you and I think about it," Paul wrote in a piece that appeared on The Hill's Congress Blog. "Instead, the 'cuts' being discussed are illusory, and are not cuts from current amounts being spent, but cuts in projected spending increases."

Source:
thehill.com/blogs/floor-action/house/...

If you don't trust GOLD,the only asset with a 6000 year track record, do you trust the logic of taking a $1,000 pine tree, cutting it up, turning it to pulp, putting some ink on it, and then calling it one billion $ dollars?
De Pareltjeszoeker
0
Je gelijk ga je wel krijgen met dat Amerikaans WC-rol paper. Amerika moet alleen nog off. insolvent worden verklaard. Dit gebeurt pas als de superrijken van hun toekomstig wc-papier af zijn.
Gung Ho
0
US borrowing tops 100% of GDP: Treasury
AFP – 14 hrs ago
US debt shot up $238 billion to reach 100 percent of gross domestic project after the government's debt ceiling was lifted, Treasury figures showed Wednesday.
Treasury borrowing jumped Tuesday, the data showed, immediately after President Barack Obama signed into law an
increase in the debt ceiling as the country's spending commitments reached a breaking point and it threatened to default on its debt.
The new borrowing took total public debt to $14.58 trillion, over end-2010 GDP of $14.53 trillion, and putting it in a league with highly indebted countries like Italy and Belgium.
Public debt subject to the official debt limit -- a slightly tighter definition -- was $14.53 trillion as of the end of Tuesday, rising from the previous official cap of $14.29 trillion a day earlier.
Treasury had used extraordinary measures to hold under the $14.29 trillion cap since reaching it on May 16, while politicians battled over it and over addressing the country's bloating deficit.
The official limit was hiked $400 billion on Tuesday and will be increased in stages over the next 18 months.
The last time US debt topped the size of its annual economy was in 1947 just after World War II. By 1981 it had fallen to 32.5 percent.
Ratings agencies have warned the country to reduce its debt-to-GDP ratio quickly or facing losing its coveted AAA debt rating.
Moody's said Tuesday that the government needed to stabilize the ratio at 73 percent by 2015 "to ensure that the long-run fiscal trajectory remains compatible with a AAA rating."

If you don't trust GOLD,the only asset with a 6000 year track record, do you trust the logic of taking a $1,000 pine tree, cutting it up, turning it to pulp, putting some ink on it, and then calling it one billion $ dollars?
tomnl
0
quote:
HerrKaiser schreef op 5 okt 2011 om 22:24:

Total US Debt Update: $14.86 Trillion; $162 Billion Increase In Three Days j.mp/qSwq8H


Bank of America in het geniep 'Gebailed' ??
Gung Ho
0


US Treasury considers new debt security
By Michael Mackenzie in New York and Robin Harding in Washington
The US Treasury and Wall Street dealers are set to discuss whether to introduce a new debt security to help finance the country’s mounting budget deficit in the coming years.
Topping the agenda of a meeting on Friday between Treasury officials and dealers, who underwrite US government debt sales, is the possible introduction of floating-rate notes.

In contrast to normal fixed-rate Treasuries, which pay the same coupon throughout their lifespan, the payment to investors from floating-rate notes would go up or down as the Federal Reserve changed short-term interest rates. That could make them attractive to investors who think that Treasury yields have hit a floor and are set to rise in the coming years.
“We think the case for diversifying the Treasury’s funding sources by introducing [floating rate notes] is very strong in light of the prospect of persistently large budget deficits in the years ahead,” said Lou Crandall, economist at Wrightson Icap. “They would give the Treasury an additional tool for meeting unexpected increases in borrowing needs that would neither place upward pressure on long-term rates nor add to the government’s near-term rollover needs.”
Money Supply


News, data and opinions on central banks around the world
But the discussions may not herald the imminent introduction of such securities. The Treasury has asked similar questions in the past and is conservative about changes to debt issuance. The last new Treasury issuance product it introduced was inflation-protected securities in the late 1990s.
According to the agenda for the meetings, the Treasury will ask dealers about the “optimal structure” for floating rate securities, how they “would affect Treasury’s overall cost of borrowing”, and whether there would be “robust market demand” for such debt.
“There would be demand for floating rate Treasuries,” said Rick Klingman, managing director at BNP Paribas. “From my perspective I would rather own floating-rate than fixed-rate debt over the coming years.”
With the prevailing view in the bond market that Treasury yields have set their lows and will gradually rise in the coming years, issuance of floating-rate debt could prove more costly for US taxpayers.
As it stands, the US Treasury is locking in funding over the next 30 years at record low yields. This month the sale of $13bn 30-year bonds came at a yield of 3.12 per cent – well below the 4.75 per cent level the issue was sold at in February.
Regular sales of floating rate notes would help meet the expected demand for safe securities to be placed on bank’s balance sheets under proposed tighter capital standards under Basel III and as collateral in derivatives trading.
“The need for safe, short-term dollar-denominated assets is likely to exceed the supply for as far as the eye can see,” says Mr Crandall.
One drawback for the Treasury is that it is intent on extending the average maturity of its debt from around its current age of 62 months. Should the Treasury sell three-year $20bn in floating-rate notes per month, the monthly rollover burden would reach that figure once the issues began maturing.
While the Treasury could sell longer-dated FRNs of up to 10 years, extending the maturity beyond three to five years may not attract investors who would be the target market for the product, says Mr Crandall.

If you don't trust GOLD,the only asset with a 6000 year track record, do you trust the logic of taking a $1,000 pine tree, cutting it up, turning it to pulp, putting some ink on it, and then calling it one billion $ dollars?
Gung Ho
0
Inmiddels meer dan verdubbeld sinds de start van dit draadje....


BULLETIN: Supercommittee says it failed to reach deal on deficit reduction
11/21/2011 04:53:28 PM EDT

Visit marketwatch.com/bulletins/redirect/go... for updates to this story and more


If you don't trust GOLD,the only asset with a 6000 year track record, do you trust the logic of taking a $1,000 pine tree, cutting it up, turning it to pulp, putting some ink on it, and then calling it one billion $ dollars?
zzzaai
0
Ah dit draadje, wat een harde realiteit

6 jaar geleden
7,995,462,387,011
Nu
15,031,758,000,000

Ik geloof niet, maar mijn god...
zzzaai
0
Maar, ze gaan geen 1200 miljard bezuinigen
Ze blijven maar doen of ze de reserve valuta hebben

VS supercomite heeft zichzelf opgeheven
Dinsdag 22 november 2011 08:29 AMSTERDAM (Dow Jones)-- Het door het Amerikaanse congres aangestelde "supercomite", heeft maandag aangegeven de stekker uit de onderhandelingen te halen, omdat beide politieke partijen liever een verlies namen dan bereid waren e e n van de aangeboden compromissen aan te nemen.
Omdat er geen akkoord is gesloten door het grensoverschrijdende comite, bestaande uit zowel republikeinen als democraten, wordt de bezuiniging van $1,2 biljoen automatisch ingevoerd vanaf 2013.
Dat maakt de weg vrij voor een parlementsstrijd, dat een jaar kan duren, over de vraag de automatische bezuinigingen te blokkeren of te vervangen voor een ander breed bezuinigingsplan. De republikeinen maken zich nu al sterk om bezuinigingen op defensie-uitgaven te verminderen. President Barack Obama dreigde onmiddellijk een vetorecht uit te spreken om deze bezuinigingsvermindering tegen te gaan.
Zowel de republikeinen als de democraten maken zich zorgen om de impact van de automatische bezuinigingen, maar konden geen uitgebreid bezuinigingsplan overeenkomen een jaar voor de verkiezingen.
zzzaai
0
Het ligt niet aan Azie, niet aan de EU, en niet aan de UK
Maar aan de nikserigheid van de Amerikaanse politiek
Een beschamende vertoning voor het westen

Gung Ho
0
So - who says we Americans are not taking this debt problem seriously? -

www.nytimes.com/2012/01/27/us/politic...


Senate Vote Approves Rise in Debt Limit

By ROBERT PEAR
Published: January 26, 2012 WASHINGTON -

"The Senate voted on Thursday to allow a further increase in the federal debt limit, permitting President Obama to borrow $1.2 trillion more to operate a government that spent about 55 percent more than it collected in revenue last year."

But seriously , does this vote breakdown reinforce the assumption that "both party's are the same"? Maybe , to caesar's and some others chagrin , in their support for Israel , but it seems to me that there is some acknowledgement by the Reps beyong lip service that that things are out of control :

"The 52-to-44 vote generally followed party lines, with Democrats supporting the increase in borrowing authority and Republicans opposed.
In the House last week, Republicans passed a “resolution of disapproval” to stop the increase in the debt limit. But the Senate refused on Thursday to take up that measure. "

The upshot is that the debt limit will rise immediately to $16.4 trillion, from the current ceiling of $15.2 trillion.


If you don't trust GOLD,the only asset with a 6000 year track record, do you trust the logic of taking a $1,000 pine tree, cutting it up, turning it to pulp, putting some ink on it, and then calling it one billion $ dollars?
Amor Arrows
0

Howdy,

No, the Fed Does NOT ‘Print Money’,By Aaron Task

The Fed starts a two-day meeting Tuesday. And while Ben Bernanke isn't expected to change rates, a lot is on the line.

You probably have a sense the Fed is super important and powerful, but here's something you probably don't know: The Fed doesn't print money.

Yes, that's right. Despite all the chatter on the campaign trail (hello, Ron Paul) and on cable TV, the Fed is actually not in the business of printing money.

In America, the actual, physical printing presses are owned and operated by the Treasury Department...not the Fed.

A lot of people are confused about this. That's probably because the Fed does control the money supply. But "money supply' is not the same as actual physical dollars — and yet another reason why economics is known as "the dismal science".

The money supply equals the amount of physical cash plus the amount of credit circulating throughout the economy, which is where the Fed comes in a very big way.

Think of the Fed as a bank — but just for other banks. The Fed lends money to banks, which determines the rate which banks charge the rest of us for everything from car loans to mortgages to credit card rates and pretty much every other loan you can think of (and some fees only a banker can dream up.)

By setting the rate banks can borrow from the Fed, non-ironically called "the discount rate", the Fed helps determine whether rates are high or low for the rest of us. And those rates help determine whether people want to borrow money or not.

In addition to the discount rate, there's the fed funds rate, which is the rate you usually hear people talking about when it comes to the Fed. The fed funds rate is the rate banks charge to other banks for overnight loans, which is common practice in the world of high finance. Technically, the Fed sets a 'target' fed funds rate, and currently it's between 0% and 0.25%, where it's been since December 2008.

Another way the Fed controls the money supply — again, which is different than the actual amount of dollars in circulation — is via its "open market operations", through which it buys and sells bonds in the open market. If you've read news stories about the Fed buying Treasuries to help boost the economy, that's an example of 'open market operations' in action and is an example of "quantitative easing" or QE, which is not to be confused with a ship.

When it buys bonds, the money supply increases because the banks exchange their bonds for cash and then have more money -- aka liquidity -- to lend to businesses or individuals. The opposite occurs when the Fed sells bonds to the banks, who typically can't refuse any offer from the Fed.

In addition, the Fed controls the money supply by raising or lowering "reserve requirements," which is the amount of money banks are required to keep "on reserve" at the Fed, sort of like a rainy-day fund for the banking system. Raise those requirements and banks have less money for other stuff -- like lending; the opposite is true when the Fed lowers reserve requirements...or keeps them low as has been its recent practice.

For more detail on how this all works, see the Fed's comic book: The Story of the Federal Reserve System.

So while the Fed doesn't technically (or actually) print physical dollars, it has an enormous impact in the amount of money and credit in our economy. The real scandal is the banks pretty much have to do what the Fed wants, which makes Ben Bernanke the equivalent of a "Godfather" figure in the world of high finance.

And you thought Wall Street was powerful?

Did you learn something? Give us your feedback in the comments below or on Twitter using #JustExplainIt

Houdoe,

>--:-)-->
Gung Ho
0
Real federal deficit dwarfs official tally
By Dennis Cauchon, USA TODAY Updated 15h 57m ago


The typical American household would have paid nearly all of its income in taxes last year to balance the budget if the government used standard accounting rules to compute the deficit, a USA TODAY analysis finds.

By Jewel Samad, AFP/Getty Images
Congress exempts itself from including the cost of promised retirement benefits.

Under those accounting practices, the government ran red ink last year equal to $42,054 per household — nearly four times the official number reported under unique rules set by Congress.
A U.S. household's median income is $49,445, the Census reports.
The big difference between the official deficit and standard accounting: Congress exempts itself from including the cost of promised retirement benefits. Yet companies, states and local governments must include retirement commitments in financial statements, as required by federal law and private boards that set accounting rules.
The deficit was $5 trillion last year under those rules. The official number was $1.3 trillion. Liabilities for Social Security, Medicare and other retirement programs rose by $3.7 trillion in 2011, according to government actuaries, but the amount was not registered on the government's books.
Contrasting deficits
The federal government calculates the deficit in a way that makes the number smaller than if standard accounting rules were followed (in trillions).


Sources: USA TODAY research; Congressional Budget Office

Deficits are a major issue in this year's presidential campaign, but USA TODAY has calculated federal finances under accounting rules since 2004 and found no correlation between fluctuations in the deficit and which party ran Congress or the White House.
Key findings:
•Social Security had the biggest financial slide. The government would need $22.2 trillion today, set aside and earning interest, to cover benefits promised to current workers and retirees beyond what taxes will cover. That's $9.5 trillion more than was needed in 2004.
•Deficits from 2004 to 2011 would be six times the official total of $5.6 trillion reported.
•Federal debt and retiree commitments equal $561,254 per household. By contrast, an average household owes a combined $116,057 for mortgages, car loans and other debts.
"By law, the federal government can't tell the truth," says accountant Sheila Weinberg of the Chicago-based Institute for Truth in Accounting.
Jim Horney, a former Senate budget staff expert now at the liberal Center on Budget and Policy Priorities, says retirement programs should not count as part of the deficit because, unlike a business, Congress can change what it owes by cutting benefits or lifting taxes.
"It's not easy, but it can be done. Retirement programs are not legal obligations," he says.


If you don't trust GOLD,the only asset with a 6000 year track record, do you trust the logic of taking a $1,000 pine tree, cutting it up, turning it to pulp, putting some ink on it, and then calling it one billion $ dollars?
Sloeki
0
Niks aan de hand, gewoon even weer plafond verhogen en we kunnen 1 a 2 jaar verder..
Gung Ho
0
The facts bode ill for the health of the US financial system ...

So ... JPMorgan is among the lucky companies to kick off earnings season this week. If they disappoint, chances are their financial health is actually even worse than they report. If they beat, chances are their financial health isn't nearly what they say it is.

That's the nature of our blessed financial institutions. The banks have the clout to bend the rules; they have the money to find the loopholes; they have the political connections to keep from failing.

Consider:

Fact #1: JPMorgan recently revised their notorious Chief Investment Office trading loss - instead of losing $2 billion they are expected to report a loss of closer to $6 billion (potentially as high as $9 billion.)

Fact #2: Barclay's has recently come under fire (and has now lost its Chairman and CEO) due to the criminal investigation revealing the bank helped to manipulate Libor rates as far back as 2005.

Fact #3: JPMorgan has been subpoenaed twice in the second quarter after being probed by the Federal Energy Regulatory Commission over JPM's manipulation of business arrangements with power companies.

Fact #4: Morgan Stanley, as a recent lawsuit reveals, pressured ratings agencies to issue false ratings on $23 billion worth of subprime mortgages back in 2006.

Fact #5: JPMorgan was recently found to have neglected the best interests of their customers in favor of their own interests, selling them JPMorgan mutual funds even if there was a better alternative available.

Fact #6: JPMorgan recently revealed a substantial surge in its 1Q12 Value-at-Risk (the likelihood of it losing a predetermined amount on any given day should something go wrong.) That predetermined amount shot up while other major financial institutions saw their VaR decline, suggesting that banks "legally" hiding their true financial exposure could come under severe pressure if global credit market contagion hits the value of their investment books.

While funny business among international banking institutions doesn't come as a surprise to those who pay any attention at all, these facts all help to remove the veil that could be covering up more potential corruption and deception.

Basically, these guys are desperate.

Naturally, European banks are under intense pressure amidst a Sovereign debt crisis and zone-wide recession. But US banks are still looked at as relatively solid. Certainly there won't be a credit crisis here in the US, right?

Careful.

Contagion could sweep quickly across the Atlantic and roil many of our too-big-to-fail (read: too-connected-to-let-fail) institutions. US banks' derivatives exposure to European banks et al, while "officially" showing slight improvement based on recent disclosures, is still massive and at levels comparable to the 2008 credit crunch.

Really - nothing has changed. Actually, it may be worse ...

These major global banks were graciously given bailout money to keep the financial system functional when markets seized up in 2008. And all the quantitative easing and twisting efforts from global central banks has been the cover that let these banks look stable and disguise their vulnerabilities.

But their lifeline of central bank funds may be drying up.

A recent report from the Bank for International Settlements (BIS) recently concluded that protracted and unorthodox monetary policy has concealed the underlying balance sheet problems -- public and private. Further, it is now likely that additional policy stimulus will do more harm than good.

In other words: expectations of monetary stimulus, ad infinitum, have created a disincentive for banks and governments to address the problems of financialization and debt.

Wish we could say we are surprised.

Not only must banks find ways to inflate the value of their assets and understate their risks as the US economy muddles through, but they also must hold their breath and hope European officials can ring-fence their banking system insolvency and somehow stem the contraction in Eurozone economies.

And then they have to hope the Federal Reserve and its foreign counterparts keep the spigots open.

The last time there was this much unfounded hope was in 2008, remember?

The pain comes when change comes.

Are you ready?

If you don't trust GOLD,the only asset with a 6000 year track record, do you trust the logic of taking a $1,000 pine tree, cutting it up, turning it to pulp, putting some ink on it, and then calling it one billion $ dollars?
Gung Ho
0
FIGURES ON GOVERNMENT SPENDING AND DEBT
BUSINESS VIDEO



WASHINGTON (AP) --

Figures on government spending and debt (last six digits are eliminated). The government's fiscal year runs Oct. 1 through Sept. 30.
Total public debt subject to limit Nov. 29 16,283,989
Statutory debt limit 16,394,000
Total public debt outstanding Nov. 29 16,306,713
Operating balance Nov. 29 16,370
Interest fiscal year 2012 through October 24,637
Interest same period 2011 24,675
Deficit fiscal year 2012 through October 119,995
Deficit same period 2011 98,466
Receipts fiscal year 2012 through October 10,804
Receipts same period 2011 7,558
Outlays fiscal year 2012 through October 304,311
Outlays same period 2011 261,539
Gold assets in November 11,041

If you don't trust GOLD,the only asset with a 6000 year track record, do you trust the logic of taking a $1,000 pine tree, cutting it up, turning it to pulp, putting some ink on it, and then calling it one billion $ dollars?
HerrKaiser
1
Food Bank Visits Surge, Not Just for the Poor: With unemployment at a 16-year high and one in five... bit.ly/TSEbkZ
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