US$16,000,000,000,000 And Counting

US Debt Loads One-Armed-Bandit Machine

US debt is just now going over US$16 trillion... with no end in sight!

It's looking more like Romney and his money machine men will pull their one-armed bandit and win the jackpot in the US "democracy" casino in November! Blame Obama for feeding all that lolly into the machine without any payback in terms of much-promised "hope" or even any small "change"!

Can you spare a dime? A nickel will do. Obama's "change" seems backwards to 1930s!

So how will Romney's one-armed-bandit machine hit jackpot, rather than get sucked deeper down the debt drain?

Romney's money machine men have ensured they don't pay much taxes to feed the machine. They know better than to expose themselves any more than needed to US government debt liabilities. The machine is fed and loaded by Joe Soap who is about to be taken to the cleaners! Romney's capitalist running dogs will have a field day when the US government and its increasingly squeezed citizens go broke to leave the nation's and citizens' assets at knock-down, giveaway prices for the already rich money machine men to snap up. Wuf, wuf, woof.. and may the Devil take the hindmost!

Obama was a throwaway puppet used by the one-armed-bandit masters of corporate USA to load the money machine up with an "invisible hand of the market" while proffering "hope" for a rapidly dwindling, small "change" with his visible hand.

Ripe time is approaching to pull the lever and deliver the jackpot assets of USA into the hands of Romney's money machine men. Joe Soap will be left squeaky clean with US$ notes to use as toilet paper, but his ass will be owned by the one-armed-bandit capitalist running dogs.

The American Dream of Romney's money machine has a flipside similar to Adam Smith's market theory's invisible hand, but it certainly isn't the much-hyped "win-win" situation! The flip will produce a flop, the dream will turn to nightmare, the capitalist lever on the US elections will drain the pot of public debt and break the US government to leave an unruly BEAST - Capitalism Without Government!

http://www.nypost.com/p/news/business/us_debt_to_pass_YorannQiQY7NYfQcOQg9pI

http://www.usdebtclock.org/

http://www.inthesetimes.com/article/11775/the_debt_debacle/

Sovereign Man newsletter
August 29, 2012
Rome 

If you haven't heard yet, the United States of America just hit $16 trillion in debt yesterday. On a gross, nominal basis, this makes the US, by far, the greatest debtor in the history of the world. 

It took the United States government over 200 years to accumulate its first trillion dollars of debt. It took only 286 days to accumulate the most recent trillion dollars of debt. 200 years vs. 286 days. This portends two key points: 

1. Anyone who thinks that inflation doesn't exist is a complete idiot; 
2. To say that the trend is unsustainable is a massive understatement. 

At an average interest rate of 2.130%, Uncle Sam will shuffle $340 billion out the door just in interest payments this year... and it's a number that's only going up. To put it in context, China owns so much US debt that the INTEREST INCOME they receive from the Treasury Department is nearly enough to fund their entire military budget. 

It's rather disgusting when you think about it. 

Yet when you look at the raw numbers, there is no sign of improvement anywhere on the horizon. Last year, the Treasury Department brought in about $2.3 trillion in tax revenue. They spent $2.9 trillion JUST on -mandatory- programs like Social Security and Medicare, plus the very sacrosanct defense budget. 

In other words, the US government was $600 billion dollars in the hole before paying a dime of interest on the debt, or paying the light bill at the White House. In fact the government's own numbers reflect a budget deficit through the end of the decade, i.e. the debt level is only going to get higher. These are their own figures. 

In the 19th century, the Ottoman Empire was facing a similar debt crisis. In just 11-years, the Ottoman central government went from spending 17% of its tax revenue on interest payments, to spending over 52% of its tax revenue on interest payments. Then came default. Eleven years. The US is at 15% right now. How long will it take for the interest burden to become unbearable? 

History is full of examples of superpowers bucking under the weight of their debt. This is not the first time that it's happened, and it won't be the last. 

Sovereign debt is a giant confidence game. Investors buy bonds on the belief that governments can (and will) pay. When that confidence is chipped away, the cost of capital becomes debilitating. And people tend to notice a $16 trillion debt burden. 

This is banana republic stuff, plain and simple... and smart, thinking people ought to be planning on capital controls, wage and price controls, pension confiscation, and selective default. Because the next trillion will be here before you know it. 

Simon Black

Senior Editor

SovereignMan.com

Debt Mountains and Humpty Dumpty

All Fall Down

The absurd U.S. debt mountain is not going away. The wall of money the U.S. government does not have to pay off its public debts is growing by the day. The only surprise is how long the wall of debt has stayed up while it has grown ever bigger and higher.
http://youtu.be/WFP-2_iDYMU

Murmurs are heard from the Romney morons (sorry, did i mean Mormons?) about putting the US$ back on a gold standard! But if one measure of money is used (M2) this would mean that ALL THE GOLD EVER MINED ON EARTH would be needed to back the US$!

Then there is massive Japanese debt, and growing EU debt too, with Greece leading the way. NO CHANCE IN HELL OF GOVERNMENTS RAISING MONEY TO PAY OFF THESE DEBTS WITHOUT DEVALUING THE MONEY THEY'RE PAID IN!

For example, if i borrowed a million Zimbabwe$ back in 1980 i could have exchanged it immediately for very roughly 10,000 oz. gold. At 10% interest per year i'd maybe have a debt of 20 million Z$ now. But the currency became worthless - 20 million Z$ became worth less than 1US$! So i sell a speck of gold dust to buy back 20 million Z$ to settle my debt. The 10,000 oz gold, minus a speck, which remains mine for all my efforts is now worth about 16 million US$!

THE QUESTION IS WHO IS LOSING AND WHO IS WINNING FROM THIS DIABOLICAL DEBT MOUNTAIN GAME? WHO IS SELLING WHO DOWN THE RIVER? FOR A GAME, A MARKET, AND MONEY, HAS AT LEAST 2 SIDES TO IT. It's a duality (Devil's business).

It seems obvious, when one applies one's mind to it, but most people seem to be moronically ignorant these days. They are kept that way by those who do know what's going on and are profiting on the other side of those DEBT MOUNTAINS!

Joe Public is stuck with paying back impossible government debt through increased taxes, selling off of public assets to private investors, failure of pension funds and medical services he's contributed to, and the lower value of money in his pocket! Some may be screaming blue murder, but few see what their own elected leaders have done to them!

Over the impossible DEBT MOUNTAINS - which Joe Public cannot see beyond or get his head around - there are those PRIVATE INTERESTS, the global transnational corporations, the wealthy elite few, living in the lap of luxury with more paper or digital money than they can sensibly use.

Capitalist-bought-out government officials - the Bushes, Clintons, Obamas, Blairs, Browns, Camerons, and all the other clowns like them - have been involved in the largest transfer of wealth the world has ever seen, whether they understand what they did and are doing or not! And methinks for the large part they do not understand, but were swept along by global currents they had no moral strength to withstand.

The end result of capitalist-bought-out game plans is a very few absurdly wealthy people who appear on paper to own much of the world's resources, manufacturing production, service industry and finances. Meanwhile, Joe Soap is taken to the cleaners looking for a job to pay him devalued money to stay afloat in the bath with inflated prices for goods and services!

Joe Soap ends up being little more than a serf, slave, or outcast scum of the capitalist-bought-out system. A pool of cheap labor like those poor Africans who were forced to pick cotton on plantations. Joe Soap these days may have no physical chains on him, is not forcefully transported to foreign shores, and actually wants to find work or a job. However, Joe Soap's slavery is worse than having physical chains on his body. His slavery is mental and insidious, because he has no idea how this situation came upon him. And he has no idea what those insurmountable, absurd, DEBT MOUNTAINS looming over his world mean! No, he has no idea! So he's led by the nose!

Beyond the debt mountains, on the other side of their utter absurdity, all is not well either! The Bill Gateses, Carlos Slims and George Soroses have more money in paper or digital form than any human can make much sense of in ordinary terms. Their casino-like capitalist game-plan is to play with the world's resources, betting on the next place to make profits, although they already have enough money to live in stupendous luxury for countless lifetimes.

A nod or shake of a capitalist casino player's head may mean companies go bankrupt with thousands of Joe Soaps out of work. As pure capitalists they see numbers as more important than people - people as mere numbers! They themselves are numb, less than human! They may try to assuage what remains of their burnt-out consciences with humanitarian projects, as failed capitalist-bought-out governments leave large populations in derelict conditions. However, their projects also end up treating humans like guinea pigs, social-engineering material, and don't really solve the problems which their capitalist-game-plan system has brought about in the first place!

The human condition is akin to staring at an impossible wall, currently a global debt mountain, from its two separate sides. There's the side of the poor masses, Joe Public, burdened with massive public debt and taxation to pay it off. Then on the other side of the impossible dividing wall there are a few wealthy elite playing capitalist casino games. No answers are forthcoming from either side! NONE! One side accumulates wealth and perhaps throws away or trickles down some to assuage the pain on the other side where masses of people are bought-out, sold, trafficked, divested and stripped bare like slaves were in the old days. Joe Public is not so much an owner of anything, as owned, bought and sold! He sold his birthright, and thus he's no longer his own master but ruled by others whose rules he does not understand or have any say in making.

The rich elite, play their capitalist casino games with world resources and people as chips. They tend to see the world's problems as not of their making, but rather made by people themselves! However, they are really slaves of the enslaved public because the whole capitalist board they play on is based on the world's population and resources - take these away and the elite masters are exposed as nothing but worldly tricksters and high-stakes gamblers lacking ethical vision while they sit at their board games fingering their chips.

The wall dividing the world, dividing wealth, causing revolutions and wars, is the duality of the human mind. Humpty Dumpty falls on one side or the other. All the king's horses and all the king's men cannot put Humpty Dumpty back together again! So what is to be done about it?