Deloitte: U.S. Debt Crisis is Worse that You Think

[BoneKracker]

Soon, our interest payments on foreign debt alone will be enough to finance the Chinese military and is a huge amount that we need for other things.

At the moment, we are accruing debt at a rate of $4 Billion per day -- that's $750 per houshold per month -- which must be paid back, with interest. Over the coming decade, interest on debt will cost use $424 per month per household. That's interest alone.

Unfunded liabilities now total $50 Trillion. Government reports aren't as reliable as we like to think; the debt is highly sensitive to GDP fluctuations (a 1% variation makes a difference of Trillions over a few years).

An interesting analysis by Deloitte (click "download"):

http://www.deloitte.com/view/en_US/us/Insights/hot-topics/2012-Election/158e9fb774287310VgnVCM3000001c56f00aRCRD.htm
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Oldthinkers unbellyfeel INGSOC.
-- Headline of a document on Winston Smith's terminal in his cubicle at the Ministry of Truth, seen briefly in the background in one scene of the movie rendition of Nineteen Eighty-Four.

[Prenj]

This whole thing "economy growth through debt and consumption" is just a clever scheme. Corporate owners got rich, production moved elsewhere, americans were blindsided by bling (on loan), but the ultimate price will be payed by taxpayers, and it's not just the money, but the fact that after 20-30 years of that, US will be like a 3rd world country, with rich elite, and fuck all else.

At least china will have production capabilities and routines, its not just about ownership for a little guy, its about the fact that after 20 years of assembling electronics, chinese workers will be more attractive on market, than an american with bling.

But I might be too pessimistic, I call it age

[notageek]

Let me guess, because of Obama?
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What looks like a cat, flies like a bat, brays like a donkey, and plays like a monkey?

[Prenj]

[BoneKracker]

[pjp]

Worse than I think?


Anyone available to tutor me in Mandarin?
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lolgov. 'cause where we're going, you don't have civil liberties.

In Loving Memory
1787 - 2008

[jonnevers]

interest, as a whole sum, isn't even possible to be paid back. although a lot of money is being printed out of thin air, so USians could theoretically pay back money that didn't exist before (the interest) with money they pretend exists but doesn't really (stimulus). so it seems USians are on the bottom of a lose-lose situation.

[BoneKracker]

[petrjanda]

The worst thing governments & corporations have done is convince the populace debt doesn't matter, or that it matters less than they think. That debt and inflation will give us infinite growth. Both of which are false. The world is quickly running into a dead end where it will be necessary to either wipe off trillions of dollars of debt(both public and private) or inflate itself out of it. Unfortunately both will result in economic catastrophe, or even worse...war.
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There is, a not-born, a not-become, a not-made, a not-compounded. If that unborn, not-become, not-made, not-compounded were not, there would be no escape from this here that is born, become, made and compounded. - Gautama Siddharta

[Prenj]

[PaulBredbury]

[Prenj]

[erm67]

[BoneKracker]

[BoneKracker]

[Prenj]

[PaulBredbury]