Experts say looming debt could lead to a financial crisis
The federal debt held by the public totals more than $13 trillion, or about $107,000 per household in the United States, according to a report released this month by the Cato Institute. Continue reading
(CNSNews.com) – The portion of the federal debt that is subject to a legal limit set by Congress closed Monday, August 10, at $18,112,975,000,000, according to the latest Daily Treasury Statement, which was published at 4:00 p.m. on Tuesday.
That, according to the Treasury’s statements, makes 150 straight days the debt subject to the limit has been frozen at $18,112,975,000,000.
$18,112,975,000,000 is about $25 million below the current legal debt limit of $18,113,000,080,959.35. Continue reading
(CNSNews.com) – Testifying in the U.S Senate yesterday, Congressional Budget Office Director Keith Hall warned that the publicly held debt of the U.S. government, when measured as a percentage of Gross Domestic Product, is headed toward a level the United States has seen only once in its history—at the end of World War II.
To simply contain the debt at the high historical level where it currently sits—74 percent of GDP–would require either significant increases in federal tax revenue or decreases in non-interest federal spending (or a combination of the two).
Historically, U.S. government debt held by the public, measured as a percentage of GDP, hit its peak in 1945 and 1946, when it was 104 percent and 106 percent of GDP respectively.
In 2015, the CBO estimates that the U.S. government debt held by the public will be 74 percent of GDP. That is higher than the 69-percent-of-GDP debt the U.S. government had in 1943—the second year after Pearl Harbor. Continue reading
Debt is deadly, and it’s made even worse with rising interest rates that can prevent you from eliminating the load. What happens with rising interest rates is that more of the payments go toward the interest and less to the principal. In fact, it’s what I call a death spiral of debt that worsens as rates move higher.
When individuals face excessive debt, often the solution is to reduce spending and adhere to a strict repayment program. Continue reading
Those who deny the reality of financial terrorism tend to use the same basic arguments. One of those is built on the idea that everyone is motivated by money and so no one would intentionally harm America’s economy. There are many flaws in this reasoning and we will likely catalog them in a future post. Another set of arguments is built on the idea that we brought on the decline all by ourselves through terrible monetary and fiscal policy. There is truth in this line of reasoning but it is not the whole truth.
Few people recall that a little over a decade ago our government was running a budget surplus. In fact in December 2000, the Office of Management and Budget projected that the entire Federal debt would be paid off by 2010. Imagine that. It was less than a dozen years ago but it seems like more than a lifetime. Now, we are almost $16 trillion in debt with $1 trillion deficits projected for years to come.
It was in this context that al Qaeda attacked the World Trade Center with the intention of harming the American economy. Bin Laden even stated as much in his December 2001 speech taking credit for 9/11. This was noted in a September 11, 2007 US News article that actually made the case that bin Laden had failed in his economic attack. Ironically this article was written right as the stock market was peaking just before the horrible 2008-09 collapse still haunting us today.
Full article: Understanding the Big Picture (Kevin Freeman/Global Economic Warfare)