Wow. Read the part about how much we could spend ever day since birth of Jesus, and still not spend this much.

» The United States Of Debt: Total Debt In America Hits A New Record High Of Nearly 60 Trillion Dollars Alex Jones' Infowars: There's a war on for your mind!

I try not to think about it, too depressing.

This is the part that I just don't understand:

When the last recession hit, total debt in America actually started going down for a short period of time.

But then the Federal Reserve and our politicians in Washington worked feverishly to reinflate the bubble and they assured everyone that everything was going to be just fine. So Americans once again resorted to their free spending ways, and now total debt in the United States is rising at almost the same trajectory as before and has hit a new all-time record high.

 

People talk about a recession like it is bad, but when we are in a (quote) "recession" I always have more money in my pocket. When we were in a recession, I refinanced my home and saved thousands on the payoff amount. I can go to the store and buy much more for my dollar. But, when people say the economy is "thriving", I have less money in my pockets. Give me the recession, I'll refinance my house again and laugh all the way home while the talking heads opine about the economy.

^^^^^^^^

It makes no sense to me either. But apparently nothing makes sense to our leaders or we wouldn't be this bad in shape.

The crushing debt that our government has accumulated and continues to accumulate will eventually result in the fall of our government. The fact that the dollar is the world's "reserve currency" is all that has prevented a serious crisis so far. Last month, China and Russia agreed to bypass the dollar and pay each other in their own domestic currencies. If that deal stands and the trend grows, our inflation rate will soar and our standard of living and global influence will take a nosedive.

 

What can be done to prevent the hard times that seem to be ahead for this country? Nothing, IMO. Politicians will pander to the growing masses of poor people, blame the wealthy for their misery, and promise that their government will make all things better. What they will not do is risk their own political careers by reducing the size of government and the national debt to restore confidence in the dollar before it is too late to avoid an economic disaster.

But we have solid GDP growth which nullifies this massive debt, right? Wait! Nevermind. :ohbrother:

We obviously do have a lot of debt, but nowhere in the article dos it give a number for assets to support that debt.....a big omission!!

 

For Example.....if some buys a $300,000 house, but has enough cash in the bank to pay for it, not such a bad thing. They just choose to service the debt. Totally different if someone buys they house but can't service the debt.

But we have solid GDP growth which nullifies this massive debt, right? Wait! Nevermind. :ohbrother:

 

Saw that revised revised number for Q1, eh?

But we have solid GDP growth which nullifies this massive debt, right? Wait! Nevermind. :ohbrother:

 

Saw that revised revised number for Q1, eh?

 

 

They did the old corporate trick with the last revision. Since it was going to be negative they went ahead and made it worse by moving healthcare spending to the Q2.

 

Why do this? Avoid the 'R' word in an election year. 2 quarters in a row of negative GDP growth would trigger that definition. So expect a miraculous rebound - with the help of healthcare in Q2. At least on the first report. There are always 2 revisions afterwards.

 

Here Is The Reason For The Total Collapse In Q1 GDP | Zero Hedge

 

"But not only because GDP was indeed negative, but because the real reason for today's epic collapse in GDP was, you guessed it, Obamacare.

 

between the second and final revision of Q1 GDP something dramatic happened: instead of contributing $40 billion to real GDP in Q1, Obamacare magically ended up subtracting $6.4 billion from GDP. This, in turn, resulted in a collapse in Personal Consumption Expenditures as a percentage of GDP to just 0.7%, the lowest since 2009!"

 

Emphasis NOT added....it is from source.

 

WH version:

 

Third Estimate of GDP for the First Quarter of 2014 | The White House

 

 

When you ask an accountant what 2+2 is he responds......"what to you want it to be." I bet government accountants are not subject to SOX.

They did the old corporate trick with the last revision. Since it was going to be negative they went ahead and made it worse by moving healthcare spending to the Q2.

 

Why do this? Avoid the 'R' word in an election year. 2 quarters in a row of negative GDP growth would trigger that definition. So expect a miraculous rebound - with the help of healthcare in Q2. At least on the first report. There are always 2 revisions afterwards.

 

Here Is The Reason For The Total Collapse In Q1 GDP | Zero Hedge

 

"But not only because GDP was indeed negative, but because the real reason for today's epic collapse in GDP was, you guessed it, Obamacare.

 

between the second and final revision of Q1 GDP something dramatic happened: instead of contributing $40 billion to real GDP in Q1, Obamacare magically ended up subtracting $6.4 billion from GDP. This, in turn, resulted in a collapse in Personal Consumption Expenditures as a percentage of GDP to just 0.7%, the lowest since 2009!"

 

Emphasis NOT added....it is from source.

 

WH version:

 

Third Estimate of GDP for the First Quarter of 2014 | The White House

 

 

When you ask an accountant what 2+2 is he responds......"what to you want it to be." I bet government accountants are not subject to SOX.

Great post. So, Obama is fiddling with the books to avoid plunging the economy into a new recession on a technicality. Maybe he can continue revising the Q1 2014 numbers and avoid a recession by putting that pen of his to use.

 

In the coal industry, they used to call this mining with a pencil. Coal would be placed into large stockpiles during tough economic times and managers would estimate their production. Those who were overly optimistic about the amount of coal placed in inventory were eventually held accountable for poor performance and dishonesty when the coal was weighed and shipped.

They did the old corporate trick with the last revision. Since it was going to be negative they went ahead and made it worse by moving healthcare spending to the Q2.

 

Why do this? Avoid the 'R' word in an election year. 2 quarters in a row of negative GDP growth would trigger that definition. So expect a miraculous rebound - with the help of healthcare in Q2. At least on the first report. There are always 2 revisions afterwards.

 

Here Is The Reason For The Total Collapse In Q1 GDP | Zero Hedge

 

"But not only because GDP was indeed negative, but because the real reason for today's epic collapse in GDP was, you guessed it, Obamacare.

 

between the second and final revision of Q1 GDP something dramatic happened: instead of contributing $40 billion to real GDP in Q1, Obamacare magically ended up subtracting $6.4 billion from GDP. This, in turn, resulted in a collapse in Personal Consumption Expenditures as a percentage of GDP to just 0.7%, the lowest since 2009!"

 

Emphasis NOT added....it is from source.

 

WH version:

 

Third Estimate of GDP for the First Quarter of 2014 | The White House

 

 

When you ask an accountant what 2+2 is he responds......"what to you want it to be." I bet government accountants are not subject to SOX.

 

Being a Cassandra is frustrating....

 

http://www.zerohedge.com/news/2014-12-23/here-reason-surge-q3-gdp

 

In short, two-thirds of the "boost" to final Q3 personal consumption came from, drumroll, the same Obamacare which initially was supposed to boost Q1 GDP until the "polar vortex" crashed the number so badly, the BEA decided to pull it completely and leave this "growth dry powder" for another quarter. That quarter was Q3.

 

Emphasis added.

 

 

 

Also, this;

 

http://www.zerohedge.com/news/2014-12-23/exposing-deception-how-us-economy-grew-140-billion-q3-due-data-revisions

 

 

So in short, today the market is euphoric and hitting all time highs because Americans dug into their savings and spent billions on the "Affordable" Care Act.

 

And that, ladies and gentlemen, is the short answer why the US is "growing" when the rest of the world is mired in a triple (or quadruple if one is Japan) recession.

 

 

Emphasis not added.

 

 

 

Chart:

 

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/12/Final%20Q3%20GDP%20contribution.jpg

The crushing debt that our government has accumulated and continues to accumulate will eventually result in the fall of our government. The fact that the dollar is the world's "reserve currency" is all that has prevented a serious crisis so far. Last month, China and Russia agreed to bypass the dollar and pay each other in their own domestic currencies. If that deal stands and the trend grows, our inflation rate will soar and our standard of living and global influence will take a nosedive.

 

What can be done to prevent the hard times that seem to be ahead for this country? Nothing, IMO. Politicians will pander to the growing masses of poor people, blame the wealthy for their misery, and promise that their government will make all things better. What they will not do is risk their own political careers by reducing the size of government and the national debt to restore confidence in the dollar before it is too late to avoid an economic disaster.

 

My father in law told me years ago that he "is glad he is on his way out". He is still around (turns 79 today) but every day I see his point more and more. When Obama took over, our national debt was less than $10 trillion (a staggering number). When he leaves, it will be around $20 trillion. That's right. Under his watch, out national debt will go up more in 8 years than in the over 230 years before him. The way we are headed, I see nothing that can be done that will make this end well. Mitch, you are right...the politicians on both sides will not make tough decisions to limit spending. If you even try to keep spending level, you are labeled a racist who hates poor people.

 

Our population has come to expect things to be given them. As long as that is the case, the debt will continue to rise and eventually it will end VERY BADLY. What this generation has done to the future generations is absolutely criminal. If any business ran its affairs like the US Govt does, the president and Board would be thrown in jail for fraud. This will be Obama's legacy but also Bush's before him. Obama just has thrown gas on the fire of a problem that started before him.

 

And the problem is that most of America does not even pay attention to this problem or care...and that is a shame because it will affect ALL of us when the bubble bursts...