U.S.’s $13 trillion debt poised to overtake GDP

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investorzzo's picture
investorzzo
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Joined: Nov 7 2008
Posts: 1182
U.S.’s $13 trillion debt poised to overtake GDP

June 4 (Bloomberg) -- President Barack Obama is poised to increase the U.S. debt to a level that exceeds the value of the nation’s annual economic output, a step toward what Bill Gross called a “debt super cycle.

http://www.bloomberg.com/apps/news?pid=email_en&sid=aa0cI64Gx.4E

http://jsmineset.com/wp-content/uploads/2010/06/June0410Bloomberg.jpg

 

Thomas Hedin's picture
Thomas Hedin
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Joined: Jan 28 2009
Posts: 815
Re: U.S.’s $13 trillion debt poised to overtake GDP

And to think, if the people running government just did what is required they would have the government create the money, and we would have zero economic crisises, low taxes, ect.....

Carl Veritas's picture
Carl Veritas
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Joined: Oct 23 2008
Posts: 294
Re: U.S.’s $13 trillion debt poised to overtake GDP

investorzzo,

The unfunded liabilities created by the politicians is around $59.1 Trillion      85% of which is for Social Security payments, Medicare and Federal retirement programs.     State and Local government retirement plans account for much of the rest.    (from USA Today)

Imagine the potential for creation.

dshields's picture
dshields
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Joined: Oct 24 2009
Posts: 599
Re: U.S.’s $13 trillion debt poised to overtake GDP

yea, it is pretty shocking.  check out the data.  bush was a big spender and even though i voted for him i was very disappointed in that aspect of his administration (among others).  however, the dems in control now make bush appear to be a skin flint and are on a spending spree that takes the breath away.  while the dems are spending like drunk sailors, the fed res is pouring money into the financial system at an equally shocking rate.  i was amazed when obama got elected and ended up with both houses of congress.  they have done just about what i thought they would do and they will do a lot more harm to america unless they are stopped.  but for me, the fed has been the wild card.  i work for a "wall street" company and see/hear stuff every day that surprises me.  i agree with the guy that runs this joint (chris), what i see now does not really make a lot of sense.  if you look at all the various markets (labor, commodities, bonds (and other debt instruments), foreign exchange, etc.) it seems crazy.   that just can not be a good thing.  i am not sure where it all leads to, but chris is probably not too far off the mark.  nothing good can some from what is happening at this point in time unless there are some fundamental changes made pretty soon.

1) the fed gov must reverse their tax and spend agenda and instead it needs to cut spending and lower taxes across the board so people have enough money to live and retire

2) state and local gov must do the same as the fed gov

that would be a start.  i live in new jersey and we recently elected chris christie to be the governor.  that guy is turning out to be really great.  he is exceeding my expectations.  a lot of people here are starting to say that he should run for president in 2012.  they may be right.

 

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