- The actual amount is anybody’s guess. I remember a FedRes spokesman stating that it was above US$100T ! I am filled with hysterical laughter whenever I see useful idiots buying US treasuries. Do they believe they will get their money back? Of course, the belief is that there is always a bigger idiot who will take the treasuries off their hands. It is a dangerous game! Get burn once and you may not live to fight another day!
US Government ‘hiding true amount of debt’ (emphasis mine)
THE actual figure of the US’ national debt is much higher than the official sum of $US13.4 trillion ($14.3 trillion) given by the Congressional Budget Office, according to analysts cited on Sunday by the New York Post.
“The Government is lying about the amount of debt. It is engaging in Enron accounting,” said Laurence Kotlikoff, an economist at Boston University and co-author of The Coming Generational Storm: What You Need to Know about America’s Economic Future.
“The problem is we’re seeing an explosion in spending,” added Andrew Moylan, director of government affairs for the National Taxpayers Union. In 1980, the debt – the accumulated red ink incurred by the Federal Government – was $US909 billion. This represented some 33 per cent of gross domestic product, according to the Congressional Budget Office (CBO).
Thirty years later, based on this year’s second-quarter numbers, the CBO said the debt was $US13.4 trillion, or 92 per cent of GDP. The CBO estimates the debt will be at $US16.5 trillion in two years, or 100.6 per cent of GDP. But these numbers are incomplete.
They do not count off-budget obligations such as required spending for Social Security and Medicare, whose programs represent a balloon payment for the Government as more Americans retire and collect benefits. In the case of Social Security, beginning in 2016, the US Government will be paying out more than it is collecting in taxes. Without basic measures – such as payment cuts or higher payroll taxes – the system could be on the road to bankruptcy, according to officials.
“Without changes,” wrote Social Security Commissioner Michael Astrue, “by 2037 the Social Security Trust Fund will be exhausted. There will be enough money only to pay about $US0.76 for each dollar of benefits.” Mr Kotlikoff and Mr Moylan agree US national debt is much more than the official $US13.4 trillion number, but they disagree over how to add up the exact number.
Mr Kotlikoff says the debt is actually $US200 trillion.
Mr Moylan says the number is likely about $US60 trillion.
That is close to the figure quoted by David Walker, the US Comptroller General from 1998 to 2008. He launched a campaign to convince Americans that the federal spending and debt is a greater threat than terrorism. But whichever figure is accurate, all three agree that the problem has worsened in the last few years. They say it is because Congress and the Administration, whether Republican or Democrat, consistently overspend.
- We are in the dangerous phase of the snakes end game. World War 3 is planned. These Illuminists have failed in their false flag terror attacks on Mumbai, India and the sinking of the South Korean warship Cheonan. They are setting the pieces for a coming World War!
- The Anglo-American-Zionist western Illuminist hegemony wants a New World Order based on them, ie they continuing in power. I suspect the Russian Illuminati has bought into this plan. I am not sure whether the Chinese Illuminists are playing along. What is certain is that for the western Illuminist hegemony to continue they need to take down China.
- Recent ‘conflicts’ between Japan and China are escalating into the uncomfortable and even dangerous level. Are the Chinese Illuminists staking their ground for an Asian hegemony under them? World war is inevitable. Japan is screwed. They are mere pawns and cannon fodder in this genocidal war game. Japan is under the control of Rothschild and Rockefeller banksters. They were emasculated after World War 2. The Satanic cabal ruling the western world is itching to start their World War 3 with a massive false flag (nuclear?) attack in America!
Will Obama Force America To “Absorb A Terror Attack” To Save His Presidency?
President Obama’s ominous claim that America can “absorb” a terror attack will have many fearing that staging some kind of false flag event will be the only way the government can overturn the massive resistance to big government that has grown exponentially since Obama took office.
During an interview with journalist Bob Woodward, the president said, “We can absorb a terrorist attack. We’ll do everything we can to prevent it, but even a 9/11, even the biggest attack ever . . . we absorbed it and we are stronger.” However, the only thing that was made stronger by 9/11 was the federal government’s power to harass, shake down and spy on the American people, as was exemplified yet again recently when Pennsylvania’s Office of Homeland Security was caught conducting surveillance on peaceful protest groups with the aid of an Israeli security company who listed Second Amendment groups amongst others as terrorists.
Given how both Bush and Clinton before him exploited terror attacks on U.S. soil to boost their flagging political agendas, we should be wary of Obama and his masters making good use of their own “October surprise” to counter record low approval figures for Congress on the eve of the midterm elections.
Talk show hosts such as Michael Savage have long been warning of a “Reichstag fire-like event” would be concocted to reinvigorate support behind Obama and given that his advisors include such ruthless individuals as Rahm Emanuel, the knife wielding son of a former Israeli terrorist who was involved in bombing hotels, marketplaces as well as massacres, we would be naive to put anything past these people.
Indeed, it was only two months ago that former Clinton advisor Robert Shapiro wrote in the Financial Times that the only thing that could save Obama’s tenuous grip on power was a terror attack on the scale of Oklahoma City or 9/11. “The bottom line here is that Americans don’t believe in President Obama’s leadership,” said Shapiro, adding, “He has to find some way between now and November of demonstrating that he is a leader who can command confidence and, short of a 9/11 event or an Oklahoma City bombing, I can’t think of how he could do that.”
Shapiro was clearly communicating the necessity for a terror attack to be launched in order to give Obama the opportunity to unite the country around his agenda in the name of fighting terrorists, just as President Bush did in the aftermath of 9/11 when his approval ratings shot up from around 50% to well above 80%.
Similarly, Bill Clinton was able to extinguish an anti-incumbent rebellion which was brewing in the mid 1990’s by exploiting the OKC bombing to demonize his political enemies as right-wing extremists. As Jack Cashill points out, Clinton “descended on Oklahoma City with an approval rating in the low 40s and left town with a rating well above 50 and the Republican revolution buried in the rubble.”
Only by exploiting a domestic terror attack which can be blamed on right-wing radicals, or by rallying the country round another war in the middle east, can Obama hope to reverse the tide of anti-incumbency candidates that threaten to drastically dilute the power monopoly of establishment candidates from both major political parties in Washington.
Shapiro is by no means the first to point out that terror attacks on U.S. soil and indeed anywhere in the world serve only to benefit those in positions of power. During the latter years of the Bush presidency, Secretary of Defense Donald Rumsfeld mused with Pentagon top brass that shrinking Capitol Hill support for expanding the war on terror could be corrected with the aid of another terror attack.
Lt.-Col. Doug Delaney, chair of the war studies program at the Royal Military College in Kingston, Ontario, told the Toronto Star in July 2007 that “The key to bolstering Western resolve is another terrorist attack like 9/11 or the London transit bombings of two years ago.” The same sentiment was also explicitly expressed in a 2005 GOP memo, which yearned for new attacks that would “validate” the President’s war on terror and “restore his image as a leader of the American people.”
In June 2007, the chairman of the Arkansas Republican Party Dennis Milligan said that there needed to be more attacks on American soil for President Bush to regain popular approval. The Obama administration has proven itself to be alarmingly adept at lying about every issue under the sun, so why should we believe any different when it comes to the terror threat to America?
Using terror or the threat of terror as a political tool has been a routine ploy in recent years, and was acknowledged by former Homeland Security chief Tom Ridge when he admitted he was forced to issue fake terror alerts shortly before elections to influence the outcome.
Threatening terror has also been a tactic of some of Obama’s biggest supporters in the Democratic party, people like former Senator Gary Hart, who in 2007 wrote a thinly veiled threat to Iranian leaders pointing out that the U.S. has been involved in numerous staged provocations over the years to achieve political agendas, mentioning specifically the Gulf of Tonkin incident and the sinking of the Maine.
….. to continue reading click here!
- You should have no doubts that fiat currencies are on the competitive devaluation route to toilet paper status. The smart money is flowing into commodities and precious metals to protect themselves. Accumulate physical gold and silver. Do not hang on to too much fiat currencies. Keep sufficient for say 4-6 months survival but the rest of your money keep it in physical gold/silver.
- Governments around the world are on the route to Quantitative Easing. This is simply printing money out of thin air (or electronically creating money out of nothing) to monetize debts. Debt monetization simply means buying your own debts with these legally counterfeited money. Look, if massive amount of money printing can solve the world’s problems, governments should go the whole hog and print US$1m/each for everybody. They should abolish all taxes and pay back all debts by printing money.
- The reality of history is: it is the beginning of the end for fiat currencies. Before an empire collapses, it is always followed by currency debasement. Yes, the Anglo-American empire is coming to an end. Unfortunately, I seriously doubt it will go in a whimper, much rather with the bang of global war!
- What will many central banks do with their large hoard of USD? They need to exchange it for other currencies or precious metals. Eventually, many central banks will come to the conclusion that other fiat currencies are no better than the USD and flee to gold. This process is accelerating right before our eyes. It will lead to an overnight collapse of the USD. What is holding up the value of the USD, ironically, is probably the CNY! Gold price will go ballistic ala 1979-1980!
Fiat Currency Wars, Competitive Devaluations Fuel Gold’s Rally to $1,300/oz
Over the past two months, there’s been a global stampede into precious metals, with investors of many different stripes, and from many countries, scurrying to buy gold and silver, in both the physical market and through exchange traded funds. The World Gold Council reported that the demand for gold worldwide surged 36% in the second quarter of 2010, to 1,050-tons. The Greek debt crisis, instability in Irish and Portuguese bonds, and expectations the Fed would unleash “Quantitative Easing, (QE-2), – flooding the world with a new tidal wave of freshly printed US-dollars, has supported the historic bull-run. Europe accounted for more than 35% of the retail purchases of gold coins during the second quarter.
The latest surge in gold and silver prices was sparked in July, following comments from Fed officials, signaling that QE-2 could be around the corner. On July 22nd, Fed chief Ben “Bubbles” Bernanke reassured congressional lawmakers the central bank is prepared to print more dollars, if the US-jobless rate continues to hover around 10-percent. “We are ready and will act if the economy does not continue to improve, if we don’t see the kind of improvements in the labor market that we are hoping for and expecting. Unemployment is the most important problem that we have right now. What we can do is make financial conditions as supportive of growth as we can and we certainly are doing that,” Bernanke said.
On August 19th, St Louis Fed chief James Bullard was more explicit, signaling his backing for further monetization of the US-government’s debt. “Should economic developments suggest increased disinflation risk, purchases of Treasury securities in excess of those required to keep the size of the balance sheet constant may be warranted. Any additional Treasury buying should be undertaken in a measured, deliberate manner, commensurate with the magnitude of the deflation threat.”
The Fed’s propaganda artists are operating behind a veil of “smoke-and mirrors,” trying to instill the fear of deflation in the bond market, in order to justify another big round of stealth monetization of the US-government’s debt. The Fed’s first go-around with QE, totaling $1.75-trillion, combined with the Bank of England’s 200-billion pound QE-scheme, and the Bank of Japan’s 21-trillion yen QE-scheme, fueled a powerful rally in key commodity markets last year, lifting the Dow Jones Commodity Index, (DJCI) from deep in negative territory, and onto the positive side, thus warding off the threat of deflation in the global economy.
Sept 1st, Philadelphia Fed chief Charles Plosser, said the Fed would embark upon further monetary easing, if faced with a dangerous downward price spiral. “If we do need to act, if fears of deflation were to become real, then we would need every ounce of credibility we can muster to convince markets we are not going to let deflation happen.” Plosser said he would be open to further bond purchases if he saw deflation as a real risk. “I would certainly entertain the solution if I feared deflation, and if I feared that expectations were coming unglued in that direction, – then we would have to take actions,” he warned.
Interestingly enough, amid all this gloomy talk by Fed officials about the bogeyman of deflation, the demand for precious metals, – traditional hedges against inflation and currency devaluations, – is booming. Traders realize that the Fed’s magic elixir for fighting the scourge of deflation is more money printing, – otherwise known as nuclear QE-scheme. US-bond dealers, who trade directly with the Fed, aren’t questioning whether QE-2 is on the table, but rather, are taking bets on the size of QE-2, with estimates ranging between $300-billion and $1-trillion.
Competitive Currency Devaluations
Speculation that the Fed would unleash QE-2 has already spearheaded a new round of currency wars across the globe. Central bankers in Brazil, China, Chile, Japan, Russia, South Korea, and Thailand, have all stepped up their interventions, by injecting large sums of paper into the currency markets, while trying to prevent a precipitous decline in the value of the US-dollar versus their own currencies.
The amount of foreign currency reserves stashed away in the coffers of the Bank of Korea, (BoK) have climbed by $76-billion since April 2009, to a record high of $286-billion, – to become the world’s sixth-largest after China, Japan, Russia, Taiwan and India. The BoK’s currency reserves are an indicator of the approximate size of its interventions in the foreign-exchange market, utilized to artificially hold down the value of the Korean won vs the US-dollar.
The value of the US-dollar is critical to Seoul, since Beijing pegs the Chinese yuan to the US-dollar, and China is the biggest customer for Korean exporters. Thus, the BoK aims to protect its exporters in both the Chinese and US-markets. However, the BoK hasn’t been able to turn the bearish tide against the US-dollar. It’s been overwhelmed by ideas the Fed would unleash nuclear QE-2. Instead, the BoK can only try to stem the bleeding, – engineering an orderly retreat for the greenback.
On Sept 16th, Tokyo’s financial warlords intervened in world currency markets to drive down the exchange rate of the yen by selling an estimated 2-trillion yen ($23-billion). The first such intervention by Japan in more than six years was also the biggest ever one-day currency action, and breached a tacit agreement among the Group-of-Seven industrial powers to avoid unilateral currency interventions.
Japan had threatened such action for more than six-weeks, after the value of the US-dollar had declined by 10% since May to a 15-year low of 83-yen. The Japanese yen also climbed sharply in relation to the Euro and the Chinese yuan. Japan’s multinationals, listed on the Nikkei-225 index, are heavily dependent on exports, and the dollar’s value had declined far below their average break-even point of 93-yen, and threatens their ability to sell goods abroad.
Japan’s foray into the currency markets triggered a short squeeze on over-zealous US-dollar bears, and lifted the dollar to as high as 86-yen. However, the dollar’s one-day rally quickly stalled out, as speculators began to bet that the size of the Fed’s QE-2 would exceed the size of the BoJ’s devaluation schemes. Earlier, the BoJ boosted the size of excess yen sitting in deposits held by Japanese bans to 30-trillion yen, ($350-billion), in an effort to put a floor under the dollar at 84-yen.
Despite the massive size of the BoJ’s injections of yen into the local banking system, it hasn’t been able to turn the US-dollar’s bearish tide against the yen. That’s because currency traders expect the Fed’s next round of QE-2 would trump the size of the BoJ’s interventions. Also, US-Treasury yields could resume falling further than comparable Japanese bond yields, thus narrowing the US-dollar’s interest rate advantage over the yen. In the current round of competitive currency devaluations, the Fed holds the trump card over the BoJ.
Already, the BoJ is monetizing half of Tokyo’s annual budget deficit of 44-trillion yen this fiscal year, and there’s pressure on the central bank to buy more JGB’s to weaken the yen. Although some traders might view the BoJ’s bond buying operations as a buy signal for JGB’s, investors in Tokyo gold have profited more handsomely. Tokyo gold has been tracking the size of Japan’s outstanding debt, since Tokyo’s ruling elite prefer to pressure the central bank to monetize its debts, rather than sell-off state owned assets to finance budget shortfalls.
Bank Rossii, Russia’s central bank, manages the rouble against a basket of dollars and Euros to limit currency swings that may hurt it exporters. In August, Bank Rossii bought $1.1-billion and 136-million Euros, while trying to keep the rouble within a floating range against the Euro-dollar’s basket. The worst drought in decades this summer has already shrunk Russia’s trade surplus to $8.3-billion in August, or 29% less than a year ago, and has slowed its economy’s growth rate to +2.4%, with 60% of the fall attributed to the agricultural sector. Thus, Bank Rossi is liable to start increasing the supply of roubles in the money markets, to limit further damage from adverse exchange rates moves to its economy.
The Kremlin earns most of its foreign currency from the sale of Urals blend crude oil, natural gas, and other natural resources, such as timber, platinum, and nickel. Along with rebounding energy and metals markets, Russia’s FX reserves have been replenished to around $478-billion today, from as low as $380-billion in March 2009. Moscow is keen to diversify some of its FX stash into gold, and last May, added 1.1-million ounces equaling 16% of monthly global mining output.
Overall, the Russian central bank bought gold at an average rate of 250,000-ounces /month for the past three-years, and now holds an estimated 23.6-million ounces. As of the first quarter of 2010, Saudi Arabia said it had more than doubled its gold holdings from 143-tons in Q’1, 2008 to 323-tons, for an average increase of 241,000 ounces a month, or about the same as Russia’s purchases. Thus, gold traders will keep a close eye on the FX reserves of these two key oil producers.
….. to continue reading click here!