http://www.breitbart.com/article.php?id=D95MEMU82&show_article=1
WASHINGTON (AP) - The Treasury Department says the federal government already has run up a record deficit of $485.2 billion in just the first three months of the current budget year.
The deficit is on track to surpass $1 trillion for all of fiscal 2009 and some economists believe it could go much higher.
The Treasury says the deficit for December totaled $83.6 billion, a sharp deterioration from a year ago when the government managed a surplus of $48.3 billion.
All the red ink is occurring because of the massive spending on the $700 billion financial rescue program and a prolonged recession which has depressed tax revenues.
and that doesnt even count for Obamas 1 trillion dollar stimulus package still to come.
Not sure what the number is on state unemployment and bankruptcies.
Also, doesnt really address the 865billion in state pension problem to come this year either.
http://news.yahoo.com/s/bloomberg/20090113/pl_bloomberg/av0vzmxdimvq
I see an easy 5 trillion for 2009.
There are an estimated 200 billion stars in the milky way. We used to call that an astronomical number. 5 trillion is 25 times that. Who's gonna pay this bill?
QuoteWho's gonna pay this bill?
Our grandkids.
It seems the Government isn't worried about who will pay it. Maybe they never expect it to be paid. I mean were talking about fictionary numbers. Its all paper with numbers and colorings and symbols of a secret society. eventually when it gets too inflated it will become a source of heat.
Their greed keeps them from worrying about who will pay for it ...as long as they get it NOW.....
Quote from: wildbil on January 13, 2009, 09:31:14 PM
It seems the Government isn't worried about who will pay it. Maybe they never expect it to be paid. I mean were talking about fictionary numbers. Its all paper with numbers and colorings and symbols of a secret society. eventually when it gets too inflated it will become a source of heat.
I hear you on this wildbil, I really do. I am a bit hardheaded tho and I am struggling with the hyperinflation theory quite a bit in light of whats going on around.
Is it possible that we crashed in 2000-2001, and that we already had hyperinflation? Yes, those houses increased and such .. but really the money that went crazy was in fact the very CDO's and derivatives that created our current mess? Consider that in 2000 there were only a few players in the securitization market, and the derivatives market even fewer. Over the next few years it grew into a 514 trillion dollar derivative nightmare. And not only that, but I have read that the total exposure is some where around 4 quadrillion. (But I cant find the 10k's to back that up even though I have tried).
So, my thought that I struggled with it ... what if we already had the crackup boom? What if that monetization and huge expansion of derivatives and CDOs was the hyperinflation -- BUT -- instead of making our USA citizens eat it we exported it. We sold it to China and Saudi Arabia and UK and Switzerland banks and we let them eat those losses. What would that leave us with? Deflation as the net affect of that unwinding worldwide came crashing down.
It would make the US dollar shoot straight up as the ruble rupee yuan euro mark peso and pound crashed. (seen a DX chart lately?) It would kill Russia by devaluing oil. While such a scenario would be bad {read that as a depression} for the united states, it would be catastrophic for the rest of the world. {regime change}.
There are many things afoot for sure, and I cant make the pieces fit together in a way that is logical enough for my brain to accept but the hyperinflation story doesnt exactly work for me either. Just tossing some food for thought out there.
I have some problems with that theory. I've said for years that the end was happening then, we just didn't realize it.
What we are having now is like a kickback in a table saw. It forms slowly because of stresses in the wood and we keep pushing it further. When it can't bull it's way any further, it kicks back.
I think everyone should keep a diary this year because it is history in the making.
Quote from: ScottA on January 13, 2009, 08:57:54 PM
QuoteWho's gonna pay this bill?
Our grandkids.
And if we don't have an stimulus plan, your grandkids' grandkids still won't have jobs, because the depression will still be going strong.
Take your pick.
It's unfortunate the way things work. Our country can only survive with constant growth. It's too bad that someone can't just shoot a pistol in the air and stop everyone in their tracks. I want a raise, I want less taxes, I want the government to fix the pot hole in the road.
If everyone got a raise, the company they worked for would have to raise prices. If all companies raise prices then your raise becomes meaningless. If you get a 2% raise and inflation is 3% you did not make any money.
I want less taxes and the government should fix the road: Money from taxes goes right back into the economy, into jobs. Someone get's paid to fix the road. Sure some jobs may be considered unnecessary, but try to explain that to the person who is losing their job. And even if you are brave enough to tell them that they aren't needed...don't complain when you lose business or won't get a raise because the economies slow because lots of "unnecessary workers were laid off".
What I'm trying to say is...a 5 trillion dollar debt for the government is 5 trillion dollars of wealth for the citizens. Unfortunately the price for that wealth is inflation.
Someone should fire a pistol in the air and say "stop"
What if...I'm speculating: The people can stop inflation they don't need the government to do it. If everyone just stopped raising prices...all jobs salaries were set in stone...never to increase...maybe things would be better. Just speculating...
http://www.portfolio.com/executives/features/2009/01/07/John-Paulson-Profits-in-Downturn
Here's some of the money...