More on US Insolvency

Here’s a write up by Financial Sense University regarding the Financial Report of the United States. Nobody responded to that post yesterday, but I’m going to hit it again:

If we perform the same calculations for the US, however, we find that the official debt stands at $8.507 trillion or 65% of (nominal) GDP but when we add in our “off balance sheet” items the national debt stands at $53 trillion or 403% of GDP.

Now that’s horrifying. Staggering. Whatever you wish to call it. More than four hundred percent of GDP(!). And that’s just at the federal level. We could easily make this story a bit more ominous by including state, municipal and corporate shortfalls. But let’s not do that.

I think this write up is a worthy read. It means that your “savings” have been wiped out (everyones) and you’re all bankrupt.

Bits of News has a blurb on the financial situation that’s worth reading.  After you read this, consider this:

The firm reported an increase in quarterly earnings of 93 percent and will distribute some $16.5 billion in bonuses to dozens of its bankers and traders. The top “rainmakers,” as they are called, will each take home as much as $20 to $25 million just in bonuses, “while traders who booked big profits will take home a chunk of those profits, up to $50 million apiece,” according to a December 13 article in the New York Times. The report cited the comment of one New York-based investment firm, “Anyone at the bonus line at Goldman Sachs died and went to bonus heaven. It doesn’t get any better than this.”  Wall Street Awards Itself Billions

I’ve long argued that our civilization and society is way out of whack. The insanity of it all is the greed factor, found throughout every segment of society. The pendulem is swinging very far and wide these days, what happens when the rope breaks?


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4 thoughts on “More on US Insolvency

  • December 19, 2006 at 11:25 am

    For the first time in my (long) life, I have ‘some money’ in “Savings”. By Spring, it’ll be ‘Bushing’ worthless. Even if I take it ALL out NOW as cash – it’s still bushing worthless when ‘all the toilets flush simultaneously’.

    I’ll never get those wind generators I’ve been lusting and saving toward for many years!

    Life’s a gigantic Cosmic Hoax.
    Then you die.

  • December 19, 2006 at 1:35 pm

    Re the Wall Street bonuses, I don’t all that know much about economics, but the way I see it is that when someone gets payed more money than they have physically earned, then someone, somewhere else must be getting less money than they physically work for and ethically deserve.

    I believe that a lot of low payed workers must have toiled very hard to earn these people their bonuses.

  • December 19, 2006 at 2:34 pm

    That’s a good way of looking at it.

    I’m amazed at the economic imbalance that continues to occur while the collapse is underway, but I doubt if we’ve seen anything yet. Don’t forget all the “golden parachutes” that will be handed out like candy as insolvent corporations go belly up and displace millions of workers.

    Economic justice can never be realized as long as the existing system of economic control manages to perpetuate itself. I suspect there is still a great deal of exploiting left to be done, too.

  • December 19, 2006 at 3:41 pm

    Balance in this area has always been out of whack, the key word again is Greed.

    The Greedy will eventually have to pay the price for their distorted, misaligned existence.

    Very new to posting on this site, so will keep my responses to a minimum. Iâ’ve learned that its not good to upset the apple cart with blogs. And I appreciate this blog.

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