Happy New Year – Here’s the Check


Feel the Bern but also Feel the Pain.

It’s a pain that will come no matter whom we elect this year.

“Things are going ‘so well’ with the truth of how our system works that we are bankrupting ourselves,” wrote a concerned citizen.

Every politician since the wicked Nimrod has lied to us. Oh, some told little white lies but they lied to us nonetheless. “We know how to fix it!” they all say.

“We are not Greece, we are not Portugal,” Mr. Obama said in 2011 as Standard & Poor’s and Moody’s prepared to downgrade America’s top credit status.

Yeah, they fixed it alright.

Liar, Liar, Pants on FireAccording to a new report by Kotlikoff and Michel, U.S. government debt stands at $210 trillion, not at the official $13.1 trillion nor the almost $18.9 trillion of the US Debt Clock nor the $86.8 trillion calculated by Cox and Archer.

Even using the make believe $13.1 trillion debt, the Congressional Budget Office estimates that the debt will be well over 100% of GDP by 2039. When CBO incorporates its estimates of the impact of the continuing large federal deficits on the nation’s economy, it estimates that the accumulated debt held by the public will reach 180% of GDP by 2039.

For homework, try to find out if any member of Congress or the President has ever read these CBO reports.

The Feds will tell you every man, woman, and child of the 326,387,900 people now alive in the U.S. owes “only” $40,136.29 of that debt.

The reality is far different. The real debt load works out to $643,406.20 per person in the United States, 16 times higher than the current official level and 2-1/2 times our total net worth.

In 2014 the net worth of all U.S. citizens was pegged at $80.7 trillion. Wealth is commonly measured in terms of net worth, which is the quite simple sum of all assets (what you have in the bank, the market value of real estate, like your home, any stocks and stuff you own) minus what you owe on all of that. which accountants call “liabilities.”

(Including human capital such as skills, the United Nations estimated the total wealth of the United States in 2008 to be $118 trillion. The United Nations has never been good at accounting or science.)

$210 trillion in debt <==> $80 trillion in assets.

Yeah, they fixed it alright.

Mr. Sanders isn’t the only financial nincompoop. He’s just the most obvious among the economic geniuses we’ve elected.

A record Federal Reserve “reverse repo” auction on the last day of business means credit markets and mutual funds are in trouble. Like the “credit swaps” and off-balance-sheet financing that caused the Great Recession, the financial markets are again playing with numbers none of the geniuses understands.

“It is government’s fault for offering a housing finance program without making an effort to maintain underwriting standards,” then-Rep. Barny Frank (D-MA) said of the Housing Crisis.

That would be the same Barny Frank who imposed “affordable housing” requirements on Fannie Mae and Freddie Mac. Before he did that, the government lenders had been required to buy only prime mortgages. Mr. Frank forced Fannie and Freddie to meet a government quota for bad loans to borrowers who could never repay them.

Yeah, they fixed it alright.

The Dow fell 450 points this morning, on its way to the worst opening day in 84 years. The Fed figures it can’t head off or even contain the coming financial crises.

Meanwhile China’s government-managed stock market tanked again today, too. Looks like China’s politicians are about as good at this financial stuff as ours.

And none of this helps rein in the stampeding public debt.

The Demorat’s answer to the National Debt is “there is no national debt but we’ll raise taxes anyway so we can spend more.” The Repuglican’s answer to the National Debt is “there is some national debt so we need to raise taxes so we can spend more.”

“We know how to fix it!”

Yeah, they’ll fix us right up.

How to Avoid Bankruptcy — For Dummies tells us:

  • Get your financial house in order by spending less than you take in.
  • Sell your assets.
  • Take over a large foreign country with lots of natural resources and land.

OK, I added the last one but, hey! It worked for Genghis Khan, Rome, Great Britain, and Google, right?

* Let’s get specific. How high would Bernard Sanders go on tax rates?
“We haven’t come up with an exact number yet, but it will not be as high as … 90%.”


** “I applaud the people of Greece for saying ‘no’ to more austerity..
“In a world of massive wealth and income inequality, Europe must support Greece’s efforts” to loot the real European economies which create jobs and income.


2 thoughts on “Happy New Year – Here’s the Check

  1. When an accident is waiting to happen, it eventually does.
    –Economists Kenneth S. Rogoff and Carmen M. Reinhart

    Crowds are crowding into Tiananmen Square to see the implosion. They’re crowding into Red Square. They’re crowding into Azadi Square. Maybe it would be smart to fool them. Maybe it would be smart to turn out the 535 limousine liberals in Congress and the 1,700 candidates for President who all think kicking the can down the road is a solution.

  2. And is there a current candidate for POTUS who would NOT think that kicking the can down the road is a solution?

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