“If you tell a big enough lie and tell it frequently enough, it will be believed.”
― Adolf Hitler
“Facts are stubborn things, but statistics are pliable.” ― Mark Twain
Here is one big whopper of a lie that I am getting tired of seeing pop up on facebook every other day:
And what about all of these articles?
Just today Obama says “deficit is falling at the fastest rate in 60 years”:
and politifact.com rates it as TRUE
The idea that the Obama administration is cutting the deficit is a complete and total lie. According to the U.S. Treasury, the federal government has officially run a budget deficit of only 589 billion dollars for the first 11 months of fiscal year 2014. But this number is just for public consumption. It is pure fiction. It relies on accounting tricks which massively understate how much debt is actually being accumulated. So much government debt is now accounted for “off balance sheet”. And it only counts things in the “budget”. And Obama has no budget:
As you can see, even after such accounting chicanery, the national debt increased by $1.1 Trillion (estimated) in the 2014 fiscal year compared to the “$589 billion” figure the government puts out:
On September 30th, 2013 the U.S. national debt was $ 1 6 , 4 3 8 , 1 8 3 , 5 2 6 , 6 9 7 . 3 2. As I write this, the U.S. national debt is sitting at $ 1 7 , 4 7 5 , 8 1 8 , 5 3 6 , 4 0 0 . 8 2 .
That means that the U.S. national debt has actually grown by more than a trillion dollars in less than 12 months. So how do you cut the deficit by the fastest rate in 60 years and add a record amount to the debt at the same time?
The chart below is from the Federal Reserve and shows the exponential growth of the U.S. national debt over the past several decades. Anyone that says the yearly deficit “being cut” in any way is lying to you…
This is the greatest government debt bubble in the history of the world, but very few people seem to have any desire to do anything about this anymore. We are literally gorging on debt, and most Americans seem to think that it is just fine and dandy.
And what happened to the debt ceiling debates? Remember those? When we would hit the hard debt ceiling, the media would go on and on about it, and congress would have to meet and agree to raise the limit or face government shutdowns. Here are the previous debt ceiling debates in red circles, total debt in maroon, and the debt ceiling in black:
But look what happened this year:
The debt ceiling has been breached and media is totally silent about it!
When it comes to running up debt, a day of reckoning always comes eventually.
Just ask Greece.
And the absolutely insane spending policies of this administration and this Congress are hastening the day when our day of reckoning will arrive.
Here are the facts…
-The U.S. national debt has increased by more than 7 trillion dollars since Barack Obama has been in the White House. By the time Obama’s second term is over, we will have accumulated as much new debt under his leadership than we did under all of the other U.S. presidents in all of U.S. history combined.
-The U.S. national debt is now more than 5000 times larger than it was when the Federal Reserve was first established in 1913.
-If the U.S. national debt was reduced to a stack of one dollar bills it would circle the earth at the equator 45 times.
-Right now, the United States already has more government debt per capita than bankrupt Greece, Portugal, Italy, Ireland or Spain.
-In August, the average rate of interest on the government’s marketable debt was 2.028 percent. In January 2000, the average rate of interest on the government’s marketable debt was 6.620 percent. If we got back to that level today, we would be paying well over a trillion dollars a year just in interest on the national debt.
-At this point the U.S. government has accumulated more than 200 trillion dollars of unfunded liabilities that will need to be paid in future years. In other words, we have made more than 200 trillion dollars worth of promises that we do not have money for yet.
Thomas Jefferson once said that “the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.”
What we are doing to future generations is absolutely unconscionable. We are stealing trillions upon trillions of dollars from our children and our grandchildren, and we are willingly consigning them to a lifetime of debt slavery.
If that is not bad enough, as soon as young people get old enough they vote for more of the same liberal policies that are destroying their own future. Probably due to this graph:
We are shamefully running up more debt than future generations will be able to repay.
But government debt is far from the only massive debt bubble that we are dealing with as a country.
40 years ago, the total amount of debt in our nation (all government debt plus all business debt plus all individual debt) was sitting at a grand total of about 2.3 trillion dollars.
Today, that total has grown to 59.4 trillion dollars.
If you were to take all forms of debt in our country and divide it up equally to each person, the average family of four would owe approximately $735,000.
This is not anywhere close to being sustainable, but most Americans don’t seem to care. They just continue to recklessly run up even more debt.
However, there are signs that we are starting to hit a wall with all of this debt.
For example, an astounding 35 percent of all Americans have debts that are so overdue that they have been referred to collection agencies.
Our nation has become an ocean of red ink from sea to shining sea, and the only way to keep the bubble from bursting is for the total amount of debt to continue to grow much faster than the overall economy is growing.
Obviously this cannot happen indefinitely, and when this house of cards comes crashing down it is going to be absolutely horrific.
The big question is how long our “bubble economy” can keep going before it finally collapses.
Sadly, most Americans (especially the young Americans that will have to pay for it) have no idea that we are living in a giant debt-fueled bubble that has a limited lifespan.
Most Americans just assume that since the politicians tell them that everything is going to be okay that they don’t need to be concerned about any of this.
But every single day our debts get even larger and our long-term financial problems get even worse.
Someday this bubble is going to burst and it will be UGLY.
The data manipulation by the U.S. government has become so blatant, and the U.S. debt has become so large and so obvious that foreigners are taking note and altering their future plans. All you have to do is look around to see nation after nation, friend or foe, making plans to live and trade in a world without using dollars. China is at the center of these plans but the list is very long of nations who plan to trade in their own (or Chinese) currency. Off the top of my head, we have seen announcements from Argentina, Brazil, India, South Africa, Britain, France, Germany, Venezuela, Australia and of course let’s not forget about Iran and Russia.
It is just a matter of time.