Tag Archives: governmemt debt

The U.S. Federal government deficit for fiscal year 2011 has just been revised upwards by a further $378 billion to a whopping $1.645 trillion. As of January 2011, the total outstanding debt of the U.S. Federal government is $14.131 trillion. These numbers are huge, Huge, HUGE but Americans believe there is really no need to worry that much about such astrnomical numbers because they all know that it’s going to get much, much worse. They all know that there’s no sense worrying about this little milestone on the road to hell. Words: 1016

Financial pundits have been cheering the declining U.S. trade deficit, but they should be careful what they wish for. Once the U.S. is no longer running a huge trade deficit, then all those exporter nations will no longer have hundreds of billions of dollars floating around, looking for a home in Treasury bonds. Interest rates are about to start rising, and will continue rising for a generation Words: 782

Periodically in history, the expansion of credit creates the illusion of prosperity which, regretfully, ends in the inevitable bust which seems to be the case today. The sheer magnitude of credit destruction occuring right now is depressionary. The return to growth will be a long and painful process. Words: 625