Wednesday, May 30, 2012
USA Sovereign Debt Now Exceeds GDP: Greetings From Big Brother
Greetings American Citizen:
It has come to my attention that the USA public debt is now greater than the annual GDP. That is, the debt ratio has exceeded 100%. Egan-Jones warned about this in their recent downgrade of United States sovereign debt to AA. This is disturbing plus foolhardy for me to continue giving you a free ride. Your share of the United States public debt is $49,843 and it would help a bunch if you could chip in another $1,349 for your share of this year's interest expense. When can I expect payment?
Where's Uncle Sam? You ignored his collection letters over the years. He retired in frustration. I'm his totalitarian sibling who's running things now. Sam says I have control freak issues. If this spending and borrowing habit doesn't stop, I'll have to do a reset after hyperinflation and economic collapse. Then I will have total power!
You can't pay your share of the debt and interest? You really should, but I tell you what, for now, let's kick the can down the road. In memory of Uncle Sam and the Good Old Days. No one wants to face a Day of Reckoning, even when they know it is inevitable. I'll give you a short-term extension, but it's just for a little while. This living on debt must stop otherwise the crony capitalists and foreigners will buy up all the assets at Depression level prices someday!
Your children and grandchildren can surely figure out a way to pay me for all of these wars & military budgets, Homeland Security, TSA, NSA, & police state infrastructure, federal employee & military pensions & benefits, corporate welfare & subsidies, individual tax breaks & credits, social benefits & care, and all the other free stuff and handouts every last one of you Americans want. You keep telling everyone how smart your kids and grand kids are. They better be! I hope you aren't fibbing, or delusional, like when you say you live in the Land of the Free.
You haven't been noticing, maybe actually ignoring or denying, what's going on? Oh, you were busy posting their cute pics and videos on Facebook while watching TV, movies, and other mass media. FYI, the Republic was lost while you've been self-absorbed and apparently ridiculously gullible. Oops!
Poor Ben Bernanke, he's working so hard to help you, printing money just as fast as he can to keep America afloat. Then he has to worry about those darn interest rates and keep them crammed down in a zero-rate environment. Otherwise, the interest expense on the USA's ever-increasing debt would skyrocket. Not only that, some of the Too Big To Fail banks might actually become insolvent from interest rate shock and counter party panic. The entire frigging financial system might meltdown! On top of all these worries, his bosses keep pestering him about more and more for them - the Wall Street Banksters!
Most likely your progeny will have to pay for all this apathy and greed of yours in unspeakable ways. But, by God, grandpa and grandma got to live the good life! Who said you couldn't be bought? Your price was easy for you, you cheated and haven't paid. You are so selfish plus been bought and sold by the political system. I won't tell anyone, I understand. It's been tough these past few years and it's still hard out here for an American, right? No worry about your current situation, the price I will extract is the future prosperity and freedom of your children and grandchildren. In the meantime, continue enjoying life as best you can!
Please refer to Greece, Spain, former Soviet republics & satellites, Latin America, et. al, for a preview of the early stages of upcoming American despair. It's difficult to tell you the latter stages when I am in complete command. Of course, the bi-partisan political and corporate corruption will get worse and worse. Freedom, liberties, and rights will vanish as the government and major media, the corporate advertising delivery system, fuel fear about terrorism, always scaring you with an enemy to justify perpetual war and domestic crackdowns. That's when your descendants will curse you for being a selfish coward and bum as their Bill of Rights is destroyed by tyranny. It gets really, really bad in the New Amerika. Say hello to and tell those precious kiddies of yours to cowboy and cowgirl up! It's going to be a rough ride!
/s/ Big Brother
Charts consist of the latest data available from the Bureau of Economic Analysis (GDP at 3-31-12), U.S. Treasury (Public Debt at 4-27-12), and U.S. Census Bureau (Population at 4-30-12):
Public Debt $15.62 trillion
GDP $15.46 trillion
Population 313.46 million
Annualized Interest Expense $422.71 billion
Effective Interest Rate 2.78%
$SPY $DIA $QQQ $IWM