U.S debt to rise to $19.6 trillion by 2015, +108 trillion in unfunded liabilities

[sgreger1]

http://www.reuters.com/article/idUSN088462520100608

June 8 (Reuters) - The U.S. debt will top $13.6 trillion this year and climb to an estimated $19.6 trillion by 2015, according to a Treasury Department report to Congress.

Plus we have 108 trillion in unfunded liabilities. Obama's task deficit task foce is trying to revamp (make cuts to) social security, but activists like move-on.org are protesting it. Social security makes up our largest expense, with the pentagon and the defense spending right behind it.

So maybe it's time to start watching our spending a little better, like for example:

Fresh carrot sticks, continental breakfast, movie nights, bingo, arts and crafts, dance and cooking classes, tutoring and computer training, four hours or more of recreation. Summer camp? Nope. These are the changes coming to ICE jails

^--- Surely that will act as a deterent.

Then cut our defense (read as: offense) spending, reform immegration laws so wages stop being suppressed and our labor market can recover, stop inflating the money (since our wages arent going up to counteract it), oh and stop giving billions of dollars in aid to Hamas in Palestein, including a fresh new $400 million check cut this week (then cut israel off the tit while were at it).Then once we withdraw from our wars in 75 countries, we should be able to fix some of this.
You know, all these little expenses add up.

[justintempler]

Guaranteed they're going to keep inflating the money, that's the only way they can get out of the hole.
Foreigners that hold debt, get their debt + interest paid off in devalued dollars. If inflation is greater then the interest rate then the debt is interest free, nice scam ain't it?
There's no way to pay off debt + interest in a shrinking economy.

[sgreger1]

Guaranteed they're going to keep inflating the money, that's the only way they can get out of the hole.
Foreigners that hold debt, get their debt + interest paid off in devalued dollars. If inflation is greater then the interest rate then the debt is interest free, nice scam ain't it?
There's no way to pay off debt + interest in a shrinking economy.

Hah, that's a good point, and I think the whole thing is a scam if you ask me. It works for everyone, we pay intirest to china in devalued dollars, therefore intirest free for us, but China recieves those dollars which are worth more than those yen, so they change them to yen to pay their workers and profit off the exchange. 5 yen worth of labor produces a product worth 50 yen in America, this is why they pruposely supress the value of their currency, to benefit from this currency exchange rates with other countries.



"There's no way to pay off debt + interest in a shrinking economy. "

And this is the problem. We wont be rich again any time soon, but spending is not slowing down, and our debt obligations are going to start reaching the whole of our GDP each year. We are bleeding money from every hole, meanwhile suffering from a stagnating economy . Therefore we inflate the dollar for short term benefit, but again in this economy that will lead to stagflation eventually.

I don't believe there is a solution to this, they will try to artificially bandage it up and print more money for as long as they can , but eventually (very soon) this whole world economy thing has to crash, once the EU and America go down, it's gonna be a bumpy ride. I give it 10 years at best, given that some miracle doesn't happen.

[truthwolf1]

Prices go down in a recession but so do paychecks.

When the boomers start to retire they are going to want to sell off their six bedroom family houses and downsize.
There is going to be a very bad fall in real estate prices coming soon.

[sgreger1]

Prices go down in a recession but so do paychecks.

When the boomers start to retire they are going to want to sell off their six bedroom family houses and downsize.
There is going to be a very bad fall in real estate prices coming soon.

I'm hoping for it! The good thing about economic collapse is that the whole world goes on sale. I am looking to buy a house sometime next year and this would be great for me, being the evil capitalist I am.

[truthwolf1]

It will be good for first time home owners as the long as the interest rates stay low. I really believe housing is going to hit late 90's prices. If you own any apartments or flats, especially near major hospitals or walk about areas you are going to be in high demand everywhere.

[justintempler]

I'm sure there will be lots of bargains in Florida, prices are already depressed, when BP's mess hits the shores it will be depressed even more.

[sgreger1]

It will be good for first time home owners as the long as the interest rates stay low. I really believe housing is going to hit late 90's prices. If you own any apartments or flats, especially near major hospitals or walk about areas you are going to be in high demand everywhere.

If I can secure a nice property in San Francisco, in 10 years it should be worth more than it is at current market rates. I will have a large down payment and will only obtian a mortgage if the intirest rate is extremely low. That shouldn't be a problem since my wife and I have good credit. I hope to turn a profit on this thing, which I will since the market will eventually go back up (though not to what we are used to).

[sgreger1]

I'm sure there will be lots of bargains in Florida, prices are already depressed, when BP's mess hits the shores it will be depressed even more.

Not sure if i'd want to live there. Justin, have you heard anything about this; I read that it's not just oil coming up from the well, that there are all kinds of other toxic gasses spewing out as well, which will eventually get soak up into the clouds and that this is/will make people sick in the area. I heard this whole thing that listed what the chemicals were and what the EPA limits were and it didn't sound very good. For example if the epa limit was 5ppm, the stuff coming out fo the well makes it like 1ppbillion. Have you heard of this or is this just conjecture?