How sever are the economic wows of USA exactly?
Even though it is a simple question but the answer to this question is not very simple. As I explained in another thread FED is printing trillions off balance sheet money and giving it to the American banks and even to some selected foreign banks to solve their liquidity problems.
Dollars not having any back up or support makes it Phantom money. I have also shown in a thread Putin claimed Straus-Kahn is framed because he found out Fort Knox is empty and USA does not have the Gold to pay for the trenches to IMF as agreed in 70s.
In an economy where $9 trillion can be printed without any support and thats also off the Balance Sheet and given to the Banks, it is neigh impossible to get to the bottom of the problem. I will try to shed some light, but these are the best information, cannot be 100% accurate estimate of actual total national debt but very close to the real financial situation of the USA. If anything, these are very conservative assessments; the actual situation may still be eve worse.
1-As of June 20th, the U.S. national debt was $14,344,524,186,068.19(figure from national debt clock). But is it the correct amount for the total US debts? No this is just the nominal debt, which is calculated in simple manner, and exclude far more than meet the eyes.
2-The 14.3 trillion figures is only represent national debt. But a Government has many more liabilities and obligations, which should also be taken in to account to understand the full extend of its debts and obligations.
3-In the USA publicly trading corporations prepare their accounts based on GAAP (Generally Accepted Accounting Principles). If the U.S. government were forced to use GAAP accounting principles (like all publicly-traded corporations must), the U.S. government budget deficit would increase to many folds.
4-Some experts estimate that the un-funded liabilities of the U.S. government for programs such as Social Security and Medicare are in the neighbourhood of $60 trillion dollars. Other experts claim that the total for federal government un-funded liabilities could be well over $100 trillion. Almost every economic expert agrees that it is going to be virtually impossible for USA Government to even come close to meeting all of its obligations. We can safely say, that these liabilities are in the region of $100 trillion dollars.
5-Under GAAP calculations USA budget deficit is somewhere in the neighbourhood of $4 trillion to $5 trillion each and every year. No wonder Fed is printing huge amount of money.
6-You may have heard in the video I posted, the Congressmen said the U.S. government currently has to borrow approximately 41 cents of every single dollar that it spends. It means that Government can only support 59% of its expenditures from its Revenues the rest is funded by acquiring more debt. This figure is for the current requirements and does not include the repayment of existing debt or interest on it.
7-The U.S. government spent over $413 billion dollars as interest on the national debt during fiscal 2010.
8-Approximately one in four dollars or 25% of U.S. government borrowing is spent on paying the interest on its national debt.
9-This is not as bad as it could have been or still could be. Ever wondered why the interest rates are kept so low for so many years now? Well, precisely for this reason, at the moment America and other debt ridden Western Countries had it easy, because they are paying less as interest on their debts. Therefore, it is in their interest to make sure interest rates stays low.
10- For example it is estimated that if the interest rate goes back to 5% (2006 levels) the interest on US national debt would increase by $700 billion annually. This is against the US tax revenue of $2.22 trillion (CBO 2011 forecast) or $2.092 for 2010.
11- US budget deficit in 2010 is $1.305 trillion. It consists of $2.092 trillion in Revenues and $3.397 in Expenditures.
I will add more later on.
Even though it is a simple question but the answer to this question is not very simple. As I explained in another thread FED is printing trillions off balance sheet money and giving it to the American banks and even to some selected foreign banks to solve their liquidity problems.
Dollars not having any back up or support makes it Phantom money. I have also shown in a thread Putin claimed Straus-Kahn is framed because he found out Fort Knox is empty and USA does not have the Gold to pay for the trenches to IMF as agreed in 70s.
In an economy where $9 trillion can be printed without any support and thats also off the Balance Sheet and given to the Banks, it is neigh impossible to get to the bottom of the problem. I will try to shed some light, but these are the best information, cannot be 100% accurate estimate of actual total national debt but very close to the real financial situation of the USA. If anything, these are very conservative assessments; the actual situation may still be eve worse.
1-As of June 20th, the U.S. national debt was $14,344,524,186,068.19(figure from national debt clock). But is it the correct amount for the total US debts? No this is just the nominal debt, which is calculated in simple manner, and exclude far more than meet the eyes.
2-The 14.3 trillion figures is only represent national debt. But a Government has many more liabilities and obligations, which should also be taken in to account to understand the full extend of its debts and obligations.
3-In the USA publicly trading corporations prepare their accounts based on GAAP (Generally Accepted Accounting Principles). If the U.S. government were forced to use GAAP accounting principles (like all publicly-traded corporations must), the U.S. government budget deficit would increase to many folds.
4-Some experts estimate that the un-funded liabilities of the U.S. government for programs such as Social Security and Medicare are in the neighbourhood of $60 trillion dollars. Other experts claim that the total for federal government un-funded liabilities could be well over $100 trillion. Almost every economic expert agrees that it is going to be virtually impossible for USA Government to even come close to meeting all of its obligations. We can safely say, that these liabilities are in the region of $100 trillion dollars.
5-Under GAAP calculations USA budget deficit is somewhere in the neighbourhood of $4 trillion to $5 trillion each and every year. No wonder Fed is printing huge amount of money.
6-You may have heard in the video I posted, the Congressmen said the U.S. government currently has to borrow approximately 41 cents of every single dollar that it spends. It means that Government can only support 59% of its expenditures from its Revenues the rest is funded by acquiring more debt. This figure is for the current requirements and does not include the repayment of existing debt or interest on it.
7-The U.S. government spent over $413 billion dollars as interest on the national debt during fiscal 2010.
8-Approximately one in four dollars or 25% of U.S. government borrowing is spent on paying the interest on its national debt.
9-This is not as bad as it could have been or still could be. Ever wondered why the interest rates are kept so low for so many years now? Well, precisely for this reason, at the moment America and other debt ridden Western Countries had it easy, because they are paying less as interest on their debts. Therefore, it is in their interest to make sure interest rates stays low.
10- For example it is estimated that if the interest rate goes back to 5% (2006 levels) the interest on US national debt would increase by $700 billion annually. This is against the US tax revenue of $2.22 trillion (CBO 2011 forecast) or $2.092 for 2010.
11- US budget deficit in 2010 is $1.305 trillion. It consists of $2.092 trillion in Revenues and $3.397 in Expenditures.
I will add more later on.
