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National Debt Clock

The United States already has a debt nearing $10 Trillion, much greater if you include unfunded liabilities like Medicare and Social Security. Richard W. Fisher, President of the Dallas Federal Reserve pegs the number closer to $100 trillion. Mr. Fisher ended his speech with this quote about weakness of the US Dollar.

Of late, we have heard many complaints about the weakness of the dollar against the euro and other currencies. It was recently argued in the op-ed pages of the Financial Times that one reason for the demise of the British pound was the need to liquidate England’s international reserves to pay off the costs of the Great Wars. In the end, the pound, it was essentially argued, was sunk by the kaiser’s army and Hitler’s bombs. Right now, we—you and I—are launching fiscal bombs against ourselves. You have it in your power as the electors of our fiscal authorities to prevent this destruction. Please do so.

That speech has fallen on deaf ears.

U.S. Treasury secretary Henry Paulson pushed through a banking industry bailout plan which grants the Treasury authority to issue up to $700 billion of Treasury securities to finance the purchase of troubled residential and commercial mortgage-related assets, which may include whole loans and mortgage-backed securities. The Seretary may work with the Fed to purchase any other assets they deem necessary to stabilize the financial markets. Worse yet, the Treasury’s actions may not be reviewed – by any administrative agency or court of law.

Unelected quasi-governmental officials have a limitless credit card to buy junk at whatever price they see fit, and nobody can review or overturn their purchases.

What does the future look like? Pretty ugly. This chart was made before the above bailout and limitless credit card came to be.

Written by admin

September 22nd, 2008 at 7:06 am

Posted in credit

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