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Well, we've finally done it.
The national debt, which stood at just $5.73 trillion when Bush took office in January of 2001, is now more than $10 trillion.
This is a stunning 75% increase just since the day Bush became the first President ever to forgo the traditional walk to the podium, preferring to ride in his armored car (perhaps the object-throwing crowds had something to do with that).
Think about this increase for a minute.
By the time Bush leaves, it could easily amount to a perfect doubling of the national debt in the span of only eight years.
To those who now want to rescue the credit markets so we can "get back to how things were" are failing to observe that "how things were" was, most recently, not at all how things used to be.
There's nothing to return to. A nation that doubles its debts every eight years does not really exist. It is an illusion built on borrowing. There's no way to "get back to that," because it was just a crazy party, thrown at great expense. But now the rugs are stained, the lamps are broken, and booze is all gone.
Here's what it looks like from a historical view. Bush's legacy (which is really the legacy of everybody in DC; I do not mean to pick on him alone) is circled in a color I like to call "rug stain yellow."
All of these wild attempts to "stabilize the markets" with a big government borrowing binge are most certainly destined to be ill-fated.
The only realistic way out of this, from a banking system and government standpoint, is to print, print, print.
There is almost no doubt left in my mind that the printing process is either already humming along in the background, or soon to begin.
Oh, by the way? My mother-in-law reports that today that she went to take cash out of the bank, but greeting her at the door was a hand-taped sign stating that customers are now limited to $1000 cash per day.
Gold and silver were hit again today in the lightly traded access (paper) markets, but good luck finding any physical to buy. It's not impossible, by any stretch, but it's a lot harder than it was last week, and that was harder than last month. The trend tells the tale.
Congratulations, America, you are now officially a $10 trillion debtor nation. Break out the party hats.
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Life is good and it will be, no matter what.
Maybee a stupid question... why not measure the National Debt as a fraction/percentage of GDP?
That will give us another perspective.
I fully agree with backslash.
US is actually famous for having a small national debt (compared to GDP).
Was having lunch with a boss of a major bank the other day, and he told me that the US currently lownational debt is the only thing that is making this bailout possible. Quote "It will be expensive, but they can afford it".
I'm not saying he can't be wrong, but these things have worked in the past, and the fact of the matter is simply that the US debt is not outrageous, but rather conservative. Although, that is changing I suppose...
Do remember, that most countries that have collapsed economically also had a significantly large illusionary GDP. ;)
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Steve
First let me start by saying the "rescue" American "buy in" will pass...as we all know. I may be buying calls on dow spiders before the end of the day today or Friday-b/c i missed the boat thursday....the senate passing may create a wave i want to ride until friday or monday....???
Re: FDIC increase---WHO CARES!!!! If/When the banking system fails they couldn't cover $1,000 per depositor....so why not increase to $250K to create illusion of confidence. My goodness if Wamu alone went under the FDIC could barley cover those deposits insured---what if the "greater depression"comes---???.
Can you say dow 13K by Jan. 09 or Dow 15K by May 09......I know its almost unthinkable...but what they are fabricating WILL WORK to some degree and for a LIMITED period.....as Chris has said "the party on wall street goes on".....and......we MAY be ready to see the PARTY of all PARTIES....we all know where the DOW "SHOULD" be....that we are in a serious recession NOW....but nothing NORMAL seems to matter.
Chris--Unsolicited advice--with all due respect--if I may---
First-you are a most trusted and honest economic commentator....!
When you opened this "forum" I could only have flash backs of ALL the garbage I have seen on messgae boards....I am SURE your intentions were/are nothing but positive-----for the greater good etc etc etc.....
However--I guess I have a few thoughts.....
1---when you give everyone access to YOUR web site forum....your entire vision..intellegence--direction etc etc gets diluted...to a degree and as you may have seen..and only the beginning ( message board comment earlier ) this is ONLY the beginning---more nuts--------jackasssssss--and CHallengers to come...
2---I want Chris Martenson focusing on --- the several reports out today...the indicators....the charts....the world economy...analyzing data....checking history and applying it to todays circumstances....finishing chapter 20.....not spending time to the " I don't agree with you" "answer this challenge" or "I dont understand" whiner ( when you've signed up for 3 days ( unpaid--thank you ) you may not totally understand--look listen---evaluate etc etc .....your NOT going to be 100% correct....you and I both know that....
3---Im finding ChrisMarteson.com....a lot less of Chris Martenson than I would like and I lot more of what I don't want or need......
JMHO
Thanks for all your hard work and giudence Chris!!!!
JDB
All of these wild attempts to "stabilize the markets" with a big government borrowing binge are most certainly destined to be ill-fated.
Could it be that the collapse "despite all the best efforts of the government and the industry" are really meant to fail after all? Has it occurred to anyone that the crazy North American Union thing that Bush signed (without any input from the rest of the electorate I might add) might be right on track? That the ultimate relief to this great financial breakdown might be the NEED to switch to something else - The Amero?
Why not? We as a nation are, quite frankly, way too easy to fool.
“Think of the press as a great keyboard on which the government can play.” - Joseph Goebbels Bob