Debt Supernova

Debt Supernova

A followup to my Debt Sun post.  The Congressional Budget Office has announced that it underestimated the deficit for this year by a teensy bit.  Instead of $1, 200, 000, 000, 000.00 it is $1, 800, 000, 000, 000.00.  This deficit is four times higher than the 2008 deficit which was a record breaker.

It is hard to wrap one’s mind around these astronomical figures.  After the Bankrupt the Nation Act of 2009, sometimes erroneously called a stimulus bill, passed, Bill Whittle helpfully put together this video to aid us in understanding just how much money $1,000,000,000,000.00 is.  Questions for our readers.  Does anyone believe that we are not heading down the road to an ultimate repudiation of our national debt?  If not, absent hyper inflation, how will this debt ever be repaid?  Additionally, what if our ability to borrow comes to a screeching halt due to an inability to service the debt?  We are far down the path of fiscal lunacy and this will not end well.

15 Responses to Debt Supernova

  1. Art Deco says:

    I think the deficits were proportionately larger during the Second World War. However, I believe we also had a large private savings pool made larger by demand suppressed via rationing. IIRC, during the Second World War, the ratio of public debt to annual domestic product increased from 0.52 to 1.19.

    What we should fear, I think, is that the Administration will spew gobs of public money into the financial sector and still not properly repair the banking system, and increase the relative size of the public debt to such a degree that we will face the currency crisis that we have heretofore avoided.

  2. Phillip says:

    You didn’t really want to retire, did you?

  3. Donald R. McClarey says:

    Phillip, I have long told people that my retirement plan is to be carried dead from behind my desk at 85. I think a lot of people will now be joining me in this way of spending the Golden Years!

  4. Phillip says:

    Its okay to work to 85, just so long as you don’t drool too much.

  5. Donna V. says:

    You know, it’s one thing for boomers to pass the buck (or bucks – many, many of them) to their kids and grandkids. It looks like many members of my generation, the Me generation, can live comfortably with that.

    But, Good Lord, it appears this is all going to blow up in our faces long before the boomers pass on. If it does, there will be hell to pay, as we post-war brats will do what we have always done best – throw a massive temper tantrum. (Please note I am speaking in broad generalities. Obviously, some individual boomers managed to grow up, but ‘maturity’ is not the first word that springs to mind when I think of the crew born from ’46-’62.) I know a fair number of liberal boomers who still think vaguely, optimistically, that Obama will “turn things around.” He would have to be a real Messiah to fix this mess.

  6. Donald R. McClarey says:

    Donna when people fully understand the dimensions of this fiscal fiasco I agree that the rage will be intense. The snakeoil salesman of the old West usually left town shortly after they sold their wares for good reason.

  7. […] of many problems in having a government that is digging the deepest debt hole in history, is that lenders can’t help but take note.  The US has enjoyed a triple A credit […]

  8. Matt McDonald says:

    Donald,


    Phillip, I have long told people that my retirement plan is to be carried dead from behind my desk at 85. I think a lot of people will now be joining me in this way of spending the Golden Years!

    You’re living in a fantasy world if you think that Obama’s government health care plan includes keeping you alive that long!

  9. […] Perhaps because polls are beginning to register alarm by the public as it becomes clearer just how much debt the Obama administration is amassing.  Additionally the remarks were made at a townhall meeting and no doubt Obama is politician enough […]

  10. […] are be&#103&#105&#110ning to register alarm by the public as it becomes&#32&#99&#108earer just how much debt the Obama administration &#105&#115&#32amassing.  Additionally the remarks were made at &#97&#32&#116ownhall meeting and no doubt Obama is […]

  11. […] have the federal government bail out the state!  The federal government, engaging in creation of a debt supernova of its own, is to subsidize with borrowed or printed money the fiscal irresponsibility of […]

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