On January 28, the US Senate approved by a 60-39 vote a bill to increase the debt "limit" of the US Treasury by $US 1.9 TRILLION to $US 14.294 TRILLION.
In 1985, the whole debt was $1.9 trillion. Now that number is an increase in debt for just one year. Why bother having a debt limit to begin with if they keep increasing it annually or when ever they want? Crazy ruthless action.
The White House said the new budget will be $US 3.8 TRILLION. That's 3.8 not available for the private economy. Imagine what could be done with that by the private economy in increasing people's standard of living. The government is eating alive the private economy inside the US at least.
US Treasury average annual debt increases from 2003 - 2007 were about $556 Billion.
2008's debt increase: $1,017 Billion
2009's debt increase: $1,885 Billion
1787- 1981, it took 194 years for Treasury debt to reach $1 TRILLION.
After that it took just 27 years (2008) to reach $10 TRILLION.
Now, 2010, it's over $14 TRILLION.
There is a compound curve heading up here.
Almost all of this debt started accumulating after the US reneged on it's promise to redeem dollars for gold in 1971. Since 1971 all dollars are backed by nothing but debt. It literally takes the creation of a dollar's worth of debt before a dollar itself can be created.
The more dollars, the more debt, the bigger the economic crash. An argument could be made that the rest of the world is slowing down or has stopped buying US Treasury debt and that it is the Fed that is doing the buying now. It has to create dollars out of nothing to do this.
Gold and silver are your easiest protection from what is coming from the biggest, baddest, broke, dead beat (can never keep all these promises to pay, they're too large), net debtor nation in the world. The net present value of unfunded liabilities are up around $100 TRILLION.
Bill Buckler at The Privateer:
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What is shown by the monstrous increase in government debt since 1961 and especially since 2000 is the diversion of precious REAL economic goods and resources from production to consumption. The size of the funded (AND UNFUNDED) debt of the US government is a measure of what has been lost. It measures the productive jobs which have not been created, the capital goods which have not been built or maintained and the real wealth which has not been saved. Worst of all, it measures the erosion of liberty through this wealth diversion into the hands of government. It has taken nearly three years of financial "crisis" for the majority of the American people to wake up to the fact that something is badly wrong.
In JFK's time, money still had a connection to economic reality since the US Dollar was still redeemable in Gold. That is why Treasury funded debt in 1961 was about two percent of what it is today. For Americans and for the rest of the world, the cost of freedom and liberty has come VERY high - especially since none of us has received what most of us thought we were paying for.
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Peter Schiff on the State of the Union speech and what the government is doing that is wrong:
Gerald Celente on Obama's State of The Union Speech on YouTube
Ron Paul: State of the Union Address Part 1 of 3 on YouTube
Ron Paul: State of the Union Address Part 2 of 3 on YouTube
Ron Paul: State of the Union Address Part 3 of 3 on YouTube
Gold and silver are your easiest protection from what is coming.
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