Why aren’t we talking about this?
Public debt: $14,173,423,516,895.82
Public debt: $13,123,847,198,347.81
Public debt: $1,049,576,318,548.01
Remember, the actual “public” deficit is the difference in borrowing between the end of the fiscal year and the beginning in debt held by the public. The total increase in debt, including intergovernmental (mostly Social Security and Medicare) is the actual deficit and is exactly equal, on an arithmetic basis, to the destruction in your personal purchasing power that the government causes (or gain if the government runs a surplus.)
The actual deficit — that is, the destruction in purchasing power the federal government caused last year, is the percentage of 1.423 trillion .vs. the total GDP of 18.450 trillion or approximately 7.7%.
That’s right — the government intentionally destroyed almost 8% of your paycheck and your savings last year, running a $1.423 trillion dollar budget deficit, which is roughly equal to the worst of the “great recession” when tax revenues went through the floor.
Today there is no such “tax shortfall” excuse.
The breakdown of exactly where the ugly is coming from will be published next week. I already know what is in there because I’ve been following the monthly treasury statements all fiscal year, but wish to report final “as tallied” facts — and thus will have another post at that time.
Let me be clear: On the arithmetic if we do not stop this now within the next 4-5 years — that is, within the next Presidential term — our government will collapse, our economy will collapse, our health care system will collapse and both the stock and housing markets will collapse. This is not politics, it’s arithmetic. And the worst part of it is that I am utterly certain that the “references” count, along with the “views” count on this article will both be a fraction of the politically-oriented articles I’ve recently posted. That the real end of our way of life in America, a threat that is obvious, mathematically certain, not very far in the future and yet avoidable if we act now fails to garner any sort of serious attention is the real outrage folks.
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Contributed by Karl Denninger of Market Ticker.
Karl Denninger is the author of Leverage: How Cheap Money Will Destroy the World. You can follow his daily commentary on capital markets at The Market Ticker and his weekly Ticker Guy Blog Talk Radio broadcasts.