Soon the total World Government Debt will reach $50 trillion. It is rising $342,000 per SECOND faster than economic growth worldwide.
Well we almost made it! The total World Government debt came close to reaching $50 trillion for New Year’s Eve (not counting unfunded liabilities). But don’t worry that we didn’t quite make that goal. EVERY SECOND that number increases by $342,000+. The brain-dead economists and public officials still think it is cheaper to borrow than to print. Hello? That was the case when debt could not be used for collateral as cash. Once that took place so they could sell more junk, guess what – the circle was complete. How it begins is how it ends. They bullshit themselves saying we are borrowing from ourselves. Sorry – 40% of US debt is held outside the USA. Just more lies to confuse the subject.
Bill Gross On Bernanke’s Latest Helicopter Flyover, “Money For Nothing, Debt For Free” And The End Of Ponzi Schemes
What Governor Bernanke may have been referring to with his “essentially free” comment was the fact that the Fed and other central banks such as the Bank of England (BOE) actually rebate the interest they earn on the Treasuries and Gilts that they buy. They give the interest back to the government, and in so doing, the Treasury issues debt for free. Theoretically it’s the profits of the Fed that are returned to the Treasury, but the profits are the interest on the $2.5 trillion worth of Treasuries and mortgages that they have purchased from the market. The current annual remit amounts to nearly $100 billion, an amount that permits the Treasury to reduce its deficit by a like amount. When the Fed buys $1 trillion worth of Treasuries and mortgages annually, as it is now doing, it effectively is financing 80% of the deficit for free.
Rats jumping ship
Geithner Said to Plan Departure Before Debt Ceiling Deal