US Govt Debt Exceeds GDP

Good grief. Cloward-Piven Strategy, folks.
H/t Steve and Tina!
~Eowyn
Garfield Reynolds & West Goodman of Bloomberg write on June 4, 2010 that:

Obama is poised to increase the U.S. debt to a level that exceeds the value of the nation’s annual economic output, a step toward what Bill Gross called a “debt super cycle.”
The CHART OF THE DAY tracks U.S. gross domestic product and the government’s total debt, which rose past $13 trillion for the first time this month. The amount owed will surpass GDP in 2012, based on forecasts by the International Monetary Fund. The lower panel shows U.S. annual GDP growth as tracked by the IMF, which projects the world’s largest economy to expand at a slower pace than the 3.2% average during the past five decades.
“Over the long term, interest rates on government debt will likely have to rise to attract investors,” said Hiroki Shimazu, a market economist in Tokyo at Nikko Cordial Securities Inc., a unit of Japan’s third-largest publicly traded bank. “That will be a big burden on the government and the people.”
Gross, who runs the world’s largest mutual fund at Pacific Investment Management Co. in Newport Beach, California, said in his June outlook report that “the debt super cycle trend” suggests U.S. economic growth won’t be enough to support the borrowings “if real interest rates were ever to go up instead of down.”
Dan Fuss, who manages the Loomis Sayles Bond Fund, which beat 94% of competitors the past year, said last week that he sold all of his Treasury bonds because of prospects interest rates will rise as the U.S. borrows unprecedented amounts. Obama is borrowing record amounts to fund spending programs to help the economy recover from its longest recession since the 1930s.
“The incremental borrower of funds in the U.S. capital markets is rapidly becoming the U.S. Treasury,” Boston-based Fuss said. “Do you really want to buy the debt of the biggest issuer?”

Jesse’s Crossroad Cafe calls the gargantuan US debt piled up by Obama “The Last Bubble”:


Chart compliments of the Contrary Investor.
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tina
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this is another part of the “New Democratic Society’s” plan. Or should I say “Designed Plan”

Ron
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Ron

There is no doubt the Obama administration wants to bankrupt the United States and a great many people do not understand why. There are many who do not care. Here is what I see going on. If the country goes bankrupt, Obama can and probably will declare a state of emergency when it all collapses. At that time he will call in federal troops for crowd control and declare martial law, suspending the Writ of Habeas Corpus. Once he declares martial law he will then declare the elections postponed and further declare all privately owned guns illegal until he can… Read more »

Anonymous
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Anonymous

Well, look a New Orleans… Democrat-run hellhole, normally. With raping, violence and othe mayhem at the Superdome for days during Katrina, they decided it was best to confiscate legally registered guns instead (and demand detailed purchase paperwork from the original sale to get ’em back– goodbye family weapons owned for generations, receipts from seizures weren’t good enough– after people complained) while letting criminals run loose (and, of course, keep their guns).

tina
Guest

You are right Ron! but keep in mind “He” could disappear first?

Ron
Guest
Ron

Tina, I know there are a tremendous number of individuals out there making threatening remarks but talk is cheap. I’ve been personally threatened with death more times than I can count and some even tried, but believe me, failure abounds among the illiterates, the inept, the bunglers and the fools, and I don’t have anyone watching my back. It’s just damn hard to bring an ill conceived plan to fruition. The people out there making threats for everyone to see and hear are at best, ignorant. I did read an article that a military coups might be coming, but we… Read more »

DCG
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DCG

OK Obamabots, you complained to no end about Bush’s spending…tell me how this hope and change is working for you now?

Anonymous
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Anonymous

Bankrupt and destroy the U.S., for what? (Oh, that’s right, Demo-rats assume that everything will just stay ruleable for them to take over and have the life of luxury they’re accustomed-to.) Really, if there’s a major economic collapse and we’re overrun by third-worlders (like Mexico and Islamists) we’re looking at something like Zimbabwe or even The Road Warrior: the Hobbesian “state of nature”– left/libtards would get eaten (hope they like what the Bosnian Serbs did in “ethnic cleansing” areas in Bosnia).

tina
Guest

Ron,be objective there are several options?

Ron
Guest
Ron

Tina, Anon, Steve, I was only trying to show how dictators work. When Castro took over Cuba, he totally destroyed the economy and drove the rich out of the country to America. When Chavez took over Valenzuela, the same thing; he began the systematic disassembly of the economy. These people do not think about the poverty they cause or the destruction of an economic system. Obama believes Capitalism is the greatest evil in the world. His sole purpose is to destroy it. You would all be right if we were discussing a rational human being, but we’re talking about a… Read more »

Ron
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Ron

Steve, I have no propensity for breaking the law. Chances are, I’m completely off base. However, in the event I’m correct in my thinking then giving up my guns is a mute point.
I’m seventy three and half years old with a bad heart and gout throughout my entire body. The truth is I can’t hardly pull the slide back on my S&W. No, they can have all my possessions but they can’t have me.
Besides, I still have my old machining tools.
It’s kinda hard defeating people with special skills.

Rev Reggie Jackson
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Rev Reggie Jackson

Yes the International Bankers/Bilderbergers/Illuminati and the Freemasons are being found out at a great daily rate and they are scared. And now they will either have a war (WW3) or they will declare martial law in the very near future. And now they are wanting to enslave us faster because we are exposing them. But first they have to crash our economy and shut our banks and food stores and everything that is normal. And next they will force us to take their zombie making and soul destroying mark of the beast chip in peoples forehead or hand. And if… Read more »

Ron
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Ron

Rev. Jackson, I do not generally get into religious debates because of the futility of argument. There is a mark of the beast mentioned in the Bible but it does not say what that mark will be and it does not say when that mark will come. The mark may simply be a symbol or an idea, a philosophy of some individual in power, or it may be the individual himself. The organizations you mention are certainly not the best organizations in the world but to move them to the category of the beast is stretching the Bible just a… Read more »