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Obama cut the deficit by One Trillion last year!


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Oh wait, no. He lied.

 

http://www.zerohedge.com/news/2014-03-20/what-surprise-it-turns-out-they-lied-about-deficit-last-year

 

 

Truth can be a damn difficult thing to digest sometimes.

 

Some of us have been there. You get that news from the doctor that you, or a loved one, has just been diagnosed with a serious disease, and it hits you like a ton of bricks.

 

Several years ago my father was diagnosed with a brain tumor known as a Glioblastoma (GBM). A GBM diagnosis is essentially a death sentence– it’s one of the most aggressive tumors in existence, and it grows in the part of the body that modern medicine understands the least.

 

I clearly remember the neurosurgeon telling us, “There have been some miraculous advances in medicine over the last 20-years related to the treatment of cancerous tumors. Unfortunately, this tumor is not one of them.”

 

It was a tough pill for everyone to swallow… especially my father.

 

Our natural defense mechanism as human beings is to deny reality. These sorts of things happen to other people, not to us.

 

It’s this same defense mechanism that leads people to ignore the obvious fiscal realities of their home country despite overwhelming objective evidence.

 

After all, debt-fueled collapse happens to other countries. Not to us.

 

We go our entire lives being told that our country is different. We’re special.

 

We have televised ‘experts’ going on TV explaining why our debts and deficits don’t matter. And Nobel Prize-winning pseduoscientists complaining that our debts and deficits aren’t big enough.

 

But deep down you know the truth.

 

In the Land of the Free, the Government Accountability Office (GAO) recently released its 2013 Financial Report of the United States government.

 

This is the government’s best attempt at an honest accounting of its books. And even though they use a different accounting system that gives them special advantages, the picture is still remarkably bleak.

 

We all know that the US government has racked up a substantial debt; as of this morning, total outstanding public debt is $17,546,814,482,078.90. ($17.5 trillion)

 

But it’s not all about the debt. Debt is not necessarily evil… and it’s important to look at the situation qualitatively in addition to quantitatively.

 

Let’s drop a few zeros and consider this in terms of personal finance.

 

Assume you had $1.75 million in total debt. That sounds like a lot to most people.

 

But if you had $3 million in liquid assets to offset the debt, plus $500,000 in annual income to pay interest, living expenses, and just about any contingency that could come your way, you’d be in great shape.

 

It would be even better if that $1.75 million in debt financed a lucrative real estate investment which was generating a 25% cash-on-cash return for you.

 

But that’s not the case for the US government.

 

Despite the Obama administration touting a budget deficit of “only” $680 billion in 2013, the GAO’s more accurate accounting shows a total government cost of $3.8 trillion on total revenue of $2.8 trillion.

 

In other words– the administration wasn’t exactly honest with the American people– the deficit was more like $1 trillion, not $680 billion. But it gets worse.

 

The GAO added up ALL the US government’s assets in 2013. Aircraft carriers. The highway system. Land. Cash and financial assets. The total is $2.97 trillion.

 

The liabilities, on the other hand, total $19.88 trillion. This includes the official public debt, plus all sorts of IOUs and loan guarantees.

 

This means the net EQUITY of the US government is minus $16.9 trillion.

 

Moreover, the US government’s cash position is a mere $206 billion… roughly 1.1% of its public debt. This isn’t enough to cover net interest payments for the next year.

 

Unlike a savvy investor who borrows cheap money to purchase productive assets, the US government borrows money to pay interest.

 

Quantitatively AND qualitatively, the data point to an inevitable conclusion: despite all the propaganda, this is NOT a risk free environment.

 

And understanding these trends and consequences is absolutely critical to your long-term financial survival.

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Dems say debt schmebt. Cut the military more. (Just as Putin goes into his act). Tax the rich. THEY DONT PAY. Here is the big problem to me. Interest on this debt is 220 Billion a year right now. That is 220 billion out of the budget just for interest. That is NOT principle. Right now interest rates are low so some of this interest is at a favorable rate. Yellin said in a cryptic way today that interest rates may start to rise. The fed controls the rate. If interest rates rise we will be borrowing money at a higher rate. This will cause interest on the debt to rise. Some say inflate our way out of the debt. Pay interest and principle with worthless dollars. This method will destroy the poor. Who will lend to us knowing we will pay back with worthless dollars? There is no question that as the interest payments rise there will be less money for everything else. There are dopes on this site that say default. That is why they are dopes. The USA has NEVER defaulted. If we were to default the entire financial system of the earth would collapse. That action could start wars. That is unthinkable.

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all that hate and jealousy

 

stop believing lies you rightwing pile of trash

We ain't jealous of the bad word [African-American slur], but we sure do hate him. DEATH TO OBAMA. A POX ON OBAMA, AND A POX ON HIS FAMILY. A POX ON OBAMA'S SUPPORTERS, AND A POX ON OBAMA'S PUPPET MASTERS. A POX ON THE PEOPLE AND THEIR FAMILIES WHO PROTECT OBAMA. A POX I SAY.

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We ain't jealous of the bad word [African-American slur], but we sure do hate him. DEATH TO OBAMA. A POX ON OBAMA, AND A POX ON HIS FAMILY. A POX ON OBAMA'S SUPPORTERS, AND A POX ON OBAMA'S PUPPET MASTERS. A POX ON THE PEOPLE AND THEIR FAMILIES WHO PROTECT OBAMA. A POX I SAY.

HEAR! HEAR!

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a

Wrong about everything, and it was CHENEY who said debts and deficits dont matter, moron

LMFAO

Of course, when THAT was said, the deficit was less that $500 billion and the debt was less than 10 trillion.

THEN "H"s deficit ballooned to close to two trillion dollars per year and the debt has shot up to 17 trillion dollars.

But then again, extremes don't matter to extremist like Marthas. :)

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We ain't jealous of the bad word [African-American slur], but we sure do hate him. DEATH TO OBAMA. A POX ON OBAMA, AND A POX ON HIS FAMILY. A POX ON OBAMA'S SUPPORTERS, AND A POX ON OBAMA'S PUPPET MASTERS. A POX ON THE PEOPLE AND THEIR FAMILIES WHO PROTECT OBAMA. A POX I SAY.

 

 

what's a pox?

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all that hate and jealousy

 

stop believing lies you rightwing pile of trash

all that hate and jealousy

 

stop believing lies you leftwing pile of trash

HEAR! HEAR!

Notice how Marthas has absolutely nothing to say.

 

The amazing disappearance of the frontal lobe. :)

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We are borrowing money to pay the interest. Slackers, bums, welfare fraudsters, and all the other non productive are in for a rude awakening. As wild as this notion seems, the truth is, we are out of money. Oblameo and his army of fraudsters will keep cutting the military in order to keep the pittance checks flowing. This will cause more layoffs of well paying jobs. The non productive will scream tax the rich. The rich will not pay. The real rich have many many many ways to get out of paying. In order to get more money the definition of rich will be driven down. Oblameo said he wanted to raise taxes on those who make more than $250,000. That must have been his definition of rich. As time goes on the definition of rich will go down. Let us say rich could be more than $100,000. This will hurt the purchasing power of the middle class. As the middle class pays more they will purchase less. More layoffs. As passive as the american taxpayer is the transfer of their wealth to the slackers will start to irritate. The process has started already. Medicare, unemployment, foodstamps and all the rest is starting to be cut. The elections are coming. We have to get spending under control. If the GOP takes the senate I will look for them to get the budget under control. The GOP should be able to get the economy to grow. As revenues come in they should put series effort into paying down the debt.

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