I have the US debt clock as an app on my computer and will look at it maybe once a month in amazement at how quickly it ticks over. When I first downloaded the app the "my share" amount was $48 101 which I assume is every single Americans share should they which to give the government it would wipe their foreign debt. The total amount of debt is closing in on 15 trillion but it got me thinking is their a date and time when it will tick over as 15 trillion. I'm thinking approximately JUne this year???
So is it the other world economies that reign in govt. debt of other countries (ie. put trading pressure on them) or is it primarily the world bank and the IMF? The reason I ask is... theoretically, could they just drag out the debt, and keep patching the sinking ship so it only just stays 'afloat' indefintely? WHO will cause the collapse of the EURO and the US dollar? We know China are getting rid of US dollars in favour of other assets...
From memory they had to raise the debt ceiling again at 15.12 trillion, which they have already passed
Debt Target maybe? Government debt will be reigned in when a country cannot roll over its existing debt or sell new debt through the bond market. When ever a government sells its debt through the bond market, someone (ie other countries, private investors, hedge funds) CHOOSES to buy it. The moment they wake up and make the choice not to buy the government bonds (known as bond vigilantes), the government cannot create new debt UNLESS one of two thing happen: 1. The government increases the yield on its bonds.........making it more attractive for private investors to purchase; and consequently making it even harder for the country to pay back (think Greece here) OR EVENTUALLY 2. The central banks (Federal Reserve or IMF for example) can choose to print money and purchase those bonds (think QE1 and 2). However, this is known as monetisation and cannot continue indefinitely otherwise it will lead to massive inflation in the long run (this is what the IMF has been resisting but is rumoured to be doing). So to answer your question.........it is private investors (including countries) that reign in government debt, but it is the central banks that keep patching up the sinking ship.......until..............<insert crystal ball answer here> P.S. People will argue that programs such as QE are not true examples of monetisation because the country will need to pay back the printed money. But since this money simply WILL NOT be payed back................it is in-fact monetisation.
Current US debt stands at $15.01billion. The debt ceiling was raised last Friday by $1.2b to $16.394b. This limit will be reached before the end of 2012.
Unbelievable: US Adds $120 Billion In Debt Since Debt Ceiling Hike On Friday, $310 Billion More On Deck In Next Two Months http://www.zerohedge.com/news/us-ad...-friday-310-billion-more-deck-next-two-months
The U.S. debt is something way beyond your control. It isn't the debt that is making you sad, it is your thoughts about the debt and its consequences that stir your emotions. Control your thoughts and you control your emotions, have a drink and watch the world burn.
Ye S.P i dont get as upset about it all as much as I used to and I dont let it effect me as much either. If it happens it happens and there wont be much I can do about it. Will just have to deal with it when it comes.
That reminds me, I need to start looking at aquaponics and producing my own food. And maybe a mini still too.
I'm having a very hard time trying to comprehend just how much 20 Trillion dollars of debt is. Thats 20 times 1,000 Billion. Its an absolutely mammoth, insane, ridiculous, and ludicrous amount of debt. There is no way any of the election candidates can fix this. Good bye America.....God bless you!!!
