Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Stock Review : Markets : News Wire : Quotes : Radio : Silver : Stocks - Main 
  
 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Things That Make You Go Hmmm: Signing Off
By: Grant Williams

The 10th Man: May the Fourth
By: Jared Dillian

Asian Metals Market Update
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver Gain Almost 1%
By: Chris Mullen, Gold-Seeker.com

Laughable FOMC Statement Sets New Central Bank Credibility Low Until the SNB One Ups It
By: Andrew Hoffman

Why Russia Will Halt the Ruble’s Slide and Keep Pumping Oil
By: Marin Katusa, Chief Energy Investment Strategist

A Little Pillow Talk Turned Her Husband On to Bonds
By: Frank Holmes

Gold: The Year Ahead
By: Jeffrey Nichols

Five Rare Birds Sing a Wise Tune
By: Dennis Miller

The Stuff Is Already Hitting the Fan in the Currency Markets
By: Graham Summers

 
Search

GoldSeek Web

 
A Day in the Life of the National Debt

By: Richard Daughty, The Mogambo Guru - The Daily Reckoning


-- Posted Friday, 7 January 2011 | Digg This ArticleDigg It! | | Source: GoldSeek.com

As an example of the kind of sheer monetary insanity that is happening all around us and that is going to destroy the United States of America, and probably most of the world, too, the national debt of the United States of America hit a new, all-time record: An astonishing $14,025,215,218,708.52, which can be more conveniently referred to as $14.025 trillion, and which works out to a debt of $140,252.00 for every non-government worker in the Whole Freaking Country (WFC), the interest on which (at 5%) is $7,012.60 for each of those selfsame non-government workers. Per year!

And this $14,025,215,218,708.52, which is, again, a massive $14.025 trillion, was reached on the Very Last Day Of The Year (VLDOTY) of 2010, a foul feat of fiscal folly, a fact made all the worse by noting that this unholy indebtedness was reached on that Very Last Day Of The Year (VLDOTY) because the debt soared by a huge $154 billion on that Very Last Day Of The Year (VLDOTY)!

$154 billion in one day! In One Freaking Day (OFD)!!

Note the use of the double exclamation point to indicate emphasis, which is altogether appropriate because many other outrageous things happen in One Freaking Day (OFD), like how you got married One Freaking Day (OFD), and you took your stupid job One Freaking Day (OFD), and you agreed to attend the kid’s horrible music recital that seemed to last an eternity but was, instead, just One Freaking Day (OFD).

But it is seldom on One Freaking Day (OFD) that the despicable federal government issues a massive $154 billion in new debt, which is so much money that it is more than $1,540 of new money for every non-government worker in the Whole Freaking Country (WFC)!

In One Freaking Day (OFD)!

I can see by looking at your stunned expression that you are as freaked out about this as I am, because this is a lot of money for workers in the non-government, profit-seeking part of the economy to shoulder.

But the biggest killer of the economy is the massive deadweight loss of local, state and federal government, which now accounts for half of all spending, supports roughly half of the population. And employing, as it does, 1-out-of-6 workers.

And let’s not forget, as Martin Hutchinson, in his essay at PrudentBear.com, reminds us, “The nonprofit sector (including religious and cultural institutions) represents a sizeable portion of the US economy.”

And by “sizable portion of the US economy”, he means “According to the CRS study, nearly 10% of the US workforce works in the non-profit sector, with 7% employed by charities.”

A tenth of the population does not work to make a profit at all! What kind of economic idiocy is that? Is this part of the reason that we have a trade deficit of over $600 billion a year?

And not only did non-profit employment increase by 16% between 1998 and 2005, but “Employment in the charitable sector is highest in the District of Columbia, with 16.3% of its workforce employed in that sector, then Rhode Island with 13.6%, then New York with 13.3%.”

The interesting part is when he reports that this is actually, as we originally surmised, bad news, as it turns out that “charitable employment is strongly inversely correlated with economic growth,” as “the jurisdictions that have shown the most robust economic growth in the last 30 years are those where charities are least active.”

Why is this? He figures that the reason that a lot of charitable giving is correlated with low economic growth is that, “In the case of charities, resource allocation is made by people with a political agenda, seeking to maximize their resource collection from rich people with little knowledge of the problems the charity addresses, whose decision making is obfuscated by incessant misleading charity propaganda. Thus, charitable activity is even more economically inefficient than government, and excessive charitable activity holds back the local economy by diverting resources from the local private sector.”

On the other hand, I say, with all due respect, that the reason that economic growth is low in those areas where there are many charities is because of an increase in the population of those coming to seek charity, bringing with them all their higher crime rate, lower business activity, and requiring increases in taxes to provide for them.

Either way, everywhere you look, you see Bad, Bad News (BBN), even in the charity business, and with 43 million Americans receiving food stamps already, with more and more applicants every day, which will be provided by more government deficit-spending more excess money created by the Federal Reserve expressly for the purpose, it doesn’t take long before you realize the urgent need to frantically buy gold and silver, and keep on buying them for as long as the money holds out.

And the really nice thing about it is that it is so easy that people say, “Whee! This investing stuff is easy!”


-- Posted Friday, 7 January 2011 | Digg This Article | Source: GoldSeek.com


Visit The Daily Reckoning's website.



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2014


© GoldSeek.com, Gold Seek LLC


GoldSeek.com Supports Kiva.org

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.
OilSeek.com