The $15 Trillion Dollar Barrier Smashed!

National Debt Crosses $15 Trillion Barrier

November 15th, 2011 – a day that will live in infamy – the U.S. national debt obliterated the $15 trillion dollar barrier.

Like shattering the sound barrier for the first time, it leaped $56 billion from the day before to an astounding $15,033,607,255,920 and 32 cents.

That infamous economic accomplishment was reported today by the U.S. Treasury Department.

The national media will overlook the significance of this milestone and its relationship to the task at hand for the super committee charged with cutting excessive government debt.

That connection needs to be shouted from the rooftops. It is critically important to underscore the need for the super committee to solve our debt problem with a serious solution NOW.

Our future well being hangs in the balance.

Instead, the media will report many hours coverage of the Occupy Movement’s behavior during their “Day of Action” and the Penn State sex scandal. That gets higher ratings.

Most disturbing of all is that $49 billion of the $56 billion went into “Debt Held by the Public”. Only $7 billion went to “Intragovernment Holdings”.

Intragovernmental Debt vs. Public Debt

There are two types of federal debt.

The U.S. Capitol Building

“Intragovernmental Holdings” is debt owed by the federal government to itself. It is sorta like robbing Peter to pay Paul.

For example, for decades excess Social Security payroll tax collections were borrowed and spent on other government programs. Those excess collections were intended to pay Social Security benefits for the aging baby boomer population as they reach retirement.

By borrowing and spending the extra money on other programs the money got added to the national debt as “Intragovernment Holdings”.

Social Security is, by far, the single largest source for intragovernmental borrowing.

People's Republic of China

“Debt Held by the Public” is money the government borrows from outside investors, like China, that must be paid back with interest.

This debt, far more than intragovernment holdings, affects the credit rating of a country. We can default intragovernment debt without a credit penalty but we can’t default public debt.

Heck, we could announce today that we are defaulting the entire $2.6 trillion in the Social Security Trust Fund and it would change absolutely nothing, except political rhetoric.

Federal Government Debt is Going Viral

The national debt has been growing $4.2 billion a day over the last 3 years.

In and of itself that is bad enough. But as of 2010 Social Security revenues dropped below expenses for the first time ever and spending will remain above revenues for at least 75 years. We can’t borrow from Security Security to pay for other government programs anymore.

That huge change is evidenced by the fact that on the 15th the public debt grew 8 times more than intragovernmental borrowing did. That is what catapulted us above the $15 trillion barrier.

We’ve run out of places inside government to borrow from. Debt held by the public is now growing at an unprecedented rate.

The credit rating of the United States has already been downgraded once for the first time in its history.

Left unchecked the next United States government downgrade will happen again soon.

Conclusions

While writing this I’ve been listening on C-SPAN to the U.S. House of Representatives debating a balanced budget amendment.

In speech after speech Congressmen repeat the same old talking points over and over and over again, blaming the other party for everything. We heard them all before. There is nothing new. The same things are repeated. Only the person saying them changes.

They talk and talk, but nobody listens. They talk and talk, but nobody agrees or even tries to agree.

This country is in deep fiscal do-do.

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About azleader

Learning to see life more clearly... one image at a time!

Posted on Nov 17, 2011, in Credit Downgrade, Debt, Debt crisis, Deficit, Economy, National Debt, news, Politics, Super Committee. Bookmark the permalink. 4 Comments.

  1. william wallace

    You must take account of that which is precious / so precious
    it beyond being valued. Such of course being each individuals
    “SPIRITUAL ACCOUNT” $15 trillion is but an drop in the ocean
    compared to just one human “SPIRITUAL ACCOUNT” thus dont
    lose heart DON’T BELIEVE people are poor /indeed people are
    rich beyond their wildest imagination Rich RIch RICh RICH RICH.

    Thus don’t believe politicians having you beat / or people poor
    people are Far FAr> FAR from being poor they being very rich.

    PS / when opening your SPIRITUAL ACCOUNT you’ll find your
    so rich /you can’t count / or comprohend your wealth / fortune.

  2. Thank goodness the more important spiritual account is separate from our fiscal accounts.
    However, that does not mean we can ignore our dismal fiscal circumstance.

  3. william wallace

    Of course one must balance the spiritual against the material.

    However / if look only unto material such makes grim reading
    in that their is total agreement /thus it ones duty in reminding
    brothers & sisters their need of the spiritual material balance.

    Each soul as each soul alone in having the combination unto
    their spiritual accounts such account be not stolen or lost but
    with a individual life after after life // only in life ( human form)
    can one add to their spiritual account /such purpose of living.

    How can one be reminded of the combination of their spiritual
    account in entering another life ?. One need seek the master
    locksmith. Whom being the master locksmith ?. In the present
    (time) the master locksmith is Prem RAWAT (god be praised).

    On pc search put (words of peace) on site a large selection of
    videos in which Prem Rawat explains / talks of meditation. One
    turning the senses inward bringing an unfolding of the spiritual
    self via very practical spiritual experience. Not ideas. Not belief
    but in ones spiritual experience bringing clarity answering ones
    questions in one understanding the mystery of creation creator
    thus bring the individual home via their spiritual enlightenment.

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