Starting Off With A Bang: In First Month Of Fiscal 2013, US Adds $195 Billion In Debt

It seems like it was only yesterday that the US closed the book on Fiscal 2012 (technically, it was September 30), with a modest $16.066 trillion in debt. What was notable is that the monthly additions to the total debt balance toward the end of 2012 were getting smaller and smaller until the October incremental addition was a puny $50 billion (even though mysteriously the US ended up with a budget Surplus of $75 billion for the month). Turns out it was merely yet another political stall tactic to avoid the true face of America's debt peeking into the open public. Because as of several hours ago, the DTS announced the total debt as of October 31, or the first completed month of fiscal 2013. The number: $16.262 trillion. This means that in the month of October, when delaying displaying the true creditor plight of this country was no longer an option, Uncle Sam went to town, and raised $195 billion. This amounts to $6.3 billion per calendar (not work) day, and $262 million per calendar (not work) hour.

Keep in mind that this is happening as both the household, financial and corporate sectors are no releveraging, so one can't use the argument that the US is merely picking up someone else's slack. And with total debt subject to the ceiling now at $16.222 trillion, and with the ceiling at $16.394 trillion, it means the US has $172 billion in incremental debt capacity, or if one were to use the rate of October change as a benchmark, roughly 26 days until breach and the mandatory raiding of various government funds has to commence. The breach will with absolute certainty happen before the year is out, or just as the negotiations over the fiscal cliff are in full swing...



Source: Zerohedge

Check out this exclusive 3 minute, sneak preview clip from Money For Nothing asking why the Fed was utterly unable to see the 2008 crisis coming, while many of our interview subjects did.
What did our commentators see that Bernanke and Greenspan could not? Will the Fed see the next crisis coming?

---

Federal Reserve Bank of New York: Staff Report No. 574 October 2012 - "The Forward Guidance Puzzle" Dynamic Stochastic General Equilibrium Model Predicts Explosive Inflation - The Outcome Is Hyperinflation

That's going to keep happening even under Romney's watch. the U.S. President does not have the power to change global economic dynamics. The only thing any President can do at this point is to put the brakes on government spending and increase taxes. The invoice for the tax cuts we've all enjoyed over the last 10 years is now due and it's time to pay with interest. However, both actions will also have consequences and we'll be in a serious depression, worst than the Great Depression for about 5-10 years as the economy reaches equilibrium again after the major adjustments. It will a be a bumpy ride, but if we don't do it, the U.S. faces break up and extinction.

That's going to keep happening even under Romney's watch. the U.S. President does not have the power to change global economic dynamics. The only thing any President can do at this point is to put the brakes on government spending and increase taxes. The invoice for the tax cuts we've all enjoyed over the last 10 years is now due and it's time to pay with interest. However, both actions will also have consequences and we'll be in a serious depression, worst than the Great Depression for about 5-10 years as the economy reaches equilibrium again after the major adjustments. It will a be a bumpy ride, but if we don't do it, the U.S. faces break up and extinction. Originally Posted by icuminpeace

I think that's probably where we're headed. The current system can't last much longer. There's no way the necessary spending cuts will ever be implemented in time to avoid a collapse. The time for austerity measures is before the economy is broken beyond repair. It's probably already too late.