Economists continue to line up warning of an economic meltdown as the U.S. moves toward 2012 when our debt will exceed our gross domestic product. The White House and Congress, however, continue to spend wildly on Iraq, Afghanistan, and other programs.
As we previously noted, our debt has now surpassed $13 trillion. Foreign economists are preparing for a disaster in the United States. It is being called “the debt super cycle trend” and some like Dan Fuss, who manages the Loomis Sayles Bond Fund, has sold all of his Treasury bonds because he expects interest rates will rise as our leaders continue to borrow unprecedented amounts to avoid tough decisions.
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Bankruptcy filings are nearing the record 2 million of 2005, when a new law took effect that was aimed at curbing abuse of the system. Filings could reach 1.7 million this year, says law professor Robert Lawless, but few experts believe that debtors are now gaming the system.
Instead, concern exists about a growing number of Americans who need bankruptcy protection but cannot get any benefit from it or simply cannot afford to file. As their financial problems worsen, that hurts everyone because it can hinder the economic turnaround.
“It’s shocking that we are back to the 2005 level,” says Katherine Porter, associate professor of law at the University of Iowa. “And the filing rate doesn’t even begin to count the depth of the financial pain.”
Bankruptcy laws changed in 2005 because filings skyrocketed and credit card companies and banks wanted to weed out deadbeat borrowers. The law made it harder — more expensive and more restrictive — for individuals to file Chapter 7 bankruptcy, which erases most debts.
Instead of seeking protection from bankruptcy, a number of debt-laden Americans have gone into a “shadow economy,” or informal bankruptcy, according to some experts.
http://www.usatoday.com/money/economy/2010-06-09-bankruptcy09_CV_N.htm
U.S debt to rise to $19.6 trillion by 2015
WASHINGTON
Tue Jun 8, 2010 6:19pm EDT
WASHINGTON June 8 (Reuters) – The U.S. debt will top $13.6 trillion this year and climb to an estimated $19.6 trillion by 2015, according to a Treasury Department report to Congress.
http://www.reuters.com/article/idUSN088462520100608
And now for something completely different: Krugman says degt is no problem, cuttin economic system is what will bring disaster:
http://krugman.blogs.nytimes.com/2010/06/07/madmen-in-authority/
LOL – That’s funny, Toots. I have no interest in your crusty undies – it just appears that you have them in a wad so often, I must wonder if they are cutting off the circulation to the grey matter residing in your backside. Oh, well. I really don’t care, but I digress …
A whole four years ago, huh? Gee, mighty white of you … considering the war in Iraq has been going on for about eight years now. Up to that point, you probably thought it was the next great “Crusade”, fighting the good fight against those icky, brown people.
Now, I’m going to go out on a limb here, and guess that since you want no part of those evil, socialist programs, that you will be sending your social security checks back to the government, and will refuse Medicare. And, I’m going to guess that you were home-schooled because you wanted no part of socialist, public education, and that you certainly don’t travel on public roads, you put out your own fires, you chase the criminals all on your own, you use an outhouse, get your water from the “crick” out back, and wouldn’t think of “tip-toeing through the tulips” in your local public park.
If your posts weren’t so laughable, they would be pathetic.
Tootles,
I have consistently blamed the Bush/Cheney regime for destroying our country from the inside and now the Obama administration for aiding and abetting treason after the fact.
You, on the other hand, have been consistently loony, theocratic, partisan and illogical. Funny too. Just not in the “ha ha” sense. And of course you think I’m stupid. When Fundies call me stupid, I wear that like a badge of honor. Why? Because when people with a demonstrably destructive, ill-informed and incorrect worldview find those who disagree with them “stupid” it’s merely psychological projection of their own inadequacies and reliance upon “faith” over objective evidence, logic and reason.
vlf2112:
I’m sure my panties are of interest to you as this is where most leftists have their focus. They rarely rise above such low places.
But let me try, as difficult as it is, to move you beyond your infantile interest in undies.
Few legislators, including the democrats who voted for the use of force in Iraq, imagined that this phony war on terror would cost this much or last so long. I always opposed the war if it violated the Constitution and few on either side said it did at the time, though I searched high and low for information. Naturally, this was before I was a Ron Paul supporter.
Anyway, I began to oppose the war about 2006. That is 4 years ago. And so I am, obviously, disturbed by the price tag for our unjust “war” in the Mid East since that time.
Naturally, I’m more disturbed about the loss of innocent life and tragic injury.
That said, I am aware that ignorant jerks on the left (specifically those in the democratic party) act like the feds don’t have the authority to spend money on war but pretend the feds DO have the authority to spend money on social security, medicare, medicaid, education, health care, and a thousand or so other abuses of power.
And if these same morons had not insisted on usurping powers by having these socialist welfare programs, we wouldn’t have to worry about spending for wars.
Necessary wars, of course.
Buddha:
You are consistent in your obsession with not wanting to point to guilty parties. If someone commits a crime, do we insist on not identifying them?
If some groups advocates government actions that ruin a civilization, we ought not point the finger at them?
That is stupid.
Hey Toots:
I bet you really had your granny panties in a twist over Dubya’s spending a trillion dollar surplus in two short years, and then proceeded to put the budget at record-breaking deficits, right? Sorry, lady but YOU’RE insane. And you prove it with each and every post.
We need to stop pouring money into two futile wars; we need to cut the DOD budget STAT; we need to collect tax revenue from those in Corporate America who seem fit to pass their tax debt onto everyone else; we need to stop giving tax breaks to those who do not need it … big oil comes to mind pretty damned quickly …
Rating Cut by Fitch on Wealthiest U.S. State
Connecticut is preparing to borrow $956 million to close a budget gap in the fiscal year beginning July 1, after borrowing money last year to cover a deficit of $947.6 million. Not good. Fitch has reduced the states credit rating from AA+ to AA.
“The downgrade reflects the state’s reduced financial flexibility, illustrated by its reliance on sizable debt issuances during the current biennium to close operating gaps in the context of already high liabilities,” Fitch said.
Connecticut is the wealthiest state on a per capita basis with personal income of $54,397 in 2009, according to Department of Commerce.
http://www.economicpolicyjournal.com/2010/06/rating-cut-by-fitch-on-wealthiest-us.html
But expenditures like these, implemented under Republican rule with designs on violating the Constitution and benefiting contractors, are good business and sound policy? Aren’t they Tootles.
Gitmo becomes $500 million Camp Costly
“GUANTANAMO BAY, Cuba – At the U.S. naval station here, a handsome electronic sign hangs between two concrete pillars. In yellow enamel against a blue metal backdrop is a map of Cuba, the “Pearl of the Antilles,” above flashing time and temperature readings.
“Welcome Aboard,” the sign says.
The cost of the marquee, along with a smaller sign positioned near the airfield: $188,000. Among other odd legacies from war-on-terror spending since 2001 for the troops at Guantanamo Bay: an abandoned volleyball court for $249,000, an unused go-kart track for $296,000 and $3.5 million for 27 playgrounds that are often vacant.
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The Pentagon also spent $683,000 to renovate a cafe that sells ice cream and Starbucks coffee, and $773,000 to remodel a cinder-block building to house a KFC/Taco Bell restaurant.
The spending is part of at least $500 million that has transformed what was once a sun-beaten and forgotten Caribbean base into one of the most secure military and prison installations in the world. That does not include construction bonuses, which typically run into the millions.
Also not included are annual operating costs of $150 million — double the amount for a comparable U.S. prison, according to the White House. Add in clandestine black-budget items, such as the top-secret Camp 7 prison for high-value detainees, aptly nicknamed Camp Platinum, and the post-Sept. 11, 2001, bill for the 45-square-mile base easily soars toward $2 billion.”
http://www.msnbc.msn.com/id/37547116/ns/politics-washington_post/
$2 billion dollars wasted so people could be tortured into a recruiting poster for Islamic extremists.
This is why both parties need to go, Tootie. One party, the GOP, drove our country/car into the ditch and now the other, the DNC are setting the car on fire. Both parties are to blame at this point.
Hey Tootie, how ‘d it go again?
“Fool you once, shame on me…? You the fool, can’t get fooled again?”
I know it was something along those lines… Ah I remember! .. it was:
“Pay me once, be your fool forever.”
Partisans are insane. You prove that all the time, Tootles. Because what you rail against? It’s a direct result of economic and foreign policy initiatives implemented by Republicans AND Democrats at the behest of their corporate masters.
Democrats are insane. They want the country destroyed.
Couldn’t agree more. I really think we are on a downward spiral. So many unfunded liabilities no one wants to discuss.
Now with the Gulf disaster I expect it will be even worse. The whole issue of BP’s $75M cap on consequential damages has not been discussed in days. I don’t see BP volunteering to raise the cap. Prof. Turley, I would be interested in your opinion as to whether the cap can be raised retroactively? I thought there was a constitutional ban against “ex post facto” legislation? I have been told that the legislation enacted after the Exxon Valdez disaster contained a provision allowing the DOI to increase the amount of the original $75M cap every three years based on the CPI increase and that none of DOI Secretaries [over 4 administrations] did this. I guess the cap could be raised based on CPI increases retroactively, but I am not sure.
If the cap isn’t raised, who but the Feds will bail out all the fisherman, resort owners, charter boat owners, shrimpers, oil workers, etc. “indirectly” impacted by this disaster?
But will it happen on 21-2112?