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  • U.S. Debt Now Surpasses 2010 GDP

    The U.S. Treasury Department came out today with its Debt Position and Activity Report for July. The news is bleak.

    With the additional $238 billion the Treasury immediately borrowed when the debt ceiling was raised on August 2, total current debt now exceeds 2010 gross domestic product (GDP) for the entire United States.

    Debt at these levels is why Moody’s and Standard & Poor’s is concerned enough to be considering a downgrade of their credit ratings on U.S. debt.

    Debt as of July 31 totaled $14.342 trillion. That was made up of $9.756 trillion held by the public and $4.587 trillion the U.S. government owes itself (intergovernmental borrowing, largely from the Social Security and Medicare trust funds to the general fund). GDP—the value of all of the goods and services produced in the United States—in 2010 was $14.5265 trillion. With the Treasury’s additional borrowings of $238 billion so far in August, the total of all debt outstanding has now increased to $14.5807. That’s $54.2 billion more than average 2010 U.S. GDP, the last year for which we have final estimates on GDP from the U.S. Department of Commerce.

    This is a noteworthy event. It is going to be a very long time before the politicians in Washington are able to pay this debt back with interest. They should at least not be borrowing more. One wonders how they would like to mark this new milestone on the road to economic ruin. They can’t hide it. Maybe they will want to pass out Dumbo dolls to commemorate the $14.5807 trillion elephant in the room.

    Posted in Economics [slideshow_deploy]

    17 Responses to U.S. Debt Now Surpasses 2010 GDP

    1. West Texan says:

      This is exactly what happens with federal overreach into states' domestic affairs. Social progressives are so arrogantly butt-headed that a total collapse wouldn't make them see their destructive ways. And these politicos' continued demagoguery has proven effective in the voting booth. As a Texan-American, all I can do is keep my powder dry and sit tight for the inevitable train wreak.

    2. TimAz1 says:

      We know how the POTUS marked it as a birthday present to himself. At his birthday party he was sad to admit that he is only half way through implementing his hope and change upon America. Had enough yet?

    3. Lloyd Scallan says:

      Tim Geithner and Obama must have been standing on one foot when Obama signed the Debt Bill. It took
      less than 12 hours before these two put us $238 billion futher in the hole. Anyone that does not
      recognize what this entire debt debate was all about is absolutely brain dead or in cahoots with Obama's agenda to destroy this nation's economical system. The show both the Dems and Repbs put on was to deceiving the American people again. This farce continued while the main stream media continued to
      hide the truth. When will someone stop this madness?

      • Jack Ashcraft says:

        Let's add it up. War in Iraq, War in Afganistan, Tax cut's, Prescription Drug Plan, Bail out for the Banks, all unfunded,Credit George Bush spending on infrastructure improvements, extending benefits for unemployment, saving the only manufacturing industry left in the US, credit Obama. If Bush had not of screwed up the economy as bad as he did then Obama would not have had to run up the deficit as much.

      • Bob says:

        Silly Rabbit. That $238B is the amount that has been backlogged (borrowed from federal pensions) since this debate began and has been accumulating over the past 4 1/2 months. Now they have to refund the pensions they borrowed from. Similar to what should've been done over the past 32 years with Social Security so we could see the debt rising correctly and not be lied to about the deficit being only $350B when it was really $1.1T – like the 2008 deficit. Please feel free to go finds some facts before posting so your posts make more sense. You may also be able to recover some of the time you spend ranting about false scenarios and spend that time making yourself productive.

    4. RedBaker says:

      A sad day for America. We're hurtling down the road to Greece. Even worse is the hidden pile-up of false promises of the unfunded liabilities. Multiply the national debt by 5 or 10. Then there's the fact that the debt projection models are built on assuming much faster growth than we have now.

      Margaret Thatcher's Axiom has arrived: We have now run out of other people's money.

    5. Wow, I wonder why the stock market just tanked 500 points!

    6. LTC Skip Novakovich says:

      This is absolutely ridiculous – and we, the American people did this to ourselves by becoming extremely complacent over the past several decades and drinking the cool aid of government entitlements! I am a firm believer that anyone elected to any position having a fiduciary responsibility to constituents MUST HAVE a small business background and understanding that in order to be sustainable you can not under any circumstance spend more than you take in. And, when times are tough it is the person who signs the front of the paycheck who goes without one!

    7. LTC Skip Novakovich says:

      This is absolutely ridiculous – and we, the American people did this to ourselves by becoming extremely complacent over the past several decades and drinking the cool aid of government entitlement! I am a firm believer that anyone elected to any position having a fiduciary responsibility to constituents MUST HAVE a small business background and understanding that in order to be sustainable you can not under any circumstance spend more than you take in. And, when times are tough it is the person who signs the front of the paycheck who goes without one!

    8. MsBrewMaster says:

      We all better show up at the town hall meetings this month. Let your representatives know how you feel.
      I'm planning to attend a meeting on Monday.
      Let them know how you feel, but be respectful.

    9. Eagle Eye says:

      "They can’t hide it. Maybe they will want to pass out Dumbo dolls to commemorate the $14.5807 trillion elephant in the room." Very well said Patrick.

    10. Mike, Wichita Falls says:

      As much as he wants us to believe otherwise, Obama secretly loves S&P's downgrade of our debt (first change since 1917!) and Moody's threat of one. It's simply one more come-uppance for this great country which he despises as founded. How can any reasonable person conclude anything else? This is just one more reason Rush said "I hope he fails".

    11. Eric, Minnesota says:

      I am always amazed at the rhetoric surrounding such debates. A few examples, "The American people have sent us here to….." or, "Washington is broken and……" and the list continues almost at the rate of our—-THEIR debt crisis. Why is it they all (especially the libs) refer to us as a though they actually speak for us. I know they are elected to represent us and therefore , in theory, speak for us, but alas never actually do so. S&P has screwed up in the past and I am sure they will again in the future however, in this instance they have it right and the blame falls on what is suppose to be our government. NObama and the Dems have once again not just got it wrong but have done so purposely. Freedom and free markets how dare we speak of such things and to demand them borders on treason and sedition. This is why we need term limits so the country can save itself from collapsing inward. If we limit their terms money would be saved because there would be little, if any, reason for the constant porking of bills and they would not need to be in constant campaign mode and actually focus on the job at hand.

    12. Ron says:

      The president of 2013 will be HANDELING ONE HOT POTATOE………God help him

    13. I think our government needs to stop spending.

    14. mighty mouse says:

      it is to late to talk—-just like rome it took 300 years of corruption to to destroy it..all systems are in place —–just like rome. it took 1200 yrs of dark ages that time to recover.this time the world cannot.

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