Why the Total Federal and Total Nation-wide Debt is Untenable:
  1. The total federal and total non-federal debt is most likely untenable since no one seems able to prove whether the debt is tenable or not. That's certainly not a good sign, but only one of many other reasons listed below.  Some people in the federal government and the Federal Reserve probably already suspect (or know) that the debt is untenable, but don’t know what else to do about it, except mostly to create a lot of new money out of thin air.  Other nations have already followed that same path and discovered another economic terror:  hyperinflation. 
    The interest alone on only the massive National Debt is 18% (or more) of all federal tax revenues (that is, before federal revenues and GDP started falling in year 2007).  The percentage is probably significantly higher now.
     
  2. The National Debt is  $Loading...  and growing fast.  The Social Security and Medicare systems are pay-as-you-go, with a 78 Million baby-boomer bubble approaching. 
    As of OCT-2009, the federal National Debt per-capita is $38,000, which is 75% higher than the previous record-high (which was $21,719 in 2008 dollars in year 1945, after World War II).
    As of OCT-2009, the federal National Debt per-capita is $38,000, which is 705% higher than the it was near the end of the Great Depression (which was $5,396 in 2008 dollars in year 1941).
     
  3. The total federal debt, and combined with the total non-federal debt, is crushing the nation (for a total nation-wide debt of $57 Trillion), and has been for decades.  And that does not even include the looming $62 Trillion Credit Default Swap/Derivatives bubble, or the future debt of $60+ Trillion in unfunded liabilities for Social Security and Medicare.
     
  4. There is a limit to the debt (federal and non-federal), and if the current total $57 Trillion nation-wide debt (about 410% of GDP ; using $13.8T for GDP based on year 2007), is not untenable already, it is damn close, and growing it bigger and more untenable does not make any sense; especially not with more borrowing and more new money created out of thin air.
     
  5. 90%-to-95% of all U.S. Dollars in existence in the U.S. already exists as debt. Why? Because new money is created as debt at a 9-to-1 ratio of debt-to-reserves. And today, a LOT of new money is being created without any reserves (to prop up bad banks). Eventually, the percentage of money that exists as debt will become near 100%, at which time the Federal Reserve and federal government may start giving away money. At the moment, they are giving many trillions to banks and corporations at near zero interest. But eventually, they’ll realize that they have to give money to consumers too, since the economy is a 70% domestic consumer driven economy. However, that will most likely cause hyperinflation, because the amount of new money required to service so much nation-wide debt, and keep a 70% domestic consumer driven economy from collapsing will result in the collapse of the pyramid scheme.  You will need a wheel barrow full of U.S. currency to merely buy a loaf of bread. It has happened in dozens of other nations and it appears it will happen again in the next few years.
     
  6. After 52 consecutive years of deficit spending and incessant inflation, there’s a real danger that Congress is a debt junkie which is unable to stop deficit spending.  Congress doesn’t get it. Congress just gave itself its 10th raise in 12 years, plus $93,000 per Congress person for petty cash and expenses. Even if the federal government had the discipline to stop deficit spending, it would still take almost $492 Billion per year in interest alone (over $41 Billion per month) at only 4.5% interest, to simply stop the $12 Trillion federal debt from growing ever larger. It would take 222 YEARS at only 2.5% to pay down 33% of the original principal debt ($12 Trillion as of year 2009). Yet, there’s now an estimated $1.7 Trillion deficit for fiscal year 2009.
     
  7. The $57 Trillion nation-wide debt has steadily grown for over 50 years, and has almost quintupled from 100% of GDP in year 1956 to about 410% of GDP today. It would take over 200 years at only 2.0% interest to pay down only 33% of the $57 Trillion nation-wide debt, if Americans were able to pay back over $1 Trillion per year (about $95 Billion per month), which is the minimum payment required to stop the debt from growing ever larger.
     
  8. Where will the money come from for the tens of trillions being spent and borrowed when that money does not already exist?   Much of it is being created out of thin air.
     
  9. Americans have been liquidating for the past decade to service debt. Foreign owned assets in the U.S. have almost quadrupled from $6 Trillion in year 1997 to $22 Trillion in year 2007.
     
  10. This is not a mere recession.  It is the result of several decades (since about 1976) of crushing debt that has now become untenable, and more debt will simply become more untenable.  Also,  GDP has been decreasing since year 2007 (most likely early 2007 or late 2006).  And the U.S. Dollar has declined for years against all major international currencies for about a decade. To make matters worse, the federal government's and the Federal Reserve's economic statistics are suspicious.  GDP, debt, inflation, and unemployment are not be reported accurately, according to these calculations.
     
  11. Some people like to claim New Keynesian and other economic models promote deficit spending for our current economic crisis.  However, none of those models ever state that the solution to a massive debt-bubble is more massive debt, borrowing, money-printing, and spending.  Also, no nation in history that was so ridiculously deep into debt has ever borrowed, money-printed, and spent its way to prosperity.  Some people claim that World War II and massive government spending ended the Great Depression, and try to use that as an excuse for more deficit spending in this current debt crisis. What they fail to understand is that the $12 Trillion National Debt per-capita ($36,129) is 66% higher today than the national debt per-capita ($21,719 in 2008 dollars) in year 1945 after World War II.  That's not good with both of the Social Security and Medicare systems being pay-as-you-go, with a 78 Million baby-boomer bubble approaching.
     
  12. The federal government is the largest employer in the nation. More people are employed by the government than all people working in manufacturing (nation-wide). How long can that last? The federal government is sucking up 18% of GDP for about $2.4 Trillion in federal tax revenues, but that is never enough. The projected 2009 deficit is $1.7 Trillion, and deficits are expected/planned for another 10 years?  The massive debt pyramid will most likely collapse in less than 10 years. To make matters worse, U.S. trade imbalances are sending trillions of dollars per year out of the U.S. U.S. exports are smaller than Germany ($1.1 Trillion) or China ($1.3 Trillion), and they U.S. is the biggest debtor nation on the planet. Yet, some people still believe the solution to the problem is more credit and borrowing?
     
  13. With more global competition, decades of a deteriorating manufacturing base, how can the currently falling GDP be grown enough to support a U.S. population of 305 Million which is growing by 5 Million per year?
     
  14. In late 2006-to-early 2007, GDP measured in any previous year’s inflation adjusted dollars, dipped drastically by an amount larger than any previous amount in the past 100+ years. Also, the federal government was ridiculously reluctant to report declining GDP. It wasn’t until early 2009 that GDP was finally reported to be declining since year 2007.
     
  15. The Federal Reserve has already spent/allocated $4.2-to-$12.8 Trillion (as of 31-MAR-2009; previously(24-FEB-2009): $3.8-to-$11.6 Trillion; previously(30-NOV-2008): $3.2-to-$8.5 Trillion) to bail-out bad banks and corporations.  That much money did not already exist.  Most of that money was created out of thin air. Yet we supposedly don’t have a debt problem so severe that we can borrow and create tens of trillions of more new money out of thin air? How will this NOT create inflation? Also, why should the Federal Reserve and member banks be getting low-to-ZERO interest loans to then charge usurious 20%-to-35% interest rates? Hell of a deal, eh? The end result is what we have today, which is similar to what would happen if you played the game of Monopoly in which one person (the banker) could print all the money they wanted. Before long, the bank owns everything, and everyone else is broke or deep in-debt to the bank. Cha-Ching! Also, there are about $12 Trillion foreign-owned U.S. Dollars outside of the U.S. With a deteriorated manufacturing base and growing global competition, and the liquidation that is already occurring, how can that not help cause more inflation? The only reason inflation isn’t much higher now is because there isn’t only a credit problem. There’s a debt-problem in which Americans can’t service more debt. Most Americans are tapped out. The nation-wide debt is $57 Trillion. That’s about $225,000 per person (on average).
     
  16. One obvious indication of a massive debt problem is 9,000-to-10,000 foreclosures per day. Another root cause was rampant greed in the banks, corporations and federal government, combined with the extraordinary incompetence of Congress, SEC, and the administration, which has resulted in over 3 Million foreclosures in 2008, 2.0 Million in 2007, 1.2 Million in 2006, and 846,000 in 2005.  3+ Million more foreclosures are expected in 2009, and 9 Million more are predicted in the next 3 or 4 years.
     
  17. Some people say inflation is low, or that we currently have deflation now (as of FEB-2009), that inflation is not a concern at this time, and inflation can be managed later. They don’t know that, and there is no historical precedent for it either. The Federal Reserve will not be able to control hyperinflation, because raising interest rates won’t be enough, and the money supply will be difficult to reduce when 90% of new money is created as debt, and 90%-to-95% of all U.S. dollars in existence already exists as debt. And if the massive debt-bubble is merely grown larger, more people will simply be deeper in debt. We also have not had deflation (i.e. negative inflation) in the past 52 consecutive years. Also, the government’s economic statistics are not credible, because The CPI calculations were modified in year 1983 and 1998 to decrease the weighting on items increasing in price and increase the weighting on items falling in price. Therefore, based on pre-1983 and pre-1998 calculations, inflation is really much higher than what is currently reported.
     
  18. Even many of those that believe more spending and debt is the cure for our massive debt-problem, still admit that the debt is near untenable already. So why grow it bigger and make the debt more untenable?   What economic model or historical precedent supports that course of action, which is completely contrary to most peoples’ idea of common-sense. Since when did the principles of math and the universe suddenly become invalid?
     
  19. If the federal debt actually is tenable, then why is the federal government predicting/planning more federal deficit spending for another 10 years?  Does that sound as if the federal debt is tenable?  No.  It sounds like it is out of control. Besides, the total $12 Trillion of federal debt is only part of the total $57 Trillion nation-wide debt, and that does not even include an estimated $60 Trillion of unfunded liabilities for Medicare and Social Security, or the $62 Trillion of Credit Default Swap/Derivatives bubble.
     
  20. Since when in history did any nation so deep into debt (over 410% larger than GDP) ever solve their debt-problem with more borrowing, debt, money-printing and spending?  How much debt is too much debt?  Total federal debt of $12 Trillion is 80% of GDP and has never large in per-capita. (GDP=$13.86T in year 2007; probably less now with declining GDP, declining tax revenues, and rising unemployment).  Also, consider this.  The federal government already has to spend much of its $2.4 Trillion in annual revenues on other things (see below).  Thus, reducing debt is more difficult. Especially with trillion dollar annual deficits and plans to continue deficit spending for many years to come.

    Federal Spending for year 2008:

    So, where will the money come from to merely pay the interest on so much debt, when that money does not yet exist?

So, for those who do not believe the federal and non-federal debt is untenable:

Pressing Problems Facing the U.S. (growing quickly in number and severity)
CONGRESS' To-Do List (see what Do-Nothing Congress has done since the last election)
10+ Abuses in the U.S. for the past 30+ years
Irresponsible Incumbent Politicians (what irresponsible incumbent politicians do while troops risk life and limb)
Congress Refuses to Call Article V Convention
PROs and CONs (why to stop re-electing irresponsible incumbent politicians)
Interest on the National Debt (it will take 222 years to only pay down 33% of the National Debt)
Debt and Money-Printing (Inflation, Debt, and Excessive Money-Printing?)
Consider the Following Scenario (must we learn the hard way?)
The Environment and Over-Population ; U.S. Population
Solutions ; Help Educate Others (peacefully force government to be responsible and accountable too!)
Badly-Needed, Common-Sense Reforms (that can never be passed until voters make it happen)
The Cheater's Philosophy (learn to recognize the manipulation techniques)
Frequently Asked Questions
   

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